Japan represents a quintessential "network society" -- permeated by dense webs of formal and informal relationships across all areas of daily life, from the political to the economic. Yet as industrial activity continues to languish along many indicators in the 1990s, what was once considered a source of competitive strength is now viewed as an underlying weakness. Critics of "crony capitalism" in Japan (and the rest of Asia) charge that mutual backscratching has replaced the kind of hard-nosed business decisions needed to make economically efficient decisions about how to allocate capital, weed out poorly performing companies, and shift resources into more productive uses. Based on the forthcoming volume, "The Organization of Japanese Business Networks" (Cambridge University Press), this presentation evaluates these criticisms theoretically and empirically. It also considers efforts now underway in Japan in the area of keiretsu reform. Michael L. Gerlach received his Ph.D. in organizational behavior from Yale University and is currently associate professor at UC Berkeley's business school. His research is focused on cross-national studies of business organizations; entry strategies in foreign markets; strategic alliances, joint ventures, and new organizational forms; interfirm relationships and corporate strategies in Japanese business; business and public policies concerning international competitiveness; the comparative analysis of the institutions of modern market economies as they reflect social and cultural contexts.

Regulations on new drugs, drug prices, and other aspects of the Japan's pharmaceutical industry had in effect protected domestic manufacturers and kept them from inventing a truly innovative new drug. As the deregulation and the international harmonization of the drug market proceed, disintegrated Japanese drug makers will need to ally or integrate with partners in and out of the industry.

M&A will have a positive effect on the marketing, but not necessarily on the research. Possible increase of university TLO and spinouts in Japan can improve the access to the information in Japanese universities, but the access is open to both domestic and international companies. Alliances between drug makers and the local parties with an international competitive edge, such as electronics and precision mechanics, may produce a unique synthesis.

Atsuomi Obayashi is currently a visiting scholar at Stanford University's Asia/Pacific Research Center and associate professor at the Keio University Graduate School of Business Administration. His research topics include application of the game theory, the contract theory and economics of the R&D. He received his Ph. D. in public policy from the University of Chicago in 1996 and an LL.B. from Kyoto University, Japan, in 1983.

Throughout the 1990s, Japan muddled through restructuring its economic vitality and social flexibility to cope with an advent of a new era. Represented by the IT Revolution, the new era has changed existing legal frameworks, business practices, and socioeconomic traditions worldwide. Against this backdrop, Japan has embarked, though belatedly, on various reforms, including administrative reform. Can these efforts succeed? Can Japanese bureaucrats change Japan? Or who else will change Japan and what will be an agenda for the newly born Japan? Takeshi Isayama is a former Japanese government official with the Ministry of International Trade and Industry (MITI). While at MITI, he was responsible for drafting and implementing international trade policy including intellectual property policy serving as the Commissioner of the Japanese Patent Office and the Director-General of several bureaus including the International Trade Policy bureau during the Hashimoto and Obuchi administrations (1995-1999). He graduated from Tokyo University in 1967 with a Bachelor of Law degree and received his MPA from the Kennedy School of Government at Harvard University in 1971. After graduating from Tokyo University, he joined MITI in 1967.

Author Liza Dalby will discuss the extraordinary life and times of Lady Murasaki Shikibu, the writer of the world's first novel, The Tale of Genji. Ms. Dalby, an anthropologist and renowned scholar of Japanese history, will apply "literary archaeology" to explore the life of Lady Murasaki Shikubu and the Japanese Imperial Court, and will introduce her new book, The Tale of Murasaki. Liza Dalby is an anthropologist specializing in Japanese culture. As the only Westerner to have become a geisha, Ms. Dalby was able to obtain previously undisclosed material for her Ph.D. and her books Geisha and Kimono. Presently, she is a consultant for Steven Spielberg's upcoming film adaptation of Arthur Golden's Memoirs of a Geisha. She lives in Berkeley, California, with her husband and three children.

As generally described, Japan's development of the internet industry has fallen behind even other Asian economies. Even though Japan's first trial of policy reformation in the mid 1980s was relatively early, what made this critical delay? Shin Yasunobe will present and evaluate Japan's policy track record in the 1990s. He will also present unique aspects of Internet development recently observed in Japan, and their implications for the future. Shin Yasunobe, formerly a high-ranking official with the Japanese Ministry of International Trade and Industry (MITI) has been appointed executive director at Stanford Japan CenterÑResearch, located in Kyoto. Yasunobe is a twenty-two year veteran of MITI who left his post as director of its Electronic Policy Division in the Machinery and Information Industries Bureau to take the reins of a new project at Stanford Japan CenterÑResearch. This project will be a set of comparative studies on the international dimensions of the Internet and e-commerce, with particular focus on the Asian economies.

Since the 1960s, television has been a fixture of the Japanese household, and NHK's TV news has until very recently been the dominant, and most trusted, source of political information for the Japanese citizen. NHK's news style is distinctive among the broadcasting systems of industrialized countries; it emphasizes facts over interpretation and gives unusual priority to coverage of the national bureaucracy. In his talk, Krauss will argue that this approach is not simply a reflection of Japanese culture, but a result of the organization and processes of NHK and their relationship with the state. These factors had profound consequences for the state's postwar re-legitimization, while the commercial networks' recent challenge to NHK has helped engender the wave of cynicism currently faced by the state. Professor Krauss is a leading expert on Japanese Politics, U.S.-Japan relations, and Japan's political economy. He also is the director of the International Career Associates Program (ICAP) at IR/PS. His most recent book, Broadcasting Politics in Japan: NHK and Television News (Cornell University Press, 2000), discusses Japan's mammoth public broadcaster, and its relationship to and consequences for politics. He recently received a prestigious Abe Fellowship to conduct research on Japanese foreign policy decision making in APEC and its impact on U.S.-Japan relations. Krauss is co-editor of Media and Politics in Japan and has co-edited and written contributing articles for Democracy in Japan and Conflict in Japan. He wrote a monograph for the Foreign Policy Association, entitled Japan's Democracy: How Much Change? and has authored many articles in professional journals of political science and Asian studies.

When the Asian Crisis hit in 1997, California looked particularly vulnerable. Foreign markets had been of growing importance to the state's economy over the previous decade, and California's trade was heavily weighted toward Asia. The US trade deficit had been rising steadily and the rapid depreciation of Asian currencies threatened to dampen demand for the state's goods, while at the same time flooding it with imports. Yet the State's economy weathered this storm quite well. Why? Kroll and Bardhan will present research on California's linkages with the global economy which help explain this outcome. Additionally, Kroll and Bardhan will present research showing how California is becoming integrated with the global economy in other, more complex ways. California-based firms have expanded their sales and production activities throughout the world, and production that occurs within the state has come be increasingly linked to Asia for imports of intermediate inputs. Cheaper inputs and finished goods in turn have moved the economy to higher value-added sectors and related services. Kroll and Bardhan will discuss the some consequences of these linkages and analyze their effects on the employment structure of the state. Dr. Cynthia Kroll is Regional Economist at the Fisher Center for Real Estate and Urban Economics, at the University of California at Berkeley. She holds M.A. and Ph.D. degrees from Berkeley's Department of City and Regional Planning, and serves as an advisor to the California Office of Economic Research and the Association of Bay Area Governments Ashok Bardhan is a research associate at the Fisher Center, and served formerly as an officer with the Reserve Bank of India.