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Japan is often cited for failing to capitalize on its innovative technologies and design aesthetics in global markets, but the advent of cloud computing provides new opportunities, says Kenji Kushida, the research associate for the Japan Program at the Walter H. Shorenstein Asia-Pacific Research Center (APARC), in a new coauthored op-ed.

In Nikkei Asian Review, Kushida writes with Martin Kenney, a professor of community and regional development at the University of California, Davis, that Japan’s market has a strong record of developing high-quality hardware and services, particularly in the consumer electronics and digital content industries, but a majority remains domestic.

Often referred to as the “Galapagos syndrome,” Japan is a technology leader but its output is largely confined to its own borders. The term compares the country’s industry to the Galapagos Islands, located off the coast of Ecuador, where geographic isolation has led to unique evolutionary development.

Kushida, who heads a new research project on Silicon Valley-Japan relationships, and Kenney note that many of the high-end core components in products from U.S. and Asian manufacturers are Japanese, despite loss of visibility on the final product.

The authors also say the rise of global cloud-computing services offers an immense opportunity for Japan, and a way to escape the Galapagos syndrome and enhance its global competitiveness.

The full op-ed can be found on Nikkei Asian Review online.

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A "Techno-Mall" highlighting various technology developments in Japan is held at the The Tokyo International Forum in Dec. 2013.
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Former SK Center Fellow at the Freeman Spogli Institute for International Studies
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Yong Suk Lee was the SK Center Fellow at the Freeman Spogli Institute for International Studies and Deputy Director of the Korea Program at the Walter H. Shorenstein Asia-Pacific Research Center at Stanford University. He served in these roles until June 2021.

Lee’s main fields of research are labor economics, technology and entrepreneurship, and urban economics. Some of the issues he has studied include technology and labor markets, entrepreneurship and economic growth, entrepreneurship education, and education and inequality. He is also interested in both the North and South Korean economy and has examined how economic sanctions affect economic activity in North Korea, and how management practices and education policy affect inequality in South Korea. His current research focuses on how the new wave of digital technologies, such as robotics and artificial intelligence affect labor, education, entrepreneurship, and productivity.

His research has been published in both economics and management journals including the Journal of Urban Economics, Journal of Economic Geography, Journal of Business Venturing, Journal of Health Economics, and Labour Economics. Lee also regularly contributes to policy reports and opinion pieces on contemporary issues surrounding both North and South Korea.

Prior to joining Stanford, Lee was an assistant professor of economics at Williams College in Massachusetts. He received his Ph.D. in Economics from Brown University, a Master of Public Policy from Duke University, and a Bachelor's degree and master's degree in architecture from Seoul National University. Lee also worked as a real estate development consultant and architecture designer as he transitioned from architecture to economics.

While at APARC, Dr. Lee led and participated in several research projects, including Stanford-Asia Pacific Innovation; Digital Technologies and the Labor Market; Entrepreneurship, Technology, and Economic Development; The Impact of Robotics on Nursing Home Care in Japan; Education and Development in the Digital Economy; and New Media and Political Economy.

Former Deputy Director of the Korea Program at Shorenstein APARC
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The Japan Studies Program co-hosted a delegation of government officials from six Japanese prefectures and business leaders from California in late July. The event was part of a two-day conference and initiative, led by the U.S.-Japan Council, to promote bilateral economic collaboration between the two countries.

A summary of the event can be found on the U.S.-Japan Council website.

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Governors from six Japanese prefectures convened at Stanford in July 2014.
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Corporate Affiliate Visiting Fellow, 2014-15
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Changbao Zhang is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2014-15. He has worked at PetroChina for 18 years.  Currently, he is the Assistant President and HR Director at PetroChina International Iraq Company. Zhang received his bachelor's degree in Petroleum Geology from North East Petroleum University in China, his MBA from Beijing Science & Technology University and his master's degree in Law from Peking University in China.

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Corporate Affiliate Visiting Fellow, 2014-15
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Rajeev Prasad is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2014-15.  Rajeev has thirteen years of experience in handling pharmaceuticals Quality Management Systems and has been with Reliance Life Sciences Pvt. Ltd., India since 2008. Currently, Rajeev is Senior Manager in Quality Assurance group and he is accountable for entire gamut of Quality Assurance function including Laboratory Controls, Change Control, Deviation/OOS handling, Process Validation, Inspections, Internal and External Audits, Vendor and Contract Testing Laboratory Audits, Annual Product Quality Reviews, Stability Programs, Batch Release, Technology Transfer, Investigations, Documentation Control and supporting regulatory filing.  Prior to joining Reliance Life Sciences Pvt. Ltd., he has previously worked for six years with Panacea Biotec Limited at New Delhi. Rajeev received his post graduate degree in Microbiology from Nagpur University, India in 2002.

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Corporate Affiliate Visiting Fellow, 2014-15
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Tatsuru Nakajima is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2014-15. Nakajima has over eight years of experience in the information technology business field at Sumitomo Corporation, one of the major trading and investment conglomerates in Japan, and its subsidiaries. His experience in the IT industry includes establishing and managing EV charging infrastructure company, business development and marketing & sales strategy planning.  While at Stanford, Nakajima is researching the difference in the profitability and structure of IT businesses between the United States and Japan. Nakajima is interested in applying his knowledge gained here to his work and overall helping to grow the economy in Asia. Nakajima graduated from the Graduate School of Precision Engineering at The University of Tokyo with a degree in Mechanical Engineering.

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Corporate Affiliate Visiting Fellow, 2014-15
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Yasunori Matsui is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2014-15. He started his career in 1991 as a software engineer for Mitsubishi Electric Corporation, Tokyo, Japan. Matsui has been engaged in designing and consulting ERP systems for several Japanese manufacturing industry companies, as well as managing software development teams. His product system is structured to perform integrated management of all company duties. Matsui graduated from Kinki University with a B.S. in mathematical and physical sciences.

Shorenstein APARCStanford UniversityEncina Hall E301Stanford,  CA  94305-6055
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Visiting Scholar
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Kyeongsik Cho joins the Shorenstein APARC during the 2014-2015 academic year from the Ministry of Science, ICT and Future Planning (MSIP) in Korea where he serves as a director general. His research interests encompass how the US is currently solving national issues that involve slow growth, unemployment and how scientific technologies and ICT are used in solving those problems. Kyeongsik Cho holds an MS in finance from the Michigan State University, and a BA in Business Administration from the Korea University.

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Corporate Affiliate Visiting Fellow, 2014-16
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Wataru Fukuda is a corporate affiliate visiting fellow at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) for 2014-15 and 2015-16.  He has worked for the Shizuoka Prefectural Government in Japan for over 10 years, representing Shizuoka, the "home of Mt. Fuji".  He has experience in both international and domestic marketing of tourism.  During his fellowship at Shorenstein APARC, his research will focus on inbound tourism, destination marketing and promotion.

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Improving the environment for business is an important part of the growth strategy of Abenomics. As the goal for this effort, the Abe Administration aims to improve Japan’s rank in the World Bank Doing Business Ranking to one of the top three among OECD. This paper clarifies what it takes for Japan to achieve the goal. By looking at details of the World Bank Doing Business ranking, we identify various reforms that Japan could implement to improve the ranking. Then, we classify the reforms into six groups depending on whether the reform requires legal changes and on political resistance that the reform is likely to face. By just doing the reforms that do not require legal changes and are not likely to face strong political opposition, Japan can improve the ranking to 13th. To be in the top 3, Japan would need to implement all the reforms that are not likely to face strong political resistance. The conclusions, however, are based on the assumption that the conditions in the other countries do not change, which is unrealistic. Thus, Japan would need to carry out all the reforms including those with high political resistance to be among the top three.

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Takeo Hoshi
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