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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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Dr. Andrei Illarionov served as President Valdimir Putin's Chief Economic Advisor (2000-2005) and his personal representative to the G-8 (2002-2005). He resigned from both posts in December 2005, in objection to the government's curtailment of political freedoms. From 1993 to 1994, Illarionov served as chief economic advisor to the prime minister of the Russian Federation, Viktor Chernomyrdin. He resigned in February 1994 to protest changes in the government's economic policy. From 1994 to 2000, Illarionov was the director of the Institute of Economic Analysis.

Andrei Illarionov is a passionate advocate of an open society and democratic capitalism in Russia and a forceful and articulate critic of the political, economic, and social situation in the country.

Illarionov received his PhD in economics in 1987 from the Leningrad State University. Illarionov has coauthored several economic programs for Russian governments and has written three books and more than 300 articles on Russian economic and social policies. He joined the Cato Institute's Center for Global Liberty and Prosperity in 2006 as a senior fellow.

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Andrei Illarionov Chief Economic Advisor to the President of Russia, 2000 - 2005 Speaker
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Eleonora Pasotti is Assistant Professor of Political Science at UC Santa Cruz and Postdoctoral Fellow at CDDRL. Her work has been concerned with the relationship between democracy, personal power and electoral law. Pasotti's research at CDDRL is directed toward three aspects of this relationship: how proportional and majoritarian electoral systems interact with clientelistic networks; how institutions shape the cost structure of political mobilization; and how institutions of vote mobilization, from clientelism to mass campaigning, distort the normative goal of democracy. Her previous work has been based largely on the politics of Naples, Italy, but has broad comparative implications for the study of clientelism, patronage politics and populism in the developing world as well. Prior to joining the faculty at Santa Cruz, Eleonora completed a PhD in Political Science at Columbia University under the direction of Charles Tilly, Jon Elster, and Ira Katznelson. She also holds an MSc in the Philosophy of the Social Sciences from the London School of Economics and Political Science.

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UC Santa Cruz

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CDDRL Post-doctoral Fellow 2006 - 2007
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Eleonora comes to CDDRL all the way from UC Santa Cruz. Her work to date has been concerned with the relationship between democracy, personal power and electoral law. Her research at CDDRL will be directed toward three aspects of this relationship - how proportional and majoritarian electoral systems interact with clientelistic networks; how institutions shape the cost structure of political mobilization; and how institutions of vote mobilization, from clientelism to mass campaigning, distort the normative goal of democracy. Her previous work has been based largely on the politics of Naples, Italy, but has broad comparative implications for the study of clientelism, patronage politics and populism in the developing world as well. Prior to joining the faculty at Santa Cruz, Eleonora completed a PhD in Political Science at Columbia University under the direction of Charles Tilly Jon Elster and Ira Katznelson. She also holds an MSc in the Philosophy of the Social Sciences from the London School of Economics and Political Science.

Eleonora Pasotti Post-doctoral Fellow Speaker CDDRL
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Professor Roland examines party politics, particularly in the context of the European parliament. Using key research throughout, he examines where loyalties lie, what affects these loyalties, and what the makeup is of the European parliament. Prof. Roland also takes a brief look at how this compares to national politics in different countries.

Synopsis

Prof. Roland explains that roll call analysis has long been an obsolete method of estimating politicians’ true values. This is mainly due to party politics. Legislative behavior, which is what Prof. Roland explores primarily in this talk, is offered a very rich platform for study in the European parliament, which consists of representative parties from 27 countries which also form into European parties. Prof. Roland explains that loyalties can lie with one’s national party, European party, and country. However, there is no reason for them to overlap. Because the European parliament plays very little role in elections in the nations of Europe, Prof. Roland argues that parties vote almost purely for legislative decision-making purposes. Prof. Roland also cites that voting for the EU parliament is not like a parliamentary democracy because nobody is put into power. In addition, he notes that the European Parliament has had a shifting role as time has passed, going from a consultative position to a probable vetoing power, as Prof. Roland predicts.

These numerous aspects of the European parliament raise several questions for Prof. Roland. He explores the strength of party cohesion within the parliament and methods used to enhance it such as disciplining those who vote against the party of contentious issues or giving signals of unification. Prof. Roland also examines what he explains as the ‘agreement index’ to investigate where members vote; for their national party, their European party, or their country. This rating, which has continually lowered, indicates that more vote for their national parties than member states or European parties. Prof. Roland is also interested in whether members’ votes are influenced more by their personal values or the party discipline effect.

Prof. Roland comes to a variety of interesting conclusions. He sees that there is overlap when members of the European parliament place themselves on the left-right scale. However, no such overlap is present in their voting patterns, showing clear evidence of the effect of party discipline. Prof. Roland finds that bigger parties, because they are more pivotal, are more cohesive as there is more at stake in their unity. On the other hand, national fractionalization has a negative effect of cohesion while ideological diversity plays almost no role in determining the extent of party cohesiveness in the European parliament. Employing a variety of statistics, Prof. Roland shows that the increase in the parliament’s power has also increased party cohesiveness. Therefore, Prof. Roland believes that while disagreement has increased in the European parliament, party cohesion has increased but not for ideological reasons. He ends by explaining that the role of ideology is in forming party coalitions in a parliament whose dimensions consist mainly of left and right.

About the Speaker

Gerard Roland is professor of economics and political science at University of California, Berkeley. He received a Ph.D. in economics from Universite Libre de Bruxelles in 1988. He is the author of five books, including Transition and Economics: Politics, Markets and Firms, published by MIT Press in 2000.

Sponsored by the Forum on Contemporary Europe and the Graduate School of Business.

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Gerard Roland Professor of Economics and Political Science Speaker UC Berkeley
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Anders Åslund joined the Institute for International Economics in 2006. He has served previously as the director of the Russian and Eurasian Program at the Carnegie Endowment for International Peace since 2003 and as codirector of the Carnegie Moscow Center's project on Economies of the Post-Soviet States. He joined the Carnegie Endowment as a senior associate in October 1994. He is also an adjunct professor at Georgetown University. His work examines the transformation of formerly socialist economies to market-based economies. While the central areas of his studies are Russia and Ukraine, he also focuses on the broader implications of economic transition.

Åslund has served as an economic adviser to the governments of Russia and Ukraine and to President Askar Akaev of Kyrgyzstan. He was a professor at the Stockholm School of Economics and director of the Stockholm Institute of East European Economics. He has worked as a Swedish diplomat in Kuwait, Poland, Geneva, and Moscow. He is a member of the Russian Academy of Natural Sciences and an honorary professor of the Kyrgyz National University. He is co-chairman of the Economics Education and Research Consortium and chairman of the Advisory Council of the Center for Social and Economic Research (CASE), Warsaw.

He is the author of Building Capitalism: The Transformation of the Former Soviet Bloc (Cambridge University Press, 2001), How Russia Became a Market Economy (Brookings, 1995), Gorbachev's Struggle for Economic Reform, 2d ed. (Cornell University Press, 1991), and Private Enterprise in Eastern Europe: The Non-Agricultural Private Sector in Poland and the GDR, 1945-83 (Macmillan, 1985) and editor or coeditor of several books, including with CDDRL Director, Michael McFaul, Revolution in Orange: The Origins of Ukraine's Democratic Breakthrough (Carnegie Endowment for International Peace, 2006).

This event is co-sponsored with the Center on Russian, East European and Eurasian Studies.

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Anders Åslund Senior Fellow Speaker Institute for International Economics
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This event will be opened first by a talk on Terrorism and Motivation by Arie Kruglanski and then followed by a Roundtable conversation on Terrorism, Leadership and Motivation with Eva Meyersson Milgrom, SIEPR, Stanford University, Robert Powell, Department of Sociology, UC Berkeley, Paul Milgrom, Department of Economics, Stanford University

David Laitin, Department of Political Science, Stanford University, and Lee Ross, Department of Psychology, Stanford University.

Professor Kruglanski has been a pioneer in fields such as intrinsic motivation, open and close mindedness and goals and motivation. He is a frequent keynote speaker around the world, and a recipient of the Donald T. Campbell Award for Distinguished Scientific Contribution to Social Psychology, as well as the Humboldt Forschungspreis. Professor Kruglanski is a fellow of the American Psychology Association and the National Academy of Sciences. He is on the editorial boards of Psychological Review, New Review of Social Psychology and American Psychologist

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Arie Kruglanski Co-Director Speaker The National Consortium for the Study of Terrorism and Responses to Terrorism (START), University of Maryland
Paul Milgrom Professor Speaker Dept. of Economics, Stanford University

Department of Political Science
Stanford University
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Stanford, CA 94305-6044

(650) 725-9556 (650) 723-1808
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James T. Watkins IV and Elise V. Watkins Professor of Political Science
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David Laitin is the James T. Watkins IV and Elise V. Watkins Professor of Political Science and a co-director of the Immigration Policy Lab at Stanford. He has conducted field research in Somalia, Nigeria, Spain, Estonia and France. His principal research interest is on how culture – specifically, language and religion – guides political behavior. He is the author of “Why Muslim Integration Fails in Christian-heritage Societies” and a series of articles on immigrant integration, civil war and terrorism. Laitin received his BA from Swarthmore College and his PhD from the University of California, Berkeley.

Affiliated faculty at the Center for International Security and Cooperation
Affiliated faculty at The Europe Center
David Laitin Professor Speaker Department of Political Science, Stanford University

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Stanford University
Encina Hall, Room C144
Stanford, CA 94305-6055

(650) 724-7985 (650) 724-2996
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Visiting Associate Professor at the Graduate School of Business
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Eva Meyersson Milgrom is a senior research scholar at CDDRL and a visiting associate professor at Stanford's Graduate School of Business and the Public Policy Program. She is also an associate professor and senior research fellow at the School of Business at Stockholm University in Sweden.

Her current research focuses on the following topics: (1) implications of social behavioral theories on economic growth, in conjunction with Guillermina Jasso of New York University; (2) institutional change and its effects on promotion and demotion in Swedish private companies; inter-firm wage mobility in Sweden from 1979-1990; labor markets segregation (firm and individual characteristics) in collaboration with Illong Kwon of the University of Michigan along with Mike Gibbs and Kathy Lerulli; (3) equity considerations and the trade-offs between complementarities and influence costs within organizations; and (4) the structure of inequality and extremism. At Stanford, she has taught courses on international corporate governance and on managing diversity.

Her previous interdisciplinary work includes the following: In the summer of 2002, she organized a laboratory to provide an institutional analysis of economic growth based on firm-matched data from four Scandinavian countries. In fall 2002, she organized a conference that brought together scholars from diverse fields to analyze the phenomenon of suicide bombing and to discuss how this phenomenon affects current social science thinking and research. A book is in the works on this topic. Meyersson Milgrom also organized sessions on rational choice at the August 2002 meeting of the American Sociological Association.

Meyersson Milgrom previously served as a visiting scholar in the sociology departments at Stanford University (1998-2000) and Harvard University (2000-2001), and also served as a visiting associate professor at the Sloan School of Management, at the Massachusetts Institute of Technology (2001-2002).

Her recent books published in Sweden include: The State as a Corporate Owner (1998, with Susannah Lindh) and Compensation Contracts in Swedish Publicly Traded Firms (1994). Her recently published articles include: "An Evaluation of the Swedish Corporate System" in Hans T:son Soderstom (January 2003); "Pay, Risk and Productivity" in Finnish Economic Papers (with Trond Petersen and Rita Asplund); "Equal Pay for Equal Work? Evidence from Sweden, Norway and the United States" in the Scandinavian Journal of Economics (vol. 4, 2001, with Trond Petersen and Vermund Snartland); and "More Glory and Less Injustice: The Glass-Ceiling in Sweden 1970-1990" in Research in Social Stratification and Mobility (Kevin T. Leicht, editor, with Trond Petersen).

Meyersson Milgrom was born in Sweden and received a PhD in sociology from Stockholm University.

CDDRL Senior Research Scholar
Eva Meyersson Milgrom Senior Researcher Speaker Stanford Institute for Economics and Policy Research
Robert Powell Department of Sociology Speaker UC Berkeley
Lee Ross Department of Psychology Speaker Stanford University
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Alberto Alesina is the Nathaniel Ropes Professor of Political Economics and the Taussig Research Professor of Economics at Harvard University. He is a leader in the field of economics and has published extensively in all major academic journals in economics. His work has covered a variety of topics, including political business cycles, integration, stabilization policies in high inflation countries, and differences in the welfare state in the U.S. and Europe.

Professor Alesina is associate editor of the Journal of Economic Growth. His most recent books are The Future of Europe: Reform and Decline, published by MIT Press in 2006, and Fighting Poverty in the U.S. and Europe: A World of Difference, published by Oxford University Press in 2004.

Abstract of Alberto Alesina's "Technology and Labor Regulations":

Many low skilled jobs have been substituted away for machines in Europe, or eliminated, much more so than in the U.S., while technological progress at the "top," i.e. at the high-tech sector, is faster in the U.S. than in Europe. This paper suggests that the main difference between Europe and the U.S. in this respect is their different labor market policies. European countries reduce wage flexibility and inequality through a host of labor market regulations, like binding minimum wage laws, permanent unemployment subsidies, firing costs, etc. Such policies create incentives to develop and adopt labor saving capital intensive technologies at the low end of the skill distribution. At the same time technical progress in the U.S. is more skill biased than in Europe, since American skilled wages are higher.

Sponsored by the Forum on Contemporary Europe and the Political Economics group at the Graduate School of Business.

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Alberto Alesina Professor of Political Economics Speaker Harvard University
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