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Despite successful economic reforms over the past two decades, China's health care system for the nearly one billion people that live and work in rural areas is broken. Having admitted that there is a crisis, the government is now committed to looking for solutions. In this proposal, we have two overall goals to help provide insights on part of the solution. Our first objective is to collect an updated wave of highly informative data in Year 1 to build on an existing set of data already collected by our study team (from 2004) to analyze the effects of key health policies and institutions that have emerged over the past several years, including the government's rural health insurance system, the privatization of rural clinics, and new investments into township hospitals. Our second, more forward-looking goal for Years 2 and 3 is to set up and introduce an initial experiment on incentives to study one of the most serious flaws in China's health system: the practice in which doctors both prescribe and derive significant profit from drugs. The main hypothesis to be tested is whether realigning doctors' financial incentives embedded in the current organization of China's rural health system influence: a) the way doctors treat and manage their patients; b) the time and effort doctors put into patient care; and c) patient satisfaction.

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Scott Rozelle
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How has the threat of catastrophic terrorism reshaped the strategic environment? This chapter argues that in fact the threat is not dramatically new; what is new is the salience of this threat to the public in some states, particularly the United States. However, the secretive nature of counter-terrorism actions necessarily means that the public is ill-informed about the potential efficacy of government's activities and so cannot assess if their rhetoric matches their actions. Thus public statements can easily be tailored to what decision-makers think the public wants to hear, rather than to what decision-makers genuinely believe. We consequently rely on an examination of how the United States budgets and exercises for the war on terrorism to illuminate what American decision-makers believe to be the links between domestic counter-terror operations and strategy. Along the way we look at the tools states have to prepare for counter-terrorism, and the challenges of doing so.We find strong evidence that the United States remains strategically focused on relationships between states, and argue this is probably an appropriate focus.

The second edition of this successful textbook has been completely revised and updated in light of 9/11. In the aftermath of the attacks, there has been an increased need to address issues of war and peace, particularly terrorism, irregular warfare, the spread of weapons of mass destruction and the revolution in military affairs.

The new edition contains a mature set of reflections on the role of military power in the contemporary world. It analyzes recent conflicts from Afghanistan to the Iraq War and looks at the ongoing debates about the lessons that can be learned from these wars. Particular attention is given to the debates about whether there has been a revolution in military affairs given the phenomenal pace of innovation in electronics and computer systems.

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Oxford University Press in "Strategy in the Contemporary World", 2nd ed., edited by John Baylis, James J. Wirtz, Colin S. Gray, and Eliot Cohen
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On November 13-14, 2006, SPRIE and the Industrial Technology Research Institute (ITRI) together with the School of Technology Management, National Tsing Hua University, co-sponsored "High Tech Regions 2.0: Sustainability and Reinvention," a workshop at Stanford University.

Scholars met during the two-day event to present research papers and discuss their work at the nine workshop sessions.

The central topic, explored in extensive discussions, was the sustainability of high tech regions, both here in the United States and around the world. Several sessions were devoted to case studies of regional high tech centers: Silicon Valley, Hsinchu (Taiwan), Daedeok (South Korea) and a number of cities in mainland China.

Other sessions investigated the role of government policy in the creation, survival and evolution of high tech regions, as well as the impact of innovation strategies on regional networks.

Select materials from the workshop will be made public in the future and will be available on the SPRIE web site.

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Catharine C. Kristian
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A proposal to assess the societal and security implications of the female deficit in China, a study of the impact of higher education's rapid expansion in large developing economies, and incentives for provision of health care services for one billion people in rural China were among the new projects funded by Stanford's Presidential Fund for Innovation in International Studies (PFIIS) in mid-February. Planning grants for an international health and society initiative in the Indian subcontinent and psychosocial treatment for children orphaned by the tsunami in Indonesia were also awarded.

"These projects show great potential to advance human knowledge, help devise sustainable solutions, and build a better, more secure future for millions around the world," said Stanford President John Hennessy. "In launching The Stanford Challenge, we committed to marshal university resources to address some of the 21st century's great challenges in human health, international peace and security, and the environment."

The $3 million, intellectual venture capital fund was established by the Office of the President and the Stanford International Initiative in 2005 to encourage new cross-campus, interdisciplinary research and teaching among all seven schools at Stanford on three overarching global challenges: pursuing peace and security, improving governance, and advancing human well-being. The first $1 million was awarded in February 2006 to eight interdisciplinary faculty teams examining such issues as the HIV/AIDS treatment revolution in sub-Saharan Africa, why Latin America has been left behind in recent gains by developing countries, and food security and the environment.

"It's impressive to see the committed, collaborative, and innovative ways Stanford faculty are joining together in new interdisciplinary research and teaching to generate new understanding of the linkages among complex problems and train a new generation of leaders to address them effectively," said Freeman Spogli Institute Director Coit D. Blacker, chair of the International Initiative Executive Committee.

New projects qualifying for funding and their principal investigators are:

  • Female Deficit and Social Stability in China: Implications for International Security. Melissa Brown, anthropological sciences; Marcus Feldman, biological sciences, and Matthew Sommer, history. As the number of surplus, marriage-age men in China approaches 47 million in 2050, this project will study factors that predict men's inability to marry before 30, the availability of social welfare to men and their families, their contribution to the floating population of rural-to- urban migrants, the labor-related migration of unmarried women, and the impact of this migration for domestic stability and international security.
  • Potential Economic and Social Impacts of Rapid Higher Education Expansion in the World's Largest Developing Economies. Martin Carnoy, education; Amos Nur, geophysics; and Krishna Saraswat, electrical engineering. The development of higher education systems in Brazil, Russia, India, and China (BRIC) will have a major impact on their ability to transition to large, developed, knowledge-based economies. Is the way nation states expand and reform higher education in response to global pressures an important indicator of societal capacity to achieve sustained economic growth? This project will examine differing approaches of BRIC governments to higher-education growth and reform, and ask whether these reflect differing levels of state capacity to expand the knowledge base for economic and social development and whether differing approaches result in significant changes in formation of analytical skills in university graduates, particularly scientists and engineers.
  • Health Care for One Billion: Experimenting with Incentives for the Supply of Health Care in Rural China. Scott Atlas, radiology; Scott Rozelle, the Walter H. Shorenstein Asia-Pacific Research Center, FSI. This project examines the effects of existing health policies and institutions in rural areas of China - including rural health insurance, privatization of rural clinics, and investment in township hospitals - and introduces a new experiment to study and realign incentives to address a serious flaw in China's health care system, the practice in which doctors both prescribe and derive significant profits from drugs.

Two planning grants were also awarded, as follows:

  • Stanford International Health and Society Initiative: Proposal to Plan for an Initial Program in the Indian Subcontinent. Vinod K. Bhutani, pediatrics; Nihar Nayak, obstetrics and gynecology. This project seeks to improve unacceptably high maternal and childhood morbidity and mortality rates in the Indian subcontinent by devising innovative strategies to bridge existing social and access barriers in the micro- and macro- health environment. Includes leadership training and cooperative work on practice and policy strategies with experts from Stanford and the subcontinent.
  • Psychosocial Treatment of Children Orphaned by the Asian Tsunami in Indonesia. Hugh Solvason, psychiatry; Donald Barr, sociology. This project's goal is to develop and implement changes to reduce the sense of dislocation, anxiety, and behavioral problems among tsunami orphans at the As-Syafi`iyah Orphanage in Jakarta. By arranging the children into more cohesive groups that can operate like "families" rather than their current state of random associations typically found in orphanages, the project will create a new and ordered social system. In addition, Solvason and Barr plan to develop a system of counseling interventions for the most severely symptomatic children (supervised by Stanford Psychiatry faculty). Translated measures of depression, anxiety, and PTSD will be used to assess the success of the intervention.

The projects will produce new field research, conferences, research papers, books, symposia, and courses for Stanford students.

A third round of project awards will be made in February 2008. A formal request for proposals will be issued in the fall of 2007, with proposals due by December 14, 2007. Priority is given to teams of faculty who do not typically work together, represent multiple disciplines, and address issues that fall broadly within the three primary research areas of the International Initiative. Projects are to be based on collaborative research and teaching involving faculty from two or more disciplines, and where possible, from two or more of Stanford's seven schools.

For additional information, contact Catharine Kristian, ckristian@stanford.edu.

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In 2003, consumption of IT goods worldwide was $1.5 trillion. Asia represented twenty percent of this total. Even more telling, Asia produced about forty percent of these goods. The continued rise of Asian IT innovation will pose a challenge to the eminence of traditional IT centers, notably Silicon Valley.

Making IT examines the causes as well as the major consequences of the dramatic rise of Asia in this industry. The book systematically analyzes each country's policies and results, on both a national level and, more importantly, in the innovation regions that have developed in each country: Japan's excellence in technology and manufacturing skills; Bangalore, India's late start and sudden explosion; Taiwan's Hsinchu Science-based Park's entrepreneurship and steady growth; Korea's Teheren Valley's impressive development of large companies; Singapore's initial reliance on multinational firms and its more recent switch to a home-developed strategy; and China's Zhongguancun Science Park's encouragement of investment from foreign firms while also promoting a domestic IT industry.

The book outlines the difficulties in the IT industry, including Japan's tendency to keep out most foreign firms and China's poor protection of intellectual property. Developed by the team that brought readers The Silicon Valley Edge, Making IT analyzes why this region has an advantage in this industry, the similarities and differences in the countries' strategies, why companies have clustered in specific localities, and most important, what will be changing in the coming years.

Making IT should leave no doubt that the United States and other countries competing in the global economy will face enormous challenges--and opportunities--responding to the rise of an innovative Asia.

Contributors

  • Jun-Woo Bae, Graduate School of Management, Korea Advanced Institute of Science and Technology (KAIST)
  • Zong-Tae Bae, Graduate School of Management, Korea Advanced Institute of Science and Technology (KAIST)
  • Rafiq Dossani, Shorenstein Asia-Pacific Research Center, Stanford University
  • Kyonghee Han, Department of Human and Community Development, University of California, Davis
  • Ken-ichi Imai, former Senior Fellow, Freeman Spogli Institute for International Studies, Stanford University
  • Martin Kenney, Department of Human and Community Development, University of California, Davis
  • Jong-Gie Kim, Graduate School of Business and Economics in Information, Myongji University
  • Kark Bum Lee, Information and Communications University, School of Management
  • Noboru Maeda, Graduate School of Creative Cities, Osaka City University
  • Sam Ock Park, College of Social Sciences, Seoul National University
  • Jon Sandelin, Office of Technology Licensing (OTL), Stanford University
  • Chintay Shih, College of Technology Management, National Tsing-Hua University
  • Sang-Mok Suh, Myongji University
  • Shoko Tanaka, ST Research
  • Toru Tanigawa, Kyushu University
  • Kung Wang, Graduate Institution of Industrial Economics, National Central University
  • Yi-Ling Wei, Industrial Economics and Knowledge Center, Industrial Technology Research Institute
  • Poh Kam Wong, Entrepreneurship Centre, National University of Singapore
  • Yasuhisa Yamaguchi, Japan Development Bank
  • Mulan Zhao, Administrative Committee of Zhongguancun Science Park
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This project report is based on extensive interviews with top leaders in China's high tech industries, such as semiconductor design, e-commerce, mobile value-added services and telecommunications. While previous reports on China's talent challenges have focused on root causes or have been prescriptive in nature, Getting Results in Chinaexplores what leaders of high tech companies are actually doing on the ground to address these challenges. The findings will provide a window of insight on:

  • How pioneering executive leaders in China have adapted multinational strategies to acheive results in their organizations;
  • What the leading companies in China are doing to come out ahead in the competition for leadership talent;
  • Which critical leadership skills are most needed and also hardest to find in the current Chinese high tech playing field.

Getting Results in China will be of interest to Chinese executives, leaders of multinational companies operating in China and investors in Chinese enterprises across all industry sectors who want to understand the talent approaches that are getting results in a challenging environment.

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In 2003, consumption of IT goods worldwide was $1.5 trillion. Asia represented twenty percent of this total. Even more telling, Asia produced about forty percent of these goods. The continued rise of Asian IT innovation will pose a challenge to the eminence of traditional IT centers, notably Silicon Valley.

Making IT examines the causes as well as the major consequences of the dramatic rise of Asia in this industry. The book systematically analyzes each country's policies and results, on both a national level and, more importantly, in the innovation regions that have developed in each country: Japan's excellence in technology and manufacturing skills; Bangalore, India's late start and sudden explosion; Taiwan's Hsinchu Science-based Park's entrepreneurship and steady growth; Korea's Teheren Valley's impressive development of large companies; Singapore's initial reliance on multinational firms and its more recent switch to a home-developed strategy; and China's Zhongguancun Science Park's encouragement of investment from foreign firms while also promoting a domestic IT industry.

The book outlines the difficulties in the IT industry, including Japan's tendency to keep out most foreign firms and China's poor protection of intellectual property. Developed by the team that brought readers The Silicon Valley Edge, Making IT analyzes why this region has an advantage in this industry, the similarities and differences in the countries' strategies, why companies have clustered in specific localities, and most important, what will be changing in the coming years.

Making IT should leave no doubt that the United States and other countries competing in the global economy will face enormous challenges--and opportunities--responding to the rise of an innovative Asia.

"Making IT is an excellent work of collective scholarship. The book provides a wealth of information on one of the most striking episodes in economic development of the past few decades--the rise to global prominence in the IT sector of a part of the world that had long been regarded as a technological backwater." --Nathan Rosenberg, Stanford University

"The great strength of Making IT lies in its detailed case studies of Taiwan, India, Singapore, Korea, China, and Japan. The comparative focus on high-tech clusters and the explicit comparisons to Silicon Valley as the leader and model make an excellent contribution to our understanding of the high-tech cluster phenomenon and the ongoing competitive rise of the Asian economies considered in the book." --Hugh Patrick, Columbia University

Contributors

  • Jun-Woo Bae, Graduate School of Management, Korea Advanced Institute of Science and Technology (KAIST)
  • Zong-Tae Bae, Graduate School of Management, Korea Advanced Institute of Science and Technology (KAIST)
  • Rafiq Dossani, Shorenstein Asia-Pacific Research Center, Stanford University
  • Kyonghee Han, Department of Human and Community Development, University of California, Davis
  • Ken-ichi Imai, former Senior Fellow, Freeman Spogli Institute for International Studies, Stanford University
  • Martin Kenney, Department of Human and Community Development, University of California, Davis
  • Jong-Gie Kim, Graduate School of Business and Economics in Information, Myongji University
  • Kark Bum Lee, Information and Communications University, School of Management
  • Noboru Maeda, Graduate School of Creative Cities, Osaka City University
  • Sam Ock Park, College of Social Sciences, Seoul National University
  • Jon Sandelin, Office of Technology Licensing (OTL), Stanford University
  • Chintay Shih, College of Technology Management, National Tsing-Hua University
  • Sang-Mok Suh, Myongji University
  • Shoko Tanaka, ST Research
  • Toru Tanigawa, Kyushu University
  • Kung Wang, Graduate Institution of Industrial Economics, National Central University
  • Yi-Ling Wei, Industrial Economics and Knowledge Center, Industrial Technology Research Institute
  • Poh Kam Wong, Entrepreneurship Centre, National University of Singapore
  • Yasuhisa Yamaguchi, Japan Development Bank
  • Mulan Zhao, Administrative Committee of Zhongguancun Science Park
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Henry S. Rowen
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On Tuesday, November 14, the Stanford Project on Regions of Innovation and Entrepreneurship (SPRIE) will be hosting a first look at Making IT: The Rise of Asia in High Tech.

Making IT is edited by Henry S. Rowen, Marguerite Gong Hancock and William F. Miller, and features findings by scholars from from the United States, Japan, Korea, Singapore, Taiwan, China and India.

As Stanford University Press publishes Making IT this November, we invite you to attend this first look and discussion among scholars, policymakers and industry leaders.

Schwab Center--Mid Vidalakis Dining Room

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FSI Senior Fellow Emeritus and Director-Emeritus, Shorenstein APARC
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Henry S. Rowen was a senior fellow at the Hoover Institution, a professor of public policy and management emeritus at Stanford University's Graduate School of Business, and a senior fellow emeritus of the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). Rowen was an expert on international security, economic development, and high tech industries in the United States and Asia. His most current research focused on the rise of Asia in high technologies.

In 2004 and 2005, Rowen served on the Presidential Commission on the Intelligence of the United States Regarding Weapons of Mass Destruction. From 2001 to 2004, he served on the Secretary of Defense Policy Advisory Board. Rowen was assistant secretary of defense for international security affairs in the U.S. Department of Defense from 1989 to 1991. He was also chairman of the National Intelligence Council from 1981 to 1983. Rowen served as president of the RAND Corporation from 1967 to 1972, and was assistant director of the U.S. Bureau of the Budget from 1965 to 1966.

Rowen most recently co-edited Greater China's Quest for Innovation (Shorenstein APARC, 2008). He also co-edited Making IT: The Rise of Asia in High Tech (Stanford University Press, 2006) and The Silicon Valley Edge: A Habitat for Innovation and Entrepreneurship (2000). Rowen's other books include Prospects for Peace in South Asia (edited with Rafiq Dossani) and Behind East Asian Growth: The Political and Social Foundations of Prosperity (1998). Among his articles are "The Short March: China's Road to Democracy," in National Interest (1996); "Inchon in the Desert: My Rejected Plan," in National Interest (1995); and "The Tide underneath the 'Third Wave,'" in Journal of Democracy (1995).

Born in Boston in 1925, Rowen earned a bachelors degree in industrial management from the Massachusetts Institute of Technology in 1949 and a masters in economics from Oxford University in 1955.

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The International Initiative announces its second program to promote interdisciplinary scholarship among faculty. In addition to the Presidential Fund for Innovation in International Studies (PFIIS), which awards research grants to budding yet fully conceived projects, the Working Group Program encourages informal dialogue about pressing world issues among faculty who do not normally cross paths. These working groups, or collaborative "salons," serve as incubators for the development of internationally focused research and teaching projects and programs. Each group explores ways to foster interdisciplinary study in a unique topic area most typically by

  • Exploring an idea in its earliest stages to see if there is sufficient depth and support for a collaborative research project, or
  • Developing proposals for new interdisciplinary programs that can be used to solicit funding

Working groups are led by one or more faculty conveners. Participation is open to all Stanford and visiting faculty and academic staff from all schools and institutes. Advanced graduate students are invited to contact the working group convener about participation. Multi-school representation on each working group is highly desirable. The groups meet regularly over the course of the academic year in informal sessions designed to promote the sharing of new ideas and research.

The International Initiative sponsors working groups that focus on issues related to one or more themes of the Initiative: peace and security, governance, and human well-being. Faculty are encouraged to apply for sponsorship by contacting Program Coordinator Whitney Sparks.

Working Groups for the 2006-2007 academic year will focus on Developing Resilience to Non-Traditional Security Threats, International Influences on Domestic Governance, Human Well-being, Program on International Health, and the International University Collaboration Program.

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