Innovation
Authors
Francis Fukuyama
News Type
Commentary
Date
Paragraphs

Over the course of three short months, popular uprisings have toppled regimes in Tunisia and Egypt, sparked a civil war in Libya and created unrest in other parts of the Middle East. They also have raised a question in many people's minds: Are all authoritarian regimes now threatened by this new democratic wave? In particular, is China, a rising superpower, vulnerable to these forces?  

The Communist government in Beijing is clearly worried. It has limited news coverage of the recent uprisings and has clamped down on democratic activists and foreign reporters, acting pre-emptively against anonymous calls on the Internet for China to have its own "Jasmine Revolution." A recent front-page editorial in the Beijing Daily, an organ of the city's party committee, declared that most people in the Middle East were unhappy with the protests in their countries, which were a "self-delusional ruckus" orchestrated by a small minority. For his part, President Hu Jintao has urged the strengthening of what has been dubbed the "Great Firewall"-the sophisticated apparatus of censorship and surveillance that the regime uses to control access to the Internet.

No social scientist or intelligence analyst predicted the specific timing or spread of the Arab uprising-the fact that it would start in Tunisia, of all places, that it would be triggered by an event like the self-immolation of a vegetable seller, or that protests would force the mighty Egyptian army to abandon Hosni Mubarak. Over the past generation, Arab societies have appeared stolidly stable. Why they suddenly exploded in 2011 is something that can be understood only in retrospect, if at all.

But this doesn't mean that we can't think about social revolutions in a more structured way. Even unpredictable things take place in a certain context, and the present-day situations of China and the Middle East are radically different. Most of the evidence suggests that China is pretty safe from the democratic wave sweeping other parts of the world-at least for now.

Perhaps the most relevant thinker for understanding the Middle East today and China tomorrow is the late Samuel Huntington-not the Huntington of "The Clash of Civilizations," who argued that there were fundamental incompatibilities between Islam and democracy, but the Huntington whose classic book "Political Order in Changing Societies," first published in 1968, laid out his theory of the development "gap."

Observing the high levels of political instability plaguing countries in the developing world during the 1950s and '60s, Mr. Huntington noted that increasing levels of economic and social development often led to coups, revolutions and military takeovers. This could be explained, he argued, by a gap between the newly mobilized, educated and economically empowered people and their existing political system-that is, between their hopes for political participation and institutions that gave them little or no voice. Attacks against the existing political order, he noted, are seldom driven by the poorest of the poor in such a society; they tend to be led, instead, by rising middle classes who are frustrated by the lack of political and economic opportunity.

All of these observations would seem to apply to Tunisia and Egypt. Both countries have made substantial social progress in recent decades. The Human Development Indices compiled by the United Nations (a composite measure of health, education and income) increased by 28% for Egypt and 30% for Tunisia between 1990 and 2010. The number of people going to school has grown substantially; Tunisia especially has produced large numbers of college graduates. And indeed, the protests in Tunisia and Egypt were led in the first instance by educated, tech-savvy middle-class young people, who expressed to anyone who would listen their frustrations with societies in which they were not allowed to express their views, hold leaders accountable for corruption and incompetence, or get a job without political connections.

Mr. Huntington stressed the destabilizing power of new social groups seeking political participation. People used to be mobilized by newspapers and radio; today they are spurred to action by cell phones, Facebook and Twitter, which allow them to share their grievances about the existing system and to learn about the possibilities of the larger world. This change in the Middle East has been incredibly rapid, and it has trumped, for now, old verities about the supposed passivity of Arab culture and the resistance of Islam to modernization.

But do these remarkable developments tell us anything about the possibility for future instability in China?

It is certainly true that the dry tinder of social discontent is just as present in China as in the Middle East. The incident that triggered the Tunisian uprising was the self-immolation of Mohamed Bouazizi, who had his vegetable cart repeatedly confiscated by the authorities and who was slapped and insulted by the police when he went to complain. This issue dogs all regimes that have neither the rule of law nor public accountability: The authorities routinely fail to respect the dignity of ordinary citizens and run roughshod over their rights. There is no culture in which this sort of behavior is not strongly resented.

This is a huge problem throughout China. A recent report from Jiao Tong University found that there were 72 "major" incidents of social unrest in China in 2010, up 20% over the previous year. Most outside observers would argue that this understates the real number of cases by perhaps a couple of orders of magnitude. Such incidents are hard to count because they often occur in rural areas where reporting is strictly controlled by the Chinese authorities.

The most typical case of outraged dignity in contemporary China is a local government that works in collusion with a private developer to take away the land of peasants or poor workers to make way for a glittery new project, or a company that dumps pollutants into a town's water supply and gets away with it because the local party boss stands to profit personally. Though corruption in China does not reach the predatory levels of certain African or Middle Eastern countries, it is nonetheless pervasive. People see and resent the privileged lives of the nation's elite and their children. The movie "Avatar" was a big hit in China in part because so many ordinary Chinese identified with the indigenous people it portrayed whose land was being stolen by a giant, faceless corporation.

There is, moreover, a huge and growing problem of inequality in China. The gains from China's remarkable growth have gone disproportionately to the country's coastal regions, leaving many rural areas far behind. China's Gini index-a standard measure of income inequality across a society-has increased to almost Latin American levels over the past generation. By comparison, Egypt and Tunisia have a much more equal income distribution.

According to Mr. Huntington, however, revolutions are made not by the poor but by upwardly mobile middle-class people who find their aspirations stymied, and there are lots of them in China. Depending on how you define it, China's middle class may outnumber the whole population of the United States. Like the middle-class people of Tunisia and Egypt, those in China have no opportunities for political participation. But unlike their Middle Eastern counterparts, they have benefited from a dramatically improving economy and a government that has focused like a laser beam on creating employment for exactly this group.

To the extent that we can gauge Chinese public opinion through surveys like Asia Barometer, a very large majority of Chinese feel that their lives have gotten better economically in recent years. A majority of Chinese also believe that democracy is the best form of government, but in a curious twist, they think that China is already democratic and profess to be satisfied with this state of affairs. This translates into a relatively low degree of support for any short-term transition to genuine liberal democracy.

Indeed, there is some reason to believe that the middle class in China may fear multiparty democracy in the short run, because it would unleash huge demands for redistribution precisely from those who have been left behind. Prosperous Chinese see the recent populist polarization of politics in Thailand as a warning of what democracy may bring.

The fact is that authoritarianism in China is of a far higher quality than in the Middle East. Though not formally accountable to its people through elections, the Chinese government keeps careful track of popular discontents and often responds through appeasement rather than repression. Beijing is forthright, for example, in acknowledging the country's growing income disparities and for the past few years has sought to mitigate the problem by shifting new investments to the poor interior of the country. When flagrant cases of corruption or abuse appear, like melamine-tainted baby formula or the shoddy school construction revealed by the Sichuan earthquake, the government holds local officials brutally accountable-sometimes by executing them.

Another notable feature of Chinese government is self-enforced leadership turnover. Arab leaders like Tunisia's Zine al-Abidine Ben Ali, Egypt's Mr. Mubarak and Libya's Col. Moammar Gadhafi never knew when to quit, hanging on 23, 30 and 41 years, respectively. Since Mao, the Chinese leadership has rigidly adhered to terms of about a decade. Mr. Hu, the current president, is scheduled to step down in 2012, when he is likely to be replaced by Vice President Xi Jinping. Leadership turnover means that there is more policy innovation, in sharp contrast to countries like Tunisia and Egypt, which have been stuck for decades in the rut of crony capitalism.

The Chinese government is also more clever and ruthless in its approach to repression. Sensing a clear threat, the authorities never let Western social media spread in the first place. Facebook and Twitter are banned, and content on websites and on China-based social media is screened by an army of censors. It is possible, of course, for word of government misdeeds to get out in the time between its first posting by a micro-blogger and its removal by a censor, but this cat-and-mouse game makes it hard for a unified social space to emerge.

A final critical way in which China's situation differs from that of the Middle East lies in the nature of its military. The fate of authoritarian regimes facing popular protests ultimately depends on the cohesiveness and loyalty of its military, police and intelligence organizations. The Tunisian army failed to back Mr. Ben Ali early on; after some waffling, the Egyptian army decided it would not fire on protesters and pushed Mr. Mubarak out of power.

In China, the People's Liberation Army is a huge and increasingly autonomous organization with strong economic interests that give it a stake in the status quo. As in the Tiananmen uprising in 1989, it has plenty of loyal units around the country that it could bring into Beijing or Shanghai, and they would not hesitate to fire on demonstrators. The PLA also regards itself as the custodian of Chinese nationalism. It has developed an alternative narrative of 20th-century history that places itself at the center of events like the defeat of Japan in the Pacific war and the rise of a modern China. It is very unlikely that the PLA would switch sides and support a democratic uprising.

The bottom line is that China will not catch the Middle Eastern contagion anytime soon. But it could easily face problems down the road. China has not experienced a major recession or economic setback since it set out on its course of economic reform in 1978. If the country's current property bubble bursts and tens of millions of people are thrown out of work, the government's legitimacy, which rests on its management of the economy, would be seriously undermined.

Moreover, Mr. Huntington's scenario of rising but unfulfilled expectations among the middle class may still play out. Though there is a labor shortage among low-skill workers in China today, there is a glut of the college educated. Every year into the future, China will graduate more than seven million people from its universities, up from fewer than a million in 1998, and many of them are struggling to find work suitable to their self-perceived status. Several million unemployed college graduates are far more dangerous to a modernizing regime than hundreds of millions of poor peasants.

There is also what the Chinese themselves call the "bad emperor" problem. China's historical achievement over the centuries has been the creation of high-quality centralized bureaucratic government. When authoritarian rulers are competent and reasonably responsible, things can go very well. Indeed, such decision-making is often more efficient than in a democracy. But there is no guarantee that the system will always produce good rulers, and in the absence of the rule of law and electoral checks on executive power, there is no way to get rid of a bad emperor. The last bad emperor, commonly (if quietly) acknowledged as such, was Mao. We can't know what future tyrant, or corrupt kleptocrat, may be waiting in the wings in China's future.

The truth is that, much as we might theorize about the causes of social revolution, human societies are far too complex, and change too rapidly, for any simple theory to provide a reliable guide. Any number of observers dismissed the power of the "Arab street" to bring about political change, based on their deep knowledge of the Middle East, and they were right every year-up until 2011.

The hardest thing for any political observer to predict is the moral element. All social revolutions are driven by intense anger over injured dignity, an anger that is sometimes crystallized by a single incident or image that mobilizes previously disorganized individuals and binds them into a community. We can quote statistics on education or job growth, or dig into our knowledge of a society's history and culture, and yet completely miss the way that social consciousness is swiftly evolving through a myriad of text messages, shared videos or simple conversations.

The central moral imponderable with regard to China is the middle class, which up to now has seemed content to trade political freedom for rising incomes and stability. But at some point this trade-off is likely to fail; the regime will find itself unable to deliver the goods, or the insult to the dignity of the Chinese people will become too great to tolerate. We shouldn't pretend that we can predict when this tipping point will occur, but its eventual arrival, as Samuel Huntington might have suggested, is bound up with the very logic of modernization itself.

Hero Image
fukuyama headshot
All News button
1
Authors
News Type
News
Date
Paragraphs

Go out there and change the world.
- Tim Draper, Draper Fisher Jurvetson

"Whatever the world looks like now, it will change," said Tim Draper, founder and managing director of Draper Fisher Jurvetson (DFJ), during the keynote session at the March 1 Entrepreneurship in the Global Marketplace seminar, organized by the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE) with sponsorship from Alibaba.com, the first in a series of seminars by the Schwarzenegger Emerging Entrepreneur Initiative. Concluding his remarks, Draper urged the overflow audience: "Go out there and change the world."

Draper and the nine other participants shared different perspectives on entrepreneurship, but a key message underlying all of the presentations was that the world is a dynamic, rapidly changing place where entrepreneurs can succeed by anticipating and responding to global trends. In doing so, many suggested, it is also possible to change the world—for the better. The participants all concurred that China is one of the key places in the world—now and in the future—to do business, representing a challenging but a vast frontier of opportunity.

Global demographic trends are a major factor that venture capitalists consider when making investments. Addressing the worldwide aging phenomenon, which is particularly acute in Asia-Pacific countries such as Japan and China, Draper explained how DFJ has invested in a company that manufactures videogame-like devices designed to improve cognition, noting the growing market for such devices that help keep cognitive health apace with a longer life span. Hans Tung, a partner with the Shanghai-based venture capital firm Qiming Ventures, described how his firm is tracking the large segment of China's population living in small cities away from commercial hubs. These members of the populace, who prefer to shop online where they can find a wider selection of goods than in their local shopping malls, are quickly becoming a driving force in China's e-commerce market.

It is China's e-commerce and other Internet firms—fueled by the explosion of Internet users—that carry increasingly significant weight in China's domestic and the global economy. 
Duncan Clark, a visiting scholar at SPRIE, presented related findings from SPRIE's China 2.0: The Rise of a Digital Superpower research initiative, which is led by Marguerite Gong Hancock, associate director of SPRIE. China 2.0, explores the conditions generating such rapid growth of the Internet, and investigates questions surrounding the possible global implications of it. Clark noted that as China's three largest Internet firms—search engine Baidu, instant-messaging service Tencent, and e-commerce portal Taobao—expand, domestic competition will not only intensify, but move further into the global economic arena. The "big three" firms are already ranked among the top 20 Internet sites in the world based on site traffic. According to Clark, the key question in the future for U.S. companies will be how to partner with Chinese companies in order to insure their own growth.

Riding the global wave of innovation and entrepreneurship, Jonathan Ross Shriftman, co-founder of Solé Bicycle Company, and Ryder Fyrwald, vice president of global operations at the Kairos Society, have discovered opportunities to effect positive change despite a global climate of intense economic competition. Shriftman, a recent University of Southern California (USC) graduate, described the lessons that he has learned through his company's quest to manufacture low-cost, quality fixed-gear bicycles that provide a stylish, alternate form of transportation. Despite funding and language challenges, Shriftman and his partner succeeded in connecting with a manufacturer in China through Alibaba.com, and have sold nearly 800 bicycles to date. Fyrwald, who is still an undergraduate at USC's Marshall School of Business, explained the philosophy behind the Kairos Society, an international network of student entrepreneurs who seek to solve world issues through entrepreneurship and innovation. He cited the example of WaterWalla, a company that has developed, among other technologies, a low-cost water purification device for use by urban slum dwellers.

From the perspective of seasoned venture capitalists Draper and Tung and emerging entrepreneurs Shriftman and Fyrwald, the message at Entrepreneurship in the Global Marketplace was clear: the way to succeed in a rapidly changing world is to react promptly—and creatively—to global trends. And, as Shriftman suggested, it is possible to "do well by doing good," and change the world in a positive way.

Hero Image
2011Mar01GlobalEntrepreneurshipShriftmanFyrwaldNEWSFEED
Ryder Fyrwald (left), vice president of global operations at the Kairos Society, and Jonathan Ross Shriftman, co-founder of Sole Bicycle Company.
Courtesy Alibaba.com
All News button
1
-

About the seminar

As China's Internet population surges towards the half billion mark—double the United States—how are U.S. Internet companies faring in China? Google, Facebook, eBay, Yahoo and others have all faced challenges in China. These include external (competition, regulation/censorship) and internal (management, strategy). Can these firms find a viable position in China? Will emerging players such as Groupon fare any better? Although U.S. Internet companies have struggled, U.S. institutional investors have reaped rich rewards from stakes in leading Chinese firms such as Tencent, Baidu and Alibaba/Taobao. Is this approach a better bet than hoping that U.S. firms gain a foothold in China? If leading Chinese Internet firms continue to dominate their home market, do they stand a chance to succeed internationally including through expansion or M&A in the US?

About the Speaker

Duncan Clark is Chairman of BDA China, a company he founded in Beijing in 1994. Previously, Duncan was an investment banker with Morgan Stanley in London and Hong Kong, where he focused on telecommunications, media and technology (TMT) transactions.

He has guided BDA to become the leading consultancy servicing participants and investors in the TMT sectors in China and India. With a team of over 50 in Beijing and an office of 15 in New Delhi (opened in 2006), BDA has in recent years added to TMT an advisory capacity serving leading private equity firms investing in other fast-growing sectors in these countries such as education, retail and alternative energy.

Clark holds a B.Sc degree in economics with honors from the London School of Economics and Political Science, and currently chairs the school's alumni group in China. A UK citizen, Clark was raised in the UK, the United States and France.


Media X is the partner of this seminar.


Philippines Conference Room

BDA China Ltd
#2908 North Tower, Kerry Centre
1 Guanghua Road
Beijing 100020, China

0
Senior Advisor for China 2.0 Project
new_Duncan_Clark_headshot.jpeg

Duncan Clark is Chairman of BDA China, a consultancy he founded in Beijing in 1994 after four years as an investment banker with Morgan Stanley in London and Hong Kong. Over the past 19 years, Duncan has guided BDA to become the leading investment advisory firm in China specialized in China's technology, internet and e-commerce sectors.

An angel investor in mobile game app developer Happy Latte and digital content metrics company App Annie Duncan has also served on the Advisory Board of Chinese internet company Netease.com (Nasdaq: NTES) and serves on the Advisory Board of the Digital Communication Fund of Geneva-based bank Pictet & Cie.

A UK citizen, Duncan was raised in England, the United States and France. A graduate of the London School of Economics & Political Science, Duncan is a Senior Advisor to the ‘China 2.0' initiative at the Stanford Graduate School of Business’s Stanford Program on Regions of Innovation and Entrepreneurship, where he was invited as a Visiting Scholar in 2010 and 2011.

Duncan is partner in a Beijing-based film production company CIB Productions, and Executive Producer of two China-themed television documentaries including ‘My Beijing Birthday’.

Duncan was appointed Officer of the Order of the British Empire (OBE) in the 2013 New Year Honours for services to British commercial interests in China.

Duncan Clark Visiting Scholar Speaker Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE)
Seminars
-

Daniel and Nancy Okimoto Conference Room

U.S.-Asia Technology Management Center
School of Engineering
Stanford, CA

(650) 724-0096 (650) 725-9974
0
Consulting Professor
richard-lg0001-200x300.jpg PhD

At Stanford University, Dr. Dasher has directed the US-Asia Technology Management Center since 1994, and he has been Executive Director of the Center for Integrated Systems since 1998. He holds Consulting Professor appointments at Stanford in the Departments of Electrical Engineering (technology management), Asian Languages and Cultures (Japanese business), and at the Asia-Pacific Research Center for his work with the Stanford Program on Regions of Innovation and Entrepreneurship. He is also faculty adviser to student-run organizations such as the Asia-Pacific Student Entrepreneurship Society and the Forum for American/Chinese Exchange at Stanford.

From 2004, Dr. Dasher became the first non-Japanese person ever asked to join the governance of a Japanese national university, serving a term as a Board Director (理事) of Tohoku University . He continued as a member of the Management Council (経営協議会) until March 2010, and he now serves as Senior Advisor to the President (総長顧問) of Tohoku University. Dr. Dasher has been a member of the high-profile Program Committee of the World Premier International Research Center Initiative (WPI) of the Japanese Ministry of Education (MEXT) since 2007. He has served on the Multidisciplinary Assessment Committee of the C$500 million Canada Foundation for Innovation Leading Edge Fund in 2007 and again in 2010, and as a member of the Phase I and Phase II Review Panels of the C$200 million Canada Excellence Research Chairs Program in 2008 and again in 2010. He was a distinguished reviewer of the Hong Kong S.A.R. study on innovation in 2008–09, and since 2007 he has been a member of the Foresight Panel of the German Ministry of Education and Research. From 2001–03, Dr. Dasher was on the International Planning Committee advising the Japanese Minister of State for Science and Technology Policy in regard to the formation of the Okinawa Institute of Science and Technology.

As allowed by Stanford policy, Dr. Dasher maintains an active management consulting practice, through which he is an advisor to start-up companies and large firms in the U.S., Japan, and China. He has been a board director of Tokyo-based ZyCube Inc. since 2006, and he is founder and chairman of Pearl Executive Shuttle in Valdosta, Georgia, U.S.A. In the non-profit sector, he is a Board Director of the Japan Society of Northern California and the Keizai Society U.S. – Japan Business Forum, and he is an advisor to organizations such as the Chinese Information and Networking Association, the Silicon Valley – China Wireless Technology Association, and the International Foundation for Entrepreneurship in Science and Technology (iFEST). In 2010 he served as a consultant to The Indus Entrepreneurs (TiE) in regard to their establishment of a worldwide remote mentoring program for entrepreneurs. Dr. Dasher frequently gives speeches and seminars throughout Japan and Asia, as well as in the U.S. Recent appearances include the Nikkei Shimbun Business Innovation Forum, the Foreign Correspondents Club of Japan, speaking tours of Japan co-sponsored by METI and the U.S. Embassy in Tokyo, and guest lectures at Chubu University, Kochi University of Technology, Ritsumeikan Asia Pacific University, and the University of Tokyo.

From 1990–93, Dr. Dasher was a board director of two privately-held Japanese companies in Tokyo, at which he developed new business in international licensing of media rights packages and other intellectual properties. From 1986–90, he was Director of the U.S. State Department’s Foreign Service Institute advanced field schools in Japan and Korea, which provide full-time language and area training to U.S. and select Commonwealth country diplomats assigned to those countries. He received M.A. and Ph.D. degrees in Linguistics from Stanford University and, along with Prof. Elizabeth Closs Traugott, he is co-author of the often-cited book Regularity in Semantic Change (Cambridge University Press, 2002). He received the Bachelor of Music degree in clarinet and orchestra conducting from the San Francisco Conservatory of Music, where he served on the faculty from 1978-85.

Richard Dasher Speaker
Seminars
-

As the United States struggles to emerge from recession, India and China's continued robust growth is the subject of much interest and concern. Council on Foreign Relations (CFR) Senior Fellow Adam Segal will talk about his new book Advantage: How American Innovation Can Overcome the Asian Challenge, analyzing Asia's technological rise, questioning assumptions about the United States inevitable decline, and explaining how America can preserve and improve its position in the global economy by optimizing its strength of moving ideas from the lab to the marketplace.

In his book, Segal argues that the emergence of India and China does not mean the end of American economic and technological power. Instead, the United States should now leverage its many advantages.

Through his research, Segal concludes the United States has an advantage over Asia in the realm of the software of innovation. “In America, your ideas can make you rich. Intellectual property is protected, and individual scientists are able to exploit their breakthroughs for commercial gains,” he writes. “It is time to realize that software in its most expansive sense offers the most opportunities for the United States to ensure its competitive place in the world.” The challenge is “to recover a culture of innovation that was driven underground, overshadowed by sexy credit default swaps and easy spending.”

Speaker

Adam Segal is the Ira A. Lipman senior fellow for counterterrorism and national security studies at the Council on Foreign Relations (CFR). An expert on security issues, technology development, and Chinese domestic and foreign policy, Dr. Segal currently leads study groups on cybersecurity and cyber conflict as well as Asian innovation and technological entrepreneurship. His new book Advantage: How American Innovation Can Overcome the Asian Challenge (W.W. Norton, 2011) looks at the technological rise of Asia. Dr. Segal is a research associate of the National Asia Research Program and was the project director for a CFR-sponsored independent task force on Chinese military modernization.

Before coming to CFR, Dr. Segal was an arms control analyst for the China Project at the Union of Concerned Scientists. There, he wrote about missile defense, nuclear weapons, and Asian security issues. Dr. Segal has been a visiting scholar at the Massachusetts Institute of Technology’s Center for International Studies, Shanghai Academy of Social Sciences, and Tsinghua University in Beijing. He has taught at Vassar College and Columbia University. Dr. Segal is the author of Digital Dragon: High-Technology Enterprises in China (Cornell University Press, 2003), as well as several articles and book chapters on Chinese technology policy. His work has recently appeared in the International Herald Tribune, Financial Times, Washington Quarterly, Los Angeles Times, and Foreign Affairs. Dr. Segal currently writes for the CFR blog, “Asia Unbound".

Dr. Segal has a BA and PhD in government from Cornell University, and an MA in international relations from the Fletcher School of Law and Diplomacy, Tufts University. He reads and speaks Chinese.

Philippines Conference Room

Adam Segal Ira A. Lipman Senior Fellow for Counterterrorism and National Security Studies Speaker Council on Foreign Relations
Seminars
News Type
News
Date
Paragraphs

The Program on Arab Reform and Democracy at the Center on Democracy, Development, and the Rule of Law (CDDRL) at Stanford University, the Safadi Foundation USA (SFUSA), and the Center on International Private Enterprise (CIPE), announce an open call for papers on behalf of the Safadi-Stanford Initiative for Policy Innovation (SSIPI).

SSIPI seeks policy-focused papers that provide clear and concise recommendations to the Lebanese authorities, the international donor community, and other regional groups. The objective of SSIPI is to promote new analysis on Lebanon. Qualified applicants have the academic freedom to choose a paper topic of their choice within the realm of economic development and entrepreneurship. Papers should include recommendations that address the linkages between economic development and institution building, security and civil peace, and other governance related issues. In addition, papers should reflect a deep understanding of the role of institutions and whether accelerated, more balanced economic growth, social and fiscal reforms, a particular process of economic development or new developing areas of entrepreneurialism, if any, could help in reducing the negative influences posed by confessionalism in the economy. 

Abstracts should be submitted according to the guidelines below. Upon review of the abstracts by an independent reviewing committee, a select group of scholars will be chosen to submit their full paper and compete for the title of Safadi scholar of the Year. SSIPI will offer the Safadi Scholar of the Year the opportunity to develop a piece of research at CDDRL, led by Larry Diamond, as well as meet with strategic policy makers in Washington, DC. In addition, the scholar will have the chance to present their research at a policy conference in Washington, DC.

Requirements:

Deadline for one-page abstracts is March 31, 2011. Abstracts should be emailed to SSIPI.2011.Submissions@gmail.com.  Please note "Abstract Submission" in subject of email. The selection committee warrants applicants from academia, the public and private sectors, and NGOs, either from Lebanon or abroad, who are working on economic development and entrepreneurship in Lebanon. Qualified candidates should hold a graduate degree from an accredited university.  For more info please visit: Safadi-Stanford Initiative for Policy Innovation

All News button
1
News Type
News
Date
Paragraphs

A group of leading American and Japanese venture capitalists, entrepreneurs, academic experts, government officials, and leaders in business and related fields joined the "U.S. - Japan Dialogue to Promote Innovation, Entrepreneurship and Job Creation" symposium, organized by the Stanford Project on Japanese Entrepreneurship (STAJE), the largest U.S.-Japan event held at Stanford in many years, on February 23, 2011.

Representatives from both governments opened the event by underscoring the economic and strategic reasons for closer U.S.-Japan cooperation in promoting innovation and entrepreneurship. U.S. Ambassador to Japan John V. Roos emphasized how an economically vibrant Japan is critical to the security of the United States, and how it creates opportunities for U.S. trade, investment, and job creation. Moreover, innovation and collaboration are vital to addressing critical global issues, such as climate change. Under Secretary of State Robert D. Hormats noted how innovation and entrepreneurship, often involving young firms bringing new technology to market, are fundamental to ensuring sustainable growth and inclusive prosperity, both at home and across the globe. For Japan, Teruhiko Mashiko, a Ranking Member of the Diet's Committee on Economy and Industry and a former Senior Vice Minister of Economy, Trade, and Industry, highlighted the potential for greater employment, development of green technology, and the circulation of human and other resources through innovation and entrepreneurship.

Several speakers pointed to ways government and the private sector can foster the creation of entrepreneurial ventures with a global outlook. Professor William F. Miller, co-director of the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE), focused attention on the need to support the full entrepreneurial habitat—including an active angel investor and venture community, entrepreneurial education, passionate entrepreneurs, and business services (legal, consulting, financial) that understand the needs of start-up companies. Additionally, several speakers suggested that mid-career hiring by large Japanese firms and greater willingness on their part to grow by acquisition would increase labor mobility and expand opportunities for entrepreneurial ventures. They expressed concern that, at present, a public offering of shares is practically the only option for startup firms to exit the venture stage in Japan. Others highlighted how greater English-language proficiency and changes in immigration law could expand the linkages between Japan and the global community of entrepreneurs and venture capitalists.

Larry W. Sonsini, Chairman of Wilson Sonsini Goodrich & Rosati, reflected on the waves of innovation that Silicon Valley has generated, both in terms of new technologies coming to market as well as the maturing of technology already out. Defining Silicon Valley as a culture rather than a place, he outlined the ingredients in the recipe for its success: an entrepreneurial culture, with such features as mobility of talent, diversity, and acceptance of failure as a type of learning; ready access to capital; sources of technology and technologists, particularly from universities and large forward-looking corporations; government support; developed laws and accounting systems; availability of exit options for ventures; and an infrastructure of lawyers, accountants, bankers, and consultants. He also offered his thoughts on key trends that will influence the position and direction of emerging technology companies, including: globalization, regulatory changes, development of capital markets, education, and the rule of law.

In the closing remarks of the day-long symposium, Robert Eberhart, a SPRIE researcher and the leader of the SPRIE-STAJE project, summarized the three potential roles for governments to play in promoting innovation and entrepreneurship: to establish rules to ensure fair dealing and access to the market; to rewrite (i.e., reform) the rules of a market thereby ensuring firms will address it in new ways; and to stimulate demand for advanced technology by purchasing it for its own reasons, thereby creating new opportunities for entrepreneurial technology ventures.

Hero Image
DSC 3946
William F. Miller, SPRIE faculty co-director
All News button
1
Subscribe to Innovation