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The COVID-19 pandemic has disrupted economies and expectations for economic growth and development the world over. But even before the pandemic, Asian economies were reassessing their growth strategies.

In a podcast conversation about the new edited volume Shifting Gears in Innovation Policy: Strategies from Asia, APARC's Korea Program Deputy Director Yong Suk Lee discusses some of the impediments Asian countries face in trying to encourage economic development and entrepreneurship, but also the inherent strengths that could allow innovative strategies take hold and grow in East Asia. Listen to the full conversation below.

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Edited by Lee, Gi-Wook Shin, and Takeo HoshiShifting Gears in Innovation Policy is the first of three volumes resulting from APARC's Stanford Asia-Pacific Innovation project that produces policy research to promote innovation and entrepreneurship in East Asia and the greater Asia-Pacific region.

Lee explains, “Many Asian countries achieved economic growth by importing new technologies from advanced economies like the U.S., using them very effectively, and then expanding exports. But now where East Asia stands, many of these countries have already successfully caught up to the technological frontier of advanced economies, so if they want to maintain growth, there needs to be a shift in their strategies.”

The shift Lee and the other volume authors propose is one towards economic growth that is driven by innovation and entrepreneurship rather than the ‘catch-up’ model that Asian economies have commonly relied on. Unlike startup hubs such as the San Francisco Bay Area of California, Asian countries often lack an entrepreneurial tradition because of antagonistic financial structures and differences in cultural definitions of success. These additional financial and social risks have cast entrepreneurial endeavors in an unattractive light for multiple generations of workers.

But encouraging entrepreneurship and endemic innovation are crucial to maintaining stable economic growth. With rapidly aging populations, greater interconnections in both trade and diplomacy, and transformation in the workforce, workplace, and work itself, effectively adapting development strategies to meet present and future challenges remains a central priority for East Asia policymakers and innovators alike. As Lee advises, “There’s strong infrastructure in East Asia, both physically and digitally, which is a great advantage. But they’re now at a frontier with no trajectory to follow, and there needs to be indigenous growth and continuous innovation in order to not be surpassed by competitors.”

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University Entrepreneurship Programs May Not Increase Entrepreneurship Rates, Stanford Researchers Find

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APARC Offers Fellowship and Funding Opportunities to Support, Diversify Stanford Student Participation in Contemporary Asia Research

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“Co-Bots,” Not Overlords, Are the Future of Human-Robot Labor Relationships

Yong Suk Lee and Karen Eggleston’s ongoing research into the impact of robotics and AI in different industries indicates that integrating tech into labor markets adjusts, but doesn’t replace, the long-term roles of humans and robots.
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Yong Suk Lee explains in the new volume, Shifting Gears in Innovation Policy, that while ‘catch-up’ strategies have been effective in promoting traditional economic growth in Asia, innovative policy tools that foster entrepreneurship will be needed to maintain competitiveness in the future.

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Prashant Loyalka is an Associate Professor at the Graduate School of Education and a Senior Fellow at the Freeman Spogli Institute for International Studies at Stanford University. His research focuses on examining/addressing inequalities in the education of children and youth and on understanding/improving the quality of education received by children and youth in multiple countries including China, India, Russia, and the United States. He also conducts large-scale evaluations of educational programs and policies that seek to improve student outcomes.

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As US-China competition intensifies, experts debate the degree to which the current strategic environment resembles that of the Cold War. Those that argue against the analogy often highlight how China is deeply integrated into the US-led world order. They also point out that, while tense, US-China relations have not turned overtly adversarial. But there is another, less optimistic reason the comparison is unhelpful: deterring and defeating Chinese aggression is harder now than it was against the Soviet Union. In this talk, Dr. Mastro analyzes how technology, geography, relative resources and the alliance system complicate U.S. efforts to enhance the credibility of its deterrence posture and, in a crisis, form any sort of coalition.


Photo of Oriana MastroOriana Skylar Mastro is a Center Fellow at Stanford University’s Freeman Spogli Institute for International Studies (FSI). Within FSI, she works primarily in the Shorenstein Asia-Pacific Research Center (APARC) and the Center for International Security and Cooperation (CISAC) as well. She is also a fellow in Foreign and Defense Policy Studies at the American Enterprise Institute and an inaugural Wilson Center China Fellow.

Mastro is an international security expert with a focus on Chinese military and security policy issues, Asia-Pacific security issues, war termination, and coercive diplomacy. Her research addresses critical questions at the intersection of interstate conflict, great power relations, and the challenge of rising powers. She has published widely, including in Foreign Affairs, International Security, International Studies Review, Journal of Strategic Studies, The Washington Quarterly, The National Interest, Survival, and Asian Security, and is the author of The Costs of Conversation: Obstacles to Peace Talks in Wartime (Cornell University Press, 2019).

She also continues to serve in the United States Air Force Reserve, for which she works as a Strategic Planner at INDOPACOM. Prior to her appointment at Stanford in August 2020, Mastro was an assistant professor of security studies at the Edmund A. Walsh School of Foreign Service at Georgetown University. She holds a B.A. in East Asian Studies from Stanford University and an M.A. and Ph.D. in Politics from Princeton University.

 


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This event is part of the 2021 Winter/Spring Colloquia series, Biden’s America, Xi’s China: What’s Now & What’s Next?, sponsored by APARC's China Program.

 

Via Zoom Webinar. Register at: bit.ly/2MYJAdw

Oriana Skylar Mastro Center Fellow at the Freeman Spogli Institute for International Studies
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The past decade has witnessed a great digital transformation in China. In 2006, China’s online retail sales were merely 3% of U.S. sales. China now hosts the world’s largest e-commerce retail market with a 40% share of global sales. Mobile pay has taken the country by storm so that even beggars are accepting alms through QR codes. What accounts for the leapfrog development in China’s e-commerce market? What are the larger implications of the rise of this 700-million-user online market? This talk will discuss the institutional foundation of China's giant e-commerce market, as well as its political and economic effects.

This event is part of Shorenstein APARC's winter webinar series "Asian Politics and Policy in a Time of Uncertainty."



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Lizhi Liu is an Assistant Professor in the McDonough School of Business and a faculty affiliate of the Department of Government. Her research specializes in the politics of trade, technology and innovation, and the political economy of China. Her work has been published by American Economic Review: Insights and Minnesota Law Review, and has been funded by numerous institutions, including the Bill and Melinda Gates Foundation, Weiss Family Program Fund, and the Stanford Institute for Innovation in Developing Economies. She received the 2020 Ronald H. Coase Best Dissertation Award from the Society for Institutional and Organizational Economics (SIOE), and the 2019 Best Dissertation Award in the area of Information Technology and Politics by American Political Science Association (APSA). 

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Lizhi Liu Assistant Professor, McDonough School of Business, Georgetown University
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Cover of the book 'Shifting Gears in Innovation Policy' on the background of an embossed map of Asia.

In the six Asian countries focused on in this book—China, India, Japan, Singapore, South Korea, and Taiwan—high economic growth has been achieved in many industrial sectors, the catch-up phase of growth has ended or is about to end, and technological frontiers have been reached in many industries. These countries can no longer rely on importing or imitating new technology from abroad and expanding imports, and instead have to develop their own innovations to maintain growth. The policy tools they often used to advance "innovation," for the most traditional industrial policies of identifying promising industries and promoting them, will no longer be effective. And indeed, governments in Asia have recently put forward new policies, such as China's push for mass entrepreneurship and innovation.

Domestic conditions in Asian economies have also started to change. Many countries are facing rapidly aging populations and low birth rates: Japan’s population, declining for several years, is the first population decline not caused by war or disease in the modern world; South Korea’s labor force started to shrink in 2018 as well; China’s huge population will start to age, even as a large part of the population remains poor.

Facing these challenges, today Asia is at a turning point. East Asia as a whole has greater real economic output than North America, South and Southeast Asia possess enormous economic potential due to size and resources, and countries within Asia are becoming more connected in both trade and diplomacy. It is at this juncture that the authors of Shifting Gears examine and reassess Asia’s innovation and focus on national innovation strategies and regional cluster policies that can promote entrepreneurship and innovation in the larger Asia-Pacific. Chapters explore how institutions and policies affect incentives for innovation and entrepreneurship; whether Asia's innovation systems are substantially different from those of other countries, and in which ways, and whether there are any promising strategies for promoting innovation.

Desk, examination, or review copies can be requested through Stanford University Press.

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Strategies from Asia

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Gi-Wook Shin
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The disruption of the 2020 pandemic, coupled with significant economic tensions between China and the US, have resulted in global companies rethinking their supply chains.  Many have called for drastic changes - reshoring, near-shoring, regionalization of vertical supply chains, increasing redundancies, or diversification of Chinese manufacturing to Southeast Asia, South Asia, Africa or Latin America, etc.  Empirical data, however, reveal that many are taking a more cautious approach.  Leading companies are continuing to develop innovative ways to redesign their supply chains that still preserve China as their key supply source.  This talk will share some of these innovative ways that, in the end, may provide better long term values.


Portrait of Hau L. LeeHau L. Lee is the Thoma Professor of Operations, Information and Technology at the Graduate School of Business at Stanford University.  He was the founding faculty director of the Stanford Institute for Innovation in Developing Economies (SEED), and is the current Co-Director of the Stanford Value Chain Innovations Initiative.  Professor Lee’s expertise is on global supply chain management and value chain innovations.  He has published widely in top journals on supply chain management.  He was inducted to the US National Academy of Engineering, and elected a Fellow of MSOM, POMS; and INFORMS.   He was the previous Editor-in-Chief of Management Science.  In 2006-7, he was the President of the Production and Operations Management Society.  His article, “The Triple-A Supply Chain,” was the Second Place Winner of the McKinsey Award for the Best Paper in 2004 in the Harvard Business Review.  In 2004, his co-authored paper in 1997, “Information Distortion in a Supply Chain: The Bullwhip Effect,” was voted as one of the ten most influential papers in the history of Management Science.  His co-authored paper, “The Impact of Logistics Performance on Trade,” won the Wickham Skinner Best Paper Award by the Production and Operations Management Society in 2014. In 2003, he received the Harold Lardner Prize for International Distinction in Operations Research, Canadian Operations Research Society.  Professor Lee obtained his B.Soc.Sc. degree in Economics and Statistics from the University of Hong Kong, his M.Sc. degree in Operational Research from the London School of Economics, and his M.S. and Ph.D. degrees in Operations Research from the Wharton School of the University of Pennsylvania.  He was awarded an Honorary Doctor of Engineering degree by the Hong Kong University of Science and Technology, and an Honorary Doctorate from the Erasmus University of Rotterdam.

 


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This event is part of the 2021 Winter/Spring Colloquia series, Biden’s America, Xi’s China: What’s Now & What’s Next?, sponsored by APARC's China Program.

 

Via Zoom Webinar. Register at: https://bit.ly/35bMWQx

Hau L. Lee Thoma Professor of Operations, Information and Technology, Stanford Graduate School of Business
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Most people attribute the Belt and Road Initiative (BRI) to Beijing’s imperialist ambitions. In her talk, Professor Min Ye will go beyond top-level rhetoric, however, and investigate BRI’s origins, its implementation, and its on-the-ground effects inside China. She will unpack different local governments' approaches to the BRI by discussing how subnational entities have leveraged Beijing’s grand strategy and how the implementation of projects and programs related to the BRI facilitate local economic agendas. China’s local developmentalism, which has undergirded not only the BRI but also other national-level strategies (like the Western Development Program and China Goes Global policy), has propelled the Chinese economy from a middle power in 1998 to a superpower in 2018. The talk will conclude with a discussion of COVID-19’s impact on China’s BRI as well as preliminary findings from Professor Ye’s current research into other state-mobilized development initiatives in China.
 

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Portrait of Professor Min Ye
Min Ye is an Associate Professor at the Pardee School of Global Studies, Boston University. Her research lies in the nexus between domestic and global politics and economics and security, focusing on China, India, and regional relations. Her publications include The Belt, Road, and Beyond: State-Mobilized Globalization in China 1998 -- 2018 (Cambridge University Press, 2020), Diasporas and Foreign Direct Investment in China and India (Cambridge University Press, 2014), and The Making of Northeast Asia (with Kent Calder, Stanford University Press, 2010). She has received a Smith Richardson Foundation grant (2016-2018), the East Asia Peace, Prosperity, and Governance Fellowship (2013), Princeton-Harvard China and the World Program post-doctoral fellowship (2009-2010), and Millennium Education Scholarship in Japan (2006). In 2014-2016, Min Ye was an NCUSCR Public Intellectual Program fellow. Ye is currently the 2020 Rosenberg Scholar of East Asian Studies at Suffolk University.

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Min Ye Associate Professor, Pardee School of Global Studies, Boston University
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Samsung is a veritable business empire. In 2017, it passed Apple as the most profitable tech company. But there is more to the company than flat screens and smartphones. In Korea, Samsung is ubiquitous not only as a leading electronics brand, but as a major shaper of culture and politics.

In the episode "The Republic of Samsung" from Business Insider's “Brought to You By . . .” podcast, APARC and Korea Program Director Gi-Wook Shin gives his perspectives on how Samsung transformed from a small family produce shop to become a core pillar of Korean identity. “Samsung really has become a very powerful group in Korea,” reflects Shin. “Their influence is everywhere, not only in business, but in politics, in education, and in culture.”

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This blurry intermingling of business interests, politics, and identity is both the key to Samsung’s success and the source of scandals over bribery, corruption, and nepotism that have rocked the company in recent years. For Shin, the longstanding Korean saying, “What is good for Samsung is good for South Korea,” has additional meaning in the present moment as both the company and the government of the ROK grapple with issues of systemic self-interest, erosion of accountability, and abuses of power that threaten the integrity and identity of each.

Under the leadership of Samsung heir Lee Jae-yong, the company is working to refurbish its image. But these efforts are mired in ongoing legal setbacks and new allegations. “Samsung can’t continue in the way that they have in the past. It’s a different era. Now, people demand more transparency, more fairness, more justice,” Dr. Shin emphasizes. As a predominant force for shaping business, politics, and identity in South Korean, this counsel to Samsung may prove a litmus test for the wellbeing of the Republic of Korea’s future as a whole.

Listen above to hear more of Dr. Shin’s insights and learn the rest of the story.

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On the Business Insider's podcast "Brought to You By. . .", APARC and the Korea Program Director Gi-Wook Shin discusses how Samsung Electronics became so entwined with the history and identity of modern South Korea, and what the internal politics of the company indicate about broader Korean society.

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Starlink is a space-based internet service provider that seeks to provide high-speed (40 mbps upload, 100 mbps download ), near-global coverage of the populated world by 2021—bringing this service to locations where access previously has been unreliable, expensive or completely unavailable. Starlink has publicized the space-based segment of its platform for some time, which will involve thousands of low-earth orbit satellites (about 550 km altitude), but what one needed on the ground to access Starlink was not entirely clear. Until now.

A June 23 Business Insider article showed photographs of the hardware—called a user terminal—needed to connect terrestrial users to Starlink satellites overhead. Notably, the dish antenna is approximately the size of a medium pizza, though from the photographs themselves, it is not entirely clear how large or heavy the entire assembly will be.

Read the rest at Lawfare Blog

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Starlink is a space-based internet service provider that seeks to provide high-speed (40 mbps upload, 100 mbps download ), near-global coverage of the populated world by 2021—bringing this service to locations where access previously has been unreliable, expensive or completely unavailable.

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In combating poverty, like any fight, it’s good to know the locations of your targets.

That’s why Stanford scholars Marshall BurkeDavid Lobell and Stefano Ermon have spent the past five years leading a team of researchers to home in on an efficient way to find and track impoverished zones across Africa.

The powerful tool they’ve developed combines free, publicly accessible satellite imagery with artificial intelligence to estimate the level of poverty across African villages and changes in their development over time. By analyzing past and current data, the measurement tool could provide helpful information to organizations, government agencies and businesses that deliver services and necessities to the poor.

Details of their undertaking were unveiled in the May 22 issue of Nature Communications.

“Our big motivation is to better develop tools and technologies that allow us to make progress on really important economic issues. And progress is constrained by a lack of ability to measure outcomes,” said Burke, a faculty fellow at the Stanford Institute for Economic Policy Research (SIEPR) and an assistant professor of earth system science in the School of Earth, Energy & Environmental Sciences (Stanford Earth). “Here’s a tool that we think can help.”

Lobell, a senior fellow at SIEPR and a professor of Earth system science at Stanford Earth, says looking back is critical to identifying trends and factors to help people escape from poverty.

“Amazingly, there hasn’t really been any good way to understand how poverty is changing at a local level in Africa,” said Lobell, who is also the director of the Center on Food Security and the Environment and the William Wrigley Fellow at the Stanford Woods Institute for the Environment. “Censuses aren’t frequent enough, and door-to-door surveys rarely return to the same people. If satellites can help us reconstruct a history of poverty, it could open up a lot of room to better understand and alleviate poverty on the continent.”

The measurement tool uses satellite imagery both from the nighttime and daytime. At night, lights are an indicator of development, and during the day, images of human infrastructure such as roads, agriculture, roofing materials, housing structures and waterways, provide characteristics correlated with development.

Then the tool applies the technology of deep learning – computing algorithms that constantly train themselves to detect patterns – to create a model that analyzes the imagery data and forms an index for asset wealth, an economic component commonly used by surveyors to measure household wealth in developing nations.

The researchers tested the measuring tool’s accuracy for about 20,000 African villages that had existing asset wealth data from surveys, dating back to 2009. They found that it performed well in gauging the poverty levels of villages over different periods of time, according to their study.

Here, Burke – who is also a center fellow at the Stanford Woods Institute for the Environment and the Freeman Spogli Institute for International Studies – discusses the making of the tool and its potential to help improve the well-being of the world’s poor.

 

Why are you excited about this new technological resource?

For the first time, this tool demonstrates that we can measure economic progress and understand poverty interventions at both a local level and a broad scale. It works across Africa, across a lot of different years. It works pretty darn well, and it works in a lot of very different types of countries.

 

Can you give examples of how this new tool would be used?

If we want to understand the effectiveness of an anti-poverty program, or if an NGO wants to target a specific product to specific types of individuals, or if a business wants to understand where a market’s growing – all of those require data on economic outcomes. In many parts of the world, we just don’t have those data. Now we’re using data from across sub-Saharan Africa and training these models to take in all the data to measure for specific outcomes.

 

How does this new study build upon your previous work?

Our initial poverty-mapping work, published in 2016, was on five countries using one year of data. It relied on costly, high-resolution imagery at a much smaller, pilot scale. Now this work covers about two dozen countries – about half of the countries in Africa – using many more years of high-dimensional data. This provided underlying training datasets to develop the measurement models and allowed us to validate whether the models are making good poverty estimates.

We’re confident we can apply this technology and this approach to get reliable estimates for all the countries in Africa.

A key difference compared to the earlier work is now we’re using completely publicly available satellite imagery that goes back in time – and it’s free, which I think democratizes this technology. And we’re doing it at a comprehensive, massive spatial scale.

 

How do you use satellite imagery to get poverty estimates?

We’re building on rapid developments in the field of computer science – of deep learning – that have happened in the last five years and that have really transformed how we extract information from images. We’re not telling the machine what to look for in images; instead, we’re just telling it, “Here’s a rich place. Here is a poor place. Figure it out.”

The computer is clearly picking out urban areas, agricultural areas, roads, waterways – features in the landscape that you might think would have some predictive power in being able to separate rich areas from poor areas. The computer says, ‘I found this pattern’ and we can then assign semantic meaning to it.

These broader characteristics, examined at the village level, turn out to be highly related to the average wealth of the households in that region.

 

What’s next?

Now that we have these data, we want to use them to try to learn something about economic development. This tool enables us to address questions we were unable to ask a year ago because now we have local-level measurements of key economic outcomes at broad, spatial scale and over time.

We can evaluate why some places are doing better than other places. We can ask: What do patterns of growth in livelihoods look like? Is most of the variation between countries or within countries? If there’s variation within a country, that already tells us something important about the determinants of growth. It’s probably something going on locally.

I’m an economist, so those are the sorts of questions that get me excited. The technological development is not an end in itself. It’s an enabler for the social science that we want to do.

In addition to Burke, Lobell and Ermon, a professor of computer science, the co-authors of the published study are Christopher Yeh and Anthony Perez, both computer science graduate students and research assistants at the Stanford King Center on Global Development; Anne Driscoll, a research data analyst, and George Azzari, an affiliated scholar, both at the Center on Food Security and the Environment at Stanford; and Zhongyi Tang, a former research data analyst at the King Center. This research was supported by the Data for Development initiative at the Stanford King Center on Global Development and the USAID Bureau of Food Security. To read all stories about Stanford science, subscribe to the biweekly Stanford Science Digest.

Media Contacts

Adam Gorlick, Stanford Institute for Economic Policy Research: (650) 724-0614, agorlick@stanford.edu

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Stanford researchers have created a new powerful tool that can help estimate the level of poverty across African villages and changes in their development over time. (Image credit: Getty Images)
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A new tool combines publicly accessible satellite imagery with AI to track poverty across African villages over time.

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