Rural regions in Japan have drawn new interest as relocation destinations since the COVID-19 pandemic. Among them, Shimane Prefecture—traditionally viewed as one of the country’s least populated areas—is seeking to reposition itself by strengthening three core sectors: ironmaking, information technology, and skin-related industries. Governor Tatsuya Maruyama has framed these areas as strategic growth engines for the prefecture’s long-term sustainability.
Steelmaking: Traditional Craft Turned Global Industry
Shimane is home to one of Japan’s oldest ironmaking traditions. The tamahagane steel, once produced by the Tanabe family, local landowners, formed the basis of swordmaking during the Edo period. Demand for the high-grade material helped sustain samurai culture for generations.
Today, the legacy of tamahagane underpins a modern special-steel sector that supplies both domestic manufacturers and overseas markets. The industry accounts for roughly 15% of Shimane’s industrial added value. To accelerate technological development, a major steelmaker established a research facility on the Shimane University campus, appointing an Oxford University specialist as its first director. Local officials expect the collaboration to strengthen Shimane’s positioning within Japan’s high-value materials sector.
IT Strategy Built Around Ruby
Matsue, the prefectural capital, has become an unexpected IT hub. In 2005, concerns grew as the city faced ongoing population outflow to metropolitan areas. To counter the trend, local authorities adopted an industrial strategy centred on Ruby, an open-source programming language created by Matsue-born engineer Yukihiro Matsumoto.
The city facilitated networking spaces for engineers and offered incentives for companies adopting Ruby. As a result, more than 50 IT firms now operate in Matsue. Between 2004 and 2019, sales in the local IT sector grew 2.7-fold, while employment rose 1.7-fold. City officials aim to further expand the industry to secure talent retention and improve regional competitiveness.
Skin-Related Industry Gains Recognition
Shimane has also drawn attention for its favourable conditions for skin health. The prefecture has won the Skin Enhancement Grand Prix, conducted by cosmetics company POLA, five times in eight years. Lower exposure to ultraviolet rays—due to shorter sunlight hours—and high levels of winter humidity contribute to the region’s reputation for healthy skin.
Local policymakers see the demographic appeal, particularly among women, as an opportunity to promote beauty-related industries and expand employment for female workers.
Looking Ahead
By positioning ironmaking, IT, and skin enhancement as strategic pillars, Shimane Prefecture is seeking to build a sustainable regional economy. Whether these measures will be sufficient to counter long-term population decline remains to be seen, but the prefecture’s multi-sector approach has drawn increasing attention from policymakers and industry observers.
Text: Takashi Saito
Special thanks to Dr Ayumi Mishiro (University of St Andrews)