Economic Affairs
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This presentation will compare the more mature venture capital markets of the United States, Europe, and Israel with the larger emerging venture capital markets of China and India.

Most analyses being presented are as recent as the second and third quarters of 2009 and will include:

  1. Venture capital investment by number of deals and dollar amounts by stage and industry
  2. Valuation benchmarks by industry and geography
  3. Exit benchmarks by industry sector and exchange 
  4. Comparing specific differences of startups through their life cycles
  5. Venture capital firms investing in other geographies
  6. Cleantech deals and their latest performances

The methodology used in the analysis differs from the traditional Western model (comparison by round), since the investment patterns in emerging markets are very different.

About the speaker:

Dr. Martin Haemmig's venture capital research covers 13 countries in Asia, Europe, Israel, and USA. He lectures and/or performs research at numerous universities across the U.S., Europe, China and India. He has authored books on the Globalization of Venture Capital. He is Senior Advisor on Venture Capital at SPRIE and advises on venture capital for China's Zhongguancun Science Park. Martin Haemmig earned his electronics degree in Switzerland and his MBA and doctorate in California, and worked for almost 20 years in global high-tech companies in Asia, Europe and the U.S. before returning to his academic career. He became Swiss national champion in marketing in 1994.

Philippines Conference Room

Martin Haemmig Speaker
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Formal venture capital investing in Silicon Valley has been underway for more than 50 years. It was in the Valley that the limited partnership format was first used for venture capital. Whereas, originally Silicon Valley VCs were mostly from a finance background, very early on individuals with operating experience formed or joined partnerships.

Perhaps most important was the tight linkages between the venture capitalists and the nearly continuous evolution of information technologies. The enormous returns from information technologies enabled Silicon Valley VCs to make very early investments in other technologies ranging from biotechnology to nanotechnology. These returns also encouraged high levels of risk-taking.

Through the use of a historical perspective, the concluding remarks will reflect upon the current dire straits for venture capital.

Martin Kenney is a Professor at the University of California, Davis, a Senior Project Director at the Berkeley Roundtable on the International Economy, as well as a fellow at the Center for Entrepreneurship at UC Davis. He has authored or edited five books and over 120 scholarly articles on the globalization of services, the history of venture capital, university-industry relations, and the development of Silicon Valley. His two recent edited books Understanding Silicon Valley and Locating Global Advantage (with Richard Florida) were published by Stanford University Press where he is the editor of a book series in innovation and globalization. Currently, he is preparing a book on the history and globalization of the venture capital industry.

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Martin Kenney Professor Speaker University of California, Davis
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"I think that, by and large, the managers wouldn't know a good technique if it hit them in the face." The prominent computer scientist Alan Perlis spoke these words at a second NATO-sponsored Software Engineering conference in 1969. He underscored a conflict that would persist in the decade that followed that ill-tempered meeting, as computer professionals organized in the name of "software engineering," many sponsored by the U.S. defense department. Yet software cost overruns are frequent, and glitches occasionally turn deadly, leading many to argue that "software engineering" is not yet worthy of the name.
 
How should we understand the emergence of software engineering: the agendas of its proponents, sources of controversy, and its relationship to diverse defense department interests, including security, reliability, and timeliness, and costs? This chapter-in-progress addresses this question using both qualitative historical materials and social network data. The Defense Department's interest in software research was nurtured by budgetary cuts that followed anti-war protests in the early 1970, making economics a dominant, if controversial theme in "software engineering" research. Debates about the meaning and direction of software engineering often invoked binary divisions, between managers and technical people, industrialists and academics, pragmatists and theoreticians. After describing these debates from the ground up, I use network analysis to provide bird's eye view: to what extent were commonly evoked dualisms reflected in practices of publication, and how did this change as the field became institutionalized? More broadly, can network analysis contribute meaningfully to a historical account employing "thick description," and if so how?

Rebecca Slayton is a lecturer in the Science, Technology and Society Program at Stanford University and a CISAC affiliate. In 2004-2005 she was a CISAC science fellow. Her research examines how technical judgments are generated, taken up, and given significance in international security contexts. She is currently working on a book which uses the history of the U.S. ballistic missile defense program to study the relationships between and among technology, expertise, and the media. Portions of this work have been published in journals such as History and Technology and have been presented at academic conferences. As a postdoctoral fellow in the Science, Technology, and Society Program at the Massachusetts Institute of Technology, in 2004 she completed an NSF-funded project entitled Public Science: Discourse about the Strategic Defense Initiative, 1983-1988.

As a physical chemist, she developed ultrafast laser experiments in condensed matter systems and published several articles in physics journals. She also received the AAAS Mass Media Science and Engineering Fellowship in 2000, and has worked as a science journalist for a daily paper and for Physical Review Focus. She earned her doctorate in chemistry from Harvard University in 2002.

Eric Roberts, after receiving his Ph.D. in Applied Mathematics from Harvard University in 1980, taught at Wellesley College from 1980-85, where he chaired the Computer Science Department. From 1985-90, he was a member of the research staff at Digital Equipment Corporation’s Systems Research Center in Palo Alto, California, where he conducted computer science research, focusing on programming tools for multiprocessor architectures. In September 1990, Roberts joined the Stanford faculty, where he is now Professor of Computer Science and the John A. and Cynthia Fry Gunn University Fellow in Undergraduate Education.

From 1990 to 2002, Professor Roberts was Associate Chair and Director of Undergraduate Studies for Computer Science. In that capacity, he was the principal architect of Stanford’s introductory programming sequence, which for many years held the distinction of being the largest course at Stanford. He has also written four computer science textbooks that are used at many colleges and universities throughout the world. His research focuses on computer science education, particularly for underserved communities. From 1998 to 2005, Roberts was Principal Investigator for the Bermuda Project, which developed the computer science curriculum for Bermuda’s public secondary schools.

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Rebecca Slayton CISAC Affiliated Faculty Speaker
Eric Roberts Professor of Computer Science, Stanford University Commentator
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Stanford University
Encina Hall E301
Stanford, CA 94305-6055

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2009-10 Koret Fellow
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Byongwon Bahk, former Senior Advisor to President Lee Myung-bak of Korea, joined the Korean Studies Program as the recipient of the Koret Fellowship for 2009-10 academic year.

Mr. Bahk served as Vice Minister of the Ministry of Finance and Economy in Korea and was a senior advisor to President Lee Myung-bak briefly.  While at the Center, he will lead a reach project on economic affairs of Korea in relations to the U.S.

The Koret Fellowship, generously funded by the by Koret Foundation of San Francisco, was established at the Center in 2008 to bring leading professionals in Asia and the United States to Stanford to conduct research on contemporary U.S.-Korean relations, with the broad aim of fostering greater understanding and closer ties between the two countries.

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On Thursday, September 24, the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) is pleased to present the "Silicon Valley Leadership Forum: Changing Silicon Valley," a forum featuring addresses by Dr. John Hennessy, President, Stanford University; Mr. James C. Morgan, Chairman emeritus, Applied Materials; and Dr. John Seely Brown, Independent Co-Chairman, Deloitte Center for Edge Innovation, as well as a special panel focus on how venture capital is changing in the Valley.
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The Freeman Spogli Institute's Center on Democracy, Development, and the Rule of Law (CDDRL) has established a new Program on Good Governance and Political Reform in the Arab World, the result of a generous gift from the Foundation for Research and Development in the Middle East (FDRDME), based in Geneva, Switzerland.  The program, which runs for five years beginning in September 2009, conducts research, organizes conferences and seminars and sponsors visiting scholars at CDDRL.  The program's scholarly research examines the different social and political dynamics within Arab societies and the evolution of political systems, with an eye on the prospects, conditions, and possible pathways for political reform.

The new program brings together scholars and practitioners from Arab countries and their Western counterparts, as well as local actors of diverse backgrounds, to consider how democratization and more responsive and accountable governance might be achieved, as a general challenge and within specific Arab countries.  Among the program's first research projects is one on transitions from absolute monarchy in historical and comparative perspective. To this effect, are there any lessons that can be drawn from past experiences, and across different settings, and to what degrees can they apply to the Arab world?  A conference taking stock of democratic progress and conditions in the Arab world is planned for May 10-11, 2010.

Center Director Larry Diamond thanked the Foundation for its visionary contribution. "This gift puts Stanford on the map in contemporary Arab studies and will make CDDRL one of the most important academic sites for studying these issues.  In the modern history of the Arab world, there has never been a more compelling and opportune moment to examine current conditions of governance and factors that might facilitate or obstruct democratic change.

"In the modern history of the Arab world, there has never been a more compelling and opportune moment to examine current conditions of governance and factors that might facilitate or obstruct democratic change"

"The striking political continuity in the Arab world is not just of analytic interest, but is a challenge to sustained long-term economic development, stability, and peace." Diamond stated. "From the expressions and actions of vibrant and diverse civil societies in the region, and a growing wealth of public opinion-survey evidence, we know that peoples of the region desire political emancipation and self-determination no less than others around the world.  The challenge is to figure out how indigenous democratic change might be negotiated in ways that generate broad societal consensus and do not risk violence or instability."

"From the expressions and actions of vibrant and diverse civil societies in the region, and a growing wealth of public opinion survey evidence, we know that peoples of the region desire political emancipation and self-determination"

The program is supervised by Diamond and CDDRL Deputy Director Kathryn Stoner-Weiss, and managed by Lina Khatib, in interaction with Professor Olivier Roy, in his capacities as a leading Western scholar of political Islam and as director of FDRDME. Roy, a long-time scholar and research director at the French National Center for Scientific Research (CNRS) who has recently been named Professor of Mediterranean Studies at the European University Institute in Florence, will be a frequent participant in program events and a recurrent visitor to CDDRL.  Other program participants include Hicham Ben Abdallah and Hind Arroub from Morocco, Visiting Scholars at CDDRL, and Sean Yom, a political science PhD from Harvard University, who is a postdoctoral fellow at CDDRL in 2009-10.

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There is a general sense that the legal system in India is inefficient. First, there is over-legislation and unnecessary State intervention, both in the form of statutes and administrative law (rules, regulations, procedures). This increases non-transparency and contributes to rent-seeking, which is not distributionally neutral, because the relatively poor tend to suffer more. Second, over-legislation exists simultaneously with under-governance, because laws aren't enforced and the dispute resolution system, including enforcement of contracts, isn't credible.

Reforming legal institutions is not only a desirable end in itself, it also has the byproduct of adding to GDP growth. While these points are unassailable, most empirical work on documenting inefficiencies of the Indian legal system is fraught with problems. For a start, cross-country comparisons tend to be overly simplistic, ignoring the specifics of the legal regime and the context within which the country is situated. In addition, legal indicators used, even when they are not cross-country, tend to be too macro and aggregate and are indiscriminately used. For instance, data collected for Hyderabad are applied to all of Andhra Pradesh. This paper adopts a different approach. It draws contrasts between Gurgaon and Faridabad, districts (and towns) not only located within the same State, but also districts with similar historical and geographical backgrounds. This enables one to control for many variables that cause different trajectories of legal and economic development within and across countries. The paper then seeks to explain the differential growth in these two geographical regions through differences in the legal land regimes.

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Private sector participation and private investment have become the mainstay of the Government of India's policy toward infrastructural development. The success of the ongoing eleventh five-year plan critically depends on the success of Public Private Partnerships (PPPs) in infrastructure. Moreover, several state governments are also trying to attract PPPs for the provision of public goods.

In this paper, we have studied the performance of the Public Private Partnerships (PPPs) programme of Government of India, for development of highways and expressways. The focus of the study is on the following questions: Why have some projects attracted private investment while others have not? Why only a few states have attracted PPPs, while some others have completely failed to do so? We have also discussed some other issues related to the PPP policy and its limited success. We have provided a set of legal and economic variables that explain the skewed distribution of PPPs across projects as well as across the states. We have shown that the richer states have attracted more PPPs than the poorer ones. Besides, the probability of PPP is higher for projects located on national highways connecting richer states, and those located closer to mega cities. Moreover, ceteris paribus, the quality of governance, in terms of the level of property rights protection, in a state is also a significant explanatory variable. Empirical evidence in support of these claims is conclusive and robust. In the light of our findings, we have answered the following additional questions: Is PPP a viable and desirable public policy for development of infrastructure in poor states? What are the lessons emerging from the Indian experience with PPPs so far? Our dataset includes all of the highway and expressway projects that have been or are being developed as a part of the National Highways Development Project (NHDP).

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Paul Romer is a Senior Fellow in the Stanford Center for International Development (SCID) and the Stanford Institute for Economic Policy Research (SIEPR). His contributions to the field of economics include being the primary developer of New Growth Theory, which reduces the traditional emphasis on the scarcity of objects and directs attention to the power of new ideas. His theory has brought renewed optimism about the potential for growth in both advanced and developing economies.

For his work on the economics of ideas, Paul was named one of America's 25 most influential people by TIME magazine (1997), elected a fellow of the American Academy of Arts and Sciences (2000) and awarded the Horst Claus Recktenwald Prize in Economics (2002). He is a Research Associate of the National Bureau of Economic Research and a Fellow of the Econometric Society. Prior to his current Stanford University position, he taught in the university's Graduate School of Business as the STANCO 25 Professor of Economics and was honored with the Distinguished Teaching Award (1999). Before moving to Stanford, Paul taught economics at the University of California at Berkeley, the University of Chicago and the University of Rochester. He received his PhD in economics from the University of Chicago.

In addition to his career in teaching and research, Paul founded Aplia, Inc., which is now part of Cengage Learning. Aplia, which develops and applies technologies to improve student learning, grew out of Paul's conviction that it is possible to use information technology to raise productivity in education. This lesson has important implications for how societies keep up with the growing demand for highly educated workers-a demand that is driven by the use of new technology in all other sectors of the economy.

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Paul Romer Senior Fellow Speaker Stanford Center for International Development (SCID) and Stanford Institute for Economic Policy Research (SIEPR)
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This seminar examines possible explanations for a striking anomaly in the distribution of democracies around the world. While 60 percent of all the independent states in the world are at least electoral democracies, the Arab world is alone among major regions in lacking a critical mass of democracies. In fact, not a single one of the states of the Arab Middle East is classified by Freedom House as a democracy today. This presentation examines possible cultural, historical, economic, political, institutional, and geostrategic explanations for the democracy deficit in the Arab world. Rejecting some of these possible explanations as implausible or untenable, it affirms others and considers what factors might foster transitions to constitutional democracy in the Arab world.

Summary
Larry Diamond's presentation explored the question of why there is no Arab democracy in the Middle East and North Africa. Using Freedom House panel data, he demonstrated the relatively stagnant levels of democratic freedoms that have typified this authoritarian slice of geography for the last several decades: only two countries out of nearly twenty could be considered electoral democracies, and these were the non-Arab states of Turkey and Israel. He next sifted through several potential explanations for the absence of democratization.

The first was the culturalist thesis, that something inherent within Islam or Arab culture precludes the formation of a genuinely democratic set of institutions and values. However, the presence of democracy in other non-Western regions casts doubt on this contention. The second was economic development, a popular variable often correlated with democratic transitions; however, Arab autocracies each have analogues in other regions with similar levels of development but with democratic governments. More plausibly, a variety of political and institutional variables lay at the heart of the problem. For one, these regimes have become extremely adept at repressing dissidents and reformists within their societies. For another, they have adopted an adaptable ecology of liberalization, in which short bursts of political reform relieve temporary demands for reform while leaving intact executive monopolies over state resources. Further, they efficiently divide opposition parties and civic forces, often by imposing electoral rules and regulations that make it impossible for civil society-which is generally weak and fragmented-to mount concerted campaigns against the state apparatus. Finally, the dual conundrums of Islamism and the Arab-Israeli conflict play into each regime's survival strategy.

Authoritarian incumbents play up the nightmare of Islamic extremists gaining power to curry favor with the West and delay reforms; they also use the Palestinian issue to defuse popular grievance by way of rechanneling indignation against Israel.

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CDDRL
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Encina Hall, C147
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Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies
William L. Clayton Senior Fellow at the Hoover Institution
Professor, by courtesy, of Political Science and Sociology
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Larry Diamond is the William L. Clayton Senior Fellow at the Hoover Institution, the Mosbacher Senior Fellow in Global Democracy at the Freeman Spogli Institute for International Studies (FSI), and a Bass University Fellow in Undergraduate Education at Stanford University. He is also professor by courtesy of Political Science and Sociology at Stanford, where he lectures and teaches courses on democracy (including an online course on EdX). At the Hoover Institution, he co-leads the Project on Taiwan in the Indo-Pacific Region and participates in the Project on the U.S., China, and the World. At FSI, he is among the core faculty of the Center on Democracy, Development and the Rule of Law, which he directed for six and a half years. He leads FSI’s Israel Studies Program and is a member of the Program on Arab Reform and Development. He also co-leads the Global Digital Policy Incubator, based at FSI’s Cyber Policy Center. He served for 32 years as founding co-editor of the Journal of Democracy.

Diamond’s research focuses on global trends affecting freedom and democracy and on U.S. and international policies to defend and advance democracy. His book, Ill Winds: Saving Democracy from Russian Rage, Chinese Ambition, and American Complacency, analyzes the challenges confronting liberal democracy in the United States and around the world at this potential “hinge in history,” and offers an agenda for strengthening and defending democracy at home and abroad.  A paperback edition with a new preface was released by Penguin in April 2020. His other books include: In Search of Democracy (2016), The Spirit of Democracy (2008), Developing Democracy: Toward Consolidation (1999), Promoting Democracy in the 1990s (1995), and Class, Ethnicity, and Democracy in Nigeria (1989). He has edited or coedited more than fifty books, including China’s Influence and American Interests (2019, with Orville Schell), Silicon Triangle: The United States, China, Taiwan the Global Semiconductor Security (2023, with James O. Ellis Jr. and Orville Schell), and The Troubling State of India’s Democracy (2024, with Sumit Ganguly and Dinsha Mistree).

During 2002–03, Diamond served as a consultant to the US Agency for International Development (USAID) and was a contributing author of its report, Foreign Aid in the National Interest. He has advised and lectured to universities and think tanks around the world, and to the World Bank, the United Nations, the State Department, and other organizations dealing with governance and development. During the first three months of 2004, Diamond served as a senior adviser on governance to the Coalition Provisional Authority in Baghdad. His 2005 book, Squandered Victory: The American Occupation and the Bungled Effort to Bring Democracy to Iraq, was one of the first books to critically analyze America's postwar engagement in Iraq.

Among Diamond’s other edited books are Democracy in Decline?; Democratization and Authoritarianism in the Arab WorldWill China Democratize?; and Liberation Technology: Social Media and the Struggle for Democracy, all edited with Marc F. Plattner; and Politics and Culture in Contemporary Iran, with Abbas Milani. With Juan J. Linz and Seymour Martin Lipset, he edited the series, Democracy in Developing Countries, which helped to shape a new generation of comparative study of democratic development.

Download full-resolution headshot; photo credit: Rod Searcey.

Former Director of the Center on Democracy, Development and the Rule of Law
Faculty Chair, Jan Koum Israel Studies Program
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Larry Diamond Director, CDDRL; Senior Fellow at the Freeman Spogli Institute and the Hoover Institution and Professor of Political Science and Sociology, by courtesy Speaker
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