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This event is presented in conjunction with the Japan Society of Northern California and the US-Asia Technology Management Center.

About the event

In recent remarks, President Obama has clearly linked our success at stimulating economic dynamism and science-based innovation abroad and our ability to clip the root causes of terrorism. The entrepreneur's optimistic vision is polar opposite of the terrorist's dark pessimism. By helping to grow entrepreneurial ecosystems abroad and link those ecosystems with their U.S. counterparts, we both fertilize broad-based future economic growth and strengthen a sense of self-determination, both potent antibodies to terrorist recruiters. This panel discussion will explore this concept.

About the speakers

Richard C. Boly is a national security affairs fellow for 2008-2009 at the Hoover Institution. Mr. Boly represents the U.S. Department of State.

Richard is a career member of the United States Foreign Service. He was an Economic Officer at the U.S. Embassy in Rome, Italy from 2004-2008 and worked in the office of European Union affairs at the State Department from 2002-2004. His other overseas tours include the Dominican Republic, Ecuador, and Paraguay. Richard is the most junior diplomat to win the Cobb Award for commercial diplomacy. Prior to joining the Foreign Service, Richard was the first Presidential Management Fellow with the Inter-American Foundation, was a consultant with the Inter-American Development Bank, and founded and ran a shrimp hatchery in coastal Ecuador. Richard is a native of Tacoma, Washington and a graduate of Stanford University and the Graduate School of International Relations and Pacific Studies at the University of California, San Diego. He plans to use his fellowship year to focus on promoting entrepreneurship abroad as a U.S. policy objective.

Richard Dasher has been with the US-Asia Technology Management Center at Stanford University since 1993, becoming USATMC Acting Director in 1994 and Director in 1996. In this capacity, Dr. Dasher holds consulting faculty appointments in the Department of Electrical Engineering (technology management) and the Department of Asian Languages (Japanese business), moving up from Consulting Associate Professor (1996 - 2003) to Consulting Professor since 2004. He has additionally served as Executive Director of Stanford's Center for Integrated Systems since 1998.

Dr. Dasher was the first non-Japanese person ever asked to join the senior governance of a Japanese national university, serving a one-year term on the Board of Directors of Tohoku University from April 2004. He continues to serve on the Management Steering Council of Tohoku University and as Special Advisor to the Tohoku University president. From 2001-2003, he was a member of the International Advisory Committee to the Japanese Minister of State for Science and Technology Policy in regard to the creation of the Okinawa Institute of Science and Technology. He is regularly called on to consult for local and regional governments in Japan, the U.S. and Asia in regard to innovation-based regional economic development and university-industry relations.

Dr. Dasher maintains an active business consulting practice on international strategy and planning, technology trend and opportunity analysis, and Japan market entry and performance improvement. In addition to projects for large firms, he serves as an outside board director of ZyCube Inc. in Japan and as advisor to several start-up companies in the U.S. and China. Since 2000, Dr. Dasher has been an advisor to the US-Japan Business Incubation Center in San Jose, California.

Dr. Dasher received the Ph.D. in Linguistics from Stanford University and is co-author with Prof. Elizabeth Traugott of the book "Regularity in Semantic Change" (Cambridge University Press, 2002). He is fluent in Japanese and directed the U.S. State Department's Foreign Service Institute training centers in Japan and Korea from 1986-90. From 1990-93, Dr. Dasher was a salaried board director of two Japanese companies in Tokyo, at which he expanded the companies' business lines to include international IP licensing. He taught clarinet and chamber music at the San Francisco Conservatory of Music from 1978-85 and maintains an active interest in performing and enjoying music.

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Richard C. Boly Fellow Panelist Hoover Institution

U.S.-Asia Technology Management Center
School of Engineering
Stanford, CA

(650) 724-0096 (650) 725-9974
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Consulting Professor
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At Stanford University, Dr. Dasher has directed the US-Asia Technology Management Center since 1994, and he has been Executive Director of the Center for Integrated Systems since 1998. He holds Consulting Professor appointments at Stanford in the Departments of Electrical Engineering (technology management), Asian Languages and Cultures (Japanese business), and at the Asia-Pacific Research Center for his work with the Stanford Program on Regions of Innovation and Entrepreneurship. He is also faculty adviser to student-run organizations such as the Asia-Pacific Student Entrepreneurship Society and the Forum for American/Chinese Exchange at Stanford.

From 2004, Dr. Dasher became the first non-Japanese person ever asked to join the governance of a Japanese national university, serving a term as a Board Director (理事) of Tohoku University . He continued as a member of the Management Council (経営協議会) until March 2010, and he now serves as Senior Advisor to the President (総長顧問) of Tohoku University. Dr. Dasher has been a member of the high-profile Program Committee of the World Premier International Research Center Initiative (WPI) of the Japanese Ministry of Education (MEXT) since 2007. He has served on the Multidisciplinary Assessment Committee of the C$500 million Canada Foundation for Innovation Leading Edge Fund in 2007 and again in 2010, and as a member of the Phase I and Phase II Review Panels of the C$200 million Canada Excellence Research Chairs Program in 2008 and again in 2010. He was a distinguished reviewer of the Hong Kong S.A.R. study on innovation in 2008–09, and since 2007 he has been a member of the Foresight Panel of the German Ministry of Education and Research. From 2001–03, Dr. Dasher was on the International Planning Committee advising the Japanese Minister of State for Science and Technology Policy in regard to the formation of the Okinawa Institute of Science and Technology.

As allowed by Stanford policy, Dr. Dasher maintains an active management consulting practice, through which he is an advisor to start-up companies and large firms in the U.S., Japan, and China. He has been a board director of Tokyo-based ZyCube Inc. since 2006, and he is founder and chairman of Pearl Executive Shuttle in Valdosta, Georgia, U.S.A. In the non-profit sector, he is a Board Director of the Japan Society of Northern California and the Keizai Society U.S. – Japan Business Forum, and he is an advisor to organizations such as the Chinese Information and Networking Association, the Silicon Valley – China Wireless Technology Association, and the International Foundation for Entrepreneurship in Science and Technology (iFEST). In 2010 he served as a consultant to The Indus Entrepreneurs (TiE) in regard to their establishment of a worldwide remote mentoring program for entrepreneurs. Dr. Dasher frequently gives speeches and seminars throughout Japan and Asia, as well as in the U.S. Recent appearances include the Nikkei Shimbun Business Innovation Forum, the Foreign Correspondents Club of Japan, speaking tours of Japan co-sponsored by METI and the U.S. Embassy in Tokyo, and guest lectures at Chubu University, Kochi University of Technology, Ritsumeikan Asia Pacific University, and the University of Tokyo.

From 1990–93, Dr. Dasher was a board director of two privately-held Japanese companies in Tokyo, at which he developed new business in international licensing of media rights packages and other intellectual properties. From 1986–90, he was Director of the U.S. State Department’s Foreign Service Institute advanced field schools in Japan and Korea, which provide full-time language and area training to U.S. and select Commonwealth country diplomats assigned to those countries. He received M.A. and Ph.D. degrees in Linguistics from Stanford University and, along with Prof. Elizabeth Closs Traugott, he is co-author of the often-cited book Regularity in Semantic Change (Cambridge University Press, 2002). He received the Bachelor of Music degree in clarinet and orchestra conducting from the San Francisco Conservatory of Music, where he served on the faculty from 1978-85.

Richard Dasher Panelist
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The Shorenstein Award, which carries a cash prize of $10,000, honors a journalist not only for a distinguished body of work, but also for the particular way that work has helped American readers to understand the complexities of Asia. It is awarded jointly by the Walter H. Shorenstein Asia-Pacific Research Center in the Freeman Spogli Institute for International Studies at Stanford University, and the Shorenstein Center on Press, Politics, and Public Policy in the Kennedy School of Government at Harvard University.

This year’s recipient is Seth Mydans. Seth Mydans covers Southeast Asia for The New York Times and the International Herald Tribune from his base in Bangkok, Thailand. Since taking up the post in 1996 he has covered the fall of Suharto and rise of democracy in Indonesia; the death of Pol Pot, the demise of the Khmer Rouge and the trauma and slow rebirth of Cambodia; repeated attempts at People Power in the Philippines; the idiosyncracies of Singapore and Malaysia; the long-running political crisis in Thailand and the seemingly endless troubles of Myanmar.

In the 1980s he covered the fall of Marcos and struggles of Corazon Aquino in the Philippines and was in Burma for the massacres that led to the emergence of Aung San Suu Kyi and the current junta.
        
He worked for a construction company in Vietnam during the war after graduating from Harvard, and has followed the Vietnam story since then, through the exodus of refugees, to their resettlement in the United States, to the shaping of a new post-war Vietnam.

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Seth Mydans Southeast Asia Correspondent Speaker The New York Times and the International Herald Tribune
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In late 2006, the Chinese government appointed a high-level inter-ministerial commission—composed of fourteen government agencies, co-chaired by the National Development and Reform Commission and the Ministry of Health—to develop a blueprint for China’s healthcare system. One party to that process, China’s Insurance Regulatory Commission (CIRC), has developed a program of cooperation with its U.S. counterpart, the National Association of Insurance Commissioners (NAIC). To provide input to policymaking, representatives of CIRC, NAIC, private insurers in China and the United States, as well as Chinese and American scholars of health insurance gathered in Yichang, Hubei, PRC, on 18-19 June 2007, for a joint seminar on the role of commercial health insurance in the Chinese and U.S. healthcare systems.

The first section of this field report provides a brief description of China’s health care reforms in the past decades. The second section highlights the progress and challenges to date in developing commercial health insurance in China, and the final section summarizes the recommendations that the NAIC Commissioners provided to CIRC in 2007 at this critical juncture in China’s health policy reforms.

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Journal Articles
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Field Note in Perspectives: China and the World
Authors
Karen Eggleston
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Since the mid-1980s, health maintenance organizations (HMOs) have grown rapidly in the United States.  Despite initial successes in constraining health care costs, HMOs have come under increasing criticism due to their restrictive practices.  To remain viable, this would seem to suggest that HMOs have to change at least some of these behaviors.  However, there is little empirical evidence on how restrictive aspects of HMOs may be changing.  The present study investigates one mechanism for constraining costs that is often associated with HMOs – the role of the primary care physician as a gatekeeper (e.g., monitoring patients’ use of specialist physicians).  In particular, we estimate the effect of primary care physician involvement with HMOs on the percentage of their patients for whom these physicians serve as gatekeepers.  We examine these relationships over two time periods: 2000-2001 and 2004-2005.  Because physicians can choose whether and to what extent they will participate in HMOs, we employ instrumental variables (IV) estimation to correct for endogeneity of the HMO measure.  Although the single-equation estimates suggest that the role of HMOs in terms of requiring primary care physicians to serve as gatekeepers diminished modestly over time, the endogeneity-corrected estimates show no changes between the two time periods.  Thus, one major tool used by HMOs to constrain health care costs – the physician as gatekeeper – has not declined even in the era of managed care backlash.

Published: Fang, Hai, Hong Liu, and John A. Rizzo. "Has the use of physician gatekeepers declined among HMOs? Evidence from the United States." International journal of health care finance and economics 9.2 (2009): 183-195.

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Asia Health Policy Program working paper #2
Authors
Authors
Don Keyser
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North Korean leader Kim Jong-il’s apparent stroke in mid-August raises the possibility of near-term political succession in the Democratic People’s Republic of Korea (DPRK, or North Korea). This has prompted U.S. and Republic of Korea (ROK, or South Korea) planners—concerned with command and control of North Korea’s fissile material under conditions of regime disarray, internecine conflict, or collapse—to examine afresh the alliance’s assumptions, contingency plans, and political strategies.

The Korean Peninsula occupies a central place in the Chinese national security calculus. Chinese policy above all aims to avert military conflict on the Peninsula and regime collapse in the North. Conflict and collapse scenarios could embroil China in unwanted military action, imperil its long-term economic development program, jeopardize its crucial ties with the United States and South Korea, open the floodgates to North Korean refugees, and alter the Northeast Asian strategic landscape to China’s disadvantage.

For these and other reasons, China has emphasized the need for a peaceful, negotiated resolution of the problem posed by North Korea’s nuclear ambitions. It has encouraged North Korea to emulate, to the extent feasible, China’s own post-1978 economic reforms. At the same time, China has deepened political and commercial ties with South Korea, and sustained the North Korean regime through generous economic and military assistance.

China’s core interests—plus its special ties with North Korea’s military, party, security, and economic elite—have persuaded many outside observers that Beijing possesses not only unique insights into the Pyongyang regime’s internal dynamics but also potential leverage. Further, many assume that China, having both the need and ability to influence North Korea’s political succession, will do precisely that—shape, or if necessary impose, a North Korean succession that accords with China’s policy interests.
China has consistently denied having superior knowledge and usable leverage, and has adamantly rebuffed speculation regarding its national ambitions and potential actions.

Such disclaimers notwithstanding, some in the ROK and the United States postulate that national and alliance interests might best be served by “coordinating” with China on North Korean regime change/collapse scenarios. A few even argue that the alliance should “subcontract” this issue to China, thereby tacitly acquiescing in its intervention to ensure a peaceful, stable transition.

Despite the high stakes, crucial U.S.-ROK contingency planning seemingly has been approached in an environment that is rich in conjecture and hope, and poor in hard intelligence and agreed assessments.
Yet it is possible—indeed imperative—to do better than this. With respect to one small part of the complex whole—China’s interests, potential leverage, and likely actions—a starting point for rigorous
analysis might include the following issues and questions:

Knowledge : Does China in fact enjoy superior knowledge of internal DPRK decision-making? What are the sources of and limits upon such knowledge? How have the North Koreans approachedspecial bilateral ties with the Chinese in the realms of party-to-party affairs and military cooperation?
Are there reasons to believe that China contributed to North Korea’s nuclear program? If not, are there reasons to believe that North Korea shared any knowledge whatsoever of its activities with China? Has China sought to cultivate North Korean officials and, if so, when, and how successfully?  How has North Korea reacted to any such Chinese activities?

Leverage: How much leverage does China enjoy over North Korean political, military, and economic decisions? What are the sources of such leverage? What are the constraints? How should one assess North Korea’s likely response to Chinese pressure? What options does North Korea enjoy in deflecting such pressure?

A Proactive Approach by China to North Korean Political Succession : What posture is China likely to adopt toward political succession in North Korea? What are its policy options? What assets does it hold? How does the issue of North Korean succession—including the possibility of regime chaos or collapse—fit into China’s broad strategic posture? What external considerations (especially those involving the ROK, the United States, Japan, and Russia) must China take into account?

ROK and U.S. Policy Considerations Regarding China’s Potential Involvement in a North Korean • Political Succession: What essential posture should the ROK and the United States adopt? On the one hand, should they enlist China’s cooperation in “managing” political succession in North Korea, or endeavor to minimize that involvement, instead addressing North Korean succession scenarios as primarily a task for the U.S.-ROK alliance? On the other hand, should they accept (and even tacitly encourage) China’s superior ability to effect a stable succession that preserves peace and stability? Should they broaden the scope of the current six-party talks to include formal discussion among “the five” (excepting North Korea)? Or should some other approach be adopted?

On one level, U.S. and ROK planners must urgently address these issues in order to have confidence that the two allies can deal smoothly with any North Korean political succession scenario. On a deeper level, a rigorous bilateral analysis of this type can serve to strengthen the U.S.-ROK alliance itself by fully illuminating a broader set of underlying national attitudes, interests, and priorities.

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Recent analyses of U.S.-Korea relations have tended to focus on rising anti-American sentiments in South Korea and the changing nature of the overall alliance relationship. Either attributed to a case of Korean exceptionalism or U.S. exceptionalism, the current trend of anti-Americanism in Korea is treated as a unique watershed moment that portends the transformation of bilateral relations. Park argues that mobilization of anti-Americanism in Korea, however, is also a manifestation of anti-Great Power-ism, which is not new in the history of Korean politics. In fact, President Roh’s election platform of finding autonomy and self-reliance demonstrates close parallels with the anti-Qing mobilization in turn-of-the-century Korea. Anti-Great Power-ism (anti-sadae) emerged as a potent tool of political mobilization in the late 19th century, when the newly created Reform/Enlightenment Party made their criticism of the existing policy of “revering Great Powers” (sadae) the centerpiece of their attack against the conservative establishment. Even though sadae was originally a pragmatic policy of accommodating the powerful Qing, marking a departure from a cultural-ideological emulation of Ming China, it was stigmatized during 19th century politics as subservient and Great Power-dependent.

By comparing the progressives’ political mobilization processes in the late 19th century and in 2002-2006, the speaker argues that today’s anti-Americanism is actually a continuation of anti-China-ism seen from a broader historical perspective. At the same time, such anti-Great-Power mobilizations demonstrate the importance attached to relations with the “Great Powers” in Korean politics. Korean leaders have historically sought to generate political legitimacy by achieving different types of status in relations with the region’s dominant power in the context of regional hierarchy. A key implication of this study is that the social context of hierarchy continues to play an important role in alliance politics as well as East Asian security.

Seo-Hyun Park is an acting instructor in the Korean Studies Program at APARC and a PhD candidate in the Government Department at Cornell University. Her dissertation project explores enduring patterns of strategic thinking and behavior in East Asia, examining how the hierarchical regional order has conditioned conceptions of state sovereignty and domestic security politics through comparative case studies of Japanese and Korean relations with China in the traditional East Asian order and with the United States in the post-1945 regional alliance system.

Park received a B.A. in Communications from Yonsei Universitiy in Korea and an M.A. in Government from Cornell University.

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Shorenstein APARC
Stanford University
Encina Hall E301
Stanford, CA 94305-6055

(650) 725-0938 (650) 723-6530
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Acting instructor
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Seo-Hyun Park is an acting instructor in the Korean Studies Program at APARC and a PhD candidate in the Government Department at Cornell University. Her dissertation project explores enduring patterns of strategic thinking and behavior in East Asia, examining how the hierarchical regional order has conditioned conceptions of state sovereignty and domestic security politics through comparative case studies of Japanese and Korean relations with China in the traditional East Asian order and with the United States in the post-1945 regional alliance system.

Park has been a recipient of the Japan Foundation Dissertation Fellowship, the Mellon Fellowship, and the Cornell University Einaudi Center’s Carpenter Fellowship, and most recently, the Predoctoral Fellowship at the Center for International Security and Cooperation (CISAC) at Stanford University. She has also conducted research in Japan and Korea as a visiting researcher at the University of Tokyo and the Graduate School of International Studies at Yonsei University.  She received a B.A. in Communications from Yonsei Universitiy and an M.A. in Government from Cornell University.

Seo-Hyun Park Acting Instructor, Shorenstein Asia Pacific Research Center, Stanford University Speaker
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As the new year begins, the administration of ROK President Lee Myung-bak faces an unusually complex and rapidly evolving regional security landscape as he seeks to craft a strategy that simultaneously deepens ties with the U.S., protects South Korean equities in North Korea, continues to reduce tensions with neighboring countries and promotes economic objectives in Northeast Asia (including eastern Siberia). What are his options, considerations and prospects for success?

The past year witnessed an accelerated pace and apparent deepening in substance of the nascent security ties between and among the nations of Northeast Asia. A veritable whirlwind of diplomatic activity featured “upgraded” dialogue and symbolic steps. Meanwhile, as token of warming relations and impetus for even closer regional cooperation, China, Japan and the ROK met trilaterally on an array of issues. Ambitious proposals – and cutthroat bargaining – attended competition for a stake in Russian energy resources and potential infrastructure projects in the conjunction of eastern Siberia, Korea and China. Through the year all involved parties – the ROK, China, Russia, Japan, and the U.S. – met in the Six-Party talks context. Each party, excepting North Korea, paid public obeisance to the goal of “transforming” the talks into a new regional security mechanism.

But the year 2009 dawns against the backdrop of uncertainties that cast a cloud over the promise suggested by these developments: the global economic and financial crisis; battered, untested or unpopular political leaderships; competing nationalisms – and national interests; and the import and implications of China’s “rise.”

Mr. Keyser retired from the U.S. Department of State in September 2004 after a 32-year career. He had been a member of the Senior Foreign Service since 1990, and held Washington-based ambassadorial-level assignments 1998-2004. Throughout his career he focused on U.S. policy toward East Asia, particularly China, Taiwan, Hong Kong, Japan and the Korean Peninsula. Fluent in Chinese and professionally conversant in Japanese, Russian and French, he served three tours at the American Embassy in Beijing, two tours at the American Embassy in Tokyo, and almost a dozen years in relevant domestic assignments. In the course of his career, Keyser logged extensive domestic and foreign experience in senior management operations, conflict resolution, intelligence operations and analysis, and law enforcement programs and operations.

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Shorenstein APARC
Stanford University
Encina Hall E301
Stanford, CA 94305-6055

(650) 725-2703 (650) 723-6530
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Pantech Fellow, 2008-09
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Donald W. Keyser retired from the U.S. Department of State in September 2004 after a 32-year career.  He had been a member of the Senior Foreign Service since 1990, and held Washington-based ambassadorial-level assignments 1998-2004.  Throughout his career he focused on U.S. policy toward East Asia, particularly China, Taiwan, Hong Kong, Japan and the Korean Peninsula. Fluent in Chinese and professionally conversant in Japanese, Russian and French, he served three tours at the American Embassy in Beijing, two tours at the American Embassy in Tokyo, and almost a dozen years in relevant domestic assignments.  In the course of his career, Keyser logged extensive domestic and foreign experience in senior management operations, conflict resolution, intelligence operations and analysis, and law enforcement programs and operations.  A Russian language major in college and a Soviet/Russian area studies specialist through M.A. work, Keyser served 1998-99 as Special Negotiator and Ambassador for Regional Conflicts in the Former USSR.   He sought to develop policy initiatives and strategies to resolve three principal conflicts, leading the U.S. delegation in negotiations with four national leaders and three separatist leaders in the Caucasus region.

Keyser earned his B.A. degree, Summa Cum Laude, with a dual major in Political Science and Russian Area Studies, from the University of Maryland.  He pursued graduate studies at The George Washington University, Washington, D.C., from 1965-67 (Russian area and language focus) and 1970-72 (Chinese area and language focus).   He attended the National War College, Fort McNair, Washington (1988-89), earning a certificate equivalent to an M.S., Military Science; and the National Defense University Capstone Program (summer 1995) for flag-rank military officers and civilians.

Don Keyser Pantech Fellow, Shorenstein Asia Pacific Research Center, Stanford University Speaker
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Japan's industrial landscape is characterized by hierarchical forms of industry organization that are increasingly inadequate in modern sectors, where innovation relies on platforms and horizontal ecosystems of firms producing complementary products. Using three case studies--software, animation and mobile telephony--two key sources of inefficiencies that this mismatch can create will be illustrated.

First, hierarchical industry organizations can "lock out" certain types of innovation indefinitely by perpetuating established business practices. Second, even when the vertical hierarchies produce highly innovative sectors in the domestic market, the exclusively domestic orientation of the "hierarchical industry leaders" can entail large missed opportunities for other members of the ecosystem, who are unable to fully exploit their potential in global markets.

Dr. Hagiu will argue that Japan has to adopt several key measures in order to address these inefficiencies and capitalize on its innovation: strengthening antitrust and intellectual property rights enforcement; improving the legal infrastructure (e.g. producing more business law attorneys); lowering barriers to entry for foreign investment and facilitating the development of the venture capital sector.

Andrei Hagiu is an Assistant Professor in the Strategy group at Harvard Business School. His research focuses on multi-sided markets, which feature platforms serving two or more distinct groups of customers, who value each other's participation. He is studying the business strategies used by such platforms and the structure of the industries in which they operate: payment systems, advertising supported media, personal computers, videogames, mobile devices, shopping malls, etc. Hagiu is using the insights derived from this research to advise a wide range of companies in all of these industries.

In addition, he is also involved in competition and industrial policy research and advisory projects, in Japan, China and in the United States. He graduated from the Ecole Polytechnique and the Ecole Nationale de la Statistique et Adminstration Economique in France with an MS in economics and statistics, before obtaining a PhD in economics from Princeton University in 2004. Prior to joining HBS, he spent 18 months in Tokyo as a fellow at the Research Institute of Economy Trade and Industry, an economic policy think-tank affiliated with the Japanese Ministry of Economy Trade and Industry.

This event is presented in conjunction with the Japan Society of Northern California.

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Andrei Hagiu Assistant Professor, Strategy Unit Speaker Harvard Business School
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