"The Shape of Things to Come," a conference presented by the Stanford Program on Regions of Innovation and Entrepreneurship on January 17-18, 2008, featured keynotes by John Hagel, co-author of The Only Sustainable Edge and Co-Chairman of the Deloitte Center for Edge Innovation, and Dr. Henry Chesbrough, Executive Director of the Center for Open Innovation at the Haas School of Business at UC Berkeley and author of Open Innovation.

The keynotes bookended Thursday's forum, "New Patterns and Paradigms in Global Innovation Networks," and were a prelude to Friday's academic workshop, "A Global Perspective on Regional Innovation Indicators." Hagel's talk focused on the need for a more explicit taxonomy of innovative collaboration and discussed the "huge need to define pragmatic migration paths"--routes that the average manager and company can take to reach the opportunities that normally are only accessible to cutting-edge companies.

The forum closed with a presentation by Dr. Henry Chesbrough, who provided an overview on the globalization of innovation in the Chinese semiconductor industry, which he sees as split into a "globally oriented, globally competitive" industry segment and a domestically-oriented segment with "backward technologies" and lacking access to capital. The question, he explained, is how China will shift its resources, now entrenched in the latter, to the former, competitive segment.

Chesbrough finished with a discussion of intellectual property rights (IPR) in China, looking at flows of knowledge and current IPR challenges; he mentioned some surprising developments--the rise of businesses to "promote the legal exchange of IP" and the growth of a domestic constituency for stronger IPR--and discussed future implications for IPR in China.

In between the keynotes, the forum featured sessions on innovation in internet services in China, the role of venture capital as a network builder, and discussions on two rapidly moving industries: cleantech and thin film transistor LCD displays.

Conference materials, including presentations and audio files, will be made available on the SPRIE website.

In December 2007, for the first time ever, South Koreans, anxious about the economy, elected a businessman as their president. Pro-growth conservative Lee Myung-bak won a resounding victory, with 49 percent of the vote, over left-center candidate Chung Dong-young, who won only 26 percent. Lee's margin would have been even greater had it not been for the late entry into the race by another conservative, Lee Hoi-chang, who finished third with 15 percent.

Korean voters had become tired of ten years of rule by the left-center, and they saw incumbent President Roh Moo-hyun as confrontational and ineffective. By contrast, Lee, a former Hyundai Engineering and Construction CEO, has a reputation for being a pragmatic, can-do leader. As mayor of Seoul (2002-2006), he beautified the city and reformed its mass transit system.

Lee is scheduled to be inaugurated on February 25 for a single five-year term, but he faces two early challenges. First, just before the election, the left-center camp passed a bill establishing a special prosecutor to investigate allegations that Lee had been involved in business fraud and other corruption. The special prosecutor is supposed to announce his findings before the inauguration. A regular prosecutor earlier found the charges to be unfounded, and most observers think that the special prosecutor will not turn up significant new information.

Second, President-elect Lee must counter centrifugal forces in the conservative party ahead of parliamentary elections on April 5. Lee Hoi-chang's defection has already split the conservative camp, and now President-elect Lee and former conservative party leader Park Geun-hye (daughter of the late President Park Chung Hee) are feuding over how much say each should have in choosing candidates for the parliamentary election.

If President-elect Lee is cleared by the special prosecutor and if he successfully manages relations with Park, Lee's party will likely win a very large majority in the parliamentary election, offering him the opportunity to be a strong and effective executive.

As president, Lee will face two long-term challenges. First, as Lee has promised Korean voters, he must strengthen the economy. While the Korean economy has been growing at a rate of about 5 percent in recent years, the average Korean has felt hard-pressed by large increases in housing and education costs. Lee plans to focus on deregulation and attracting foreign investment. He has, however, already been forced to scale back his promise of 7 percent annual growth to 6 percent at least for his first year in office.

Second, although North Korea was not a major issue in the election campaign, due to the apparent progress in Six-Party talks to end North Korea's nuclear weapons program, many experts are skeptical that North Korea will fully abandon its nuclear ambitions. Lee supports engagement of North Korea and continued humanitarian aid, but he has said he will not provide major economic aid to North Korea until it ends its nuclear weapons program. This marks a significant departure from the policy of his predecessors Roh Moo-hyun and Kim Dae-jung. A renewal of tensions with North Korea could threaten South Korean economic growth and Lee's popularity.

Lee strongly supports South Korea's alliance with the United States. He may seek talks with the United States to adjust or delay implementation of agreements reached in recent years to reduce the United States' role in South Korea's defense. Lee also supports early ratification of the U.S.-Korea Free Trade Agreement (FTA), the largest U.S. free trade agreement since NAFTA. (The U.S. Congress has not yet approved the U.S.-Korea FTA.)

Many experts believe that the near coincidence of Lee's election and the inauguration of a new U.S. administration in January 2009 offers a major opportunity to strengthen U.S.-South Korean relations. Shorenstein APARC and the New York-based Korea Society recently announced the formation of a study group of senior former U.S. officials and experts to issue a report and recommendations on how the next U.S. administration can work with President Lee. The study group will travel to Seoul in early February for meetings with President-elect Lee and his economic, foreign policy, and security advisors.

Perhaps the most remarkable aspect of the election of Lee was that Koreans did not think it remarkable. They simply took it for granted that the election would be free, fair, and peaceful. Yet it has only been twenty years since South Koreans literally forced a military-backed government to allow them to vote democratically for their chief executive. In those two decades, there have been five presidential elections, with Lee's victory making the second full-fledged transfer of power between political camps. Moreover, this election was conducted at very low cost, using public funds; companies were not "squeezed" for campaign contributions as in the past. South Korea has demonstrated itself to be, along with Australia and New Zealand, the most democratic country in East Asia and a model of political development for the entire international community.

New York and Stanford, CA., Jan. 10, 2008 -- With South Koreans having elected a new president last month and Americans going to the polls in November to choose a new leader, Stanford University's Walter H. Shorenstein Asia-Pacific Research Center and the New York-based Korea Society today announced the formation of a non-partisan group of distinguished American former senior officials and experts to study ways to strengthen the alliance between the two countries.

The New Beginnings' study group will gather at the end of the month at Stanford University to discuss and analyze the implications of the Korean election for alliance relations. The group will then proceed to Seoul in early February for meetings with South Korean President-elect Lee Myung-bak and his top aides, as well as other leading figures in Korean business, academic, media and policy circles. Based on these meetings, the group will prepare a report in March on their findings and recommendations to present to American policymakers, including those from the leading U.S. presidential campaigns.

Korea Society President Evans J.R. Revere and Stanford University Professor Gi-Wook Shin said group members believe that U.S.-South Korean relations are critically important to the United States' role in East Asia and that the inauguration of new administrations in both the U.S. and South Korea offers a unique opportunity to create "new beginnings" in the alliance relationship.

They also noted that the two presidential elections coincide with a critical phase in multinational talks to end North Korea's nuclear weapons programs and that close U.S.-South Korean cooperation is essential to successful diplomacy in dealing with North Korea.

Shin and Revere said that the Bush and Roh Moo-hyun administrations, after initial policy differences over North Korea especially, had recently significantly improved their cooperation, but that the two countries could do much more to strengthen bilateral relations.

Shin and Revere said they regarded the study project as a continuing collaborative effort by their two institutions. After issuing the report in March, they intend to continue to meet with U.S. and South Korean policymakers and other leaders. They plan to update the report and recommendations after the U.S. presidential election.

Study group members are:

• Michael H. Armacost, former U.S. Ambassador to Japan and former Under Secretary of State for Political Affairs; currently the Shorenstein Distinguished Fellow at Stanford University
• Stephen W. Bosworth, dean of the Fletcher School of Law and Diplomacy of Tufts University, and a former U.S. ambassador to South Korea
• Robert Carlin, a visiting scholar at Stanford's Center for International Security and Cooperation, and a former State Department Northeast Asia intelligence chief
• Victor Cha, director of Asian Studies and D.S. Song Professor at Georgetown University, and former director for Asian affairs at the National Security Council and U.S. deputy head of delegation for the Six Party Talks in the George W. Bush administration
• Thomas C. Hubbard, Kissinger McLarty Associates, a former U.S. ambassador to South Korea
• Don Oberdorfer, chairman of the U.S.-Korea Institute of the Johns Hopkins University School of Advanced International Studies, and former longtime Washington Post foreign correspondent
• Charles L. Pritchard, president of the Korea Economic Institute in Washington, D.C., and former U.S. ambassador and special envoy for negotiations with North Korea
• Evans J.R. Revere, president of the Korea Society, and former principal deputy assistant secretary of state for East Asian and Pacific Affairs
• Gi-Wook Shin, director of Shorenstein APARC; the Tong Yang, Korea Foundation, and Korea Stanford Alumni Chair of Korean Studies; and professor of sociology at Stanford University
• Daniel C. Sneider, associate director for research at Shorenstein APARC, Stanford University, and formerly a foreign affairs correspondent and columnist
• David Straub, Pantech Research Fellow at Stanford's Shorenstein APARC, and a former State Department Korean affairs director