The cities of Japan are an exceptionalsource of learning on competitiveness of cities. They haverecovered from disaster, dealt with population influx,industrialized at a rapid pace, responded to environmentalchallenge, reached the technological frontier, undergone ahousing bubble and its collapse, and reconstruction followedby the natural disasters. Today, they face threats ofdemographic and technological change that are far fromunique to the developed world. The Kobe Case highlightsimportant lessons both on reconstruction of the city after adevastating earthquake devising ambitious new designs fordevastated areas and building a life sciences cluster inmodern era. This research was prepared by the TokyoDevelopment Learning Center (TDLC) under the auspices of theSocial, Urban, Rural, and Resilience Global of the WorldBank Group. Its objective is to create a knowledge base onwhat makes cities competitive, understand job creation atthe city level, and capture the unique developmentexperience of Japan for broad dissemination to developmentpractitioners, government officials, academia and theprivate sector. The team would like to gratefullyacknowledge the Government of Japan and its continuedsupport of the Tokyo Development Learning Center (TDLC) program.