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The digital Information Technology (IT) revolution currently underway is profoundly reshaping economic activity, influencing politics, and transforming societies around the world. It is also forcing a reconceptualization of the global and local; many of the technologies, platforms, and fundamental disruptions are global in nature, but national or local contexts critically influence the uses and effects of IT.

Digital media— broadly conceived as digital platforms for information creation, transmission, and consumption—is a core driver of the IT revolution. Information is the very essence of civilization itself, and the advent of digital media fundamentally transforms our relationship to information. We have already seen: 1)  the Internet maturing as a platform for posting, disseminating, and consuming information, such as online news startups, video such as Youtube, microblogs to evade censorship, and a global marketplace for selling software, advertising and even personal information; 2) the diffusion of mobile communications, making information available across  geographic and socio-economic boundaries, and 3) the widespread adoption of social networking services that represent exploration into the next stage of relationships between people, groups, firms, and other entities.

Digital media is also at the crux of the “global meets local” dynamic, since digital media is by nature global, but differences in economic, political, and social conditions across countries lead to wide variation in its impact. For example, digital media is argued to have been a catalyst in the Arab Spring demonstrations that led to regime shifts in Tunesia, Egypt, and then Syria, but digital media in itself may not lead directly to a regime shift in China— due to government success in sophisticated censorship and physical network design.

The Asia-Pacific provides a fascinating array of countries for examination of the political, economic, and socio-cultural effects of digital media on the modern world. Economies range from developing to advanced. Governments include varied democracies as well as one party regimes. The press enjoys relative freedom in some countries, undergoes limited constraints in others, and is tightly controlled in a few. Populations range from dense to sparse, and from diverse to relatively homogenous.

The panels were divided to discuss four major themes:

Digital Media versus Traditional Media
Around the world, digital media is disrupting traditional media such as newspapers and television. Traditional business models are undermined, new entrants proliferate, and experimentation abounds with no end-game in sight. Questions for countries with well-established traditional media include: what are the patterns for the emergence of new players? To what degree do they threaten the traditional? In countries with less diffused traditional media, what are the opportunities enjoyed by digital media? 

Beyond business models, the social and political functions of digital media may differ from those of traditional media—particularly where traditional media is subject to close governmental control. Who are the new entrants, and what new functions do they provide?  Have traditional media failed as sources of information? What shifts have occurred in how people get information, and how does this differ across countries?

Digital Media and Political Change in Asia
Digital media opens up vast new information flows that can influence political change. From the perspective of grass-roots movements and civil society, digital media provides new tools to congregate, coordinate, and demonstrate. Governments that strongly control civil society, such as China and Vietnam, were alert to the role digital media played in the Arab Spring. What is the potential for digital media in civil society and democratization? In democratic countries such as Japan, South Korea, or India, how is digital media transforming civil society? For example, Japan’s peaceful anti-nuclear demonstrations, coordinated through digital media, displayed an entirely new pattern.

From the perspective of governments, digital media presents not only challenges, but new opportunities to monitor, gather information, and respond to the public. In strong state countries, control of information flows to the people, and gathering of information about people are the cornerstones of state control. How are these states adapting their attempts at controlling media in the face of pervasive digital media? In democratic systems, deciding what information to channel to which voters at what point in election cycles is a critical part of any electoral strategy. How are governments and parties using digital media to reach their constituencies, and what is their effectiveness?

Social Change and Economic Transformation
As a core part of the IT revolution, digital media has opened up new domains of innovation that transforms industries and economies. For advanced countries, it raises serious questions about how best to profit from digital platforms whose underlying technology is increasingly controlled by American multinational firms. For developing countries, the question is how to best take advantage of the world-class computing resources, global markets, and extensive reach enabled by the technological platforms underlying digital media. Instruments such as smartphones and the digital content conveyed on those devices are altering interpersonal relations and even the struggle against poverty in societies such as India.

The advent of social network services is also altering how we conceive of social connections. How do these networks affect groups such as the Korean or Filipino diasporas, and what are the implications for identity, “imagined communities,” and group identification. In what ways is the cohesiveness of groups enhanced by connections such as Facebook or Twitter, and in what ways are groups fragmented along interest cleavages, with people exposed to only ideas and groups of their choice. How does digital media impact social change and how does that impact lead to economic transformation in both developed and developing countries?

Digital Media and International Relations
The growth of digital media produces a powerful and sometimes troubling impact on international relations in the Asia-Pacific region. It can provide greater cultural understanding and regional integration but also aggravate tensions.  Cultural phenomenon such as the wildly popular Korean pop star Psy (of “Gangnam Style” fame) arise from the availability of digital media allowing a video to ‘go viral’ on a global scale in weeks. Conversely, tensions over territorial and historical issues in Northeast and Southeast Asia gain credence and momentum from discussion on digital media platforms, often pushing governments to act in ways detrimental to peace and stability. How does digital media influence international relations in the region? Is it a force for positive change or a source of instability? Finally, the rules governing critical parts of the physical infrastructure upon which digital media depend, such as governance of the Internet are increasingly contested in the international domain.

The fifth Stanford Kyoto Trans-Asian Dialogue focused on these issues surrounding the impact of digital media. The Dialogue brought together scholars, policy experts, and practitioners from the media, from Stanford University and from throughout Asia. Selected participants will start each session of the Dialogue with stimulating, brief presentations. Participants from around the region engaged in off-the-record discussion and exchange of views. The final report from the Dialogue will be published on this page as soon as it has been completed.

The Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) established the Stanford Kyoto Trans-Asian Dialogue in 2009 to facilitate conversation about current Asia-Pacific issues with far-reaching global implications. Scholars from Stanford University and various Asian countries start each session of the two-day event with stimulating, brief presentations, which are followed by engaging, off-the-record discussion. Each Dialogue closes with a public symposium and reception, and a final report is published on the Shorenstein APARC website.

Previous Dialogues have brought together a diverse range of experts and opinion leaders from Japan, South Korea, China, Vietnam, Thailand, Indonesia, Singapore, India, Australia, and the United States. Participants have explored issues such as the global environmental and economic impacts of energy usage in Asia and the United States; the question of building an East Asian regional organization; and addressing the dramatic demographic shift that is taking place in Asia.

The annual Stanford Kyoto Trans-Asian Dialogue is made possible through the generosity of the City of Kyoto, the Freeman Spogli Institute for International Studies at Stanford University, and Yumi and Yasunori Kaneko.

Kyoto International Community House Event Hall
2-1 Torii-cho, Awataguchi,
Sakyo-ku Kyoto, 606-8536
JAPAN

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In our current era, the advent of digital technologies and accelerating globalization is driving ever-faster commoditization of firms and products.  With rapidly improving Information and Communications Technology (ICT) tools, manufacturing is decomposed with finer granularity, and corporate functions can be outsourced and offshored more than ever before.  Services can be unbundled into activities that can be taken apart, reconfigured, and transformed with the application of algorithms.  Overall, firms are experiencing accelerating shifts in the sweet-spot for markets and business models in their search for sustainable advantage.

As firms struggle to adjust in this global, digital world, governments are also under pressure to examine their options to retain value in their national contexts; wealthy nations face the challenge of how to remain wealthy.

Japan is no exception, and from this vantage it is worth reconsidering the potential role that industrial policy can play in its growth strategy.  We will proceed in three sections, each of which builds from our previous research (indicated below the title), towards a set of recommendations for thinking about industrial policy in this digital, global era.  Each point contributes something new to Japan’s discourse about a new growth strategy.

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Japan Spotlight
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Kenji E. Kushida
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Cloud Computing is rapidly transforming not only computing, but the very fundamentals of how we process, store, and use information—and information is the very basis of civilization.  Cloud Computing is historically unique by simultaneously being an innovation ecosystem, production platform, and global marketplace. While the technology and business models are almost inherently global in scale, national politics and regulations will powerfully influence how Cloud Computing unfolds across the world. Critical issues such as information privacy (who gets to see and use information), security (how to protect information from unauthorized access), and communications network policy (the political economy of broadband and wireless networks) will be settled at the national or regional level. There are powerful tensions as US-based multinational firms are rapidly taking over the global Cloud Computing industry. What are the appropriate frameworks to understand how the competitive dynamics are unfolding? What are the options for national-level players? How should we understand the policy issues as they unfold? What is the role of Japan and Asia as this transformation unfolds?

Kenji Kushida is the Takahashi Research Associate in Japanese Studies at the Walter H. Shorenstein Asia-Pacific Research Center. He holds a PhD in political science from the University of California, Berkeley, and was a graduate research associate at the Berkeley Roundtable on the International Economy. Kushida has an MA in East Asian studies and BAs in economics and East Asian studies, all from Stanford University.

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Former Research Scholar, Japan Program
kenji_kushida_2.jpg MA, PhD
Kenji E. Kushida was a research scholar with the Japan Program at the Walter H. Shorenstein Asia-Pacific Research Center from 2014 through January 2022. Prior to that at APARC, he was a Takahashi Research Associate in Japanese Studies (2011-14) and a Shorenstein Postdoctoral Fellow (2010-11).
 
Kushida’s research and projects are focused on the following streams: 1) how politics and regulations shape the development and diffusion of Information Technology such as AI; 2) institutional underpinnings of the Silicon Valley ecosystem, 2) Japan's transforming political economy, 3) Japan's startup ecosystem, 4) the role of foreign multinational firms in Japan, 4) Japan's Fukushima nuclear disaster. He spearheaded the Silicon Valley - New Japan project that brought together large Japanese firms and the Silicon Valley ecosystem.

He has published several books and numerous articles in each of these streams, including “The Politics of Commoditization in Global ICT Industries,” “Japan’s Startup Ecosystem,” "How Politics and Market Dynamics Trapped Innovations in Japan’s Domestic 'Galapagos' Telecommunications Sector," “Cloud Computing: From Scarcity to Abundance,” and others. His latest business book in Japanese is “The Algorithmic Revolution’s Disruption: a Silicon Valley Vantage on IoT, Fintech, Cloud, and AI” (Asahi Shimbun Shuppan 2016).

Kushida has appeared in media including The New York Times, Washington Post, Nihon Keizai Shimbun, Nikkei Business, Diamond Harvard Business Review, NHK, PBS NewsHour, and NPR. He is also a trustee of the Japan ICU Foundation, alumni of the Trilateral Commission David Rockefeller Fellows, and a member of the Mansfield Foundation Network for the Future. Kushida has written two general audience books in Japanese, entitled Biculturalism and the Japanese: Beyond English Linguistic Capabilities (Chuko Shinsho, 2006) and International Schools, an Introduction (Fusosha, 2008).

Kushida holds a PhD in political science from the University of California, Berkeley. He received his MA in East Asian Studies and BAs in economics and East Asian Studies with Honors, all from Stanford University.
Kenji E. Kushida Takahashi Research Associate in Japanese Studies Speaker Shorenstein Asia-Pacific Research Center, Stanford University
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The world has undergone major drastic changes in the last two decades driven by several major factors, eg, explosion of human population and connectivity. Such changes seem further accelerated in recent years and it seems that our future becomes more uncertain and unpredictable. The Fukushima Nuclear Accident awakened us and led to creation of Independent Investigation Commission by the National Diet of Japan; The Commission Report revealed some of the fundamental issues of Japan’s nuclear policy. Meanwhile, multi-stakeholders’ engagement has become critical in various social affairs and in policy making domains within and across national boundaries, and has contributed in significant ways to affect the processes of addressing and impacting global agenda, such as climate change, food and water, energy, urbanization, biodiversity, human capital with shifting the balance of economy and power. In my view, the principles of our society may be changing quite fast heading somewhat differently from our conventional norm. The science community can and should contribute to these issues in nurturing future leaders, but in what way?

Kiyoshi Kurokawa is a graduate of University of Tokyo School of Medicine, trained in internal medicine and nephrology, in US 1969-84; Professor of Med, Dept Med ofUCLA Sch Med (79-84), Chair, Univ Tokyo Faculty of Med (89-96), Dean of Tokai Univ School of Med (96-02, President of Science Council of Japan (03-07), Science Advisor to Prime Minister (07-09), Board member of A*STAR (06-00), Bibliotheca Alexandria (04-08), Khalifa University (08- ), Okinawa Institute of Science and Tech (06- ), Global Science and Innovation Advisory Board of the Prime Minister of Malaysia (11-); President of Intl Soc Nephrology (97-99), Inst of Medicine of US Academies (92). Recently, chaired Fukushima Nuclear Accident Independent Investigation Commission by the National Diet of Japan (Dec 11-July 12). AAAS Scientific Freedom and Responsibility Award (2012), ‘100 Top Global Thinkers 2012” of Foreign Policy.

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Kiyoshi Kurokawa MD, President Speaker Science Council of Japan (2003-06)
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Former Henri H. and Tomoye Takahashi Senior Fellow in Japanese Studies at the Freeman Spogli Institute for International Studies
Former Professor, by courtesy, of Finance at the Graduate School of Business
takeo_hoshi_2018.jpg PhD

Takeo Hoshi was Henri and Tomoye Takahashi Senior Fellow at the Freeman Spogli Institute for International Studies (FSI), Professor of Finance (by courtesy) at the Graduate School of Business, and Director of the Japan Program at the Shorenstein Asia-Pacific Research Center (APARC), all at Stanford University. He served in these roles until August 2019.

Before he joined Stanford in 2012, he was Pacific Economic Cooperation Professor in International Economic Relations at the Graduate School of International Relations and Pacific Studies (IR/PS) at University of California, San Diego (UCSD), where he conducted research and taught since 1988.

Hoshi is also Visiting Scholar at Federal Reserve Bank of San Francisco, Research Associate at the National Bureau of Economic Research (NBER) and at the Tokyo Center for Economic Research (TCER), and Senior Fellow at the Asian Bureau of Finance and Economic Research (ABFER). His main research interest includes corporate finance, banking, monetary policy and the Japanese economy.

He received 2015 Japanese Bankers Academic Research Promotion Foundation Award, 2011 Reischauer International Education Award of Japan Society of San Diego and Tijuana, 2006 Enjoji Jiro Memorial Prize of Nihon Keizai Shimbun-sha, and 2005 Japan Economic Association-Nakahara Prize.  His book titled Corporate Financing and Governance in Japan: The Road to the Future (MIT Press, 2001) co-authored with Anil Kashyap (Booth School of Business, University of Chicago) received the Nikkei Award for the Best Economics Books in 2002.  Other publications include “Will the U.S. and Europe Avoid a Lost Decade?  Lessons from Japan’s Post Crisis Experience” (Joint with Anil K Kashyap), IMF Economic Review, 2015, “Japan’s Financial Regulatory Responses to the Global Financial Crisis” (Joint with Kimie Harada, Masami Imai, Satoshi Koibuchi, and Ayako Yasuda), Journal of Financial Economic Policy, 2015, “Defying Gravity: Can Japanese sovereign debt continue to increase without a crisis?” (Joint with Takatoshi Ito) Economic Policy, 2014, “Will the U.S. Bank Recapitalization Succeed? Eight Lessons from Japan” (with Anil Kashyap), Journal of Financial Economics, 2010, and “Zombie Lending and Depressed Restructuring in Japan” (Joint with Ricardo Caballero and Anil Kashyap), American Economic Review, December 2008.

Hoshi received his B.A. in Social Sciences from the University of Tokyo in 1983, and a Ph.D. in Economics from the Massachusetts Institute of Technology in 1988.

Former Director of the Japan Program at the Shorenstein Asia-Pacific Research Center
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The U.S.-Japan relationship is not much in the headlines these days—and when it is the stories seem to focus on issues, such as Okinawa and beef, that have bedeviled ties seemingly for decades. But, in the midst of seismic shifts in Asia-Pacific security and global economic relations, shouldn’t the two countries be talking about something else?

Many in American industry have thought so and in 2009 the American Chamber of Commerce in Japan released a white paper calling for a new set of discussions with Japan directed at capturing the innovation and growth potential of the emerging global Internet economy. Accompanying the call were a set of over 70 specific recommendations for discussion in areas ranging from privacy, security, intellectual property, spectrum management, cyber security to competition—an agenda for the future not the past.

The paper found resonance with the new Democratic Party government in Japan and the Obama administration that were searching for a new direction and vocabulary for U.S.-Japan economic relations and were mindful that partnership with Japan in this area strengthened the U.S. hand in dealing with preemptive attempts elsewhere to define rule of the road for the Internet and “cloud computing.” 

The Dialogue was formally launched in the fall of 2010 and its third plenary session is taking place in Washington, D.C. October 16 to 19, 2012. Professor Jim Foster is participating in the Dialogue as a leading member of the U.S. private sector delegation to the talks. He will be coming to Stanford immediately following the joint industry-government meeting on October 18 (the governments will continue in closed-door session through the 19th) and will offer his analysis and insight into the discussions in Washington and their implications for future cooperation between Japan and the U.S. industry in the cloud computing field and for the two governments on challenging issues of broader Internet governance.

Jim Foster is currently a professor in the Graduate School of Media and Governance at Keio University, where he teaches and researches on U.S. foreign policy issues and global Internet policy. He is the co-director of Keio’s Internet and Society Institute. Foster worked as a U.S. diplomat from 1981 to 2006, serving in Japan, Korea, the Philippines and at the U.S. Mission to the EU. He was director for corporate affairs at Microsoft Japan from 2006 to 2011. He is a former vice president of the American Chamber of Commerce in Japan and a co-author of the ACCJ White Paper on the Internet Economy.

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Jim Foster Professor, Keio University and Vice-Chair of the American Chamber of Commerce (ACCJ) in Japan Internet Economy Task Force Speaker
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Northeastern Japan is rebuilding itself after last year's earthquake, tsunami, and nuclear accident. The devastation to the region is unquestionable, but so are the opportunities for energy industry reform and innovation. Masahiko Aoki and Kenji E. Kushida spoke with the Stanford News Service about developments in the region, and about possible links to Silicon Valley technologies.
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Tokyo Electric Power Company's Tama substation in northwest Tokyo, May 2010. | Flickr/ykanazawa1999
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The authors contend that cloud computing is historically unique by simultaneously being an innovation ecosystem, production platform, and global marketplace. In the first part, they define cloud computing as a "dynamic" utility, listing key characteristics of what it is and what it is not, both from providers' and users' vantages. In the second part, they characterize three competitive battles in the broader cloud ecosystem: winning the user (cloud providers), the search for value (network providers), and the device wars (device providers). They then provide a new and simple, but powerful and practically applicable typology that combines the type of providers with the commonly understood architecture types. The third part applies this framework to analyze the business strategies of global cloud service providers and select others in the broader ecosystem. They conclude with policy implications and where to take research from here.

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Communications and Strategies
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Kenji E. Kushida
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