Stanford University

International Development

FSI researchers consider international development from a variety of angles. They analyze ideas such as how public action and good governance are cornerstones of economic prosperity in Mexico and how investments in high school education will improve China’s economy.

They are looking at novel technological interventions to improve rural livelihoods, like the development implications of solar power-generated crop growing in Northern Benin.

FSI academics also assess which political processes yield better access to public services, particularly in developing countries. With a focus on health care, researchers have studied the political incentives to embrace UNICEF’s child survival efforts and how a well-run anti-alcohol policy in Russia affected mortality rates.

FSI’s work on international development also includes training the next generation of leaders through pre- and post-doctoral fellowships as well as the Draper Hills Summer Fellows Program.

February 2008 Dispatch - How Autonomous Are China's Trade Unions?

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Since China joined the World Trade Organization (WTO) in 2001, its already cheap labor force has been exposed to global market competition. The country’s domestic employment situation, particularly with respect to guarantees of workers’ rights and interests, has likewise come under pressure. In the years from 1999 to 2002, recorded urban unemployment rates regularly increased, from 3.1 percent in 1999 and 2000, to 3.6 percent and 4.0 percent in 2001 and 2002, respectively. At the end of March 2003, they rose again to 4.1 percent. The number of labor disputes received by labor dispute arbitration committees at every level reached 184,000 by 2002, with the number of participating workers climbing to 610,000, numbers that were 19.1 percent and 30.2 percent higher, respectively, than the previous year. In short, while China’s participation in the WTO propelled economic development, trade system reform, adjustments to the economic structure, and privatization of enterprise, it also resulted in an uneasy state of affairs for labor and management relations. For instance, in October 2004, at Shenzhen’s Hong Kong-owned Meizhi Haiyan Electronics Factory, four thousand people went on strike and blockaded the roads to protest low wages.

In November 2004, amid concerns about deteriorating working conditions at foreign-funded enterprises, the All China Federation of Trade Unions (ACFTU) confronted Chinese locations of WalMart, which is well known for obstructing the establishment of trade unions. The ACFTU declared: “They [WalMart] are in violation of the Trade Union Law, and we are prepared to sue them.” WalMart yielded, conceding that, “[i]f workers ask to establish a trade union, we will respect that request, [and] fulfill our duties and responsibilities under the Trade Union Law.” This landmark event demonstrated not only the ACFTU’s power in a direct confrontation, but also its opposition to the intensifying WTO-driven competition in the Chinese labor market. Thus far, the power of trade unions in general and the ACFTU in particular has been felt primarily at foreign-funded enterprises. But what about locally owned and operated enterprises?

In order to understand the actual level of autonomy that trade unions enjoy at the grassroots level, the chairmen of 1,811 trade unions in major cities and provinces—including Liaoning, Beijing, Shanghai, Zhejiang, Guangdong, Gansu, Guizhou, and Henan—completed a questionnaire survey. The Chinese Institute of Industrial Relations (Beijing) facilitated the survey, which was carried out between March 2004 and June 2006. The major findings confirm that, although the independence of trade unions at foreign-funded enterprises has increased, the unions’ autonomy at local level enterprises remains fairly low. According to survey results, China continues to be a predominantly state-corporatist system, between the Chinese Communist Party (CCP) on the one hand and workers and state-owned/state-held enterprises on the other.

The survey revealed other data about the leadership of China’s state-owned/state-held enterprises. Most notably, the Party organization was still appointing 24.5 percent of the chairmen of these work units. Even in cases where chairmen assumed their posts through election or open selective examinations, 35.1 percent of them participated in the election or examinations after the Party recommended them to the work unit in question (see figure 1). The ratio of chairmen who are CCP members to those who serve concurrently as a “secretary,” “vice-secretary,” or member of the Party committee at a corresponding level reached high percentages, of 90.0 percent and 46.4 percent, respectively. In addition, 72.1 percent of the chairmen of state-owned/state-held enterprises answered in the survey that their union committee had established a Party group or Party branch at their workplace. These data clearly indicate that, unlike their counterparts at foreign-funded companies, the trade unions of state-owned/state-held enterprises not only lack autonomy, and but that their management also often remains subject to Party control.

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Innovation, Regulation, and Pharmaceutical Policy in the Asia-Pacific

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The Comparative Health Policy Program at the Walter H. Shorenstein Asia-Pacific Research Center is proud to present a panel on “Innovation, Regulation, and Pharmaceutical Policy in the Asia-Pacific.” The panel will include presentations by F.M. Scherer (Harvard University); Henry G. Grabowski (Duke University); Mingzhi Li (Tsinghua University, PRC); Yiyong Yang (National Reform and Development Commission, PRC); Bong-min Yang (Seoul National University, ROK); John H. Barton (Stanford Law School); and pharmaceutical industry representatives.

The session is the opening to a conference on “Pharmaceuticals in the Asia-Pacific: Prescribing Cultures, Industry Dynamics, and Health Policy” hosted by the Walter H. Shorenstein Asia-Pacific Research Center at the Freeman Spogli Institute for International Studies, Stanford University, March 7-8, 2008. The Friday morning session is free and open to the public.

The remainder of the conference is for the co-authors of a forthcoming book on Pharmaceuticals in the Asia-Pacific and thus by invitation only.

Daniel and Nancy Okimoto Conference Room

Workshops

Japan's Nationalism: Myth and Reality

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Some observers of Japan have pointed to a dangerous rise in Japanese nationalism. Advocates of that idea claim that this is evident in a number of events, such as, the visits of former Prime Minister Koizumi to the Yasukuni Shrine; former Prime Minister Abe's plan for constitutional reforms and his statements regarding the comfort women; the adoption of "revisionist" history textbooks; the territorial disputes with countries such as China and South Korea; and Japan's efforts to strengthen the Japan-U.S. security arrangements.

However, such observations invite the following questions:

  • If there are such signs in Japan, do they reflect Japanese society as a whole? Japan has been strongly pacifistic since the war, avoiding any entanglement in military conflict. This seems to be deeply rooted in the minds of the Japanese people. Just what is the relationship between the purported rise in nationalism and these pacifistic tendencies?
  • Most commentators who warn of rising nationalism in Japan fear a return of the extreme nationalism of prewar Japan. However, are not today's political regime, economic institutions and social conditions, all vastly different from those of prewar Japan?
  • Even though a trend toward nationalism can be witnessed in some quarters of Japan, it doesn't necessarily mean that Japan has become a country that would take dangerous actions. Nationalistic emotions and movements are not directly linked to the actions of a country. Rather, are there not some intervening factors between them?
Minister Kitano will address three points in answering these questions. First he will examine the current situation of Japan by discerning the ‘goals' of Japanese nationalism. Second, he will evaluate the strength of the nationalist movement in Japan by comparing the contemporary movement with the movement in prewar Japan. Last, he will analyze the function of nationalism in different stages of nation states. Through this process, Minister Kitano will reveal the 'myth and reality' of Japan's nationalism.

Mitsuru Kitano currently serves as minister for public affairs at the Embassy of Japan to the United States in Washington, D.C. where he is in charge of outreach to press/media, intellectual exchanges, art and cultural exchanges as well as support for Japanese language education. Kitano has written a number of op-ed articles, including ones analyzing U.S. opinions about Japan in such papers as the Washington Post, the Washington Times, and the International Herald Tribune.

Minister Kitano is a career diplomat and has been posted in Tokyo, France, Geneva, China and Vietnam since joining Japan's Ministry of Foreign Affairs in 1980. He has been professionally engaged in Japan's bilateral relationship with the U.S., China and Southeast Asian countries, and Japan's policies regarding the United Nations and other international organizations. He was active also in such areas as economic cooperation and nuclear energy issues.

His academic achievements include being a lecturer at Sophia University (Tokyo) and a senior visiting fellow at RIETI (Research Institute of Economy, Trade and Industry) in Japan. In 2007, he co-authored a book, Paburikku Dipuromashi: Seron no Jidai no Gaiko Senryaku (Public Diplomacy: Diplomatic Strategy in the Age of Public Opinion) (Tokyo: PHP Kenkyujo).

Minister Kitano received a B.A. from the University of Tokyo in 1980 and a M.A. in international relations from the University of Geneva in 1996.

Philippines Conference Room

Mitsuru Kitano Minister for Public Affairs Speaker Embassy of Japan in the United States
Seminars

2008 Year Ahead Part II: Politics and Diplomacy in Japan

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What issues await Japanese politicians and diplomats in 2008? At home, Japan's new Liberal Democratic Party Prime Minister Yasuo Fukuda must rebuild confidence in his party while working with an upper house controlled by the opposing Democratic Party of Japan. Abroad, Japanese politicians and diplomats grapple with Japan's role in the U.S.-led "War on Terror," a nuclear North Korea, and sovereignty disputes with South Korea and China. Our two panelists will share their views on Japanese political, diplomatic and security challenges in the year ahead.

Andrew Oros is an assistant professor of political science and international studies at Washington College. Selected as one of five "emerging leaders" in US-Japan relations by the Japanese Ministry of Foreign Affairs in 2007, Oros specializes in international and comparative politics of East Asia. His work has appeared in Japan Forum, Intelligence and National Security, and the International Journal of Intelligence and Counterintelligence, among others. His forthcoming book, Normalizing Japan: Politics, Identity, and the Evolution of Security Practice, will be released in May 2008.

Yuki Tatsumi is research fellow of the East Asia Program at the Henry L. Stimson Center. Prior to her current position, she worked as a research associate at the CSIS, as well as, at the Henry L. Stimson Center. Her analyses on Japanese security policy, Japanese defense policy, US-Japan alliance, and Japanese domestic politics frequently appear in the PacNet Newsletter. In September 2006, Tatsumi testified before the House Committee on International Relations regarding Japan's relationship with its Asian neighbors.

Robert Weiner is an assistant professor of political science at the Naval Postgraduate School (Monterey, CA). His research and teaching focus on Japanese and East Asian politics, political parties and elections, democratic institutions, and research methods. He earned his Ph.D. in political science at the University of California at Berkeley. Weiner spent the 2006-2007 academic year at Stanford's Shorenstein Asia-Pacific Research Center as a Shorenstein Fellow. He was an assistant professor in the Government Department of Cornell University for three years before joining NPS in 2007.

Please visit www.usajapan.org or call 415-986-4383 for reservation.
2008 Year Ahead is made possible by the generous support of Union Bank of California
 

Union Bank of California
400 California Street, 11th Floor Assembly Hall
San Francisco, CA 94104

Andrew Oros Professor of Political Science and International Studies Speaker Washington College
Yuki Tatsumi Research Fellow of the East Asia Program Speaker Henry L. Stimson Center, Washington, D.C.
Robert Weiner Assistant Professor of Political Science Speaker Naval Postgraduate School
Conferences

2008 Year Ahead Part I: Japanese Society and Culture

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Where is Japanese society and culture headed in the New Year? What social trends may shape Japan's future? From the latest pop culture developments to the changing Japanese attitude toward women and families, our panelists will provide an up-to-date view of Japanese society today and beyond.

Mariko Fujiwara is research director of Hakuhodo Institute of Life and Living (HILL). She is also a partner in the consultancy Business Futures Network (London), executive director of Mobile Marketing Inc., and serves on ministerial councils including the Ministry of Internal Affairs and Communications, Ministry of Finance, and the Supreme Court. She has published reports on Japanese consumers, Japan's post-war baby boom generation, second baby boom generation, changing roles of women and families, Japan's aging population and emerging trends among senior citizens.

Roland Kelts is the author of Japanamerica: How Japanese Pop Culture Has Invaded the U.S., published in the U.S., Europe, and Japan. He is a lecturer at the University of Tokyo, a columnist for The Daily Yomiyuri and an editor of the New York-based literary journal, A Public Space. His first novel, Access, will be published next year. His articles, essays, and stories have been published in Zoetrope; Playboy; Salon; DoubleTake; The Village Voice; Newsday; Cosmopolitan; Vogue; The Japan Times; among others.

Please visit events at www.usajapan.org or call 415-986-4383 for reservation.
2008 Year Ahead is made possible by the generous support of Union Bank of California

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Mariko Fujiwara Research Director Speaker Hakuhodo Institute of Life and Living
Roland Kelts author and journalist Speaker
Conferences

The Shape of Things to Come: A Global Perspective on Regional Innovation Indicators

In the pursuit to assess high-tech regions' performance in and capability for innovation and entrepreneurship, a bewildering variety of data is published, including:

  • employment
  • total corporate sales
  • wages
  • venture capital funding
  • new company formation and growth of small firms
  • R&D spending
  • patents, and many more

However, on the basis of such heterogeneous indicators, it can be difficult or even impossible to compare regions. Some of this is inevitable given different perceived data needs in each region. However, perhaps a common core of data might be supplied.

To this end, the Stanford Program on Regions of Innovation and Entrepreneurship is bringing together scholars and researchers from the United States, Europe and Asia to present data from their own regions that would help with comparisons between regions and linkages among them, and to make the case for what they consider the most useful set of indicators.

There will be four workshop sessions: the first will be devoted to discussing a framework for looking at entrepreneurship and innovation regional indicators, and the remaining three will take a regional focus, proposing indicators closely related to innovative regions in the United States, Europe and Asia.

This event is part of the "The Shape of Things to Come" conference at the Fisher Conference Center at Stanford University, January 17-18, 2007.

» Presentations/Papers from the event

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Frances C. Arrillaga Alumni Center

Workshops

Early-Stage Valuation in the Biotechnology Industry

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Biotechnology (or biotech) has impacted almost every aspect of human life. It has reorganized industries, drastically changed healthcare, helped to improve the environment, and led to important changes in laws and ethical norms.

Among the various biotech fields, medical biotech has been by far the most influential, beneficial, and controversial. It has generated not only superlative discoveries to improve the lifespan and quality of human life, but also the greatest amount of wealth for all the players involved, and the greatest volume of public debate.

Several important trends are shaping the future of the pharmaceutical (or pharma) and biotech industries. The biotech industry is characterized by the presence of strong clusters in all countries. The pharma and biotech industries are experiencing an outsourcing phenomenon, mainly due to a lack of in-house expertise and efficiencies. Diagnostics and therapeutics are increasingly converging, a trend that will lead to predictive and precise diagnostics and personalized and preventive medicine. The first few years of the twenty-first century have witnessed significant changes in the pharma/biotech alliance landscape. Today we are seeing the “omic”-ization of the biotech industry: most of the emerging technologies are genomics, proteomics, cellomics, and pharmacogenomics. In addition, the biotech industry faces uphill ethical issues, including excessive marketing, third-world drug availability, genetic engineering, stem cells, and cloning.

The medical biotech industry faces several challenges. First, science, the human body, and disease are, essentially, complex. Second, unlike other high-technology industries, the biotech product development cycle is very long, even after proof of concept. Biotech projects take between ten and twenty years to become successful and cost over $200–300 million before a product reaches the market. Third, delivery of most biotech products and therapies is complex and can be painful, often involving intravenous delivery. Fourth, the preceding three factors pose significant challenges for research and development (R&D) financing. In addition, there are certain outside determinants that influence the biotech industry, including regulation, demography, reimbursement climate, and big pharma companies.

Stem cell research is one of the most fascinating areas of biology, but it raises questions as rapidly as it generates new discoveries. The greatest potential application of this research is the generation of cells and tissues that can be used for cell-based therapies. A stem cell is a special kind of cell that has a unique capacity to renew itself and to give rise to specialized cell types. Through the process of differentiation, stem cells form various tissues and organs, and the combination of these differentiated materials develops into the whole human body. This class of human stem cell holds the promise of being able to repair or replace cells or tissues that are damaged or destroyed by many of our most devastating diseases.

Diabetes mellitus is a group of diseases characterized by high levels of blood glucose resulting from defects in insulin production, insulin action, or both. Diabetes mellitus is a type I diabetes—also called juvenile-onset diabetes or insulin-dependent diabetes—and develops when the body’s immune system destroys pancreatic beta cells, the only cells in the body that make the insulin that regulates blood glucose. Type II diabetes, also called adult-onset diabetes or noninsulin-dependent diabetes, may account for 90–95 percent of all diagnosed cases of diabetes. There are more than 194 million diabetics worldwide, with this number expected to exceed 333 million by 2025.

Insulin is currently the most effective drug for controlling hyperglycemia and is widely accepted as the gold standard for treating type I diabetes and even late-stage type II diabetes. However, physicians and patients are reluctant to use insulin until other less effective drugs have been attempted. This is mainly because insulin therapy is invasive and painful: patients must take insulin intravenously.

One of the most promising ways to cure diabetes is to restore the function of islet cells biologically, either through islet cell transplantation or by engineering cells to restore the insulin secreting function. Islet transplantation, a procedure that can restore insulin production in patients, is a highly promising area of research.

Based on analysis of stem cell research, diabetes market opportunities, and the development of stem cell therapies, it is possible to place a value on a company in the early (preclinical) development stage of a stem cell therapy for diabetes. Such an exercise involves valuing a company based on three different approaches—(1) the discounted cashflow model, (2) the royalty or licensing model, and (3) the comparables valuation model. Sensitivity analysis based on market, pricing, costing, R&D, and development stage can further lead to precise valuation range for a given company.

For biotechnology companies, various drivers play a critical role in company valuation, including people (management team), alliances and partnerships, intellectual property rights, R&D and technology, funding and financing, market opportunity, and therapeutic area.

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Beyond Borders: Global Entrepreneurship

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Up-and-coming Stanford entrepreneurs must think and act globally. Critical resources, markets and opportunities are around the world. Come meet three global entrepreneurs and hear how they got started, challenges they are wrestling with right now, and their best advice on going global.

SPRIE Co-Director Dr. William F. Miller will moderate a panel discussion featuring William A. Chen, Dr. Robert P. Lee, and Gadi Maier.

After the panel discussion there will be a question and answer period, followed by Chinese appetizers and networking.

This event, co-sponsored by the Asia-Pacific Student Entrepreneurship Society (ASES), is open to students, the Stanford community and the general public and is part of Entrepreneurship Week at Stanford University.

You can see the entire Entrepreneurship Week agenda at eweek.stanford.edu, including information about the Innovation Tournament for student teams.

About the panelists
William Chen: A General Partner with DT Capital Partners, Chen has been involved in technology companies and startups in Silicon Valley and China, most recently as Founder and CEO of Accelergy Corporation, a R&D technology company with operations in the US and Shanghai. Prior to Accelergy, Chen was Founder and CEO of OnePage, Inc., an enterprise software company that developed a suite of portal products and management tools for the corporate market (acquired by Sybase, Inc.). Before starting OnePage, he was one of the Founders of Billpoint, Inc., which pioneered the concept of online person to person payments. Chen has a BS from the University of Florida and a MBA from Harvard Business School.

Dr. Robert P. Lee: Lee, a 30-year veteran of the computer industry, is Chairman and CEO of Achievo Corporation, which he co-founded in 2002 while he served as president and CEO of Accela, Inc., a leading government automation software company. He was president and CEO of Inxight Software, Inc. before joining Achievo. Prior to that, he was Chairman, President and CEO of Insignia Solutions plc, a software company he took public in 1995. Dr. Lee has served as Executive VP at Symantec Corporation, and was Senior VP at Shared Medical Systems Corporation (now merged with Siemens). He received a BS from the University of California, Berkeley, and MS and PhD from the University of California, Los Angeles, all in computer science.

Gadi Maier: Most recently, Maier was CEO and President of Israel-based FraudSciences Corporation, (recently purchased by eBay), and prior to that he spent a year as Venture Partner at Pinnacle Ventures and Benchmark Capital. He was a co-founder and CEO of Scalent Systems (advanced datacenter virtualization software) and he co-founded Currenex, (a marketplace for buyers and sellers of foreign currency, sold to State Street Bank). Preceding Currenex, Maier was CEO, President and Chairman of GetThere, (on-line travel technology to corporations and airlines), leading GetThere's IPO as well as its sale in 2000 to Sabre Corporation. He has served as CEO for Memco Software, Inc., VP & General Manager for Cisco Systems' Internet Business Unit and held senior-level management positions at Oracle. Gadi holds a BS and MBA from the University of California, Berkeley.

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Bechtel Conference Center

William F. Miller Moderator
William Chen General Partner Panelist DT Capital Partners
Dr. Robert P. Lee Chairman and CEO Panelist Achievo Corporation
Gadi Maier CEO and President Panelist FraudSciences Corporation
Conferences

Conference on Healthcare Payment Incentives in the Asia Pacific

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Karen Eggleston
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The Asian health policy program is pleased to announce that a conference on "Provider Payment Incentives in the Asia Pacific" will be held November 7-8, 2008, at the China Center for Economic Research at Peking University in Beijing, P.R. China.

Organizers of the conference include health economists at the Shorenstein Asia-Pacific Research Center at Stanford University; the China Center for Economic Research at Peking University; Tsinghua University School of Economics and Management Department of Economics; and Seoul National University School of Public Health.

We welcome empirical and theoretical research analyzing how reimbursement incentives shape health and healthcare behavior in the economies of the Asia Pacific. We especially welcome evaluations of policy reforms and natural experiments impacting health service provider incentives. The papers can examine payment incentives in one country, region, or healthcare setting, or include comparative analysis of two or more regions in the Asia Pacific.

Please email papers or extended abstracts (about 500 words) to Karen Eggleston. The submissions deadline is June 1, 2008. The selection committee will notify authors by July 1, 2008.

We also encourage inquiries from researchers that may have access to relevant payment reform data but are interested in support regarding their research design or analytic methods. We will work with you to identify appropriate collaborators and possible financial support for completing the research.

Authors of papers selected for presentation will receive partial subsidy for their participation in the conference as well as opportunity to publish their research in a special volume through the Shorenstein Asia-Pacific Research Center at Stanford University or in a special issue of an English-language health policy journal.

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John Hagel and Henry Chesbrough deliver keynote addresses at "The Shape of Things to Come" conference

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George Krompacky
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"The Shape of Things to Come," a conference presented by the Stanford Program on Regions of Innovation and Entrepreneurship on January 17-18, 2008, featured keynotes by John Hagel, co-author of The Only Sustainable Edge and Co-Chairman of the Deloitte Center for Edge Innovation, and Dr. Henry Chesbrough, Executive Director of the Center for Open Innovation at the Haas School of Business at UC Berkeley and author of Open Innovation.

The keynotes bookended Thursday's forum, "New Patterns and Paradigms in Global Innovation Networks," and were a prelude to Friday's academic workshop, "A Global Perspective on Regional Innovation Indicators." Hagel's talk focused on the need for a more explicit taxonomy of innovative collaboration and discussed the "huge need to define pragmatic migration paths"--routes that the average manager and company can take to reach the opportunities that normally are only accessible to cutting-edge companies.

The forum closed with a presentation by Dr. Henry Chesbrough, who provided an overview on the globalization of innovation in the Chinese semiconductor industry, which he sees as split into a "globally oriented, globally competitive" industry segment and a domestically-oriented segment with "backward technologies" and lacking access to capital. The question, he explained, is how China will shift its resources, now entrenched in the latter, to the former, competitive segment.

Chesbrough finished with a discussion of intellectual property rights (IPR) in China, looking at flows of knowledge and current IPR challenges; he mentioned some surprising developments--the rise of businesses to "promote the legal exchange of IP" and the growth of a domestic constituency for stronger IPR--and discussed future implications for IPR in China.

In between the keynotes, the forum featured sessions on innovation in internet services in China, the role of venture capital as a network builder, and discussions on two rapidly moving industries: cleantech and thin film transistor LCD displays.

Conference materials, including presentations and audio files, will be made available on the SPRIE website.

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