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.
In The New York Times, Kenji E. Kushida discussed Japan's "Galapagos" information technology sector and the unique pace of the Japanese cellphone market.
Prime Minister Shinzo Abe's plan for revitalizing the Japanese economy appears to offer something for everyone. Takeo Hoshi argues that before Mr. Abe makes any more announcements, he needs to focus his efforts on a few key priorities.
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Kokkai-gijido, Japanese Diet Building, Tokyo, Japan 2006
Writing recently in Asia-Pacific Review, Daniel Sneider describes how World War II era events are depicted differently in history textbooks in China and Japan.
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A reading room in China's National Library, August 2005.
Policies seeking to end deflation, the most pressing issue for the Japanese economy, have been put into effect. In this issue of the NIRA Policy Review, Takeo Hoshi points out that deflation is a monetary phenomenon, and as such is a problem which can be solved by monetary policy.
Policies seeking to end deflation, the most pressing issue for the Japanese economy, have been put into effect. In this issue of the NIRA Policy Review, Takeo Hoshi points out that deflation is a monetary phenomenon, and as such is a problem which can be solved by monetary policy.
Comparative, policy-oriented research aimed at improving health care and the overall quality of life across the Asia-Pacific region is at the heart of AHPP’s mission and activities. As a research program within a world-class university, focusing exclusively on comparative health policy in Asia, it is unique. AHPP aims to provide evidence for addressing key health policy challenges in the Asia-Pacific, from links between poverty and ill health, to improving “value for money” and defining appropriate government and market roles in health systems. The program brings researchers to Stanford for on-site collaboration, and creates opportunities for Stanford students to conduct research in and about Asia.
The study of comparative health policy at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) dates back almost a quarter century, with its roots in the Comparative Health Care Policy Research Project inaugurated in 1990. Starting with pioneering research on health economics in Japan, the program has expanded since then to encompass research on health policy and demographic change throughout the region, albeit with a continuing focus on East Asia in comparative perspective.
Collaborative initiatives and global researchers
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AHPP’s leading-edge research involves experts on both sides of the Pacific. Among its current core research initiatives, AHPP is investigating the economic and social implications of Asia’s unprecedented demographic change, especially population aging and gender imbalance in China, as well as examining the determinants of health and health disparities among Asian populations.
AHPP is also analyzing evidence on health service delivery and financing in the Asia-Pacific region, such as the impact of expanding insurance coverage, reforming provider payment incentives, and contracting with the private sector. In addition, the program is conducting a comparative analysis of the historical development of health care institutions — like physician drug dispensing and recent reforms to separate prescribing from dispensing. AHPP also sponsors collaborative initiatives to address critical global health issues, including tobacco control, promotion of child health, and control of infectious diseases.
Preparing future health care policy experts
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The program is dedicated to training the next generation of health policy experts: undergraduate and graduate students gain crucial research experience by their involvement in AHPP’s research initiatives, as well as invaluable mentoring for their own projects. A postdoctoral fellowship was initiated in 2008, followed three years later by a fellowship for young health policy experts from low-income countries of Asia.
In addition to numerous peer-reviewed journal articles, recent AHPP publications include Aging Asia: The Economic and Social Implications of Rapid Demographic Change in China, Japan, and South Korea and Prescribing Cultures and Pharmaceutical Policy in the Asia-Pacific. AHPP also runs its own working paper series that is open to scholars and health policy experts around the world.
Annual workshops and engaging seminars
Each year, AHPP assembles some of the world’s greatest health policy minds at Stanford to examine focused topics at conferences and workshops, resulting in special issues of journals, edited volumes, and ongoing collaborative research. In this thirtieth anniversary year of Shorenstein APARC, director Karen Eggleston organized a conference on “Economic Aspects of Population Aging in China and India,” co-sponsored by several related research programs at Harvard University.
In addition, AHPP organizes numerous public seminars throughout the academic year. Recent topics have included the battle against HIV/AIDS in Cambodia; immunizations and child health in Bangladesh; population aging in Japan; Vietnam’s health policy challenges; tobacco control in China; air pollution in South Asia; private health insurance in South Korea; and many other important health policy-related issues.
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AHPP director Karen Eggleston with physicians and nurses of Shandong
Provincial Hospital's Endocrinology department.
Although the Japan Studies Program (JSP) was formally established in 2011, the Walter H. Shorenstein Asia-Pacific Research Center’s (Shorenstein APARC) newest addition has a rich history that equals or even exceeds that of the Center itself. The archives—through dozens of occasional and working papers, studies, photographs of landmark events, and books—reveal three vibrant decades of research on Japanese economics, industry, government, and international relations.
Japan studies took root when the Center was founded in 1983 and has evolved with the political, economic, and social changes in Japan, and with developments in U.S.-Japan relations. Under the leadership of co-founding Center director Daniel I. Okimoto, one of the earliest projects explored U.S.-Japan competition and collaboration in high-tech industries during the 1980s and 1990s. Other initiatives led to a definitive three volume comparative study of Japan’s political economy, and an exploration of the United States’ evolving ties with its Northeast Asia allies, including Japan.
Director emeritus Daniel Okimoto receives Japan’s Order of the Rising Sun, Gold Rays with Neck Ribbon, in recognition of decades of work, 2007.
Early Center activities brought together distinguished scholars, practitioners, and policymakers from Japan and the United States for fruitful interdisciplinary academic collaboration and meaningful policy dialogue, and laid the groundwork for many enduring relationships with Japanese universities, ministries, and other organizations. One of the first of such activities was the U.S.-Japan Congressional Seminar series, through which members of the U.S. Senate and the Japanese Diet met for candid, in-depth discussion on issues of mutual significance related to trade, international economic policy, industrial policy, and security.
After Japan’s economic bubble burst in the early 1990s, the country underwent a range of political, economic, and social transformations. Even amidst challenges, Japan has adapted, as its firms continue to be globally competitive in many areas, and it persists as an Asian economic powerhouse; on the security front, Japan remains one of the closest allies of the United States. Emerging out of these transformations is a new Japan that offers quite a different picture from the old rapid-growth era.
The newly instituted Japan Studies Program aims to make Stanford a U.S. leader in the field of contemporary Japan studies. As an integral component of the Center, JSP facilitates multidisciplinary, social science–oriented research on contemporary Japan, emphasizing both academic scholarship and policy-relevant research. The program aims to become a central platform for Stanford students and the broader community for understanding and engaging with Japan.
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JSP actively collaborates with other organizations on campus, such as the Center for East Asian Studies (CEAS), the US-Asia Technology Management Center, and the Stanford Graduate School of Business. During the one-year anniversary of the March 11 Great Tohoku Disaster, JSP co-sponsored a lecture series with CEAS examining Japan’s growth and recovery, and it held a major conference focused on restructuring Japan’s energy industry. Since 2011, its popular lunchtime seminar series has brought numerous high-caliber guest speakers to Stanford for insightful talks on subjects ranging from cloud computing in Japan and the United States to the comeback of Japan’s conservative party and the new era of “Abenomics.”
JSP experts actively contribute to Shorenstein APARC’s publishing program of timely, policy-oriented edited volumes and working papers, and regularly contribute op-eds and journal articles to numerous leading newspapers and scholarly journals, including the Journal of East Asian Studies, Socio-Economic Review, and Energy Policy.
Looking ahead, Takeo Hoshi, who joined the Center as JSP’s director in December 2012, says, “I want to make Shorenstein APARC the first place that researchers, policymakers, business practitioners, and students visit to understand more about the Japanese economy and politics—I look forward to working with everyone at Shorenstein APARC (and beyond) to achieve this goal.” With a strong, growing core of affiliated faculty, researchers, and staff, the future for Japan studies at Stanford looks bright.
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In 2007, Daniel Okimoto, Shorenstein APARC director emeritus, received Japan’s Order of the Rising Sun, Gold Rays with Neck Ribbon, in recognition of decades of work. (Credit: courtesy Daniel Okimoto)
(l-r) Kenji Kushida, Masahiko Aoki, Kiyoshi Kurokawa, and Takeo Hoshi ( JSP director). Kurokawa, chair of the Fukushima Nuclear Accident Independent Investigation Commission, spoke at JSP on how the scientific community can help policymakers respond to change in a globalized world. (Credit: Wena Rosario)
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A view of Tokyo Tower and the city's vibrant skyline, September 2012.
We consider the vulnerability of nuclear power plants to a disaster like the one that occurred at Fukushima Daiichi. Examination of Japanese nuclear plants affected by the earthquake and tsunami on March 11, 2011 shows that three variables were crucial at the early stages of the crisis: plant elevation, sea wall elevation, and location and status of backup generators. Higher elevations for these variables, or waterproof protection of backup generators, could have mitigated or prevented the disaster. We collected information on these variables, along with historical data on run-up heights, for 89 coastal nuclear power plants in the world. The data shows that 1. Japanese plants were relatively unprotected against potential inundation in international comparison, but there was considerable variation for power plants within and outside of Japan; 2. Older power plants and plants owned by the largest utility companies appear to have been particularly unprotected.
Sensitive wartime memories continue to resurface in Japan-South Korea relations, impeding important security collaboration efforts in Northeast Asia. Daniel Sneider describes the historical context and discusses recent events.
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Ships from the USS George Washington Carrier Strike Group, the Japanese Maritime Self-Defense Force and the Republic of Korea navy conduct a trilateral exercise, June 2012.
U.S. Navy / Mass Communication Specialist 3rd Class Kaitlyn R. Breitkreutz / Released
Director emeritus Daniel Okimoto receives Japan’s Order of the Rising Sun, Gold Rays with Neck Ribbon, in recognition of decades of work, 2007.
