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Takeshi Kondo was undergoing training as a new Mitsubishi Electric systems engineer in Kobe, Japan when the massive 7.2-magnitude Great Hanshin earthquake struck in 1995. When Japan was hit by the double disaster of an 8.9-magnitude earthquake and a tsunami in March 2011, Kondo was at Stanford University participating in the Corporate Affiliates Visiting Fellows Program at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). The March tragedy called to mind the 1995 Kobe earthquake and underscored for him the strength of the U.S.-Japan relationship in the face of adversity.

Kondo, currently a manager for the Strategic IT Business Planning Department of Mitsubishi Electric, is a Corporate Affiliates Visiting Fellow for the 2010–2011 academic year. During this rigorous and stimulating year, he has conducted research on non-entertainment applications for augmented reality (AR) technology, audited entrepreneurship classes, and participated in site visits to numerous Bay Area companies. He will present his research findings during a public seminar at the end of May before concluding the program and returning to his position at Mitsubishi Electric's corporate headquarters in Tokyo.

A graduate of Waseda University with BS and MS degrees in industrial and management systems engineering, Kondo majored in combinatorial optimization—the analysis of numerous finite possibilities in order to arrive at the most efficient solution to a problem. He has applied his expertise for the past seventeen years at Mitsubishi Electric, a corporation with five major divisions and approximately one hundred thousand employees worldwide, including the United States. Mitsubishi Electric manufactures products ranging from common home appliances like refrigerators to sophisticated electronic devices such as semiconductor lasers. Its Diamond Vision display system graces San Francisco's AT&T Park and Oakland's Oracle Arena.

Prior to taking up his current position at Mitsubishi Electric, Kondo designed systems related to road operations and management, including traffic information and radio communications systems, and he also took part in a joint government and private sector study of a toll collection system similar to FasTrak. The study group made important technology- and policy-related recommendations to the Japanese government when it was preparing to implement the system throughout the country. Kondo is now engaged in finding ways to develop the IT-side of Mitsubishi Electric's business, testing new systems in-house before putting them on the market.

Kondo is excited about the possible manufacturing applications of AR technology, which to date has mostly been utilized in entertainment. A commonly seen use of the technology is with the throw-distance markings that are digitally overlaid on a field during a television football broadcast. When he returns to Mitsubishi Electric this summer, Kondo plans to advocate the use of AR technology and to explore new ways of implementing it with their manufacturing. His Shorenstein APARC research project advisor has been Henry S. Rowen, co-director of the Stanford Program on Regions of Innovation and Entrepreneurship and a specialist on high-tech industries in the United States and Asia. "He is brilliant," emphasizes Kondo.

During his year with the Corporate Affiliates Visiting Fellows Program, Kondo has audited several entrepreneurship classes in the Department of Management Science and Engineering, noting the profusion of such classes at Stanford University. It has led him to develop an interest in the Bay Area venture capital firms that the Fellows have visited, his first encounters with businesses of this kind. The group has also toured a number of high-tech companies, of which Cisco Systems holds a special attraction for Kondo because of his interest in AR technology.

Of all of his experiences this past year, Kondo has perhaps been most struck by the overwhelming U.S. response to Japan's recovery efforts after the March 11 earthquake and tsunami. "It has been very confusing," he says, "but the American people have shown support for us." Japan too demonstrated its friendship when Hurricane Katrina devastated New Orleans in 2005—an unprecedented disaster in U.S. history. The Japanese government and private citizens sent significant funds and supplies for relief efforts.

When Kondo returns to Japan in June, he will take with him not only the academic and business expertise that he has gained while participating in the Corporate Affiliates Visiting Fellows Program but also the memory of the friendship that he has experienced. Building strong ties between the United States and Asia is a core component of Shorenstein APARC's mission. Kondo will join the Corporate Affiliates Visiting Fellows Program's ever-growing alumni network, connecting him to colleagues throughout Asia and to Shorenstein APARC and Stanford scholars for many years to come.

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The Stanford China Program (SCP) is pleased to announce the publication of Going Private in China: The Politics of Corporate Restructuring and System Reform in the PRC, which addresses many key reform questions faced over the past two decades by China, as well as by Japan and South Korea. Edited by SCP director Jean C. Oi, this volume demonstrates the commonalities between three seemingly disparate political economies. In addition, it sheds important new light on China's corporate restructuring and also offers new perspectives on how we think about the process of institutional change.
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The concept of "soft power" is central for the multi-dimensional rise of China as well as the evolving global strategy of the United States. Beijing is increasingly concerned with projecting soft power to neutralize perceptions of China as a threat while Chinese global influence grows. Washington, meanwhile, looks to employ soft power in remaking its post-Iraq international image, countering terrorist ideological extremism, and attracting the cooperation of international partners to deal with global challenges.

This seminar will address several key questions about soft power:

- What are the different implications when governments use "hard power" in "soft" ways versus when they try to use "soft power" in "hard" ways?

- How is soft power understood and operationalized differently in China than in the United States?

- What are the different visions for projecting soft power among various political actors in China?

- Can soft power be threatening? How can we disentangle capabilities and policies that may be threatening from those that are attractive to other states and encourage cooperation?

About the speakers

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Qinghong Wang
Qinghong Wang is currently coordinating the Education Exchange Program for the East-West Center in Honolulu. He received his Ph.D. in political science from the University of Hawaii at Manoa in 2010. His dissertation is entitled, Reinventing Democracy through Confucianism: Representation, Application and Reorientation of Western Transnational Nonprofit Organizations (WTNPOs) in Post-Mao China. Dr. Wang earned his MA in Asian studies from the University of Hawaii in 2003 and his BA in Chinese language and literature from Peking (Beijing) University in 1999. Dr. Wang is originally from Beijing. He was the Lloyd (Joe) R. and Lilian Vasey Fellow with the Pacific Forum at the Center for Strategic and International Studies (CSIS) from 2006 to 2007, and has since remained an adjunct fellow with the Forum. His research focuses on the development of civil society in China, U.S.-China relations, traditional and nontraditional security issues in the Asia Pacific, and comparative politics and philosophies of East and West.

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Leif Eric Easley
Leif-Eric Easley is the 2010-11 Northeast Asian History Fellow at Shorenstein APARC. Dr. Easley completed his Ph.D. at the Harvard University Department of Government in 2010, specializing in East Asian international relations. His dissertation presents a theory of national identity perceptions, bilateral trust between governments, and patterns of security cooperation, based on extensive fieldwork in Seoul, Tokyo, and Beijing. At Stanford, he is teaching a course on nationalism, contested history, and the international relations of Japan, China, South Korea, and the United States. Dr. Easley is actively involved in high-level U.S.-Asia exchanges (Track II diplomacy) as a Sasakawa and Kelly Fellow with the Pacific Forum CSIS. His research appears in a variety of academic journals, supplemented by commentaries in major newspapers.

With regional perspective commentary by:

Donald Emmerson, Director, Southeast Asia Forum, Shorenstein APARC

Daniel Sneider, Associate Director for Research, Shorenstein APARC

David Straub, Associate Director, Korean Studies Program, Shorenstein APARC

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Seminars
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Takeshi Kondo, "Augmented Reality Application Outside of the Entertainment World"

Augmented Reality (AR), created in the 1960s, has recently attracted attention due to the progress of Information Technology. AR is supplementary text/visual data superimposed over the surrounding real world. For example, in a football game on television, the yard lines and logos displayed on the screen use AR technology. AR technology has been applied to the entertainment world, such as in computer games, in film, and in advertisement. However, there are few examples of the application outside of the entertainment field. In his research presentation, Kondo proposes some possible AR applications outside of the entertainment industries.


Makoto Murata, "Developing New Facilities Strategy and Added Value in "Smart Grid"

Smart Grid is a new concept of power supply and management, and it receives a great deal of public attention. Electricity is the fastest-growing component of total global energy demand. In this environment, there are increasing needs for minimizing costs and environmental impacts while maximizing electric system reliability. Smart grid is thought to be a key solution for them. The deployment of smart grid affects facilities strategy. Murata analyzes facilities strategy for smart grid deployment from the viewpoints of regulations and area characteristics.

 
Eiichi Yamamoto, "Management of Intellectual Assets such as Patents, in the United States and Japan"

In a knowledge economy where there is global competition, intellectual assets become a key factor in a company's performance. The United States government recognized the significance of intellectual assets as a company's value earlier than Japan and has promoted a pro-patent policy since the early 1980s. The policy has encouraged U.S. companies to take advantage of the profitability of patents, much more than Japanese companies have done. In this presentation, Yamamoto analyzes the differences in the management of intellectual assets, such as patents, between the United States and Japan, and tries to explain the reasons for those differences.

Philippines Conference Room

Takeshi Kondo Speaker Mitsubishi Electric
Makoto Murata Speaker Kansai Electric Company
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Minoru Aosaki, "International Banking Regulation after the Financial Crisis: Economic Impacts and Policy Challenges in the US, Japan, and the EU"

To address lessons of the financial crisis, the Basel Committee introduced a new international framework on banking regulations, known as Basel III. The world leaders subsequently committed to implement it at the last G20 summit meeting. A current key issue is how regulators in each country should/can transform their current regulatory regime to the new regime under their own economic and regulatory environments. To consider the issue, Aosaki examines how economic costs and benefits of the regulatory reform would vary among countries and discusses policy challenges of the regulators to ensure the benefits and mitigate the costs.


Pradnya Palande, "Population Dynamics: A New Approach in Understanding Cancer Development"

Cancer, the most vicious and hard to cure disease, results from an accumulation of genetic alterations best known as mutations, in our body. These mutations constantly keep evolving by natural selection. A consequence of this evolution is that a cancer treatment will tend to kill the susceptible cells but will leave the resistant ones to flourish. A few months later, the cancer will reappear and will be resistant to previous treatment. Hence studying the population dynamics of cancer will provide insight into development of cancer and will help in developing better methods for cancer prevention and therapy.

Palande has concentrated her research on population dynamics of cancer cells in chronic myeloid leukemia, a type of blood cancer. She is trying to study the role of the antibody diversification enzyme, namely Activation Induced cytidine Deaminase (AID), in the generation of mutations associated with cancer progression and drug resistance in chronic myeloid leukemia.

Naoki Takeuchi, "Energy Policies, Clean Technologies, and Business Innovations in the United States"

In January 2011, at his State of the Union speech, President Obama suggested setting a goal that 80% of electricity will come from clean energy sources in the United States by 2035. He also suggested that the United States will become the first country to have a million electric vehicles on the road by 2015. 

In Takeuchi's research, he tries to understand the dynamic interactions among government energy policies, clean technologies, and business innovations in the United States. His research includes an overview of federal energy policies (both regulations and incentives), an overview of California State government policies, recent trends of clean technologies, venture capital investments in cleantech companies, and major areas of clean technologies and business innovations. In this presentation, Takeuchi will present case studies focusing on cleantech companies in the Silicon Valley.

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Minoru Aosaki Speaker Ministry of Finance, Japan
Pradnya Palande Speaker Reliance Industries
Naoki Takeuchi Speaker Development Bank of Japan
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In this session of the Shorenstein APARC Corporate Affiliate Visiting Fellows Research Presentations, the following will be presented:

Wataru Ishii, "Promotion of Tourism in Japan:  Policies and Plans for Development and Involvement of Local Institutions"

Tourism is an industry that covers a lot of areas, such as hotels, transportation, food services and one of a few industries where growth can be expected in the future.  Because of the economic importance of tourism, the Japanese National Government established the Japan Tourism Agency in 2008 and has begun to try to make Japan "Tourism Nation" and local governments are following suit.  Ishii studies the significance of tourism in Japan and policies to attract foreign tourists that will compensate for stagnant domestic tourists.

Yuichi Moronaga, "The Essential Value - Connecting and Sharing Emotions - Storytelling in the Social Media Era"

Customers have high expectations when making purchases.  They expect products to provide value and, at the same time, satisfy their sense of emotions.  Storytelling is an important factor when it comes to these customer purchases.  Knowing the story behind the product or company can create strong attachments and this "essential value" is an important factor in the buying cycle.  These emotions may encourage our next behavior, whether it's repeat buying or long-term usage.  With the increased usage of social media, this type of cycle that is created is vital for a company's marketing plan as well as providing increased motivation of a company's employees.  In this presentation, Moronaga shares examples of storytelling, demonstrating how dynamically storytelling is changing people's purchasing behaviors and the opportunities presented.

Hirofumi Takinami, "Political Economy of the Financial Crises in Japan and the United States:  Why the Difference in Speed to Respond and Recover?"

Within the last two decades, the United States and Japan each experienced the same type of financial crisis, notably triggered by the collapse of major financial institutions.  Both were under the political economic conditions of one of the largest economies in the world as well as of an advanced democratic country.  However, it is symbolically different that Japan let the institutions go into chain-reaction bankruptcies without injecting public money in 1997, while the U.S. undertook a bailout of AIG just after the Lehman bankruptcy in 2008.  And now the U.S. economy is showing earlier recovery compared to what Japan experienced. -- What made this difference in speed to respond and recover?  To explain this puzzle, Takinami focuses on (a) existence of precedent & learning, (b) speed and process of economic downturn toward the crisis, (c) action by national leader & secretarial organization, and (d) status of global standard setter, together with assessing the alternative explanations.  Then, he argues some implications of these analyses.

Philippines Conference Room

Wataru Ishii Speaker Shizuoka Prefecture
Yuichi Moronaga Speaker Ministry of Economy, Trade & Industry, Japan
Hirofumi Takinami Speaker MInistry of Finance, Japan
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In this session of the Shorenstein APARC Corporate Affiliate Visiting Fellows Research Presentations, the following will be presented:

Toshifumi Kadowaki, "The Keys to Successful M&As in High-Tech Industries - Based on a Study of the HP-Compaq Merger"

Mergers and acquisitions (M&As) are tactics, not strategy.  Successful M&As, however, can be considered one of the most useful tactics in realizing corporate strategy because M&As often save time and can even save money and reduce risk.  Many high-tech companies, therefore, have made a large number of M&As recently.  Numerous empirical studies, though, have shown that most M&As fail. Through the case study of the Hewlett Packard-Compaq merger, Kadowaki analyzes what makes M&As successful and what causes them to fail.

Oshie Sato, "Dawn of a new Era in the Video Industry - Impact of Smart TVs from a Historical Perspective of Broadcasting and Movie Industries in the United States and Japan"

After prospering for more than a half century both in the United States and Japan, the broadcasting and movie industries have reached a turning point of their business models.  This is due mostly to the rise of competition with the Internet since the late 1990s and a global recession led by Lehman's fall in 2008.  What will happen to these industries in the U.S. and Japan over the next decade?  Sato analyzes a future picture of the broadcasting and movie industries, focusing on the impact of smart TVs - next-generation video devices such as Google TV and Apple TV.

Sonya Vasudeva, "Pharmacogenetics in Cancer:  Steps Towards Personalized Medicine"

The variability in clinical response to drug treatment has been well known for decades.  An era of pharmacogenetics started almost fifty years ago when it was recognized that a part of this variation is inherited, and can therefore be predictable.  With the wealth of information readily available online, the promise of personalized medicine looms large, but the generalization into clinical applications of pharmacogenomics has been more challenging.  In Vasudeva's research, she shares examples of tests, which are integrated by USA FDA and EMA into drug lables, one example being K Ras mutation for metastatic colorectal cancer.  Vasudeva argues that the increased availability of such tests may transform the field of medical oncology, moving treatment from the "one size fits all" approach to a personalized therapy based on variations in an individual genome.

Philippines Conference Room

Toshifumi Kadowaki Speaker Sumitomo Corporation
Oshie Sato Speaker Sumitomo Corporation
Sonya Vasudeva Speaker Reliance Industries
Seminars

Brochure for STAJE April conference

The meeting will bring together over 30 scholars on Japan to discuss new developments in Japan, including potential opportunities opening up after the Great Eastern Japan Earthquake. We will have 22 paper presenters and discussants, with topics ranging from new firm profitability, the politics of firm creation, management of innovation, and large firm entrepreneurial processes in Japan. The goal is to lead to a better understanding of the nature of entrepreneurship, and how analyses of Japan might inform more theoretical discussions.

Also, in view of the disastrous earthquake and tsunami that has recently afflicted Japan, the conference will feature a panel of prominent experts on Japan's economic, social systems, business, and government who will discuss the effects of the great earthquake on research and today's Japan.

Bechtel Conference Center

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Economic development is a dynamic process in East and Southeast Asia, and one that is inextricably tied to policy.

Two new groundbreaking political economy publications are now available from the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC), and a third is forthcoming in August.

Going Private in China: The Politics of Corporate Restructuring and System Reform, addresses many key reform questions faced over the past two decades by China, as well as by Japan and South Korea. Edited by Stanford China Program director Jean C. Oi, this volume demonstrates the commonalities between three seemingly disparate political economies. In addition, it sheds important new light on China's corporate restructuring and also offers new perspectives on how we think about the process of institutional change.

In Spending Without Taxation: FILP and the Politics of Public Finance in Japan, former Shorenstein Fellow Gene Park demonstrates how the Japanese government established and mobilized the Fiscal Investment Loan Program (FILP), which drew on postal savings, public pensions, and other funds to pay for its priorities and reduce demands on the budget. Referring to FILP as a "distinctive postwar political bargain," he posits that it has had lasting political and economic effects. Park's book not only provides a close examination of FILP, but it also resolves key debates in Japanese politics and demonstrates that governments can finance their activities through financial mechanisms to allocate credit and investment.

The Institutional Imperative: The Politics of Equitable Development in Southeast Asia, by former Shorenstein Fellow Erik Kuhonta, argues that the realization of equitable development hinges heavily on strong institutions and on moderate policy and ideology. He does so by exploring how Malaysia and Vietnam have had the requisite institutional capacity and power to advance equitable development, while Thailand and the Philippines, because of weaker institutions, have not achieved the same levels of success.

More detailed descriptions about these insightful volumes, as well as reviews and purchasing information, are available in the publications section of the Shorenstein APARC website.

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Please join us on The Great Tohoku, Japan Disaster - Symposium Iand The Great Tohoku, Japan Disaster - Symposium II for two evenings devoted to an examination of and conversation about the March 11, 2011 Tohoku earthquake in northern Honshu, Japan, and the subsequent tsunami and nuclear accident. In talks and panel discussions, experts from the School of Earth Sciences and the Freeman Spogli Institute for International Studies will focus on what happened, the impacts of the events, and what the future holds for Japan and other earthquake- and tsunami-zone regions of the world.

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