As the world moves towards a knowledge economy and society, many places are striving to cultivate or introduce universities and research-based organizations to promote urban and regional development. In China, Shenzhen, Hangzhou, and Suzhou have been particularly prominent in recent years. Nearly forty years ago, Kitakyushu City in Japan underwent similar efforts during its transformation and upgrading, resulting in the Asian Growth Institute, an organizational platform based in the local city that spans East and West, influences Asia, and connects renowned universities and research institutions in the United States and Japan.
The full article is divided into four parts: 1. An Introduction to the Asian Growth Institute (AGI), based in Kitakyushu City; 2. The Founding of the AGI: The Intersection of Geographical and Academic Connections; 3. The Development of the AGI Since Its Establishment; 4. A Summary and Outlook of the AGI's Development. The article also includes profiles of former Mayor Koichi Sueyoshi of Kitakyushu City ; prominent scholars and directors of the institute, Eiichi Isomura , Masahisa Fujita , and Tatsuo Hatta ; Walter Isard , the founder of regional science and spatial economics ; and the Wharton School of the University of Pennsylvania.
The lessons learned from the development case of the "Asian Growth Institute" in Kitakyushu include: 1. How can a small city win a large global network? "Academics are a public tool for the world." An international "think tank" organizational platform can "use the virtual to control the real" and expand the city's intellectual assets and cultural wealth; 2. The combination of geographical, academic and industrial connections promotes the triple helix interaction between industry, universities and cities; 3. Cross-border and geographical boundaries to achieve diversified organizational connections, transcend the limitations of localization, and realize global localization .
An important reference for this article is the article "Anecdotes from the Founding Period of the International Center for East Asian Studies (ICSEAD) - An Interlude of the Founder of ICSEAD" by Mr. Masahisa Fujita, Professor Emeritus of Kyoto University and Honorary Director of the Institute of Asian Growth and Development.
Follow-up work: 1. Introduction and analysis of Kitakyushu; 2. The "achievements" and "influence" of the Asian Growth Institute, a key link between the world and Asia; 3. Funding sources and governance structure (small organization, big impact; small investment, big output; the entrepreneurial spirit of research-based organizations); 4. The organization and impact of the Asian Growth Institute's activities in recent years.
1. About the Asian Growth Institute (AGI) in Kitakyushu City
On September 1, 1989, the Asian Growth Institute (AGI) was established with the support of Kitakyushu City, Fukuoka Prefecture, and the business community, including the Japan Business Federation, to conduct research on the economic and social development of East Asia . Prior to October 1, 2014 , the AGI's predecessor was the International Center for East Asian Studies (ICSEAD).
Currently, AGI has 10 doctoral researchers, with nationalities ranging from the United States to China and Vietnam , and many researchers from Asian countries visit regularly.
During the railway era , Kitakyushu was the gateway to Kyushu. Since the advent of aviation, Fukuoka, with its excellent airport, has become Kyushu's gateway. Consequently, large corporations have begun to locate branches in Fukuoka rather than Kitakyushu. However, in recent years, Kitakyushu has opened an airport capable of handling large aircraft 24/7. If the runway is expanded, flights from Europe and the United States to Fukuoka will become possible. This makes Kitakyushu a prime starting point for overcoming this disadvantage.
Kitakyushu's rapid development is driven by its cultural and natural resources, particularly its proximity to Asia. Leveraging its experience in overcoming some of Japan's most severe industrial pollution, Kitakyushu City has been providing environmental training to civil servants from emerging Asian countries who visit the JICA Kyushu Training Center for over 30 years. The network of talent cultivated there is a valuable asset for Kitakyushu.
Furthermore, large companies in Kitakyushu have begun sourcing parts from South Korea at significantly lower costs through seamless logistics, with container trucks departing from South Korea and heading directly to Japanese cities. Furthermore, Kitakyushu Airport, with its 24-hour access, has opened up new possibilities for cargo transportation with Asia.
Even before the Asian boom, Kitakyushu established the Asian Growth Research Institute , actively conducting research on Asian development in the region and cultivating a network of Asian social science researchers. This close connection with Asia is becoming a catalyst for Kitakyushu's development in the Asian era.
has made significant contributions to the development of Kitakyushu, directly and indirectly, by fulfilling the following responsibilities : (1) Academically exploring how to further apply the Kitakyushu urban development model to Asian countries.(2) Actively introduce to Japan the advanced examples of Asian countries, including South Korea, that have established socioeconomic systems superior to Japan's. (3) Disseminate Japan's numerous policy successes and failures in its economic growth process that are consistent with the development process of Asian countries and apply them to the future development of Asian countries. By fulfilling the above responsibilities, the Asian Growth Institute has attracted the attention of more Asian research institutions and government agencies to its activities, thereby strengthening its network.
II. The Founding of the Asian Growth Institute: The Intersection of Geographical and Academic Connections
The Asian Growth Institute was originally a joint research institute established by Kitakyushu City and the renowned American university, the University of Pennsylvania. How did this trans-Pacific collaboration and connection come about? The origins of this connection lie in the 1987 Kitakyushu mayoral election. Mayor Sueyoshi, then Japan's youngest mayor, proposed the Kitakyushu Revitalization Vision during his campaign. His vision envisioned transforming Kitakyushu from a coal and steel-based city into a city centered on cutting-edge industries such as electronics, semiconductors, automobiles, and ceramics, ultimately establishing Kitakyushu as a hub in East Asia for cultivating talent for the new era.
As a key component of this strategic approach, Mr. Sueyoshi proposed an election platform to bring renowned international universities to Kitakyushu. In 1987, after becoming mayor, Mr. Sueyoshi proposed a plan to bring the Wharton School of the University of Pennsylvania to Kitakyushu and establish a branch campus, fulfilling his campaign promise.
Why the Wharton School of the University of Pennsylvania? A fundamental reason for this decision is that, starting in the late 1960s and continuing into the 1980s, major Japanese companies sent a large number of international students to the Wharton School of the University of Pennsylvania to cultivate global business talent. Furthermore, the choice of the Wharton School of the University of Pennsylvania was linked to prominent historical figures in Kitakyushu's industrial sector. This key historical connection is Kenjiro Matsumoto, born in Fukuoka in 1870. He was the second son of the founder of the Yasukawa Group, a coal mining company centered in Kitakyushu. He studied at the Wharton School in 1891 and graduated in 1894. Upon returning from his studies, he and his father founded the Meiji Junior College, the forerunner of Kyushu Institute of Technology, dedicated to training engineers. Thus, Kitakyushu's industrial sector has a long-standing connection with the Wharton School of the University of Pennsylvania.
In 1987, shortly after assuming the office of mayor, Mr. Sueyoshi visited the University of Pennsylvania to initiate negotiations for the establishment of a Wharton branch campus in Kitakyushu. Mr. Sueyoshi and Professor Eiichi Isomura, former president of Toyo University, led the Kitakyushu delegation, while the key figures on the University of Pennsylvania side were Professor Martin Meyerson, president emeritus, whose research focuses on urban planning and community development, and Professor Lawrence R. Klein, a 1971 Nobel Laureate in Economics, of the Wharton School. These four key individuals from both sides gathered to discuss the establishment.
In 1988, the four core members resumed negotiations at the University of Pennsylvania. Two key figures joined the preparatory process: Professor Masahisa Fujita, then a professor in the Department of Regional Science at the University of Pennsylvania, and Professor Tatsuhiko Kawashima of the Faculty of Economics at Gakushuin University. Kawashima pursued his doctorate in the Department of Regional Science at the University of Pennsylvania from 1967 to 1971, becoming the first Japanese national to receive a doctorate there in 1971. For the next two years, Kawashima served as a teaching assistant, developing close relationships with Professor Klein and President Myason. Upon returning to Japan in 1974, Kawashima was appointed Professor of Economics at Gakushuin University, where he developed a close friendship with Professor Isomura through their research on urban policy. Meanwhile, Professor Masahisa Fujita pursued his doctorate at the University of Pennsylvania from 1968 to 1972 and served as an associate professor and then a full professor in the Department of Regional Science from 1976. At the University of Pennsylvania, Mr. Masahisa Fujita has very close ties with Professor Klein and President Emeritus Meyerson on the research of spatial economics.
by Mayor Sueyoshi, Professor Isomura, President Emeritus Meyerson , and Professor Klein, it became clear that achieving this goal would be difficult. Establishing a branch campus in Kitakyushu City on par with the Wharton School of the University of Pennsylvania would require substantial funding, a world-class faculty, and high tuition fees—all of which Kitakyushu City struggled to meet. Therefore, Kitakyushu City and the University of Pennsylvania decided to establish a specialized institution to conduct research on East Asian economic and social development, with the establishment of a branch campus as a future goal.
III. Development of the Asian Growth Institute since its establishment
At the end of 1988, Kitakyushu City and the University of Pennsylvania reached a preliminary agreement to establish a specialized institution. In April 1989, a final agreement was reached to establish the International Center for East Asian Studies (ICSEAD), which was grandly unveiled at the University of Pennsylvania. On September 1, 1989, the ICSEAD was officially established in Kitakyushu City, with Mr. Isomura serving as its first director. The ICSEAD was the first joint research institution between a Japanese local government and a renowned American university.
At its inception, the Institute launched three research projects: (1) East Asian Economic and Social Database and Model (Joint Research on LINK), with Professor Gerald Drayson Adams and Professor Klein from the University of Pennsylvania as principal investigators and special investigators respectively; (2) Urbanization and Community Transformation in East Asia, with Professor Isomura and Professor Kaoru Shiraishi from Kitakyushu City University as principal investigators; and (3) Directions for Economic and Social Development and Ideal Cooperation in the Yellow Sea Region, with Professor Akira Nishimura from Kyushu University and Professor Toshio Watanabe from Tokyo Institute of Technology as principal investigators.
At the founding of ICSEAD, Mayor Sueyoshi stated, "Our primary goal is to conduct world-class academic research on East Asian economies and societies, and to build upon this research to contribute to the development of Kitakyushu, Kyushu, and Japan." ICSEAD's operating funds are primarily covered by Kitakyushu's city budget, a feat considered truly remarkable. ICSEAD's founding principles continue to this day, driven by the deep understanding, strong connections, and unwavering support of Kitakyushu's citizens and the Japanese economic academic community.
During Isomura's tenure as director (1989-1995), at least one member of the University of Pennsylvania economics faculty was assigned to ICSEAD in Kitakyushu City each year. These assigned researchers supported research activities within the Connectivity Project and also orchestrated collaborations between the University of Pennsylvania and Kitakyushu City. During the first assigned researcher's time in Kitakyushu, Fukuoka City and Kitakyushu City provided support for the education of his two children and his own personal well-being.
In 1990, the second year after ICSEAD was established, Professor Fujita and his family, along with two doctoral students from the University of Pennsylvania, resided in Kokura, Kitakyushu, while conducting research at ICSEAD. During this time, Professor Fujita conducted field research at semiconductor factories in Kyushu, visited the headquarters of major companies in the electrical and automotive industries in Japan and South Korea, and investigated global supply chains within these industries. He also surveyed and compiled data on changes in cities and regions in major Asian countries, developing a regional econometric model system specific to Japan. By 1991, he had completed and submitted the research report "Structural Changes in the World Economy and Urban and Regional Issues in East Asia." After 1992, Professor Fujita began collaborating with Paul Krugman on spatial economics .
IV. Summary and Outlook of the Development Stage of the Asian Growth Institute
Professor Masahisa Fujita compared ICSEAD's recent AGI development process to a "three-stage rocket launch," focusing on its relationship with the University of Pennsylvania.
Phase I: The Dawn of ICSEAD (1989-1995): During this period, under the leadership of its first director, Eiichi Isomura, ICSEAD was jointly established by Kitakyushu City and the University of Pennsylvania and began research activities.
Phase II: ICSEAD's Development and Self-reliance (1995-2013). During this period, under the leadership of three successive presidents, ICSEAD dedicated itself to building an organizational system for world-class research. All full-time researchers at ICSEAD held doctoral degrees or were required to obtain them. While achieving high-level research results, ICSEAD actively engaged in policy research that contributed to the economic and social development of Kitakyushu and Japan, leveraging its academic research. However, during this period, the relationship with the University of Pennsylvania gradually weakened. In 1998, one of the three projects, the "East Asian Economic and Social Database and Model" (a joint research project related to the LINK), was completed. However, due to the financial constraints of Kitakyushu City during the recession of the bubble economy, it was difficult to secure sufficient funding for joint research. To replace the joint research under the LINK relationship, the "Kitakyushu Wharton Executive Program" business seminar was held jointly with the Wharton School from 1998 to 2007.
At the same time, ICSEAD's research focus shifted from its original three research projects to the following two: "Urbanization and Community Transformation in East Asia" and "Ideal Models for Economic and Social Development and Cooperation in the Yellow Sea Region." ICSEAD's research activities gradually became independent from the University of Pennsylvania.
Phase III: Renamed AGI and Subsequent Development (2014-Present). ICSEAD's research activities gradually became independent from the University of Pennsylvania. Under the leadership of Tatsuo Hatta (2013-2022) and Erbiao Dai (2022-Present), it steadily developed into a world-class Asian research institute. First, in October 2014, the International Center for East Asian Studies (ICSEAD) was renamed the Asian Growth Institute (AGI). Simultaneously, the title "Joint Institute of the University of Pennsylvania's International Center for East Asian Studies" at the bottom of the cover of the public relations magazine East Asia Perspectives was changed to "AGI Asian Growth Institute." This name change reflected the expansion of the research area from East Asia to the entire Asia, including India. Because Professor Martin Meyerson, President Emeritus of the University of Pennsylvania, and Professor Lawrence R. Klein of the Wharton School, who played key roles in ICSEAD's founding, passed away in 2007 and 2013, respectively, the University of Pennsylvania's Department of Economics has since neglected research on Asian economic and social issues.
Professor Masahisa Fujita concluded that without the launch of the first and second stages, the third stage wouldn't have reached orbit. From its founding until 2013, AGI wouldn't have been possible without the collaborative efforts of the University of Pennsylvania and Kitakyushu City. He expressed hope that AGI, as a representative Asian academic research institution focused on local communities, would continue to grow and achieve world-class research results.