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Jack Ma, chairman of China's Alibaba internet giant, told a Stanford audience his firm is "very interested" in acquiring Yahoo. Ma was one of the speakers at the "China 2.0" conference organized by the Stanford Program on Regions of Innovation and Entrepreneurship on Sept. 30.

STANFORD GRADUATE SCHOOL OF BUSINESS – In a wide-ranging talk, Jack Ma, chairman of China's Alibaba Group, publicly declared his interest in acquiring troubled U.S. internet giant Yahoo, while also reflecting on his 12-year journey building an internet powerhouse that has transformed commerce for small businesses and consumers in China.

The Chinese e-commerce billionaire addressed a Sept. 30 conference at the Stanford Graduate School of Business on the rise of China's internet. The gathering, China 2.0: Transforming Media and Commerce was organized by the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE). With more than 600 registered participants, the event featured talks by leading Chinese internet entrepreneurs and venture capitalists active in Asia as well as a look at ongoing Stanford research on venture investment patterns and networks in China.

Speaking without prepared notes, Ma revealed that he plans to spend the coming year in the United States. "After 12 years, I need some time to rest. This year has been so difficult for me. I'm now coming out for a year," said the Alibaba chief, whose company is based in Hangzhou, China.

Ma was asked if he wanted to acquire Yahoo, the struggling U.S. internet pioneer that owns 40% of Alibaba. "Yes. We're very interested in that. We're very interested in Yahoo because our Alibaba Group is so important to Yahoo and Yahoo is important to us. We are interested in the whole piece of Yahoo," he said, adding that Alibaba also has talked with other prospective buyers. However, a deal would be very "complicated," Ma cautioned. "I cross my fingers and say that we are very, very interested in that."

Alibaba's takeover of Yahoo would represent something of a role reversal, symbolizing how much China's internet—and to some degree, its economy—has eclipsed that of the United States'. In 2005, Ma sold a 40% stake in the fledgling Alibaba to Yahoo in exchange for $1 billion and control of Yahoo China. The Alibaba-Yahoo relationship has been strained in recent years and Ma has telegraphed his desire to reduce or buy back Yahoo's stake. "We appreciate yesterday, but are looking for a better tomorrow," Ma told the Stanford audience.

He described Jerry Yang, co-founder and board member of Yahoo, as "a good personal friend." Ma added, "Without the Yahoo investment, we wouldn't be that successful today. Yahoo is one of three companies that woke me up to the internet. Without the internet, there would be no Alibaba and no Jack Ma."

Ma downplayed recent investor concerns that Chinese regulators will clamp down on the "variable interest entity" (VIE), a vehicle that has allowed foreigners to indirectly invest in Chinese internet companies and for those firms to go public in overseas stock markets. "The VIE is a great innovation," but "we've got to make the VIE really transparent," said Ma. "I don't see that the government is going to shut it down," he added.

Ma reflected on some of his successes and failures since founding Alibaba in 1999 as an online venue for small Chinese firms to connect with overseas buyers. Visiting Silicon Valley that year, "I was rejected by so many venture capitalists. [But] I went back to China with the American Dream," he recalled.

Today, the Alibaba Group, with 23,000 employees, dominates e-commerce in China, largely through its Hong Kong-listed Alibaba.com business-to-business site, Taobao consumer-to-consumer marketplace, and Taobao Mall, a business-to-consumer site for branded items. Ma said his e-commerce enterprises have helped China's small businesses succeed and made Chinese consumers smarter about purchase decisions. "We feel proud because we're changing China," he said.

The conference took place shortly after Beijing announced that China's internet population has surpassed 500 million—about double the number in the United States. Two of the five biggest internet firms in the world, by market value, are from China. U.S. pioneers, including Yahoo, eBay, Google, and Facebook, have failed to make significant inroads in China, where the government exercises strong control over the internet and foreign ownership. In contrast, Chinese internet firms have grown rapidly, coming up with technological and business innovations for their domestic market, and seeking investors, technical know-how, and talent overseas.

"They are growing very quickly and have global aspirations. The days of thinking that's just an eBay copy is an old mindset," said Marguerite Gong Hancock, associate director of SPRIE. "The arrows are now pointing in both directions."

In a brief appearance, Stanford President John Hennessy told the audience that China and the internet "are the two most exciting things happening in the world." There are more than 1,000 students from China at Stanford, by far the largest from a single foreign country, he added.

Conference-goers heard from Joe Chen, MBA '99, founder and chief executive of Renren Inc., a social networking site popular among Chinese university students. Discussing the emergence of the social web in China, he described his company as positioned on the "bleeding edge of SoLoMo," describing the intersection of social, local, and mobile technologies coined by venture capitalist John Doerr. Chen suggested that social networking (based on relationships) has emerged as an alternative to online search (based on keywords) for obtaining and sharing information. Social networking will transform commerce, entertainment, content distribution, and communications, just as online search did, he predicted.

China's social networking and media companies have developed their own innovations, sometimes ahead of U.S. companies, said Chen.The world's first social networking farming game, for instance, was launched on Renren in 2008. Renren went public on the New York Stock Exchange in May, beating Facebook to the IPO trough.

Conference organizers described SPRIE research into venture capital investments and networks in China. Researchers analyzed data on more than 2,000 Chinese companies, nearly 800 investment firms, and more than 600 individuals, including their university and company affiliations. Using the data, they created visualizations—circular nodes with lines extending out in a web—of the relationships among companies, investors, and entrepreneurs. "This is the power of network analysis," said Hancock, showing onscreen a moving image of how China's "investment constellation" changed from 1996 to 2011. The densest venture clusters are in Beijing, Shanghai, and Shenzhen. The research identified more than 40 venture capitalists involved in China who have ties to Stanford, she said.

Venture capitalists discussed the landscape for funding internet startups that are proliferating in China. "Early stage is still quite bubblish," said Tim Chang, MBA '01, managing director of the Mayfield Fund. "There's a lot of hot money doing drive-by due diligence."

Entrepreneurs described a frenetic, hyper-competitive environment for startups. "It's brutal. There are periods I cannot sleep for a month because of the massive pressures," said Fritz Demopoulos, co-founder of Qunar.com, China's largest travel web site, which recently sold a majority stake to Chinese search giant Baidu. But "there's still so much room to grow," said Demopoulos. "The runway in China is long."

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Cindy Liou is a staff attorney at Asian Pacific Islander Legal Outreach. Cindy currently practices law in the areas of human trafficking, immigration law, family law, and domestic violence. She is the coordinator for the Human Trafficking Project at the agency. Before working at API Legal Outreach, Cindy practiced intellectual property litigation and handled a variety of pro bono cases at Wilson Sonsini Goodrich & Rosati. Cindy graduated from Stanford Law School and received her double degree in Political Science and Business Administration with a minor in Human Rights from the University of Washington. Before becoming an attorney, Cindy consulted for the Corporate Social Responsibility Department of Starbucks Coffee Company.

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Cindy Liou Staff attorney Speaker Asian Pacific Islander Legal Outreach
Helen Stacy Director Commentator Program on Human Rights
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The Program on Human Rights Collaboratory Series is an interdisciplinary investigation of human rights in the humanities. It is funded under the Stanford Presidential Fund for Innovation in International Studies as the third in a sequence of pursuing peace and security, improving governance and advancing well-being.

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David Abernethy Professor Emeritus Speaker Department of Political Science, Stanford
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Abstract
The Internet is now approaching near-ubiquity as a method for gathering, distributing and obtaining the news. Over the last decade, social tools and websites built in Silicon Valley have come to dominate that conversation. The use of those tools, the Net and the nature of online journalism varies wildly from country to country. Danny O'Brien of the Committee to Protect Journalists discusses how those tools are used by journalists and their sources in dangerous conditions, and what technologists can learn about the future from these edge cases.

Danny O'Brien is CPJ's Internet Advocacy Coordinator. He has spent over twenty years documenting and explaining the growth of the Internet and new media and its effect on free expression and society. He has written articles for Wired, New Scientist, the Guardian, and TV shows for the BBC. Prior to joining CPJ last year, O'Brien was International activist for the original Internet freedom organization, the Electronic Frontier Foundation, and was a founder of the British pressure group, the Open Rights Group. He is based in San Francisco. http://www.twitter.com/#!/danny_at_cpj

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Danny O'Brien Internet Advocacy Coordinator Speaker Committee to Protect Journalists
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Abstract 
There will be a discussion of two different examples of liberation technology, one used to collect and protect human rights data, and the other used to analyze it. Martus is a software program that encrypts and remotely backs up data, designed for and used widely by human rights monitors and advocates to protect witness reports and other sensitive human rights data. the focus will be on the security design of Martus and how we addressed the inevitable tradeoffs with usability, as well as the reasons for and consequences of our choice to make Martus free and open source. The legitimacy of human rights advocates is based on their claim to speak truth about a human rights situation, but our ability to know the truth of what is happening on the ground is often severely limited. Founding conclusions on anecdotes or observable events alone can misinterpret both trends over time and the relative distribution of violence with respect to regions, ethnicity or perpetrators. Through the careful application of rigorous statistical methods, the limitations of incomplete data can sometimes be overcome, enabling scientifically-based claims about the total extent and patterns of human rights violations. Also discussed will be how this kind of analysis is enabled by technology, including computational statistical methods, and tools like R and version control to make the analysis auditable and replicable.

Jeff Klingner is a computer scientist with the Human Rights Data Analysis Group at Benetech, where he codes and runs data analysis addressing a variety of human rights questions, including command responsibility of high-level officials in Chad and Guatemala, and mortality estimation in several countries, including India, Sierra Leone, and Guatemala. His technical focus is on data deduplication, machine learning, data visualization, and analysis auditability and replicability. He earned a Ph.D. in Computer Science from Stanford University.

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Jeff Klingner Computer Science Consultant Speaker Benetech
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The talk will discuss the impact that recent events in Tunisia, Egypt, Libya, Syria and other MENA countries has had on the debate about the Internet & democracy in general and on the future of the so-called "Internet freedom agenda" in particular. The talk will also explore the possibility of finding some workable middle ground between cyber-utopianism and cyber-dystopianism, attempt to articulate what a more culturally-sensitive approach to studying Internet & democratization may look like and argue for the growing relevance of such approach, particularly as a way to avoid essentialist attitudes towards technology. 
 
Evgeny Morozov is the author of the Net Delusion: The Dark Side of Internet Freedom, published earlier this year and a visiting scholar with the Liberation Technology program at Stanford University. He's also a Schwartz fellow at New America Foundation and a frequent contributor to national and international media on questions of technology and politics. 

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Evgeny Morozov is a visiting scholar in the Liberation Technology Program at Stanford University and a Scwhartz fellow at the New America Foundation. He is also a blogger and contributing editor to Foreign Policy Magazine. He is a former Yahoo fellow at the Institute for the Study of Diplomacy at Georgetown University and a former fellow at the Open Society Institute, where he remains on the board of the Information Program. His book The Net Delusion: The Dark Side of Internet Freedom was published by PublicAffairs in January 2011.

Evgeny Morozov Visiting Scholar, Program on Liberation Technology Speaker Stanford University
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The events of this year alone have highlighted the impact that natural phenomena (so called external events) can have on critical infrastructure and commercial nuclear power plants in particular. The design of commercial nuclear power plant structures, systems and components has taken into account the effect of loads due to external events such as earthquakes, floods, high winds and tornados. However, the original approach for establishing design levels was based on deterministic methods that today would be viewed as short-sighted and scientifically inadequate. This talk will offer perspectives and insights on NPP design and performance, evaluation of so-called extreme events, and how evaluations of potential core damage accidents are performed. The approach and process of evaluating plant integrity and safety continues to evolve; in part this is attributable to a degree to the vigilance that is maintained by the industry, but is also due to ‘current events’ that demand attention (new science, Fukashima experience, Fort Calhoun flood experience, Virginia earthquake, etc.).


About the speaker: Dr. McCann is currently the President of Jack R. Benjamin & Associates, Inc., a Consulting professor of Civil and Environmental Engineering at Stanford University and Director of the National Performance of Dams Program (NPDP). He received his B.S. in civil engineering from Villanova University in 1975, an M.S. in civil engineering in 1976 from Stanford University and his Ph.D. in 1980, also from Stanford University.

His areas of expertise and professional experience includes probabilistic risk analysis for civil infrastructure facilities and, probabilistic hazards analysis, including seismic and hydrologic events, reliability assessment, risk-based decision analysis, systems analysis, and seismic engineering. He currently teaches a class on critical infrastructure management in the civil and environmental engineering department.

He has been involved in probabilistic risk studies for nuclear power plants since the early 1980’s and is now participating in a new round of risk studies for plants in the U.S. Recently, Dr. McCann led the Delta Risk Management Strategy project that is conducting a risk analysis for over 1100 miles of levee in the Sacramento and San Joaquin Delta. He was also a member of the U.S. Army Corps of Engineers’ IPETRisk and Reliability team evaluating the risk associated with the New Orleans levee protection system following Hurricane Katrina.

He is currently serving on 2 National Academy of Sciences panels addressing issues associated with levees and community resilience and the National Flood Insurance Program.

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Martin McCann Consulting Professor Speaker Stanford University Department of Civil and Environmental Engineering
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Program to enhance global reach and innovation research at business school

We are thrilled to welcome SPRIE, a catalyst for cutting-edge knowledge in this space, and a natural fit for us.
- Garth Saloner, Dean of the Stanford Graduate School of Business

STANFORD GRADUATE SCHOOL OF BUSINESS — The Stanford Program on Regions of Innovation and Entrepreneurship has joined the Graduate School of Business, where it will expand and enhance the depth and reach of global content for the school's academic programs and research.

Peter Wegner, MONUMENT TO CHANGE AS IT CHANGES at Knight Management Center, Stanford Graduate School of Business
The Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) is focused on understanding the development and practice of innovation and entrepreneurship around the world. Current research focuses on the dynamics and sustainability of Silicon Valley and high-technology areas across Europe and Asia, including those in mainland China, Taiwan, Japan, India, Korea, and their collaboration and competition in the evolving global innovation network. Specific projects focus on "Silicon Valley Transforming," the rise and implications of China's internet industry ("China 2.0"), Japanese entrepreneurship ("STAJE"), and clean energy and urbanization ("Smart Green Cities").

SPRIE's core activities include global interdisciplinary research, seminars, and conferences, as well as publications and briefings for industry and government leaders. Upcoming events this month at Stanford include a panel discussion, "Re-examining the State of Japanese Entrepreneurship," on Sept. 21 and "China 2.0: Transforming Media and Commerce in China," SPRIE's third in a series of highly successful forums. Keynotes for "China 2.0" on Sept. 30 will include investors, entrepreneurs, and founders or CEOs of billion-dollar Chinese internet firms, including Jack Ma of Alibaba and Joe Chen, MBA '99, of RenRen.

"Innovation and entrepreneurship are hallmarks of the GSB experience," said Garth Saloner, dean of the Stanford Graduate School of Business. "We are thrilled to welcome SPRIE, a catalyst for cutting-edge knowledge in this space, and a natural fit for us. SPRIE complements and augments many of our existing efforts, including the Center for Entrepreneurial Studies and the Center for Global Business and the Economy."

Knight Management Center, Stanford Graduate School of Business
Previously housed at Stanford University's Freeman Spogli Institute for International Studies, SPRIE is led by faculty directors William F. Miller and Henry S. Rowen, as well as Associate Director Marguerite Gong Hancock. Miller, the former provost of Stanford University and the Herbert Hoover Professor of Public and Private Management, Emeritus, at the business school, is also a professor emeritus of computer science at the engineering school. He was CEO of SRI International, where he established a spin-out and commercialization program. Rowen is a senior fellow at the Hoover Institution and the Edward P. Rust Professor of Public Policy and Management, Emeritus, at the business school, as well as former president of the RAND Corporation. He is an expert on international security, economic development, and high-tech industries in the United States and Asia.

Hancock leads research initiatives, conferences, and publications on topics ranging from "China 2.0: The Rise of a Digital Superpower" to "Smart Green Cities." She is coeditor of books published by Stanford University Press: The Silicon Valley Edge (2000), Making IT: The Rise of Asia in High Tech (2006), and Greater China's Quest for Innovation (2008). Hancock also codirects SPRIE executive and policymaker training programs on leading innovation and entrepreneurial regions in the global economy.

"We are very pleased to join the Graduate School of Business and look forward to collaborating on international and interdisciplinary research and conferences relevant to business students, executives, and government leaders from around the world who are focused on leading innovation and creating value," said Miller.

SPRIE research focuses on the nexus of innovation and entrepreneurship in high-technology clusters, through questions such as:

  • What factors enable innovative and entrepreneurial regions to advance and be sustained? What divergent models and strategies are evident in emerging regions?
  • Why have some regions lagged, despite strong assets such as skilled workers or capital investments? What obstacles hinder a region's development?
  • How do the flows of ideas, technology, people, and capital define new global linkages? How do these shape the emerging global high-technology system?
  • With the rise of China, India, and other high-technology powerhouses, what new patterns of interaction are emerging among major players? How can companies and governments best respond to new critical challenges and opportunities?

For more information on research, executive programs, or events at SPRIE, contact Yan Mei at yanmei@stanford.edu or visit http://sprie.gsb.stanford.edu.


For More Information Contact: Barbara Buell, Director of Communications, Stanford Graduate School of Business at buell_barbara@gsb.stanford.edu or 650-723-1771.

For Comment: Marguerite Hancock, Associate Director, Stanford Program on Regions of Innovation and Entrepreneurship at the Graduate School of Business at mhancock@stanford.edu or 650-723-4588.

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"Ways to Change", by Peter Wegner, hangs near the TA Associates Cafe at the Stanford Graduate School of Business.
Sterling Hancock
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Russia has had a long history of opposing US missile defense activities. Most recently, Russian concern focused on the alleged capability of the "third site" to intercept Russian ICBMs. The "third site" was a plan to place 10 ground-based interceptors in Poland and a large X-band radar in the Czech Republic proposed by the Bush Administration prior to its cancellation in 2009 by the Obama Administration. Now this same Russian concern has arisen regarding phases III and IV of the Phased Adaptive Approach to European missile defense proposed by the Obama Administration. This talk will assess the extent to which Russian concerns are valid in military/technical terms.


Speaker Biography:

Dean Wilkening is a Senior Research Scientist at the Center for International Security and Cooperation at Stanford University. He holds a Ph.D. in physics from Harvard University and worked at the RAND Corporation prior to coming to Stanford. His major research interests include nuclear strategy and policy, arms control, the proliferation of nuclear and biological weapons, bioterrorism, ballistic missile defense, and energy and security. His most recent research focuses on the broad strategic and political implications of ballistic missile defense deployments in Northeast Asia, South Asia and Europe. Prior work focused on the technical feasibility of boost-phase ballistic missile defense interceptors. His recent work on bioterrorism focuses on understanding the scientific and technical uncertainties associated with predicting the outcome of hypothetical airborne biological attacks and the human effects of inhalation anthrax, with the aim of devising more effective civil defenses. He has participated in, and briefed, several US National Academy of Science committees on biological terrorism and consults for several US national laboratories and government agencies.

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Dean Wilkening Senior Research Scientist Speaker CISAC
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