A creative city planning framework by a private company: Case study of the development of Futako-Tamagawa by Tokyu

Konno, Yukiko; Itoh, Yuki Article A creative city planning framework by a private company: Case study of the development of Futako-Tamagawa by Tokyu Cogent Business & Management Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Konno, Yukiko; Itoh, Yuki (2017) : A creative city planning framework by a private company: Case study of the development of Futako-Tamagawa by Tokyu, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 4, https://doi.org/10.1080/23311975.2016.1270712 This Version is available at: https://hdl.handle.net/10419/205938 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Konno & Itoh, Cogent Business & Management (2017), 4: 1270712 http://dx.doi.org/10.1080/23311975.2016.1270712 MANAGEMENT | RESEARCH ARTICLE A creative city planning framework by a private company: Case study of the development of Futako-Tamagawa by Tokyu Yukiko Konno 1 * and Yuki Itoh 2 Abstract:While most studies of the creative city focus on the policy of government or local government, we study the creative city framework led by a private company. Concretely, we study the creative city planning framework by Tokyu Corporation on the Futako-Tamagawa area in Setagaya Ward in Tokyo. Based on the three “T’s” framework, which was advocated by Florida, we examine how the private company develops a creative city. Moreover, we address how the government and local government support it. Thereby, we reveal the actual conditions of the private company work on the creative city and suggest a private company strategy and a governmental measure of urban development. Subjects:Urban Studies; Cities & Infrastructure; Urban Economics; Business, Management and Accounting Keywords: creative city planning; creative class; redevelopment 1. Introduction Recently, there have been serious problems such as decrease in population and a hollowing out of the industry in Japan. As a countermeasure for these problems, urban planning is being explored and a creative city planning framework is being focused upon. Florida (2005a, 2005b) points out that a creative city able to gather talents can create new values and become a source of innovation. He also argues that the innovation caused by the creative city leads to the economic and social development of a region. In Japan, a creative city planning framework is being promoted. The city of Yokohama established “the creative city promotion division”; the city of Osaka established “the creativity of art and culture and tourism promotion action plan of the city of Osaka” and the city of Kobe developed a “declaration on the creative culture city of Kobe.” These are cases where local governments have worked to *Corresponding author: Yukiko Konno, Institute of Innovation Research, Hitotsubashi University, 2-1 Naka, Kunitachi, Tokyo 186-8603, Japan E-mail: konno.[email protected] Reviewing editor: Tahir Nisar, University of Southampton, UK Additional information is available at the end of the article ABOUT THE AUTHORS Yukiko Konno is an assistant professor at the Institute of Innovation Research, Hitotsubashi University. Her research interests include credit risk management, financial management, and quantitative analysis of company activities. Yuki Itoh is an associate professor at the Graduate School of Social Science, Yokohama National University. His research interests include credit risk management and quantitative risk management. PUBLIC INTEREST STATEMENT The creative city planning frameworks is one of the popular frameworks to planning the cities. In most cases, government or local governments lead city planning. In this study, we investigate the creative city planning frameworks in Japan which is led by private company. This study indicates what is important when constructing a creative city. It contributes not only to the proper planning of the corporate strategy to the private company when performing urban development, but also to policymakers engaged in administration. Received: 13 October 2016 Accepted: 03 December 2016 Published: 03 January 2017 © 2017 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license. Page 1 of 13 Page 2 of 13 Konno & Itoh, Cogent Business & Management (2017), 4: 1270712 http://dx.doi.org/10.1080/23311975.2016.1270712 revitalize the local area and such instances are increasing. On the one hand, cases in which private companies work on the creative city planning framework are rare and seldom studied. We explore this in detail in Section 2. In this study, we examine urban development by a private company in Japan by descriptive study. Concretely, we study the creative city planning framework on Futako-Tamagawa area in Setagaya Ward in Tokyo by Tokyu Corporation, a major private railway company in Japan. Based on “the three T’s framework” advocated by Florida (2005a, 2005b), we examine how the private company develops a creative city. Moreover, we research how the government and local government support it. Thereby, we reveal the actual conditions of private company work on the creative city and suggest a private company strategy and a governmental measure of urban development. 2. Literature In this section, to discuss the creative city, we summarize the connections between the city, innovation and creative classes. Moreover, we introduce studies on creative city planning frameworks in Japan. 2.1. Studies on the connection between cities and innovation Schumpeter (1934) insisted that economic development is defined such that only changes in economic life as are not forced upon it from without but rather arise by its own initiative from within. Schumpeter (1934) noted that innovation appears discontinuously and that, consequently, the phenomenon characterizing development emerges. Also, Jacobs (1970) points out that the innovating economies expand and develop whereas economies that do not add new kinds of goods and service, but continue only to repeat old works, do not expand much or develop. As the driving force of this economic growth and innovation, Florida (2002) indicates that the presence of such high human capital individuals in a region in turn attracts and generates innovative technology-based industries. Discussing the relationship between the city and the human capital, Knudsen, Stolarick, and Florida (2005) indicate that the creative milieu which consists of artists, musicians, and other creative people, increases creativity and innovation by providing stimulus and inspiration. Moreover, Knudsen et al. (2005) note that the role of dense cities is to compact these people into a space in which interactions and spillovers can occur. Musil (2011) analyses the real estate development and community interaction aspects of US shopping malls and indicates that communities stimulate development and rehabilitation of adjacent areas. Glaeser (2011) asserts that cities force people to swarm and be near and provides the opportunity for interaction and the combination of ideas with technology. This allows for new ideas and innovation to be created. Also, Glaeser (2011) insists that people should know the function of amenity of cities and the success factors of consumer cities to understand the reason behind cities continuing to prosper in the future. In this context, Lloyd (2002) mentions that cities concentrate diversity and create unique opportunities for cultural production. Moreover, Lloyd and Clark (2001) explain that the city becomes an Entertainment Machine, leveraging culture to enhance its economic development. The Entertainment Machine is characterized by the presence of restaurants, shops and other cultural facilities. Studying specialty coffee bars in Amsterdam (2016) suggests a positive correlation between urban areas involved in the cognitive cultural economy and the new urban consumption spaces. In this way, the creative environment is essential to create innovation. For this purpose, it is pointed out that it is necessary for cities to focus, in order to concentrate diversity and offer cultural services. In this study, based on the situation in Japan, we examine how urban development is performed to create innovation within the city. 2.2. Creative class Florida (2005a, 2005b) advocates the Creative Class, defined as creative people and also summarizes systematically the conditions in which cities gather these people. We summarize Florida’s theory below. Page 3 of 13 Konno & Itoh, Cogent Business & Management (2017), 4: 1270712 http://dx.doi.org/10.1080/23311975.2016.1270712 The distinguishing characteristic of the Creative Class is that its members engage in works whose function is to create meaningful new forms of innovation. The super-creative core of this new class includes scientists and engineers, university professors, poets and novelists, artists, entertainers, actors, designers and architects, as well as the thought leadership of modern society: nonfiction writers, editors, cultural figures, think-tank researchers, analysts and other opinion-makers. Members of this super-creative core produce new forms or designs that are readily transferable and broadly useful. Beyond this core group, the Creative Class also includes creative professionals who work in a wide range of knowledge-intensive industries such as high-tech sectors, financial services, the legal and health care professions and business management. These people engage in creative problemsolving, drawing on complex bodies of knowledge in seeking innovative solutions. Florida (2005a, 2005b) also insists that the members of the Creative Class take root in places that possess Technology, Talent, and Tolerance (the three T’s of economic development). Each is a necessity, but by itself an insufficient condition. To attract creative people, generate innovation, and stimulate economic development, a place must have all three. Technology is a function of both innovation and high technology concentration in a region. Talent is defined as that which those with a bachelor’s degree and above possess. Tolerance is defined as openness, inclusiveness, and diversity to all ethnicities, races, and walks of life. In this study, we consider the cases of the creative city planning framework performed by a private company in Japan under Florida’s three T’s framework of economic development. In this study, we consider the cases of creative city planning framework by performed a private company in Japan under Florida’s three T’s framework of economic development. 2.3. Study of creative city planning frameworks in Japan In this subsection, we summarize studies on the creative city planning framework in Japan. Kakiuchi (2016) mentions that the creative city concept was introduced as an urban planning tool with the potential to alleviate social and economic problems related to cities in Japan. Kakiuchi (2016) examines Kanazawa city in Japan and indicates that the traditional craft industries helped to increase the attractiveness of the city. Similarly, Sasaki (2010) examined Kanazawa city and indicates that it is necessary for the creative city to be a culture-based production system, incorporating the well-balanced system of cultural production and cultural consumption that takes advantage of accumulated cultural capital. Ogawa (2010) examines the effectiveness of the creative city planning framework of Yokohama city in Tokyo and found that local government led a development that involved changing industrial cities into artistic and cultural cities and planned for their revitalization using an urban regeneration plan. Similarly, Egami (2002) examined Yokohama City and insisted that problem of the city planning framework is that not connecting from urban to the suburbs is limited merely by the policy of the local government. Moreover, Sasajima (2013) examined the redeveloped urban spaces in Yokohama city in Japan and indicated that creative city projects created artistic spaces, but were nonetheless homogenous and sanitized rather than being diverse and reciprocal. Furthermore, Koizumi (2016) examined the social roles of creativity in a shrinking society, using the case study of the Water and Land Niigata Art Festival. Koizumi (2016) mentions that Art Projects provide strong connections with community revitalization in a shrinking society and that citizen’s creativity plays a significant role, not just the creativity of the “creative class,” such as artists through those processes. Patel and Vlamis (2006) indicate that the Art Cafe in Senba, Osaka, as an example of urban regeneration through culture and the arts, makes a contribution to the reconstruction of the urban community. Page 4 of 13 Konno & Itoh, Cogent Business & Management (2017), 4: 1270712 http://dx.doi.org/10.1080/23311975.2016.1270712 As we have seen above, most studies of the creative city planning frameworks focus on art and culture through tourism resources and policies designed by local government. In this study, from a business point of view, we focus on a creative city planning framework developed by a private company. 3. A creative city planning framework in Futako-Tamagawa In this section, we explain Tokyu, the creative city planning framework in Futako-Tamagawa which Tokyu pushed ahead with. We also discuss the reason Futako-Tamagawa was selected as a model area. 3.1. Tokyu Tokyu is a major railway company and has the railway line in the southwest area of Tokyo and the eastward area of the Kanagawa prefecture. From the financial statements of Tokyu, consolidated sales of Tokyu in the fiscal year 2015 amounted to 1,091 billion yen. The core business of Tokyu is the railway, but other businesses have developed alongside. Looking at the breakdown of the consolidated operating revenue of Tokyu (see Table 1), it can be seen that life service business accounts such as department stores, chain stores, and shopping centers account for approximately half of these businesses, while the transportation business including the railway accounts for about 18%. However, the operation profits of transportation and real estate are about 40% and that of life service is only about 18%. In the background, Tokyu has worked on urban development combined with the building of railways, the opening of commercial institutions and the supplying of housing. A typical case is the Tokyu Den-en-toshi development along Tokyu railway line. Tokyu Den-en-toshi is located in the southwest of Tokyo, 15–35 km out from the center of Tokyo. The total area of this development is about 5,000 ha and it is one of the biggest urban developments that have been led by a private company. Tokyu adopted the land rezoning project system which is designed to rezone and make better use of land through establishment and improvement of public facilities such as roads, parks, and riversides. Tokyu established the railway as a residential environment which balanced nature with a well-proportioned streetscape. This has allowed the railway, which runs along Tokyu Den-entoshi, to be recognized as the major line connecting the center of Tokyo and lush greenery and quiet residential area. As a result, Tokyu succeeded in increasing the population in Tokyu Den-en-toshi from 20 thousand to 600 thousand among 60 years from its developmental starting point. For details of this development, refer to Shinkenchiku-Sha (2013a). Figure 1 shows the organizational chart of Tokyu.1 With reference to the development of the city, the city creation headquarters have exerted strong leadership both consistent policy and integrated Table 1. The operation revenue (OR), operating profit (OP), and its share of each segment in fiscal year 2015 Note: The units of OR and OP are million yen. Source: The data is sourced from the financial statements of Tokyu. Operating revenue Operating profit Share of OR (%) Share of OP (%) Transportation 200,593 29,279 18.4 38.8 Real estate 199,018 28,093 18.2 37.2 Life service 644,127 13,438 59.0 17.8 Hotel and resort 103,859 4,488 9.5 5.9 Elimination of inter-segment transactions − 56,141 181 − 5.1 0.2 Total 1,091,455 75,480 100.0 100.0 Page 5 of 13 Konno & Itoh, Cogent Business & Management (2017), 4: 1270712 http://dx.doi.org/10.1080/23311975.2016.1270712 administration in developing the area after initial development. The life creation headquarters and transportation business headquarters support their efforts. In this way, the organization of Tokyu is optimized for development and Tokyu has a strong leadership in its development of cities. 3.2. A creative city planning framework Recently, Tokyu held up as “the best in Japan” and developed its business as a new urban development. Concretely, Tokyu planned to change Shibuya to an entertainment city which is observed with interest by the rest of the world and change Futako-Tamagawa to a creative city which gathers office workers. As a result, Tokyu try to realize its ambition of being “Tokyu railway line, which is the best railway line that Japan people want to live along, Shibuya where the best place in Japan people want to visit in and Futako-Tamagawa where the best place in Japan people want to work at.” Toward achieving these goals, Tokyu has taken the lead in establishing the enterprise association as a “Creative City Consortium” which tries to create urban environments to accumulate creative industries to Futako-Tamagawa (Creative City Consortium, 2015). The executive committee members of the Creative City Consortium include Tokyu Corporation, Culture Convenience Club Co., Ltd. Kokuyo Co., Ltd., Dai Nippon Printing Co., Ltd., Nikken Sekkei and Mitsubishi Research Institute, Inc. The purpose of these works is to develop Futako-Tamagawa as a next generation business city in which people can choose a new working style, a cooperating office area in Shibuya and in the center of Tokyo and residential area around Futako-Tamagawa. If Tokyu succeeds in the invitation of enterprises, it will obtain profit not only via rental arrangements from offices but also by offering railway services as a means of worker’s transportation by supplying worker’s housing and by offering consumer services such as retail stores and restaurants. As we have explained, because Tokyu has run a broad type of business, it has comprehensive business chances by a creative city planning framework. 3.3. Futako-Tamagawa We consider the reason why Tokyu chose Futako-Tamagawa as a model area for a creative city planning framework. First of all, Futako-Tamagawa is derived from “Futako-no-watashi” which is a ferry Figure 1. The organization chart of Tokyu. Page 6 of 13 Konno & Itoh, Cogent Business & Management (2017), 4: 1270712 http://dx.doi.org/10.1080/23311975.2016.1270712 on the Tama River from the Edo period. In 1907, Tamagawa Electric Railway was opened and the end of this line is Tamagawa station (currently Futako-Tamagawa Station). At the time, the main purpose of this line was the transportation of pebbles to the center of Tokyo which were later taken riverside of Tama River to be used as building materials. In 1934, taking the pebbles of Tama River was prohibited and the Tamagawa Electric Railway was changed, becoming a passenger transportation business. The first suburban shopping center in Japan, Tamagawa Takashimaya SC, was opened in 1969, with Futako-Tamagawa being changed into a commercial area. From 1922 to 1944, 1954 to 1985, and 1992 to 2000, there was an amusement park on the east side of Futako-Tamagawa Station. The recent redevelopment of Futako-Tamagawa was based on the former site of it and is called FutakoTamagawa Rise. For details of the history of Futako-Tamagawa (see Shinkenchiku-Sha, 2013a, 2013b). Recently, the area connecting Futako-Tamagawa, Shibuya and Jiyugaoka has been called the “Platina triangle” and forms a large consumption market (see Figure 2). In this area, the percentage of highly educated people is over 30% (the average for Tokyo prefecture is 25% and the average for Japan is 7%).2 This trend existed before Futako-Tamagawa was selected as the model area. From the above-mentioned considerations, Futako-Tamagawa was seen as satisfying “talent” in the three T’s of economic development advocated by Florida (2005a, 2005b). Moreover, the reason Futako-Tamagawa was chosen rather than Shibuya and Jiyugaoka in the platinum triangle is that it has a rich natural environment such as the Tama River while also having room for the building of new office buildings and residences through redevelopment to accept population inflow. In fact, the use of natural environments, such as Tama River and redevelopment, has contributed to realizing the creative city planning framework. We examine this commitment of Tokyu in the Section 4. 4. Realization to creative city in Futako-Tamagawa In this section, we examine the commitment of Tokyu to realize the creative city involving enterprise association, such as the creative city consortium and administrative office under Florida’s three T’s of economic development frameworks. Figure 2. The Platinum Triangle. Source: The source of the original map data is Google and ZENRIN. Page 7 of 13 Konno & Itoh, Cogent Business & Management (2017), 4: 1270712 http://dx.doi.org/10.1080/23311975.2016.1270712 4.1. Technology To improve “Technology: a function of both innovation and high technology concentrations in a region” in the three T’s of economic development, the following implementation measures were introduced. First of all, Tokyu constructed a shopping center, residence, and business office. Concretely, in 2010 Tokyu built a new commercial facility, Futako-Tamagawa Rise Oak Mall and FutakoTamagawa Rise Birds Mall and completed a new condominium, Futako-Tamagawa Rise Tower and Residence. Moreover, in 2011, it constructed a large shopping center in two buildings, including Futako-Tamagawa Rise Shopping center (1st stage) and a new commercial facility, FutakoTamagawa Rise Dogwood Plaza and an office building, Futako-Tamagawa Rise Office. It has become a complex facility including not only shops and restraints but also the branch office of Setagaya ward and, finally, a post office, nursery school and clinic. The number of visitors to the FutakoTamagawa Rise in 2013 is 18.29 million and rose, in 2014, is 19.16 million. Tokyu became an owner of the floor in Futako-Tamagawa Rise Office and opened “Catalyst BA” which is a studio and collaborating workplace. The purpose of Catalyst BA is to provide a connection point between people and information and that of the knowledge studio which creates the new values and also plays the role of incubator for the realization of the value. Now, Catalyst BA is the base for the creative city consortium. Moreover, Catalyst BA performs not only actively with respect to its consortium members but Figure 3. Signboard notifying the experiment area of the boarding type mobile support robot. Figure 4. The experiment area of the boarding type mobile support robot. Page 8 of 13 Konno & Itoh, Cogent Business & Management (2017), 4: 1270712 http://dx.doi.org/10.1080/23311975.2016.1270712 also interacts actively among community residents, creators, and innovators in order to accelerate innovations that are unlikely to occur from the inside. The project “Cuomo” of the creative city consortium influenced the realization of driving Segway on a public road, which is the first deregulation by the private company’s initiative (see Figures 3 and 4). In 2016, Tokyu and Segway JAPAN started “Segway tour in Futako-Tamagawa” with the cooperation of the Traffic environment purification promotion council and Setagaya Ward. In the tour, participants travelled the 5.6 km course including public roads (sidewalks), parks, and riverbeds. This program is a part of the evaluation of the next generation compact city which requires small mobility robots such as Segway. Another feature of this project is the use of the Corporate Field Exception Tests System based on the Industrial Competitiveness Enhancement Act.3 If the regulations prevent the realization of the business idea of a company, then The Corporate Field Exception Tests System admit the exception for each company with a condition such as safety assurance. From the result of the “Public road experiment in Tsukuba mobility robot special district”, this project is applied in The Corporate Field Exception Tests System and can be managed by private corporations. In this way, Tokyu can be committed to the next generation urban development with new technology accompanying deregulation by the policy-maker. 4.2. Talent As mentioned above, Futako-Tamagawa had already satisfied “Talent: those with a bachelor’s degree and above” in the three T’s of economic development via the existence of the platinum triangle connecting Futako-Tamagawa, Shibuya, and Jiyugaoka. Moreover, in 2015, Tokyu constructed a new shopping center in two buildings, namely FutakoTamagawa Rise Shopping Center (2nd stage) and an office building, Futako-Tamagawa Rise Tower Office. The conventional urban developments by railway companies are mainly limited to individuals Figure 5. Major artistic and cultural facilities in 23 wards of Tokyo. Notes: Blue circles represent major Performance Halls, red circles represent major Museums, purple circles represent Noh theatres, green circles represent member gardens of the Council of Japanese Gardens in Tokyo on Omotenashi and pink circles represent Universities with related departments. Source: The source of this figure is Tokyo Metropolitan Government (1934).