Entrepreneurship
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Up-and-coming Stanford entrepreneurs must think and act globally. Critical resources, markets and opportunities are around the world, including the dynamic hotbed of China. Come meet trailblazers breaking ground in China. Hear how they got started, challenges they are wrestling with right now, their outlook for entrepreneurs in China, and their best advice. Then, take the opportunity to meet in break out groups with each leader for informal discussion, followed by a 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. Full details on panelists are below.

Throughout the week of February 24 - March 3, communities around the country will be celebrating EntrepreneurshipWeek USA, as designated by the U.S. House of Representatives, and Stanford will be no exception. In fact, the national organizers will be launching the national program from Stanford on February 24 during the opening ceremony. The theme of the week is "What is Your Big Idea?"

Stanford University has big plans for the week. Events hosted by entrepreneurship groups across campus will enable you to network with entrepreneurial students, venture capitalists (VCs), entrepreneurs and others; hear thought leaders, and share stimulating ideas. All events are free and most are open to the public.

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

Featured panelists for "Global Entrepreneurship: Stanford Trailblazers in China":

  • Jack Hong: Principal and Founder of SN38, an incubation fund focusing on social-networking startups in China and the US. Prior to SN38, Hong was VP of Information Technologies at SINA Corporation (NASDAQ:SINA), heading SINA's enterprise IS infrastructure development in Beijing. Hong co-founded the Chinese-language portal SINANET.com in 1995 with fellow students while a PhD candidate at Stanford, and held the title of CTO until it merged with Beijing SRS International to form SINA in 1999.
  • Derek Ling: A serial entrepreneur with strong corporate background focused primarily in the IT and Internet industries. Ling is the founder and CEO of Tianji.com, the leading social networking service for professionals in China. Prior to starting up Tianji.com, Ling held senior management positions at Motorola, Apple Computer (Director of Business Development for Greater China) and SINA.com (Vice President); in 1999 he co-founded the Beijing-based startup Qzone.com, a youth entertainment community in China revolving around homepage and music.
  • Min Zhu: Co-Founder of WebEx Communications, Inc., a NASDAQ-listed company with 2006 revenues over $400 million; after co-founding the company in 1996 he served as President and CTO before being named "Chief WebEx" in 2004; Zhu is a Venture Partner in New Enterprise Associates (NEA), a leading venture capital firm. He serves on a number of Silicon Valley boards and is an advisor for the San Jose Municipal Government. In 2005 he founded Cybernaut, a Hangzhou-based company that aims to create a platform to support real-time multimedia communication applications and services.

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Jack Hong Principal and Founder Panelist SN38
Derek Ling Founder and CEO Panelist Tianji.com
Min Zhu Co-Founder Panelist WebEx Communications
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In 2003, consumption of IT goods worldwide was $1.5 trillion. Asia represented twenty percent of this total. Even more telling, Asia produced about forty percent of these goods. The continued rise of Asian IT innovation will pose a challenge to the eminence of traditional IT centers, notably Silicon Valley.

Making IT examines the causes as well as the major consequences of the dramatic rise of Asia in this industry. The book systematically analyzes each country's policies and results, on both a national level and, more importantly, in the innovation regions that have developed in each country: Japan's excellence in technology and manufacturing skills; Bangalore, India's late start and sudden explosion; Taiwan's Hsinchu Science-based Park's entrepreneurship and steady growth; Korea's Teheren Valley's impressive development of large companies; Singapore's initial reliance on multinational firms and its more recent switch to a home-developed strategy; and China's Zhongguancun Science Park's encouragement of investment from foreign firms while also promoting a domestic IT industry.

The book outlines the difficulties in the IT industry, including Japan's tendency to keep out most foreign firms and China's poor protection of intellectual property. Developed by the team that brought readers The Silicon Valley Edge, Making IT analyzes why this region has an advantage in this industry, the similarities and differences in the countries' strategies, why companies have clustered in specific localities, and most important, what will be changing in the coming years.

Making IT should leave no doubt that the United States and other countries competing in the global economy will face enormous challenges--and opportunities--responding to the rise of an innovative Asia.

Contributors

  • Jun-Woo Bae, Graduate School of Management, Korea Advanced Institute of Science and Technology (KAIST)
  • Zong-Tae Bae, Graduate School of Management, Korea Advanced Institute of Science and Technology (KAIST)
  • Rafiq Dossani, Shorenstein Asia-Pacific Research Center, Stanford University
  • Kyonghee Han, Department of Human and Community Development, University of California, Davis
  • Ken-ichi Imai, former Senior Fellow, Freeman Spogli Institute for International Studies, Stanford University
  • Martin Kenney, Department of Human and Community Development, University of California, Davis
  • Jong-Gie Kim, Graduate School of Business and Economics in Information, Myongji University
  • Kark Bum Lee, Information and Communications University, School of Management
  • Noboru Maeda, Graduate School of Creative Cities, Osaka City University
  • Sam Ock Park, College of Social Sciences, Seoul National University
  • Jon Sandelin, Office of Technology Licensing (OTL), Stanford University
  • Chintay Shih, College of Technology Management, National Tsing-Hua University
  • Sang-Mok Suh, Myongji University
  • Shoko Tanaka, ST Research
  • Toru Tanigawa, Kyushu University
  • Kung Wang, Graduate Institution of Industrial Economics, National Central University
  • Yi-Ling Wei, Industrial Economics and Knowledge Center, Industrial Technology Research Institute
  • Poh Kam Wong, Entrepreneurship Centre, National University of Singapore
  • Yasuhisa Yamaguchi, Japan Development Bank
  • Mulan Zhao, Administrative Committee of Zhongguancun Science Park
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This project report is based on extensive interviews with top leaders in China's high tech industries, such as semiconductor design, e-commerce, mobile value-added services and telecommunications. While previous reports on China's talent challenges have focused on root causes or have been prescriptive in nature, Getting Results in Chinaexplores what leaders of high tech companies are actually doing on the ground to address these challenges. The findings will provide a window of insight on:

  • How pioneering executive leaders in China have adapted multinational strategies to acheive results in their organizations;
  • What the leading companies in China are doing to come out ahead in the competition for leadership talent;
  • Which critical leadership skills are most needed and also hardest to find in the current Chinese high tech playing field.

Getting Results in China will be of interest to Chinese executives, leaders of multinational companies operating in China and investors in Chinese enterprises across all industry sectors who want to understand the talent approaches that are getting results in a challenging environment.

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In 2003, consumption of IT goods worldwide was $1.5 trillion. Asia represented twenty percent of this total. Even more telling, Asia produced about forty percent of these goods. The continued rise of Asian IT innovation will pose a challenge to the eminence of traditional IT centers, notably Silicon Valley.

Making IT examines the causes as well as the major consequences of the dramatic rise of Asia in this industry. The book systematically analyzes each country's policies and results, on both a national level and, more importantly, in the innovation regions that have developed in each country: Japan's excellence in technology and manufacturing skills; Bangalore, India's late start and sudden explosion; Taiwan's Hsinchu Science-based Park's entrepreneurship and steady growth; Korea's Teheren Valley's impressive development of large companies; Singapore's initial reliance on multinational firms and its more recent switch to a home-developed strategy; and China's Zhongguancun Science Park's encouragement of investment from foreign firms while also promoting a domestic IT industry.

The book outlines the difficulties in the IT industry, including Japan's tendency to keep out most foreign firms and China's poor protection of intellectual property. Developed by the team that brought readers The Silicon Valley Edge, Making IT analyzes why this region has an advantage in this industry, the similarities and differences in the countries' strategies, why companies have clustered in specific localities, and most important, what will be changing in the coming years.

Making IT should leave no doubt that the United States and other countries competing in the global economy will face enormous challenges--and opportunities--responding to the rise of an innovative Asia.

"Making IT is an excellent work of collective scholarship. The book provides a wealth of information on one of the most striking episodes in economic development of the past few decades--the rise to global prominence in the IT sector of a part of the world that had long been regarded as a technological backwater." --Nathan Rosenberg, Stanford University

"The great strength of Making IT lies in its detailed case studies of Taiwan, India, Singapore, Korea, China, and Japan. The comparative focus on high-tech clusters and the explicit comparisons to Silicon Valley as the leader and model make an excellent contribution to our understanding of the high-tech cluster phenomenon and the ongoing competitive rise of the Asian economies considered in the book." --Hugh Patrick, Columbia University

Contributors

  • Jun-Woo Bae, Graduate School of Management, Korea Advanced Institute of Science and Technology (KAIST)
  • Zong-Tae Bae, Graduate School of Management, Korea Advanced Institute of Science and Technology (KAIST)
  • Rafiq Dossani, Shorenstein Asia-Pacific Research Center, Stanford University
  • Kyonghee Han, Department of Human and Community Development, University of California, Davis
  • Ken-ichi Imai, former Senior Fellow, Freeman Spogli Institute for International Studies, Stanford University
  • Martin Kenney, Department of Human and Community Development, University of California, Davis
  • Jong-Gie Kim, Graduate School of Business and Economics in Information, Myongji University
  • Kark Bum Lee, Information and Communications University, School of Management
  • Noboru Maeda, Graduate School of Creative Cities, Osaka City University
  • Sam Ock Park, College of Social Sciences, Seoul National University
  • Jon Sandelin, Office of Technology Licensing (OTL), Stanford University
  • Chintay Shih, College of Technology Management, National Tsing-Hua University
  • Sang-Mok Suh, Myongji University
  • Shoko Tanaka, ST Research
  • Toru Tanigawa, Kyushu University
  • Kung Wang, Graduate Institution of Industrial Economics, National Central University
  • Yi-Ling Wei, Industrial Economics and Knowledge Center, Industrial Technology Research Institute
  • Poh Kam Wong, Entrepreneurship Centre, National University of Singapore
  • Yasuhisa Yamaguchi, Japan Development Bank
  • Mulan Zhao, Administrative Committee of Zhongguancun Science Park
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Stanford University Press
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Henry S. Rowen
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On Tuesday, November 14, the Stanford Project on Regions of Innovation and Entrepreneurship (SPRIE) will be hosting a first look at Making IT: The Rise of Asia in High Tech.

Making IT is edited by Henry S. Rowen, Marguerite Gong Hancock and William F. Miller, and features findings by scholars from from the United States, Japan, Korea, Singapore, Taiwan, China and India.

As Stanford University Press publishes Making IT this November, we invite you to attend this first look and discussion among scholars, policymakers and industry leaders.

Schwab Center--Mid Vidalakis Dining Room

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FSI Senior Fellow Emeritus and Director-Emeritus, Shorenstein APARC
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Henry S. Rowen was a senior fellow at the Hoover Institution, a professor of public policy and management emeritus at Stanford University's Graduate School of Business, and a senior fellow emeritus of the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). Rowen was an expert on international security, economic development, and high tech industries in the United States and Asia. His most current research focused on the rise of Asia in high technologies.

In 2004 and 2005, Rowen served on the Presidential Commission on the Intelligence of the United States Regarding Weapons of Mass Destruction. From 2001 to 2004, he served on the Secretary of Defense Policy Advisory Board. Rowen was assistant secretary of defense for international security affairs in the U.S. Department of Defense from 1989 to 1991. He was also chairman of the National Intelligence Council from 1981 to 1983. Rowen served as president of the RAND Corporation from 1967 to 1972, and was assistant director of the U.S. Bureau of the Budget from 1965 to 1966.

Rowen most recently co-edited Greater China's Quest for Innovation (Shorenstein APARC, 2008). He also co-edited Making IT: The Rise of Asia in High Tech (Stanford University Press, 2006) and The Silicon Valley Edge: A Habitat for Innovation and Entrepreneurship (2000). Rowen's other books include Prospects for Peace in South Asia (edited with Rafiq Dossani) and Behind East Asian Growth: The Political and Social Foundations of Prosperity (1998). Among his articles are "The Short March: China's Road to Democracy," in National Interest (1996); "Inchon in the Desert: My Rejected Plan," in National Interest (1995); and "The Tide underneath the 'Third Wave,'" in Journal of Democracy (1995).

Born in Boston in 1925, Rowen earned a bachelors degree in industrial management from the Massachusetts Institute of Technology in 1949 and a masters in economics from Oxford University in 1955.

Faculty Co-director Emeritus, SPRIE
Senior Fellow, Hoover Institution
Henry S. Rowen Speaker
Richard Walker Senior Vice President Speaker Hewlett Packard Company
Daniel Quon Senior Vice President Speaker Silicon Valley Bank Global
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The rising sophistication of offshored service work is as dramatic as the continued speed with which offshoring is growing. The work now ranges from data entry and software services to datamining and R&D. The corporate strategies for offshoring services are increasingly complex as they combine international divisions of labor with both outsourced and internal provision. Not only have offshore service provision subsidiaries expanded, but also just as importantly, large developed nation outsourcing firms are rapidly expanding their offshore delivery capabilities.

The increasing cadre of outsourcing firms from developing nations, particularly India, but also Mexico, China and other countries in Asia, are shifting the terms of competition. They are dramatically improving their capabilities and are now capable of undertaking projects that are large in scale and sophistication.

The offshoring of service activities is no longer the province of only large firms as Silicon Valley firms and a myriad of smaller professional services firms are tapping offshore work delivery opportunities. This is leading to nothing less than a global reorganization of where and how non-manufacturing work is being done.

This conference, partially supported by the Alfred P. Sloan Foundation, brings together corporate leaders and university faculty to elucidate the complexities of global service provision and discuss the trends, the strategic issues, and policy implications. The conference will: (1) Compare outsourcing locally and globally, examining differences that arise from differences in skills, institutions, regulation, technologies, process and coordination requirements, (2) Take a global view of the value-chain, examining the quantity and quality of skills in-service delivery, migration and process management, verticals, and the impact on ownership structures and complexity of work done. (3) Examine roles of cross-border participants: venture capital, product developers, etc.

Global Services magazine, a division of CMP Technology has generously offered to be our media partner.

Conference Agenda
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Recognizing that new technology is the driver of growth in the emerging environment of a knowledge-based society, the Indian Planning Commission convened a committee on Technology Innovation and Venture Capital. The Committee undertook a number of tasks, most notably:

  1. to examine innovation and technological dynamism in both the modern and traditional sectors in India;
  2. to examine the relationship between research, entrepreneurship, and financial markets;
  3. to examine the policy environment for venture capital;
  4. to make recommendations, which would lead to basic industrial research and development being converted into new ventures; and
  5. to suggest policy changes to encourage the flow of venture capital for facilitating start-ups and new ventures.

This report is the result of the committee's investigation.

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Planning Commission, Government of India
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Rafiq Dossani
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George Krompacky
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On May 20-21, 2006, the Stanford Project on Regions of Innovation and Entrepreneurship (SPRIE) and the China Institute for Science and Technology Policy (CISTP) of Tsinghua University co-sponsored an international workshop in Beijing on "Greater China's Innovative Capacity: Progress and Challenges."

The workshop, held in collaboration with the Zhongguancun Science Park and the Industrial Technology Research Institute (ITRI), was hosted on the campus of Tsinghua University. Participation by more than 70 academics, industry leaders and government policy makers reflected many of the ongoing partnerships SPRIE holds with institutions, individuals and organizations around the world.

The nine workshop sessions and more than twenty paper presentations provided rich opportunities for engaging discussion and knowledge sharing. The output of this workshop will lead to the publishing of selected proceedings in the near future.

Theme and Topics

The workshop addressed how the innovative capacities in Greater China are evolving. What are the most significant areas of progress and challenge? Scholars and business leaders from the U.S., Europe and Asia were brought together to discuss new research and current practice of key aspects of Greater China's innovative capacity: inputs, processes, outputs, institution, government policies, business models and management strategies.

More specifically, the workshop focused on:

  • information and communications technologies
  • innovation across the value chain from R&D to business processes and models
  • development within and linkages among key regions and players in mainland China, Taiwan, Singapore and Silicon Valley
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The Government of India has appointed Senior Research Scholar Rafiq Dossani to a new Committee on Technical Innovation and Venture Capital (VC). In this capacity, he will recommend policy and regulatory changes to improve the development and financing of technical innovation. The committee reports to the Planning Commission, which is the apex body for policy changes.

Dossani also serves on the U.S.-India Venture Capital Working Group, within the U.S. Department of Commerce, whose objective is to suggest policies that will enhance the flow of U.S. venture capital money to India. Dossani has put the two committees in touch, so that the work of one can help that of the other.

Both committees offer Dossani -- who conducts extensive policy-relevant research on South Asia at Shorenstein APARC -- an opportunity to influence policy in a field that is important to both India and the United States. VC investments in India exceeded $2 billion last year -- 70 percent of which was funded by U.S. institutions -- making India the largest destination for American VC outside the United States.

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The following is a short summary of the November 29, 2005 presentation by SPRIE Fellow Dr. Xiaohong (Iris) Quan on her study of the research and development done by multinational corporations in China.

Multinational corporations (MNCs) have increasingly located research and development (R&D) in developing countries such as China and India since the 1990s. On the one hand, governments in developing countries are eager to attract R&D to their local economies; on the other hand, developed countries are concerned about losing their competitive advantage due to R&D offshoring. At the same time, intellectual property protection is a growing concern.

What are the MNC R&D labs actually doing in China? Quan noted that her 2004 survey of MNC R&D labs in information technology industries in Beijing found that these MNC R&D labs are not just providing technical support, product localization, or product development for the local market; rather, they are developing products for the global market. Her study documents an emerging spatial division of labor in R&D based on the increasing specialization of R&D activities.

Ensuring returns appropriation

Appropriating returns is essential to continuous R&D investment. However, returns appropriation is not necessarily realized through formal IP protection institutions such as the patent system. As the growing trend of globalization of R&D has evolved to this new stage characterized by MNCs locating R&D labs in developing countries, it provides a good test bed to further explore more theoretical mechanisms of IP protection. Considering the weak intellectual property rights regimes these developing countries typically have, it is crucial for MNCs to find an effective way to protect their valuable technologies thus facilitating returns appropriation from their R&D activities in host developing regions. It is in fact the effective means of IP protection that can greatly assist MNCs' location of R&D offshore, in addition to other well-known incentives such as low cost R&D labor and market attraction.

R&D specialization essential

Using evidence from MNC R&D labs in Beijing and Shanghai, Quan's study proposes that R&D is further specialized within MNCs' global R&D network. Furthermore, IP protection and returns appropriation can be realized through such R&D specialization. The key proposition is formulated as below: 'Hierarchical modular R&D structure can be an effective way for MNC R&D labs to protect their intellectual property and thus facilitate returns appropriation in weak IPR regime developing countries'. This 'hierarchy' includes 'core R&D' and 'peripheral R&D', based on two dimensions--technology value-added, desire and ease of IP protection. While 'core R&D' is mostly done in developed countries, 'peripheral R&D' is conducted in developing countries. Dr. Quan's study suggests that this hierarchical modular R&D structure facilitates the global configuration of MNC R&D labs.

Slides from this presentation can be found at the event link below.

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