Many observers, and many investors, believe that young people are especially likely to produce the most successful new firms. Integrating administrative data on firms, workers, and owners, we study startups systematically in the U.S. and find that successfull entrepreneurs are middle-aged, not young. The mean age at founding for the 1-in-1,000 fastest growing new ventures is 45.0. The findings are similar when considering high-technology sectors, entrepreneurial hubs, and successful firm exits. Prior experience in the specific industry predicts much greater rates of entrepreneurial success. These findings strongly reject common hypotheses that emphasize youth as a key trait of successful entrepreneurs.
Speaker:
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Javier Miranda, Principal Economist, Economy-Wide Statistics Division, US Census Bureau
Bio:
Javier Miranda is Principal Economist at the U.S. Census Bureau where he began his career in 1998. Javier received his Ph.D. in Economics from American University in 2004. Previous to joining the Census Javier was a research consultant at the World Bank and the Urban Institute. Javier has published papers in the areas of industrial organization, technological change, job creation, entrepreneurship and firm financing. Among his publications are articles in the American Economic Review, Journal of Economic Literature, American Economic Journal Macroeconomics, Review of Economic and Statistics, IMF Review, World Bank Economic Review, Journal of Business Valuation and Economic Loss, NBER Macroeconomics Annual, and multiple books and chapters. Javier received the Director's Award for Innovation (2007) and the U.S. Department of Commerce Bronze Medal (2011). His contributions to data infrastructure are notable. Javier Miranda is responsible for the development of the Longitudinal Business Database and the Business Dynamics Statistics and is the Synthetic Longitudinal Business Database v3. Together with the USPTO Javier has led the development the Business Dynamics Statistics of Innovative Firms a longitudinal database of firms, patents, and inventors. Javier Miranda is also President of the Board of SEM an adult education and job readiness program designed to address the root causes of poverty, illiteracy, and violence in Washington DC.
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Javier Miranda, Principal Economist, Economy-Wide Statistics Division, US Census Bureau
Last fall, SPICE provided me an opportunity to design and organize its first post-collegiate online course. The Stanford-Hiroshima Collaborative Program on Entrepreneurship (SHCPE’s Japanese-friendly pronunciation, “shu-ppe”) was conducted in collaboration with the Hiroshima Business and Management School (HBMS) at the Prefectural University of Hiroshima (PUH). HBMS offers the only Master of Business Administration (MBA) program in Japan’s western region of Chugoku and Shikoku. Interacting with amazing individuals on both sides of the Pacific, this unique experience brought me priceless moments.
Innovation in Itself
SHCPE, a course to help nurture entrepreneurial thinking, was an innovation in itself. The program was born out of Governor Hidehiko Yuzaki’s vision to design and implement a social challenge to help accelerate Hiroshima’s regional growth. Harnessing the resources of Stanford and Silicon Valley, the new online class was launched to empower the students and to revitalize the business sector in Hiroshima. SPICE created the curricular content and HBMS provided the learning environment designed to maximize the academic experience for the students. As the course’s curriculum designer, I leveraged the expertise of my fellow SPICE online instructors and applied design thinking, a method developed by Stanford faculty, practiced widely in Silicon Valley, and popularized globally to understand the end-user, challenge our assumptions, and reconstruct alternative perspectives to generate innovative ideas.
Bridging Silicon Valley and Hiroshima
SHCPE’s 18 MBA students in Hiroshima met every Saturday morning for three hours from September 28 to November 16, 2019 to connect online with Japanese entrepreneurs, professionals, and scholars in Silicon Valley. The first virtual class focused on discussing the mindset expected for the course as well as the conceptual framework. In the following six weeks, we welcomed guest speakers who shared their diverse experiences. What were their prior experiences, expertise, and insights? What resources did they have to achieve their goals? What were the major promoters and impediments to their journeys? Through active exploration of these questions, the students were exposed to real-life case studies to analyze Silicon Valley’s ecosystem and think critically about entrepreneurial competence and qualification. The course was conducted entirely in Japanese.
The guest speakers engaged and energized the HBMS students. Akira Onozato spoke about the evolution of Silicon Valley over the past three decades. His diverse experiences as a serial entrepreneur painted a rich picture of the San Francisco Bay Area’s growth cycle. Akira’s story provided a great segue to Rika Nakazawa’s lecture on the mindset and culture surrounding startups. Rika highlighted grit, tolerance of failure, and branding as important assets of successful entrepreneurs. Dr. Fumiaki Ikeno spoke on the landscape and trends in the medical device industry. He pointed to Japan’s declining productivity and economic competitiveness and discussed the persistent fear of failure as a major impediment to promoting entrepreneurship. As an active venture capitalist on both sides of Pacific, Seiji Miyasaka explained the funding schemes and financial cycles surrounding the investment climate of startups. Using case studies, he highlighted the role of investors who act as coaches to aspiring entrepreneurs. Tatsuki Tomita’s definition of a startup was shaped by his own experiences of starting multiple companies. His discussion of the pivot pyramid provided a visual guideline for how startups can experiment with ideas and find their product-market fit. Tasha Yorozu shared her expertise as a legal counsel, walking through the steps of starting a business in Silicon Valley. Along with Jumpei Ishii, a visiting legal counsel from Japan, Tasha further discussed their observations of successful startup practices and common pitfalls. The diversity of SHCPE guests represented the vibrant Silicon Valley community.
Active Learning and Knowledge Construction
While these professionals provided informative accounts of their expertise, SHCPE’s ultimate goal was to help each HBMS student to develop a mindset of an active learner. The MBA students were constantly challenged to think critically about the weekly theme, and work in pairs or teams to discuss assigned topics. The experience offered a dynamic and interactive learning environment for the Japanese students in their 30s, 40s, and 50s who had been accustomed to traditional lecture-style formats. SHCPE’s curriculum based on design thinking adopted an inquiry-based learning pedagogy, which engaged every student through weekly assignments and in-class discussions. During the first class, the students were informed that SHCPE would not teach them entrepreneurship. Instead, this course would provide them with the opportunity to reconstruct their knowledge of entrepreneurship and innovation based on what they observe, hear, and feel during the class. In addition, the students were required to provide feedback after each class, which was utilized to redesign the lesson plans for the following week.
This active and experiential mindset was envisioned by Dr. Gary Mukai, Director of SPICE and a renowned Japan–U.S. educator. “At SPICE, we provide students an opportunity to own their learning experience. Education is about empowering the students,” Dr. Mukai asserts. This tradition comes from the American philosopher and education reformist John Dewey, who said, “I believe finally, that education must be conceived as a continuing reconstruction of experience; that the process and the goal of education are one and the same thing.” SHCPE’s inaugural curriculum aimed to implement this philosophy through direct, real-life interaction with founders and movers in Silicon Valley, and through the iterative process to deconstruct and reconstruct their knowledge on entrepreneurship.
Innovation Through Education
What SHCPE aimed to achieve was innovation through education. The weekly three-hour online class was roughly divided into three parts: guest lecture, class discussion, and interview. Prior to the interview session, a pre-assigned team of three students met with me in a separate online room and brainstormed their interview questions. For the majority of the students, it was their very first time to formally interview a person, and the experience brought a novel learning opportunity to think critically about entrepreneurial competence. Many commented on the challenge and the excitement of getting to know strangers by engaging them in a thoughtful conversation. The weekly interview highlighted the philosophy, aspiration, and raw sentiments of the guest speakers, evoking passion, energy, and empathy among the students.
SHCPE 2019 team with Ken-ichi Nakamura, President of the Prefectural University of Hiroshima
Through observations and discussions, the SHCPE participants built their own knowledge and understanding of what constitutes entrepreneurship. To conclude the eight-week course, I had the chance to visit Hiroshima to offer the last SHCPE class in person, and to observe first-hand their reaction to the curriculum design. Meeting the students as well as the HBMS faculty and staff who supported SHCPE, was an incredibly rewarding experience. My class focused on education and empowerment. The students discussed in teams how they might develop a curriculum to promote entrepreneurship in Hiroshima. Much to everyone’s delight, one of the students expressed his hope to apply what he learned in this course and serve as an angel investor to support local startups. The class culminated with a closing ceremony during which each student was presented an official Certificate of Completion. My trip to Hiroshima also provided a valuable opportunity to visit Governor Yuzaki as well as PUH President Ken-ichi Nakamura, who emphasized the importance of adding a real-life, global perspective to the HBMS curriculum. Programs such as SCHPE were made possible through these leaders’ foresight and support.
SHCPE strived to adopt the pedagogy of active learning and the toolsets of design thinking to implement Governor Yuzaki’s vision of “learning innovation.” The course appears to have succeeded in helping to realize his vision as one student reflected upon his experience:
This class does not intend to offer answers [to the question what entrepreneurship is]. Instead, it urges the students to constantly think on their own and engage themselves in learning. This is very different from the Japanese traditional pedagogy, which relies on rote memorization and mechanical process of practice problems. This class highlighted the fundamental difference in the philosophy of how we look at education, and I enjoyed this eye-opening experience.
SHCPE ’19 concluded with much enthusiasm. SPICE looks forward to continuing its partnership with HBMS to build upon the invaluable lessons learned from the inaugural program. With Stanford e-Hiroshima, an online course for high school students managed and taught by my colleague Rylan Sekiguchi, SPICE will continue its efforts to empower the people in Hiroshima.
Acknowledgement
I am greatly indebted to Dr. Gary Mukai for providing me this invaluable opportunity. Special thanks go to Carey Moncaster, Dr. HyoJung Jang, Jonas Edman, Meiko Kotani, Naomi Funahashi, Rylan Sekiguchi, Sabrina Ishimaru, Dr. Tanya Lee, and Waka Takahashi Brown for their valuable comments on the preliminary curriculum. I thank all of my colleagues at SPICE for their support and encouragement throughout the process.
My special gratitude goes to Akira Onozato, Dr. Fumiaki Ikeno, Jumpei Ishii, Rika Nakazawa, Seiji Miyasaka, Tatsuki Tomita, and Tasha Yorozu who took the time out of their busy Friday evening to participate in the virtual classroom. Their contagious enthusiasm energized the students.
Last but not least, I would like to express my deep appreciation to my collaborators at HBMS. I thank Professor Katsue Edo for his hard work and commitment to implement the program, Professor Yasuo Tsuchimoto for his technical expertise and dedication to administer the distance-learning, Professor Narumi Yoshikawa for supporting in-class discussions, and Kazue Hiura, Yoshihiko Oishi, and Kenji Okano for their capable assistance and thoughtful arrangements. Last but not least, my heartfelt congratulation goes to the 18 MBA students who successfully completed SHCPE ’19. The inaugural class will always have a special place in my heart.
In keeping with Stanford University's March 3 message to the campus community on COVID-19 and current recommendations of the CDC, the Asia-Pacific Research Center is electing to postpone this event until further notice. We apologize for any inconvenience this may cause, and appreciate your understanding and cooperation as we do our best to keep our community healthy and well.
Data-intensive technologies such as AI may reshape the modern world. We propose that two features of data interact to shape innovation in data-intensive economies: first, states are key collectors and repositories of data; second, data is a non-rival input in innovation. We document the importance of state-collected data for innovation using comprehensive data on Chinese facial recognition AI firms and government contracts. Firms produce more commercial software and patents, particularly data-intensive ones, after receiving government public security contracts. Moreover, effects are largest when contracts provide more data. We then build a directed technical change model to study the state's role in three applications: autocracies demanding AI for surveillance purposes, data-driven industrial policy, and data regulation due to privacy concerns. When the degree of non-rivalry is as strong as our empirical evidence suggests, the state's collection and processing of data can shape the direction of innovation and growth of data-intensive economies.
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David Yang’s research focuses on political economy, behavioral and experimental economics, economic history, and cultural economics. In particular, David studies the forces of stability and forces of changes in authoritarian regimes, drawing lessons from historical and contemporary China. David received a B.A. in Statistics and B.S. in Business Administration from University of California at Berkeley, and PhD in Economics from Stanford. David is currently a Prize Fellow in Economics, History, and Politics at Harvard and a Postdoctoral Fellow at J-PAL at MIT. He also joined Harvard’s Economics Department as an Assistant Professor as of 2020.
David Yang
Prize Fellow in Economics, History, and Politics; Department of Economics, Harvard University
Shorenstein APARC
Stanford University
Encina Hall E301
Stanford, CA 94305-6055
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mingzeng@stanford.edu
Visiting Scholar at APARC
Ph.D.
Ming Zeng joined the Walter H. Shorenstein Asia-Pacific Research Center (APARC) as visiting scholar for the 2020 calendar year from Alibaba Group, where he serves as chairman of the Academic Council and formerly as Chief Strategy Officer, and the Hupan School of Entrepreneurship, where he serves as founding Dean and Professor of Strategy. At APARC, he will be conducting research on innovation and entrepreneurship in the Asia-Pacific, specifically on the globalization of Chinese digital companies across Asia. Prior to coming to APARC, Zeng was a visiting scholar at the Stanford King Center on Global Development at SIEPR.
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China has grown faster for longer than any country in recorded history. Is it market-oriented reform, state industrial policy, or some sophisticated blend of the two that explains this success? In this talk, Dr. Nicholas Lardy will also further examine what might explain China’s slowdown of recent years. Is China falling into the frequently fatal middle-income trap? Or have domestic policy choices led to the slowdown? Have trade frictions with the United States also contributed to China’s slowing growth? In addition, what should U.S. policy stance be towards China? Should the United States continue to ramp up restrictions on two-way flows of technology to try to further slow China’s growth? How successful is such a strategy likely to be and what costs to the United States would be inherent in such an approach?
Nicholas R. Lardy is the Anthony M. Solomon Senior Fellow at the Peterson Institute for International Economics. He joined the Institute in March 2003 from the Brookings Institution, where he was a senior fellow from 1995 until 2003. Before Brookings, he served at the University of Washington, where he was the director of the Henry M. Jackson School of International Studies from 1991 to 1995. From 1997 through the spring of 2000, he was also the Frederick Frank Adjunct Professor of International Trade and Finance at the Yale University School of Management. He is an expert on the Chinese economy. Lardy's most recent books are The State Strikes Back: The End of Economic Reform in China? (2019), Markets over Mao: The Rise of Private Business in China (2014), Sustaining China's Economic Growth after the Global Financial Crisis (2012), The Future of China's Exchange Rate Policy (2009), and China's Rise: Challenges and Opportunities (2008).
In keeping with Stanford University's March 3 message to the campus community on COVID-19 and current recommendations of the CDC, the Asia-Pacific Research Center is electing to make this event available through live stream only. We appreciate your understanding and cooperation as we do our best to keep our community healthy and well.
Please join the live stream via Zoom by clicking here at the scheduled time, 4:30 PM, on March 4 to view Adam Segal's talk.
Analysts on both sides of the Pacific have described an escalating “technology cold war” between Beijing and Washington. Chinese hackers attack American technology companies and Beijing is reportedly planning on the removal of foreign software and hardware from government offices. Washington is blocking Chinese investments, using punitive measures against Huawei and Chinese surveillance companies, and scrutinizing research collaboration with Chinese universities as well as scientists and students. Both sides believe they are in and have to win a race to dominate 5G, AI, quantum, and other emerging technologies. What are the weapons of the tech cold war, and are the US and China doomed to ever more competition, or can they find common ground for cooperation? What does increasing competition between China and the United States mean for the rest of the world?
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Adam Segal is the Ira A. Lipman Chair in emerging technologies and national security and Director of the Digital and Cyberspace Policy Program at the Council on Foreign Relations (CFR). An expert on security issues, technology development, and Chinese domestic and foreign policy, Segal was the project director for the CFR-sponsored Independent Task Force reports titled Innovation and National Security: Keeping Our Edge. His most recent book, The Hacked World Order: How Nations Fight, Trade, Maneuver, and Manipulate in the Digital Age (PublicAffairs, 2016), describes the increasingly contentious geopolitics of cyberspace. His work has appeared in the Financial Times, the New York Times, Foreign Policy, the Wall Street Journal, and Foreign Affairs, among others. He currently writes for the blog, “Net Politics.”
This event is part of the Stanford Silicon Valley-New Japan Project Public Forum Series.
Consumption is a major driver of national economies, and scholars often study important differences across consumption patterns across countries, which influence many aspects of their societies and economies. Yet, the underlying business of logistics operations, and how they support countries’ respective retail industries, has as much, if not more impact than simply examining consumer behavior. In this public forum, Ryuichi Kakui, with deep expertise in eCommerce logistics, will explain how logistics are used in retail industries, comparing across the world’s three largest economies: the US, China, and Japan. He will introduce the concept of strategic logistics thinking and the “4C” framework and informs leading strategic logistics thinking. A conversation with Kenji Kushida, who examines how technologies and specific industry dynamics shape varying models of political economies around the world, will then link the area of logistics and retail to important systemic differences and underlying similarities across the world’s leading economies, which are pursuing contrasting models of social, economic, and political organization.
SPEAKERS
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Ryoichi Kakui is the founder of E-Logit, the leading eCommerce logistics company in Japan. He has published 29 books related to logistics, Amazon, and “omnichannel” distribution, which have been published in Japan, the US, China, Taiwan, South Korea, and Vietnam. He is a frequent commentator on television, radio, newspapers, magazines, and other media. Educated in Sophia University in Japan with an MBA from Golden Gate University, he founded UKETORU in 2015, a app addressing the issue of re-delivery, which escalated to a social issue in Japan.
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Kenji Kushida is a research scholar at the Japan Program at the Walter H. Shorenstein Asia-Pacific Research Center at Stanford University. One of this research themes examines how IT technologies shape political economies around the world, and how varying national political economic models shape the development trajectories of technologies. He leads the Silicon Valley – New Japan Project, a sustained platform for research and collaboration between Silicon Valley and the new and emerging aspects as Japan transforms itself.
PARKING
Please note there is significant construction taking place on campus, which is greatly affecting parking availability and traffic patterns at the university. Please plan accordingly. Open parking at Stanford University available starting 4:00pm unless otherwise marked. Nearest parking garage is Structure 7, below the Graduate School of Business Knight School of Management.
Yoshio Nose is a global affiliate visiting scholar at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2019-20. Nose is the Managing Director of Nose Kozai in Osaka as well as an assistant lecturer with Nissoken. As a graduate of Kansai University, Nose began his career in civil engineering as a bridge designer. In 2005, he and his brother began managing Nose Kozai, where he expanded the family business to include the building of airplane parts. He continued his graduate studies at Kyoto University and received his second masters in 2016. While at Shorenstein APARC, Nose will research the process of innovation and the building of the supply chain in the U.S.
In recent years, "innovation" has become increasingly important for Japan. Developing innovative businesses that are separate from the traditional Japanese business sphere is becoming increasingly crucial for sustained economic growth. In this report, Asakura focuses on some emerging companies that have the potential to drive innovation, and provide some reflections on the Japanese entrepreneurial environment.
Chapter 4 of this book "Services with Everything: The ICT-Enabled Digital Transformation of Services" was written by John Zysman, Stuart Feldman, Kenji E. Kushida, Jonathan Murray, and Niels Christian Nielsen. The book is edited by Dan Breznitz and John Zysman.
SHCPE 2019 team with Ken-ichi Nakamura, President of the Prefectural University of Hiroshima
