FORWARD This report is the output of the research done by the author in the National Institute of Science and Technology Policy ( NISTEP ) in Tokyo, Japan, during the time from February 1991 until February 1993. Besides providing a general framework of the work undertaken, it also constitutes an early release of results and major findings of the study, while also giving hints on the work still being (and further to be) done on the subject. In doing this, the present report also draws on the following papers; 1. 'Regional Industrial Structures in Japan. Relocating and restructuring the manufacturing sector in the 1960-1990 period. ' (G.Christoloukas, 3rd International Confer. on S&T policy research, Oiso, 3/92). 2. 'Establishing priorities for S&T policies in Regional Development. The case of Japan.' (G.Christoloukas, 7th Annual Confer.of the Japan Society for Science policy , & Research management, Tokyo, 10/92) . 3. Technopolis project. An early evaluation. (G.Christoloukas, 1992 Confer.of the Pan Pacific Association of Input-Output Studies, Tokyo, 11/92) . ACKNOWLEDGMENTS Institutional support is here acknowledged to : -the Japanese Government, which through its Science and Technology Agency (STA) provided the financial support for my research and stay in Japan during the two years of the study. -the National Institute of Science and Technology Policy (NISTEP ) in Tokyo , for hosting me as a researcher, throughout this period. -the DGXII of the European Communities in Brussels , for positively responding to my research proposal , and presenting my application to the Japanese STA. In addition, I am particularly grateful to all the colleagues in the 4th Policy-Oriented Research Group of NISTEP, for their substantial help in overcoming language obstacles, arranging visits and interviews, and supporting the various needs of such a broad research subject. Many thanks also belong to all the people of NISTEP, as well as to all the individuals and institutions which facilitated both my research and stay in Japan. I certainly regret that their names are too many to be noticed separately .