Taiwan and Japan initiated an industrial cooperation policy and incentive measures in 2011. Five Japanese prefectures in the Tokai Region actively communicated and cooperated with Taiwan after 2011. This motivated us first to address the economic and trade ties between Taiwan and Japan. Second, we compared and analyzed effects of the industrial cooperation policy on the five prefectures, their willingness to cooperate with Taiwan, and the topics brought up by the industry cooperation. Main

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... ts indicate that the policy offers positive incentives for industries and enterprises, and the cooperation between enterprises creates mutual benefits. In sum, the bilateral industrial cooperation brings about a win–win situation. With the findings, we make suggestions on future development direction and for the Taiwan–Japan industrial cooperation.