Stanford University

Information Technology

Industrial Policy Reconsidered in a Digital World

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In our current era, the advent of digital technologies and accelerating globalization is driving ever-faster commoditization of firms and products.  With rapidly improving Information and Communications Technology (ICT) tools, manufacturing is decomposed with finer granularity, and corporate functions can be outsourced and offshored more than ever before.  Services can be unbundled into activities that can be taken apart, reconfigured, and transformed with the application of algorithms.  Overall, firms are experiencing accelerating shifts in the sweet-spot for markets and business models in their search for sustainable advantage.

As firms struggle to adjust in this global, digital world, governments are also under pressure to examine their options to retain value in their national contexts; wealthy nations face the challenge of how to remain wealthy.

Japan is no exception, and from this vantage it is worth reconsidering the potential role that industrial policy can play in its growth strategy.  We will proceed in three sections, each of which builds from our previous research (indicated below the title), towards a set of recommendations for thinking about industrial policy in this digital, global era.  Each point contributes something new to Japan’s discourse about a new growth strategy.

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Japan Spotlight
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Kenji E. Kushida
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Care Coordination Measures Project

This project focuses on identifying, evaluating, and developing measures of care coordination activities. Care coordination is the process of connecting the many different participants in a patient’s care – including the patient and any informal caregivers – to ensure that the right people have the right information at the right time so that patients receive high-quality, high-value, patient-centered care.

Tracking North Korean nuclear sites with cloud computing

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Analysts at CISAC, together with the James Martin Center for Nonproliferation Studies, are playing a leading role in deriving new and timely information of global security relevance from a variety of open-source geospatial tools. These include digital virtual globes like Google Earth together with satellite imagery available from commercial vendors via cloud computing. This article describes some discoveries, by CISAC researchers and others, which have recently become possible through the use of such tools.

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Stanford conference to explore right to information and technology

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A global movement has been underway to use innovative technology platforms to record, store, process, and disseminate public information to advance transparency and accountability. A multitude of actors in government, civil society, and academia have been pioneering innovations to increase citizen engagement and democratic practices worldwide.

On March 11-12, the Program on Liberation Technology at Stanford's Center on Democracy, Development and the Rule of Law (CDDRL) is convening a conference to examine these digital tools and their impact on the development of democratic development. Hosted in partnership with U.C. Berkeley’s Data and Democracy Initiative, the two-day conference will bring together academics, practitioners, and policy-makers to examine the theoretical and practical implications of the right to information, transparency, and governance.

Speakers include former Chief Technology Officer of the Icelandic Constitutional Council, Finnur Magnusson, who will share how Iceland’s public participated in the drafting of a new draft constitution through a crowd-sourcing event on Facebook and Twitter. Twenty-five citizens were elected to be part of a council that formulated the draft constitution. Last year, the council delivered the world’s first “crowd-sourced constitution” that included progressive legal reforms for government transparency, human rights, and civic participation.

Representing the City of San Francisco, Deputy Innovation Officer Shannon Spanhake will be discussing the Open Innovation Program. Led by Mayor Edwin M. Lee, the Open Innovation Program enables job creation, citizen engagement, and government efficiency. Last year the program introduced the Improve SF Campaign to encourage the local community to address civic challenges through an online platform. Spanhake will speak about this initiative on a panel devoted to innovations in civic participation with panelists hailing from U.S. and Canadian city governments.

One of the nation’s leading advocates for open government, John Wonderlich of the Sunlight Foundation, will address his work on increasing transparency in the U.S. government, from legislation and accountability in Congress to ethics and information policy in the executive branch. Academic speakers include: Jeremy M. Weinstein, associate professor of political science at Stanford University; Guy Grossman, assistant professor of political science at the University of Pennsylvania; Helene Landemore, assistant professor of political science at Yale University; and Daniel Posner, professor of political science at MIT, among others.

Thirty-five speakers will present their papers and initiatives in short plenary sessions and the afternoon will be spent in workshop sessions where participants will have the opportunity to propose a theme of their choice to explore within the right to information theme.

All sessions will be held at Stanford University's Bechtel Conference room in Encina Hall and are free and open to the public. Space is extremely limited so please RSVP here to attend. A complete agenda can be found here. 

For conference updates via Twitter please visit #RTITECH.

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Services with Everything: The ICT-Enabled Digital Tranformation of Services

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A fundamental transformation of services is underway, driven by developments in information and communications technology (ICT) tools, the uses to which they are being put, and the networks on which they run. Services were once considered a sinkhole of the economy, immune to significant technological or organizational productivity increases. Now, they are widely recognized as a source of productivity growth and dynamism in the economy that is changing the structure of employment, the division of labor, and the character of work and its location. Yet, the actual character of this transformation is often obscured by the increase in jobs labeled as services and by a focus on the digital technologies that, certainly, are facilitating this transformation. This transformation, central to the growth of productivity and competition in the economy, poses basic policy and business choices.

The core of our story of the services transformation is not about the growth in quantity or value of the activities labeled services, the conventional emphasis of much of the writing about services. Nor is it about the revolution in digital technology. Rather, it is about how the application of rule-based information technology tools to service activities transforms the services component of the economy, altering how activities are conducted and value is created.

There are significant implications for how firms compete. Services are increasingly the way that firms pursue value-added activities to avoid ever-faster commoditization of products, that is to avoid competition based solely on price when market offerings are relatively similar. However, the unbundling of services activities themselves accelerates this commodification, since competitors have the same efficiency-enhancing business process and infrastructure services available to them. Firms increasingly become bundles of services purchased on markets, and at the same time some of those in-house business functions that are maintained are then offered as services. A consequence is that the distinction between products and services blurs, as manufactured products are increasingly embedded within and recast as services offerings. Clearly, traditional sectoral boundaries break down, as information and services offerings bring previously unrelated firms into direct competition.

Likewise, the consequences for business organization, production, and work are profound, just as work was transformed by the evolution of manufacturing. The automation of basic activities both frees, but also requires, professionals to perform more advanced tasks. And the analytical tasks of managing information flows generated by ICT-enabled services often require a different set of skills than providing the service itself.

Capturing the possibilities from the services transformation presents new policy challenges for governments and regions. Services are deeply rooted in social rules, conventions, and regulations. Consequently, capturing the value possibilities inherently means recasting the rules, regulations, and conventions in which the services are embedded.

The development and deployment of ICT-enabled services should be considered a form of production. As ICT has become integral to the creation and delivery of services, ICT-enabled services have taken on the characteristics of production normally assigned solely to manufacturing. ICT systems that deliver the services have to be designed, developed, built, and implemented and they are very much open to innovation and productivity increases. Investments are often industrial in scale.

ICT-enabled services are the latest phase in a long history of production innovation. The history of manufacturing production progressed along distinct epochs, each with distinct manufacturing processes, management structures, labor practices, productivity, and outputs. The development of ICT tools and their application to services activities has driven a shift to the latest epoch.

The advent of Cloud Computing, emerging as the next dominant computing platform, accelerates the transformation of services. Cloud Computing, a distinct set of business models and performance attributes (not simply a code-word for everything online), enables new business models, transforms existing strategies, lowers the bar for new entrants, and raises a myriad of policy issues.

From a policy standpoint, the question is how to conceive, design, develop and build and deploy the new system. The “good” jobs, high value added functions, are in the innovative development and deployment of these systems. Policy makers need to employ strategies that will help communities and firms to develop the competencies required for this new form of production.

The continuing debate in political, economic and public policy circles about the relative value of manufacturing jobs and service-sector jobs is increasingly irrelevant to policy debates in the real economy. Just as it is inaccurate to assume that manufacturing jobs are secure and well paid, it is also inaccurate to consider service jobs to be dead-end, low-wage, unskilled positions. 

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Oxford University Press in "The Third Globalization: Can Wealthy Nations Stay Rich in the Twenty-First Century?"
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Kenji E. Kushida
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Away from the Keyboard? The Challenges of Command and Control over Cyber Operations

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Timothy Junio Cybersecurity Fellow Speaker CISAC

Whitfield Diffie

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Whitfield Diffie is a consulting scholar at CISAC. He was a visiting scholar in 2009-2010 and an affiliate from 2010-2012. He is best known for the discovery of the concept of public key cryptography, in 1975, which he developed along with Stanford University Electrical Engineering Professor Martin Hellman. Public key cryptography, which revolutionized not only cryptography but also the cryptographic community, now underlies the security of internet commerce.

During the 1980s, Diffie served as manager of secure systems research at Northern Telecom. In 1991, he joined Sun Microsystems as distinguished engineer and remained as Sun fellow and chief security officer until the spring of 2009.

Diffie spent the 1990s working to protect the individual and business right to use encryption, for which he argues in the book Privacy on the Line, the Politics of Wiretapping and Encryption, which he wrote jointly with Susan Landau. Diffie is a Marconi fellow and the recipient of a number of awards including the National Computer Systems Security Award (given jointly by NIST and NSA) and the Franklin Institute's Levy Prize.

Whitfield Diffie Affiliate Commentator CISAC
Seminars

Round table with Internet Freedom Fellows

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The Internet Freedom Fellows program brings human rights activists from across the globe to Geneva, Washington, and Silicon Valley to meet with fellow activists, U.S. and international government leaders, and members of civil society and the private sector engaged in technology and human rights. A key goal of the program is to share experiences and lessons learned on the importance of a free Internet to the promotion of freedom of expression and freedom of assembly as fundamental human rights.  As a part of the Silicon Valey tour, the six fellows for this year will stop at Stanford for a round table discussion. 

The fellows will present their work pertaining to internet freedom and challenges they face, that we will have a chance to discuss.  The event is free and open to the public.
You can find more information about the fellowship program at:

 

The internet freedom fellows for this year are:

 

Mac-Jordan Disu-Degadjor

@MacJordaN

 

A co-founder and executive of the sole blogging association in Ghana, Blogging Ghana, Mr. Disu-Degadjor promotes the freedom of expression through blogs and social media both on and off-line. Starting in 2009, Mac-Jordan and other young Ghanaians organized 18 BarCamps across Ghana, providing aspiring Ghanaian bloggers with technical help and networking opportunities. These conferences are designed to inspire youth to get on-line wherever and however they can.

On several occasions, Mac-Jordan has presented on the need to use blogs and other social media to amplify youth voices. In 2009, Global Voices appointed him as their aggregator for Ghana, and Dr. Dorothy Gordon, the Director-General of Ghana's Advanced Information Technology Institute, stated that he was a critical and necessary voice for the advancement of the nation.

Michael Anti

@mranti

 

Michael Anti was a computer programmer before turning to journalism in 2001. He is a longstanding advocate for a freer internet in China, noting that social media is the force that may ultimately challenge the political foundation of the country. Mr. Anti believes that the internet will facilitate a new conception of civic participation, inspiring the Chinese to see freedom of speech as a fundamental right. Microsoft MSN was forced to delete his award winning blog under pressure from the Chinese government, causing a media uproar in 2005. He has been an advocate of Virtual Private Networks for Chinese citizens, stating that those who don’t use them are “second-class citizens in the world of the internet.” Mr. Anti is known for his prolific career as a journalist, his 2012 Ted Talk, and his commitment to a freer China.

Edetaen Ojo

@EdetOjo; @MRA_ Nigeria

 

Edetaen Ojo is the director of The Media Rights Agenda, an organization that promotes excellence and professionalism in journalism. He spearheaded and orchestrated the movement that led the Nigerian legislature to pass the Freedom of Information Act, which empowers journalists to seek and access information from government establishments.

Mr. Ojo holds over twenty years of experience promoting and defending internet freedom as part of the broader right to freedom of expression, through monitoring transgressions and limitations on freedom and human rights online. His involvement in international human rights includes positions on the advisory group for the BBC World Service Trust-led Africa Media Development Initiative (AMDI) and the Task Force of the UN Economic Commission for Africa (UNECA). Mr. Ojo also serves as Convenor (Chair) of the International Freedom of Expression Exchange (IFEX), a global network of organizations with its secretariat in Toronto, Canada.

Grigory Okhotin

@okhotin; @OvdInfo

 

Grigory Okhotin is a prominent journalist and human rights activist in Russia. Previously the director of the news site Inosmi.RU, Mr. Okhotin resigned in protest of the censorship imposed upon public media in Russia. After his resignation, Mr. Okhotin began writing publically about censorship and human rights violations in Russia.

After experiencing detainment himself, Mr. Okhotin co-founded the portal ovdinfo.org to provide a public forum for sharing information about Russian citizens detained while exercising their right to freedom of assembly. Mr. Okhotin’s website is unique in that it provides real-time detailed information about those who have been detained, and features mini-interviews in which activists describe the manner of their arrest and the conditions of their confinement. According to Mr. Okhotin, “That helps us to understand what happens behind closed doors.”

 

Usamah Mohamed

@simsimt

 

Usamah Mohamed is a computer programmer and human rights activist, who currently owns and operates an IT business in Khartoum. During the recent wave of anti-government demonstrations in Sudan, Mr. Mohamed organized peaceful demonstrations from the Twitter page he supervises and supplied international media with fresh pictures and news on demonstrations across the country. The government took several steps to halt Mr. Mohamed’s work, including subjecting him to a period of detention. Undeterred, Mr. Mohamed continues to use social media to promote human rights in Sudan. The U.S. Embassy follows his blog daily, considering it an important source of news and opinions about Sudan. In April 2012, Usamah was chosen to be a part of the Sudan Social Media Team to meet with the U.S. Department of State’s special representative to Muslim communities, Farah Pandith.

Mr. Mohamed currently trains activists to use online tools effectively and efficiently. This includes training on blogging, bypassing online censorship, using circumvention tools, digital and online security, citizen journalism, effective audio and video recording, and live-tweeting for the coverage of events such as protests, sit-ins, and forums.

 

Bronwen Robertson

 

Bronwen Robertson is the Director of Operations for a London based NGO called Small Media. While in Iran working on a PhD in music, Ms. Robertson became interested in working for the rights of repressed Iranians, especially homosexuals. In Iran, Ms. Roberson spearheaded a research project and report entitled “LGBT Republic of Iran: An Online Reality?” The report, published in May of this year, led to a number of projects that connect Farsi speaking communities worldwide. One such project is a website called Degarvajeh, which gives online support to the LGBT community by providing general information and the proper Farsi vocabulary to discuss LGBT issues in a non-derogatory fashion.

Through Small Media, Ms. Robertson works to counter Iran’s efforts to block websites and censor information. Small Media spends much of its time working on creating new and innovative ways to make the internet safe and useful for Iranians. The group holds numerous online training sessions in personal online security, citizen journalism, and general information. They also report on related issues such as cultural censorship in Iran, Iranian women sports, and struggles faced by Iranian Bloggers. Recently, the group held an awareness raising workshop to demonstrate the challenges faced by Iranians using the internet under oppression.

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Panel Discussions

Intelligent Governance for the 21st Century: A Middle Way Between West and East

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About the speakers:

Nicolas Berggruen 

Nicolas Berggruen is the Chairman of Berggruen Holdings, a private company, which is the direct investment vehicle of The Nicolas Berggruen Charitable Trust. Through the Nicolas Berggruen Institute on Governance, an independent, nonpartisan think tank, he encourages the study and design of systems of good governance suited for the 21st century. Mr. Berggruen is a member of the Council on Foreign Relations and the Pacific Council on International Policy.

Nathan Gardels 

Nathan Gardels has been editor of New Perspectives Quarterly since it began publishing in 1985. He has served as editor of Global Viewpoint and Nobel Laureates Plus (services of LATimes Syndicate/Tribune Media) since 1989. Mr. Gardels has written widely for The Wall Street Journal, Los Angeles Times, New York Times, Washington Post, Harper's, U.S. News & World Report and the New York Review of Books. He has also written for foreign publications. Since 1986, Gardels has been a Media Fellow of the World Economic Forum (Davos), and he has been a member of the Councilof Foreign Relations, as well as the Pacific Council, for many years.

  

Abstract:

From Winston Churchill at the end of World War II to Francis Fukuyama at the end of the Cold War, liberal democracy has been extolled as the best system of governance to have emerged out of the long experience of history. Today, such a confident assertion is far from self-evident. Democracy, in crisis across the West, must prove itself.

It is time, the authors argue, to take another look at democracy as we know it not just because of the sustained success of non-Western modernity, notably in the more authoritarian Asia of Singapore or China, but because the West itself has changed.

While China must lighten up, the authors quip, the US must tighten up. As the 21st Century unfolds, both of these core systems of the global order must contend with the same reality: a genuinely multi-polar world where no single power dominates and in which societies themselves are becoming increasingly diverse.

To cope, the authors argue that both East and West can benefit by adapting each other’s best practices. The authors’ essential thesis is that a post-post Cold War world characterized by the interdependence of plural identities and the spread of information technology both requires and enables a new system of “intelligent governance” to meet its challenges. Greater complexity of diversity requires a calibration of institutions that balances the distributed, participatory power of social media with smart governing capacity at the systemic level for the common good and long-term sustainability. Getting that balance right by “devolving, involving and decision-division” will make the difference between dynamic and stalled societies. 

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Nicolas Berggruen Chairman Speaker Berggruen Holdings and Nicolas Berggruen Institute on Governance
Nathan Gardels Senior Advisor Speaker Nicolas Berggruen Institute on Governance

Francis Fukuyama

Encina Hall, C148
616 Jane Stanford Way
Stanford, CA 94305

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Olivier Nomellini Senior Fellow at the Freeman Spogli Institute for International Studies
Director of the Ford Dorsey Master's in International Policy
Research Affiliate at The Europe Center
Professor by Courtesy, Department of Political Science
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Francis Fukuyama is the Olivier Nomellini Senior Fellow at Stanford University's Freeman Spogli Institute for International Studies (FSI), and a faculty member of FSI's Center on Democracy, Development and the Rule of Law (CDDRL). He is also Director of Stanford's Ford Dorsey Master's in International Policy, and a professor (by courtesy) of Political Science.

Dr. Fukuyama has written widely on issues in development and international politics. His 1992 book, The End of History and the Last Man, has appeared in over twenty foreign editions. His book In the Realm of the Last Man: A Memoir will be published in fall 2026.

Francis Fukuyama received his B.A. from Cornell University in classics, and his Ph.D. from Harvard in Political Science. He was a member of the Political Science Department of the RAND Corporation, and of the Policy Planning Staff of the US Department of State. From 1996-2000 he was Omer L. and Nancy Hirst Professor of Public Policy at the School of Public Policy at George Mason University, and from 2001-2010 he was Bernard L. Schwartz Professor of International Political Economy at the Paul H. Nitze School of Advanced International Studies, Johns Hopkins University. He served as a member of the President’s Council on Bioethics from 2001-2004. He is editor-in-chief of American Purpose, an online journal.

Dr. Fukuyama holds honorary doctorates from Connecticut College, Doane College, Doshisha University (Japan), Kansai University (Japan), Aarhus University (Denmark), the Pardee Rand Graduate School, and Adam Mickiewicz University (Poland). He is a non-resident fellow at the Carnegie Endowment for International Peace. He is a member of the Board of Trustees of the Rand Corporation, the Board of Trustees of Freedom House, and the Board of the Volcker Alliance. He is a fellow of the National Academy for Public Administration, a member of the American Political Science Association, and of the Council on Foreign Relations. He is married to Laura Holmgren and has three children.

(October 2025)

Global Populisms

A new project examining the global surge in populist movements and what it means for established democratic rules and institutions.
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Francis Fukuyama Olivier Nomellini Senior Fellow at CDDRL Moderator Stanford
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Knowledge Perspectives of New Product Development: A Comparative Approach

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New product and service development is the lifeblood of any enterprise. Beyond the obvious need for organizations to innovate in order to compete, embedded in any new product development (NPD) program are knowledge, technological expertise, and the social networks that convert these capabilities into marketable offerings. Recent research has focused on the NPD as dynamic and iterative, as opposed to linear. The pressure to reduce costs is forcing many companies to outsource operations. On the one hand, outsourcing may create gaps in the product development value chain; on the other, it exposes product teams to new ideas and expands the "community of practice." How will this trend affect NPD in the long run?

This volume showcases the research of teams from the Grenoble Management School’s Learning and Innovation in Networks and Communities Lab, the European Commission’s MATRI project, and Stanford University's Walter H. Shorenstein Asia-Pacific Research Center, among others, to explore the dynamics of NPD in today’s global environment. Presenting case studies from such industries as semiconductors, biotechnology, and information technology, and drawing from a variety of theoretical perspectives, including technology and knowledge management, sociology, economic geography, and organizational behavior, the authors highlight critical success and failure factors in NPD.

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Rafiq Dossani
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