Abstract
Due to the changes in consumer demand and generational transformations, Kyoto's traditional craft industry has suffered substantial revenue losses in recent years. This research aimed to characterize Kyoto's traditional craft industry by analyzing the supplier-customer network involving individual firms within the Kyoto region. In the process, we clarify the community structure, key firms, network topological characteristics, bow-tie structure, robustness, the vulnerability of the supplier-customer network as crucial factors for sustainable growth. The community and bow-tie structure analysis became clear that the traditional craft industry continues to occupy an important position in Kyoto's industrial network. Furthermore, we clarify the relationship between modern and traditional craft industries' network characteristics and their relative profitability and productivity. It became evident that the traditional craft industry has a different network structure from the modern consumer games and electric machinery industries. The modern industries have the strongly coupled component, and the attendant firms there create high value-added and play a significant role in driving the entire industry, while more traditional craft industries, such as the Nishijin silk fabrics and Kyoto doll industries, do not have this strongly coupled component. Moreover, the traditional crafts industry does not have a central firm or a dense network for integrating information, which is presumed to be a factor in the decline of the traditional craft industry.