As the Tokyo-based co-founder and managing partner of global VC fund Fresco Capital, Allison Baum is frequently asked “Why are you in Japan?”  Indeed, with a global network of corporate partners, investors, and portfolio companies, many of them are curious to know why Fresco sees long term potential in the Japanese market. Though Japan is an advanced and well developed economy, the country is struggling with the need to innovate in the face of critical challenges such as a deflationary economy, a rapidly aging population, and an impending automation of the workforce. Fresco’s view is that this environment presents an extremely promising market opportunity for companies addressing challenges in healthcare, education and workplaces of the future. Join us as Allison shares her experience on the challenges and opportunities of expanding to Japan, bridging the cultural divide between Japan and the rest of the world, and discovering firsthand what it takes to successfully build long term partnerships in Japan.

The rise of Nokia as a global ICT leader in the 1990s and early 2000s was dramatic, as a company from the small Nordic country of Finland became a global titan. The lack of Japanese presence in global ICT industries in the 1990s and 2000s was unexpected, as it was a technological and platform leader in its domestic market but without followers in global markets. The advent of the iPhone and Android from Silicon Valley companies in the late 2000s thoroughly disrupted both Nokia and the Japanese companies. What happened? Why did it happen, and what were the lessons learned? Now, with the dominance and concentration of Silicon Valley companies and the rise of China in new areas such as AI and digital services, how do we understand the dynamics of competition unfolding? What general conclusions can we draw about the possibilities and risks of national strategies from  the past experiences?

This panel brings expertise from China, Europe, Japan, and Silicon Valley to discuss these questions. 

This event is brought to you by Shorenstein APARC Japan Program's Stanford Silicon Valley-New Japan Project in collaboration with the Berkeley Roundtable on the International Economy (BRIE)

AGENDA

Moderator and panelist: John Zysman, Co-founder, Berkeley Roundtable on the International Economy. Author of “The Third Globalization: Can Wealth Countries Stay Rich.”

3:00pm-3:05pm         Introduction & Opening Remarks

3:05pm-3:35pm         The rise and fall of Nokia as a global mobile leader, a management perspective

Presenter: Yves Doz, Solvay Chaired Professor of Technological Innovation, INSEAD. Author of “Ringtone: Exploring the Rise and Fall of Nokia in Mobile Phones” (2018)

3:35pm-4:05pm         How Silicon Valley commoditized the global ICT industry. Japan: leading without followers, then disrupted, a political economy perspective

Presenter: Kenji Kushida, Research Scholar, Stanford University. Author of “The politics of commoditization in global ICT industries: a political economy explanation of the rise of Apple, Google, and industry disruptors” (2015)

4:05pm-4:35pm        AI and Global Dynamic Capabilities: The Implications for China and the United States. 

· The Chinese Case:  Can China avoid the Finnish and Japanese fate?   Will the scale of the Chinese market permit it to develop global standards?   Will the geo-political rivalry change the dynamic of the market rivalries.

· The American case: Will the American platform strengths hold in in the face of Chinese challenges? Will Europe?

Presenters: Amy Shuen, Visiting Professor, Hong Kong University (formerly at UC Berkeley, Wharton, CEIBS). Co-author, Dynamic Capabilities and Strategic Management (SMJ, Best Paper Award, 2003) Author, “Web 2.0:  A Strategy Guide” (OReilly, 2008) HKU Talk (2017) https://www.ecom-icom.hku.hk/Contents/Item/Display/1962

John Zysman, Co-founder, Berkeley Roundtable on the International Economy. Author of “The Third Globalization:Can Wealth Countries Stay Rich.”

4:35pm-5:00pm         Open Discussion, Q&A

RSVP REQUIRED: http://www.stanford-svnj.org/44-panel-discussion

Abstract: What are the consequences of the emergence of robotics, big data, and artificial intelligence for international politics? Are these new technologies going to promote instability and conflict, as many warn, or are they going to reinforce U.S. military primacy? In particular, will China be able to gain and eventually exploit the unfolding technological revolution - the so-called Second Machine age - or are such concerns exaggerated? The literature in political science and international relations theory has either largely neglected technology and technological innovation, or simply assumed that technology is a substitute for labor that reduces countries' constraints to go to war. Drawing from the scholarship in economics and management, in this article we look at technology in terms of a set complements and nodes-in-the-network. Thus, while technological innovation reduces the prices of some goods or tasks, it simultaneously makes their complementary assets more difficult to procure (through an increase in the demand). The resulting distributional effects, we argue, explain why actors will benefit unevenly from technological change. We test our theoretical insights by looking at seapower in the first and in the emerging second machine age: respectively, the time of the steam engine, steel hulls, quick-firing long-range guns and the telegraph; as well as the unfolding era of neural networks, fast processors and real-time communications. Our preliminary empirical results corroborate our framework, namely that the effects of technological change are much more complex than the literature acknowledges and highlights the challenges countries will have to face in the military realm during the second machine age.

Speaker bios: Andrea Gilli is a Postdoctoral Fellow at the Belfer Center for Science and International Affairs, Harvard Kennedy School of Harvard University and a former Postdoctoral Fellow at the Center for International Security and Cooperation of Stanford University. Andrea has conducted research for several organizations, including the European Union Institute for Security Studies, RUSI in London and the Office of Net Assessment of the U.S. Department of Defense. He holds a Ph.D. in social and political science from the European University Institute, an MSc from the London School of Economics and Political Science and a B.A. from the University of Turin.

Mauro Gilli is a Senior Researcher at the Center for Security Studies of ETH-Zurich (Switzerland). During the academic year 2015-16, he was a Postdoctoral Fellow at the Dickey Center for International Understanding of Dartmouth College. He holds a Ph.D. in political science from Northwestern University, an MA from SAIS-Johns Hopkins and a B.A. from the University of Turin.

Abstract: China’s participation in venture deals financing is at a record level of 10-16% of all venture deals (2015-2017) and has grown quite rapidly in the past seven years.  Technologies where Chinese firms are investing are foundational to future innovation:  artificial intelligence, autonomous vehicles, augmented/virtual reality, robotics and blockchain technology. Moreover, since these technologies are dual use--designed for commercial use but also equally applicable for military applications, these are some of the same technologies of interest to the U.S. Defense Department.  

Investing is itself only a piece of a larger story of massive technology transfer from the U.S. to China. China has a long-term, systematic effort to attain global leadership in many industries, partly by transferring leading-edge technologies from around the world.

U.S. military superiority since World War II has relied on both U.S. economic scale and technological superiority. If we allow China access to these same technologies concurrently, then not only may we lose our technological superiority but we may even be facilitating China’s technological superiority. 

Speaker bio: Michael Brown is a White House Presidential Innovation Fellow in the U.S. Defense Department. He is the co-author of a Pentagon study on China’s participation in the U.S. venture ecosystem which served as key input for the proposed Foreign Investment Risk Review Modernization Act (FIRRMA) being reviewed with bipartisan support by both the House and Senate.

Michael is the former CEO of Symantec Corporation, the global leader in cybersecurity and the world’s 10th largest software company with revenues of $4 billion and more than 10,000 employees worldwide. During his tenure as CEO, Michael led a turnaround as the company developed a new strategy focusing on its security business.

Michael is the former Chairman & CEO of Quantum, a leader in the computer storage industry specializing in backup and archiving products. After leaving Quantum, Michael served as Chairman of EqualLogic, a storage array company. 

He serves on the Board of Trustees of the Berklee College of Music in Boston, received his BA degree in economics from Harvard University in 1980 and his MBA degree from Stanford University in 1984.  

Abstract: In this talk, based on his new book “Experience on Demand: What Virtual Reality is, How it Works, and What it Can Do,” Bailenson draws upon two decades spent researching the psychological effects of virtual reality (VR) to help people understand this powerful new tool. ​He describes the profound ways this technology can be put to use—not to distance ourselves from reality, but to enrich our lives and influence us to treat others, the environment, and ourselves better.

Speaker Bio: Jeremy Bailenson is founding director of Stanford University’s Virtual Human Interaction Lab, Thomas More Storke Professor in the Department of Communication, Professor (by courtesy) of Education, Professor (by courtesy) Program in Symbolic Systems, a Senior Fellow at the Woods Institute for the Environment, and a Faculty Leader at Stanford’s Center for Longevity. He earned a B.A. cum laude from the University of Michigan in 1994 and a Ph.D. in cognitive psychology from Northwestern University in 1999. He spent four years at the University of California, Santa Barbara as a Post-Doctoral Fellow and then an Assistant Research Professor.

Bailenson studies the psychology of Virtual Reality (VR), in particular how virtual experiences lead to changes in perceptions of self and others. His lab builds and studies systems that allow people to meet in virtual space, and explores the changes in the nature of social interaction. His most recent research focuses on how VR can transform education, environmental conservation, empathy, and health.

He consults pro bono on VR policy for a wide variety of government agencies, has published numerous papers and opinion pieces, and has produced three VR documentary experiences which were official selections at the Tribeca Film Festival in 2016 and 2017. His new book, “Experience on Demand” will be published by Norton in January.

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In China, Japan, and Korea, large companies have historically played predominant roles in their economies. However, with startups often driving disruptive innovation in the current digital global era, the question is how incumbent large firms can adapt, adjust, and harness the power of small firms while making use of their existing resources. This panel brings together perspectives from China, Japan and Korea. 

In China, we have seen the explosive growth of information technology firms such as Alibaba and Tencent, who are now at the technological forefront of several areas such as using data and artificial intelligence for financial tech (Fintech) offerings. What are the key features of China's entrepreneurship ecosystem and how do large firms work with new firms?

In Japan, a major challenge is how to unleash potential innovations currently held by large companies who are unable to capitalize on them. World Innovation Lab (WiL) is a Palo Alto and Tokyo based company structured as an investment fund, designed to assist large Japanese companies carve out potential intellectual property into startups, and to harness Silicon Valley startups through investments and partnerships. ANA is a large Japanese airline company that has partnered with WiL to find new strategies for driving its next wave of innovations.

South Korea is home to some of the most competitive firms in the high tech areas, and the question is to how to remain at the forefront of high value added activities in rapidly commoditizing offerings. Samsung Research America is focused on harnessing Silicon Valley through development of software, user experience, and services for the next generation of products. 

Panelists:

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Li is widely believed as an innovative visionary and highly strategic entrepreneur. Before founding APUS Group, Li served as senior Vice President of Qihoo 360 (QIHU NYSE), a major internet company player known for its antivirus software. Prior to that, Li has involved with several well-known companies like Datang Telcom, 3721. He is an internet expert with expert internet knowledge, distribution channels and marketing experience. Mr. Li is an active venture capitalist that has invested in dynamic startup companies from media and VR technology to video advertising companies, both domestically and abroad. Li received a Bachelor of Engineering degree from Zhengzhou University in 1998. Currently Li is a Finance EMBA student in Tsinghua University.

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Mr. Koto enjoys working with visionary entrepreneurs in frontier tech such as VR/AR, Bitcoin, IoT, and Autonomous Driving as the investment partner. He is also passionate about WiL’s corporate innovation efforts to bring WiL’s corporate partners’ organizational and corporate cultures more in line with Silicon Valley’s ethos. Through his facilitation of the Design Thinking Workshops and mentorship of the workshop facilitators, he has deepened his relationships with corporate executives which are influential in opening up business development opportunities between corporations and startup companies.

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Mr. Matsumoto is in charge of researching and creating new business, service, and process innovation models. Currently, he is investigating new business paradigms in the areas of education and sports that fully leverage ANA's brand, assets, and strengths. He is actively researching startups and cutting-edge technology related to these two fields both in Japan and around the world. Prior to ANA, he worked in the R&D Center at Canon and was responsible for developing new recognition technologies like OCR, form recognition and face recognition. He holds both a BS and MS from Kyushu University.

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Pranav Mistry is a computer scientist and inventor. He is currently Head of Think Tank Team at Samsung Research America and is best known for his work on SixthSense, Samsung Galaxy Gear and Project Beyond. His research interests include Wearable Computing, Augmented reality, Ubiquitous computing, Gestural interaction, AI, Machine vision, Collective intelligence and Robotics. The World Economic Forum honored Mistry as one of the Young Global Leader in 2013. Prior to his current position, he has worked with Microsoft, Google, CMU, NASA, UNESCO and Japan Science & Technology, to name a few. Pranav was a PhD candidate at the MIT Media Lab and earned his MA in Media Arts and Sciences from MIT, MDES from IIT, Bombay and a BS in Computer Science and Engineering.

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Kushida’s research interests are in the fields of comparative politics, political economy, and information technology. He has four streams of academic research and publication: political economy issues surrounding information technology such as Cloud Computing; institutional and governance structures of Japan’s Fukushima nuclear disaster; political strategies of foreign multinational corporations in Japan; and Japan’s political economic transformation since the 1990s.