U.S. and Japanese officials confer with SPRIE-STAJE
A group of leading American and Japanese venture capitalists, entrepreneurs, academic experts, government officials, and leaders in business and related fields joined the "U.S. - Japan Dialogue to Promote Innovation, Entrepreneurship and Job Creation" symposium, organized by the Stanford Project on Japanese Entrepreneurship (STAJE), the largest U.S.-Japan event held at Stanford in many years, on February 23, 2011.
Representatives from both governments opened the event by underscoring the economic and strategic reasons for closer U.S.-Japan cooperation in promoting innovation and entrepreneurship. U.S. Ambassador to Japan John V. Roos emphasized how an economically vibrant Japan is critical to the security of the United States, and how it creates opportunities for U.S. trade, investment, and job creation. Moreover, innovation and collaboration are vital to addressing critical global issues, such as climate change. Under Secretary of State Robert D. Hormats noted how innovation and entrepreneurship, often involving young firms bringing new technology to market, are fundamental to ensuring sustainable growth and inclusive prosperity, both at home and across the globe. For Japan, Teruhiko Mashiko, a Ranking Member of the Diet's Committee on Economy and Industry and a former Senior Vice Minister of Economy, Trade, and Industry, highlighted the potential for greater employment, development of green technology, and the circulation of human and other resources through innovation and entrepreneurship.
Several speakers pointed to ways government and the private sector can foster the creation of entrepreneurial ventures with a global outlook. Professor William F. Miller, co-director of the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE), focused attention on the need to support the full entrepreneurial habitat—including an active angel investor and venture community, entrepreneurial education, passionate entrepreneurs, and business services (legal, consulting, financial) that understand the needs of start-up companies. Additionally, several speakers suggested that mid-career hiring by large Japanese firms and greater willingness on their part to grow by acquisition would increase labor mobility and expand opportunities for entrepreneurial ventures. They expressed concern that, at present, a public offering of shares is practically the only option for startup firms to exit the venture stage in Japan. Others highlighted how greater English-language proficiency and changes in immigration law could expand the linkages between Japan and the global community of entrepreneurs and venture capitalists.
Larry W. Sonsini, Chairman of Wilson Sonsini Goodrich & Rosati, reflected on the waves of innovation that Silicon Valley has generated, both in terms of new technologies coming to market as well as the maturing of technology already out. Defining Silicon Valley as a culture rather than a place, he outlined the ingredients in the recipe for its success: an entrepreneurial culture, with such features as mobility of talent, diversity, and acceptance of failure as a type of learning; ready access to capital; sources of technology and technologists, particularly from universities and large forward-looking corporations; government support; developed laws and accounting systems; availability of exit options for ventures; and an infrastructure of lawyers, accountants, bankers, and consultants. He also offered his thoughts on key trends that will influence the position and direction of emerging technology companies, including: globalization, regulatory changes, development of capital markets, education, and the rule of law.
In the closing remarks of the day-long symposium, Robert Eberhart, a SPRIE researcher and the leader of the SPRIE-STAJE project, summarized the three potential roles for governments to play in promoting innovation and entrepreneurship: to establish rules to ensure fair dealing and access to the market; to rewrite (i.e., reform) the rules of a market thereby ensuring firms will address it in new ways; and to stimulate demand for advanced technology by purchasing it for its own reasons, thereby creating new opportunities for entrepreneurial technology ventures.
Spark Change from Within
Rye Barcott's signature presentation on social entrepreneurship takes audiences on a journey through the joy and heartbreak, the friendships and betrayals, and the failures and triumphs of creating a movement to spark change from within one of the world's largest and most volatile slums. As inspiring as it is informative, this presentation will spur you on your own quest to make a difference in the world, no matter your age or avocation.
"An unforgettable odyssey. We need more of these wonderful affirmative tales of how good can triumph in Africa, as it can anywhere."
-Alexander McCall Smith, author of The Ladies No. 1 Detective Agency
"A tremendous story of the power of friendship, love, and the transforming grace of God."
-Archbishop Emeritus Desmond Tutu, Nobel Peace Prize Laureate
Rye Barcott co-founded the non-governmental organization Carolina for Kibera (CFK) with Salim Mohamed and Tabitha Atieno Festo while he was an undergraduate at the University of North Carolina at Chapel Hill earning his B.A. in Peace, War, and Defense. CFK invests in local leaders in the Kibera slum of Nairobi, Kenya through its model of participatory development. After graduation, Barcott served in the U.S. Marine Corps for 5 years in Iraq, Bosnia, and the Horn of Africa. He then earned master's degrees in business and public administration from Harvard University, where he was a Reynolds Social Entrepreneurship Fellow and a member of the Harvard Endowment's Advisory Committee on Shareholder Responsibility. In 2006, ABC World News named then Captain Barcott a ‘Person of the Year' for his dual service to Kibera and the Marine Corps. In 2009, he joined the inaugural class of TED Fellows. He lives in North Carolina with his wife and daughter and works in the Sustainability Office at Duke Energy. His first book, It Happened On the Way to War, will be published by Bloomsbury on March 29th to coincide with the 10th Anniversary of CFK.
CO-SPONSORED BY THE HAAS CENTER FOR PUBLIC SERVICE
Reuben W. Hills Conference Room
Tomi Brooks
SPRIE, Stanford Graduate School of Business
Knight Management Center
Stanford University
655 Knight Way
McClelland Building
Stanford, CA 94305-7298 USA
Tomi Brooks is an expert in online advertising and mobile media. He recently launched BRAINPUNCH LLC, a consulting and marketing research company that specializes in helping companies to expand business internationally. He also works for the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE)-Stanford Project on Japanese Entrepreneurship (STAJE) at the Stanford Graduate School of Business.
Prior to founding BRAINPUNCH, Tomi led business development at Cirius Technologies, a venture-backed Japanese mobile technology start-up specializing in location-based mobile advertising. He laid the foundation for the company's entry into the U.S. market. After Cirius Technologies was acquired by Yahoo Japan, he returned to Tokyo and facilitated collaboration in advertising strategy development between Yahoo Inc. and Yahoo Japan. He has also worked at NTT DoCoMo, Japan's largest mobile carrier.
Tomi attended the American School in Japan and earned his B.A. in Economics and Business Administration from the International Christian University (Tokyo, Japan). He was born and raised in Tokyo, Japan, and is fluent in Japanese and English.
Physician Ownership of Non-Physician Medical Services
Dr. Brian Chen's research has examined the tradeoffs between moral hazard and efficiencies in the integration of physician and non-physician medical services in the presence of asymmetric information. He has looked at a policy intervention in Taiwan that prohibited self-referrals of patients to physician-owned pharmacies unless the physician group integrated pharmacy services into the clinic by hiring an onsite pharmacist. He found that the policy reduced drug expenditures by close to thirty percent among physicians that did not have an onsite pharmacist. However, these physicians responded by increasing the overprovision of diagnostic services not covered by the policy, thereby reducing the effectiveness of the policy. Forty-five percent of the clinics that did not have an onsite pharmacist prior to the policy hired one subsequent to the implementation of the policy. Overall, after integration, the policy applied to only seventeen percent of clinics, and only reduced average discretionary expenditures by about two-point-five percent. Chen's research also shows that despite the reduction in drug utilization, patients treated at clinics without an onsite pharmacist did not have greater observable adverse health events than patients treated at integrated clinics. His results show that moral hazard costs of self-referral incentives are large, that the “safe harbor” exemption severely reduces the effectiveness of the policy, and that the exemption explains much of the recent integration of ancillary services into physician offices.
Dr. Brian Chen recently completed his Ph.D. in business administration in the Business and Public Policy Group at the Haas School of Business, University of California at Berkeley. He received a Juris Doctor from Stanford Law School in 1997, and graduated summa cum laude from Harvard College in 1992.
Daniel and Nancy Okimoto Conference Room
Brian Chen
Shorenstein APARC
Stanford University
Encina Hall, Room E-301
Stanford, CA 94305-6055
Dr. Brian Chen is currently a visiting scholar with the Asia Health Policy Program and Center for East Asian Studies at Stanford University. He was recently Shorenstein Asia-Pacific Research Center's 2009-2010 postdoctoral fellow in Comparative Health Policy. As a visiting scholar, Dr. Chen will conduct collaborative research about health of the elderly and chronic disease in China.
As an applied economist, Chen’s research focuses on the impact of incentives in health care organizations on provider and patient behavior. For his dissertation, Chen empirically examined how vertical integration and prohibition against self-referrals affected physician prescribing behavior. His job market paper was selected for presentation at the American Law and Economics Association’s Annual Meeting, the Academy of Management, the Canadian Law and Economics Association, the Conference on Empirical Legal Studies, and the First Annual Conference on Empirical Health Law and Policy at Georgetown Law Center in 2009. The paper was also nominated for best paper based on a dissertation at the Academy of Management.
Chen comes to the Shorenstein Asia-Pacific Research Center not only with a multidisciplinary law and economics background, but also with an international perspective from having lived and worked in Taiwan, Japan, and France. He has a particularly intimate knowledge of the Taiwanese health care system from his experience as an assistant to the hospital administrator at a medical college in Taiwan.
During his past residence as a postdoctoral fellow with the Asia Health Policy Program, Chen conducted empirical research on cost containment policies in Taiwan and Japan and how those policies impacted provider behavior. His work also contributed to the program’s research activities on comparative health systems and health service delivery in the Asia-Pacific, a theme that encompasses the historical evolution of health policies; the role of the private sector and public-private partnerships; payment incentives and their impact on patients and providers; organizational innovation, contracting, and soft budget constraints; and chronic disease management and service coordination for aging populations.
Dr. Brian Chen recently completed his Ph.D. in Business Administration in the Business and Public Policy Group at the Haas School of Business, University of California at Berkeley. He received a Juris Doctor from Stanford Law School in 1997, and graduated summa cum laude from Harvard College in 1992.
The World Ahead
John Micklethwait is the Editor-in-Chief of The Economist. After studying history at Magdalen College, Oxford, he worked as a banker at Chase Manhattan between 1985 and 1987 before joining The Economist as a finance correspondent in 1987. Since then his roles at The Economist have included setting up the bureau in Los Angeles, where he worked from 1990‑93; being the newspaper's media correspondent; editing the business section; running the New York bureau; and editing the United States section. The Economist now has a circulation of around 1.4 million worldwide.
Mr. Micklethwait has appeared on radio and television around the world. He has co-authored with Adrian Wooldridge, also an Economist journalist, five books: The Witch Doctors; "A Future Perfect: the Challenge and Hidden Promise of Globalisation; The Company: A Short History of a Revolutionary Idea; The Right Nation: Conservative Power in America and God is Back: How the Global Rise of Faith is Changing the World, published by the Penguin Press in April 2009.
Mr. Micklethwait was named Editors' Editor of the Year at the British Society of Magazine Editors 2010 annual awards.
Bechtel Conference Center
Is Ethical Consumerism a Form of Vigilante Justice?
Ethical consumerism has been around for a long time—during the revolution, many Americans protested against the Stamp Act of 1756 by refusing to buy tea and other Brit- ish goods. In recent years, ethical consumerism has become an increasingly prominent feature of social life, as new forms of technology have allowed consumers to use their choices in the marketplace to address various environmental, labor and trade concerns.
Surprisingly, relatively little attention has been paid to the moral issues raised by ethical consumerism. Suppose that consumers are morally permitted to use their buying power to pressure companies to treat animals better or to reduce carbon emissions. Does this mean that they can also pressure pharmacies not to stock the “morning after” pill? Can they pressure Wal-Mart not to sell books or music that they find offensive? Even in cases where consumers are pressuring companies to do the right thing, do their actions amount to a kind of vigilante justice?
Waheed Hussain is an assistant professor in the Department of Legal Studies and Business Ethics at the University of Pennsylvania's Wharton School of Business. He has a Ph.D. in Philosophy from Harvard University and an A.B. in Philosophy from Princeton University. His main research interests lie in moral and political philosophy, particularly in those areas that bear on the morality of economic life.
One of his major research projects focuses on the philosophical debate about how best to understand the political concern for freedom. After formulating and defending an interpretation of this concern, he argues that the most attractive economic arrangements from the standpoint of freedom are those that extend democratic forms of decision making into economic life. An example of such an arrangement would be the codetermination system in Germany, which gives representatives of labor a significant role to play in economic decision making.
Other current projects include developing a more adequate understanding of the nature of personal autonomy and its significance in political contexts, examining the role of secondary associations in a capitalist democracy, formulating a moral contractualist account of the duties of corporations and their managers, and assessing the case for the corporation's right (and perhaps duty) to engage in civil disobedience.
At Wharton, Professor Hussain teaches Legal Studies 210, Corporate Responsibility and Ethics and Legal Studies 226, Markets, Morality and the Future of Capitalism, which is cross-listed in both the Philosophy Department at Penn and the Program in Politics, Philosophy and Economics.
Graham Stuart Lounge
Ben Abdallah on Moroccan reform for "Le Monde"
On Sunday February 20, Morocco experienced its first encounter with the wave of democratic change that has been sweeping across the Arab world. In each of several major cities, tens of thousands of Moroccans demonstrated for the same kinds of demands that we have seen elsewhere: to replace arbitrary and absolute uses of power with real, open democracy, to end the corruption and clientalism that stifles economic life, and to assert the rights of citizens to be treated with dignity and respect and to have a decent life for themselves and their families. Like these other demonstrations, those in Morocco also give us a glimpse of a new kind of movement -- one that brings together disaffected youth, impoverished working people, Islamists, traditional political dissidents, human rights groups, and others, in a kind of "leaderless" movement without a fixed ideological agenda. Unlike some other movements, the Moroccan demonstrations were predominately oriented toward reform, not overthrow; they did not attack the person of the King or the institution of the monarchy, and - what is most likely to keep them on that path - they were not met with brutal repression.
It would be possible for the regime to ignore what this means - there, after all, is no occupation of a central square to contend with. It would be better, however, for everyone to heed what it means - there is, clearly, a widespread, persistent discontent, affecting a broad swath of the populace. We have only seen the beginning of a process through which that discontent will manifest itself and find its political expression. How things develop from here is not known or predictable, and will depend on how the different forces react and interact going forward, but, in the present context, it is unlikely that expressions of that discontent will simply disappear.
The welcome lack of bloody conflict has produced a curious uncertainty on both sides, a kind of double-double-bind situation that seems good for everyone: for the movement, the lack of fierce confrontation and overly radical demands helps legitimize the protest, and may make more people comfortable with and in it; but it may also be perceived as a sign of weakness. For the regime, the avoidance of brutal repression redounds to its credit, but it may also embolden the movement and help it grow. Neither side should underestimate the complexity of the pas de deux in which they are now engaged. For the regime, especially, to react with complacency and condescension - treating this movement as something that can either be ignored or absorbed in the usual ways, would be a very risky bet.
Much more productive, and much smarter, would be to heed the message of this movement - which, right now, is nothing else than to recapture the spirit of the new reign of Mohammed VI that the country had twelve years ago, to restart a hopeful process that so many feel has been rudely interrupted and replaced with disappointing new versions of business-as-usual. We started with the Justice and Reconciliation Authority (IER) and a promise of a new era of justice and accountability, and have arrived instead, post-16 May, with new waves of mass arrests, anti-"Islamist" fear-mongering, torture, and rendition [sous-traitance]. We started with a new era of freedom of the press, and have arrived at a state of censorship and legal harassment that has closed much of the independent press, and silenced or driven into exile many of its strongest voices. We began with a promise of economic transparency, and have ended in a state of economic predation, conducted by lobbies and vested interests in the name of the monarchy. We began with alternance, welcoming opposition parties and political dissidents into a new era of open democracy, and have passed through technocratic fixes to arrive at a return to "political normalcy," only to be undermined by ad-hoc commissions. The latest "new" political stratagem is a frankly royalist party, which may accrue more power to the monarchy in the short term, but, by bringing it further down into the arena of day-to-day political infighting, undermines the legitimacy it was recently accorded by all actors.
In short, many feel that the hopes and promises - the very spirit -- of the new reign have been abandoned. This is because they were not subject to a participatory process of constitutionalization and institutionalization, which is the only way that would have become permanent and irreversible. They were instead, once again, left discretionary. The monarchy has not submitted to a new, viable contract with the people. What the movement of February 20 is telling us is that these hopes and promises -- these rights -- can't be discretionary anymore. We have to return to them, and quickly begin a process that people can see is making them fixed and irrevocable. We have, that is, to revive and recast the spirit of the new reign with new urgency -- because there are new actors on the political stage who won't go away. Our nation has been put on notice: Change must and will come, and it will not be top-down anymore. The commander [commandant de bord] now has a co-pilot, the Moroccan people, who will not fall asleep at the wheel.
Interview with U.S. Ambassador to the ROK Kathleen Stephens
Q. While the ROK-EU Free Trade Agreement (FTA) will come into force on July 1, the ROK-U.S. FTA is still awaiting approval from the U.S. Congress. Could you tell us about the prospects for Congressional approval of the deal?
"It was such a significant issue that even President Barack Obama mentioned the trade deal during his State of the Union address in January, and he also called on Congress to ratify it ‘as soon as possible.' Therefore, you will likely see in the coming weeks the submission of the legislation to Congress, and I expect that it will pass through both the House and the Senate after a robust discussion of it. I think that with the Administration and many stakeholders in the United States from business to workers to individual states and communities saying how important this is for the American economy and for Korea-U.S. relations, I'm very optimistic about the ratification process."
Q. The Six-Party Talks aimed at resolving the North Korean nuclear issue have been at a stalemate for more than two years. Some officials, such as Senate Foreign Relations Committee Chairman John Kerry, argue that the United States should have bilateral dialogue with the North to smooth the way for the resumption of the [Six-Party] Talks. What do you think we need now to resume the stalled Six-Party Talks?
"U.S. Assistant Secretary of State for East Asian and Pacific Affairs Kurt Campbell and U.S. Special Representative for North Korea Policy Stephen Bosworth already mentioned this issue in details at a Senate Foreign Relations Committee hearing on the North Korean issue yesterday (March 1). We all agree that it is very important to improve inter-Korean relations, and we also understand that when we verify that the North truly wants to see a tangible improvement in its relations with the ROK, we should be ready to accept bilateral and multilateral dialogue."
Q. Regarding Mr. Bosworth's mention about food aid to the North, some observers speculate that there will be some change in the stalled U.S.-North Korea relations.
"(Shaking her head) The U.S. approach on the provision of humanitarian assistance including food assistance internationally has always been a principled one based upon an assessment of the need and the ability to monitor in an appropriate way to ensure the assistance gets to those who are most needy. We are applying those same principles to any consideration of humanitarian assistance to North Korea, and therefore, he [Amb. Bosworth] did not indicate any particular change."
Q. The "Jasmine Revolution" is sweeping the Middle East. Considering the lack of social networking services and a different type of regime in North Korea, it may be difficult to draw a direct comparison [between the Middle East and North Korea,] but do you think that the pro-democracy movements in the Middle East could affect North Korea?
"To be honest with you, I do not know. It is difficult to speculate on it because North Korea is certainly one of the most isolated places in the world when it comes to the availability of news about the outside world."
Q. While the ROK-EU Free Trade Agreement (FTA) will come into force on July 1, the ROK-U.S. FTA is still awaiting approval from the U.S. Congress. Could you tell us about the prospects for Congressional approval of the deal?
"It was such a significant issue that even President Barack Obama mentioned the trade deal during his State of the Union address in January, and he also called on Congress to ratify it ‘as soon as possible.' Therefore, you will likely see in the coming weeks the submission of the legislation to Congress, and I expect that it will pass through both the House and the Senate after a robust discussion of it. I think that with the Administration and many stakeholders in the United States from business to workers to individual states and communities saying how important this is for the American economy and for Korea-U.S. relations, I'm very optimistic about the ratification process."
Q. Recently, the issue of redeploying U.S. tactical nuclear weapons to the ROK in the event of a contingency on the Korean Peninsula stirred up some controversy. Some observers also point out that it is possible for the United States to assist the ROK with tactical nuclear weapons as part of its extended deterrence. If the ROK wants, is there a possibility that the United States will redeploy its tactical nuclear weapons to USFK?
"Our position is very clear on this, and we reaffirmed it at a Senate hearing yesterday (March 1). We want to see the complete denuclearization of the Korean Peninsula. That means no nuclear weapons in North Korea. There are no nuclear weapons right now in South Korea. In terms of the ROK, it's our assessment that the reintroduction of these weapons is neither desirable nor needed."
Q. President Obama, in his speeches, praised the ROK especially for its education. In the ROK, however, many people point out that the education problem is very serious. What is your take on this?
"So many Koreans talked about it. Those who are currently living in the ROK or those who have been watching the ROK's education system may know that education is such an important issue for Koreans. Personally, I am also well aware of (Koreans') education fervor as well as the stress incurred by children and families due to excessive [education-related] competition.
President Obama seems to think that every education system has some problems, and he appears to want to introduce Korea's education fervor and parents' active interest in education to the United States. In my opinion, President Obama believes that in this aspect, the ROK is a good model.
However, as everybody knows it, there is no such thing as a perfect education system. Therefore, while the United States learns education fervor from the ROK's education system, the ROK could learn a wider variety of teaching methods from the United States."
Q. Would you raise your child in a Korean-style education system?
"Since my son has already grown up, I can only give you a hypothetical answer. The biggest challenge would be language, but I can say 'Yes.' This is because I know that the ROK also has many good schools and teachers. However, when it comes to sending my child to ‘hagwon,' a private institute, I would need to discuss with Korean parents, teachers and friends."
Q. Could you tell us about U.S.-ROK relations and public sentiments in both countries now and at the time of your assignment to the ROK? When you arrived in the ROK, U.S. beef imports were a "big issue."
"The ROK and the United States have a very friendly alliance, and they are deepening and expanding it day by day. In addition, I think that I am lucky that I have served in the ROK at a time when I can contribute to creating the best and strongest relationship in the world.
When I arrived in the ROK in September, 2008, I received a truly warm welcome from the ROK—although it is a Korean tradition. When I went out on the streets, many people, who had concerns or expectations about ROK-U.S. relations, recognized and approached me and said that they wanted to see an improvement in ROK-U.S. relations. This is a message showing that the ROK-U.S. relations are very important, and we are actually working together to maintain a good relationship.
Even President Obama said that (the bilateral relationship) ‘has never been better than it is today.' (A fluent Korean speaker, Stephens repeated the same phrase in Korean.)"
Q. Unlike other U.S. Ambassadors to the ROK, you travel across the ROK to reach out to Koreans, even gaining the nickname "Star Ambassador." Is there any special reason?
"Thank you very much for appreciating my efforts. Whenever I am assigned to a certain nation, I think that I must understand the nation and its people because that is what a diplomat and an Ambassador is supposed to do. To me, Korea this may have been a little easier than it was for my predecessors. This is because I lived in the ROK before, I speak Korean, and I feel comfortable with Korean culture.
I visited the ROK in 1975 for the first time, and I wanted to know how much the ROK and Koreans' thought have changed ever since, and I watched actual changes with interest.
Q. This might be a little premature, but you are going to leave office in six months. Do you have any future plans? Are you going to continue to work to strengthen ROK-U.S. relations?
"(Laughter) This is my third time to live in the ROK. It is a great honor to serve as the U.S. Ambassador to the ROK. In my third year in office, I still have many things to do, including the ROK-U.S. FTA, but after leaving office, I hope to continue to make contributions to this great (U.S.-Korea) relationship for the rest of my life. In fact, I do not know what to do after leaving office, but I will always carry a huge interest in and commitment to this relationship."
Q. This year marks the 50th anniversary of the foundation of the Peace Corps. You actually worked as a Peace Corps volunteer in the ROK. What does the Peace Corps mean for you? How did your service in the ROK affect you today?
"Thank you for asking that question. The Peace Corps is still engaging in various activities around the world, and I think that it is the best program ever from the United States Government. I can say that this program has inspired the United States and people around the world throughout many generations.
It is true that while serving in the ROK as a Peace Corps member, I underwent a series of difficulties which I had never experienced before. It was not easy for a young woman to adapt to living and working in a nation which she hardly knew.
At that time, I needed to completely assimilate into a Korean organization. I serve in many countries as a diplomat, but it is about working at a U.S. Embassy, a U.S. institution. Therefore, it is difficult to compare it with Peace Corps activities. I think that at that time, I had experience which was totally new mentally, physically, and emotionally. However, any Peace Corps member has such experience.
[Through such experience,] I witnessed the strength and various talents of Koreans in person, and that has had an enormous impact on my life.
Translation by Yonhap News. Republished with permission.