Innovation

During the 20th century electricity spread from tiny islands of experimental service to become the world's most important energy carrier. The fraction of energy converted to electrons before consumption has risen inexorably and approaches 40% worldwide. Few would argue with the judgment of the U.S. National Academy of Engineering that electricity was the most important innovation of the past century. Electricity transformed homes, factories, and offices, the work we do, our health and comfort, and how we spend our time. How will electricity transform the 21st century?

More flexible and cleaner for the end-user than the coal, gas, and other sources of energy services that it replaced, electricity will likely be the form that 55%-60% of energy takes in four to five decades as more and new electrical machines appear in the market. How might life change as this imperial technology conquers new domains?

And what about the 1.6 billion people who today lack access to electricity? Will global electrification be achieved in the coming half century or even sooner? If some regions defy electrification, what are the reasons? How might electrification change occupations and lifestyles of the poor?

During a two-day workshop on the implications of global electrification, we aim to assemble a fresh picture of visions for electrification, its trends in time and space, and selected implications for health, environment, and social and economic organization. We are inviting diverse experts to comment on these issues from the vantage of their disciplines, practice, and research. We are asking each to talk about their current work, ideas, and speculations rather than commission new studies. The novelty of the meeting lies in the diversity of perspectives and the chance to contrast and integrate them. Global electrification is far advanced and may be nearly complete in the coming decades. What will it take, and what may result?

Oksenberg Conference Room

Conferences
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Hosted by the Stanford Project on Regions of Innovation and Entrepreneurship (SPRIE) as part of their Greater China Forum which meets first Tuesday of each month.

Joseph Y. Liu

President, CEO, and member, Board of Directors, Oplink Communications, Inc.

Oplink designs, manufactures, and markets fiber optic products and services that increase the performance of optical networks, including its photonic foundry with manufacturing activities in Zhuhai and design and engineering in San Jose.

Sam T. Wang, Ph.D.

President, SMIC Americas, the US operations of Semiconductor Manufacturing International Corporation (SMIC)

With an IPO in March 2004 (and current market cap of $3.6 billion), SMIC is China's most advanced pure play IC foundry company, with wafer fabs located in Shanghai, Beijing and Tianjin, including its Fab 1 named "Top Fab of the Year for 2003" by Semiconductor International.

Tien Wu, Ph.D.

President, ASE Americas, Europe and Japan, Board of Directors and Corporate Vice President, Worldwide Marketing and Strategy, ASE Inc., and Chief Executive Officer, ISE Labs Inc (An ASE Test Company)

The ASE Group is the world's largest provider of independent semiconductor manufacturing services in assembly and test with $2.9 billion sales revenue in 2003, 29,000 employees worldwide, and facilities across Asia, including Taiwan, Hong Kong, and Singapore.

Philippines Conference Room

Joseph Y. Liu President, CEO, and Member, Board of Directors Oplink Communications, Inc.
Sam T. Wang President, SMIC Americas the US operations of Semiconductor Manufacturing International Corporation
Tien Wu President, ASE Americas, Europe, and Japan, Board of Directors and Corporate Vice President, Worldwide Marketing and Strategy, ASE Inc., and Chief Executive Officer, ISE Labs Inc (An ASE Test Company)
William F. Miller Co-director Moderator SPRIE
Seminars
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Richard E. Behrman Professor of Child Health and Society
Senior Fellow, Freeman Spogli Institute for International Studies
rsd15_081_0253a.jpg MD, MPH

Dr. Paul Wise is dedicated to bridging the fields of child health equity, public policy, and international security studies. He is the Richard E. Behrman Professor of Child Health and Society and Professor of Pediatrics, Division of Neonatology and Developmental Medicine, and Health Policy at Stanford University. He is also co-Director, Stanford Center for Prematurity Research and a Senior Fellow in the Center on Democracy, Development, and the Rule of Law, and the Center for International Security and Cooperation, Freeman Spogli Institute for International Studies, Stanford University. Wise is a fellow of the American Academy of Arts and Sciences and has been working as the Juvenile Care Monitor for the U.S. Federal Court overseeing the treatment of migrant children in U.S. border detention facilities.

Wise received his A.B. degree summa cum laude in Latin American Studies and his M.D. degree from Cornell University, a Master of Public Health degree from the Harvard School of Public Health and did his pediatric training at the Children’s Hospital in Boston. His former positions include Director of Emergency and Primary Care Services at Boston Children’s Hospital, Director of the Harvard Institute for Reproductive and Child Health, Vice-Chief of the Division of Social Medicine and Health Inequalities at the Brigham and Women’s Hospital and Harvard Medical School and was the founding Director or the Center for Policy, Outcomes and Prevention, Stanford University School of Medicine. He has served in a variety of professional and consultative roles, including Special Assistant to the U.S. Surgeon General, Chair of the Steering Committee of the NIH Global Network for Women’s and Children’s Health Research, Chair of the Strategic Planning Task Force of the Secretary’s Committee on Genetics, Health and Society, a member of the Advisory Council of the National Institute of Child Health and Human Development, NIH, and the Health and Human Secretary’s Advisory Committee on Infant and Maternal Mortality.

Wise’s most recent U.S.-focused work has addressed disparities in birth outcomes, regionalized specialty care for children, and Medicaid. His international work has focused on women’s and child health in violent and politically complex environments, including Ukraine, Gaza, Central America, Venezuela, and children in detention on the U.S.-Mexico border.  

Core Faculty, Center on Democracy, Development and the Rule of Law
Affiliated faculty at the Center for International Security and Cooperation
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San Francisco -- Offshoring is just one of many global forces impacting job creation and destruction in the Bay Area and cannot be viewed in isolation from the key trends enabling it, such as globalization, technology-driven improvements in productivity and business disintermediation. Efforts to prevent offshoring will not be successful and are likely to come at considerable economic cost, according to a new study released today.

Sponsored by Joint Venture: Silicon Valley Network, the Bay Area Economic Forum and the Stanford Project on Regions of Innovation and Entrepreneurship (SPRIE), with research and project support from global management consulting firm A.T. Kearney, the study analyzed global trends, regional capabilities and the Bay Area job market.

Findings from the study, the first regionally focused on the Bay Area, were based on 120 interviews, analysis of 9,000 job listings and other primary and secondary research.

The Bay Area already has more experience with globalization and offshoring than other parts of the U.S., the study reports. Bay Area manufacturers earn almost 60 percent of their revenues in overseas markets. Analysis done as part of the study revealed 94 percent of companies in the semiconductor and semiconductor equipment manufacturing and software clusters - two driving sectors in the Bay Area in terms of employment and payroll contribution - are already using offshore resources.

This does not mean all jobs are going offshore. The study also found one-in-four job postings for large companies in those sectors during April 2004 was for positions in the Bay Area.

"The research makes clear that global trends will force continued creation and destruction of jobs in the Bay Area. These trends can't be reversed. Policies and investment should be directed toward helping the region strengthen its core capabilities to compete effectively on a national and global basis" said Sean Randolph, President & CEO of the Bay Area Economic Forum.

The study calls for policymakers to maintain strong support for basic research, invest in education to ensure a competitive local workforce and to address vulnerabilities in the regional business environment including housing, transportation and business regulations that hinder local job creation. Business leaders need to support transition programs and consider investment in local employee development to meet their future job needs.

The study found the Bay Area is losing ground to other regions in the U.S. and overseas in three competitive capabilities: mass production, back-office (transactional) operations and product and process enhancement. The competitive erosion in the latter is new. It appears that the Bay Area is rapidly losing out to other regions in occupations associated with engineering focused on cost reduction, fine-tuning processes and expanding product features. These engineering jobs, along with manufacturing and administration-related occupations, are expected to decline as the skills required for those functions are sourced more cost effectively in other regions of the United States and abroad.

The study also identified five competitive capabilities that investors and business leaders believe are key strengths of the Bay Area. In addition to three capabilities traditionally linked to the region (entrepreneurship/new business creation, research in advanced technologies and bringing new concepts to market), the analysis pointed to two other competitive capabilities not always in the spotlight:

  • Cross-disciplinary research - coordinating and integrating advanced learning across industries and scientific disciplines.
  • Global integrated management - managing and coordinating globally distributed business functions and networks.

Jobs aligned with these five regional strengths, such as high-level research, strategic marketing and global business and headquarter management activities, are expected to experience solid growth.

"The findings confirm that the region should continue to attract talent and foster innovation, start-up activity and job creation, as technology companies are launched and commercialized," said Russell Hancock, President and CEO of Joint Venture: Silicon Valley Network.

The Bay Area's strengths make the region a leader in job creation in early stages of the business lifecycle, but its weaknesses lead to job growth outside the region in the later stages. As a result, the study says, the Bay Area will continue to incubate and develop new businesses, a process that has historically been the core growth engine for the local job market.

"Companies founded in the Bay Area will typically maintain the majority of their workforce in the region until their first products or services gain market traction and key business processes stabilize," said John Ciacchella, Vice President with A.T. Kearney. "However, as these companies expand and mature, many of the new jobs that stay local will focus on management of expanding business operations that are outsourced, offshored and distributed to other regions."

The Bay Area also is well positioned in the industries likely to spawn new technology

start-ups, according to the study's job market analysis and interviews. Beyond its leading role in information technology, the Bay Area has the highest concentration of biotechnology firms in the country and more nanotechnology firms than all countries except Germany.

"How jobs in a region are affected by global trends depends on the competitiveness of the region's capabilities," said Marguerite Gong Hancock, Associate Director of SPRIE. "Despite a rise in the capabilities of other entrepreneurial regions globally, the Bay Area continues to lead in many of the capabilities considered most necessary for innovation and new business creation"

The study findings will be presented at a public event on Thursday, July 15, at Stanford University, where a panel of business and community leaders will discuss the report's findings and implications and take questions from the audience. The panel will be moderated by Paul Laudicina, managing director of A.T. Kearney's Global Business Policy Council, and includes:

  • Edward Barnholt (Chairman, President & CEO, Agilent Technologies)
  • William T. Coleman (Founder, Chairman & CEO, Cassatt Corporation, and Vice Chairman, Silicon Valley Manufacturing Group)
  • Anula K. Jayasuriya (Venture Partner, ATP Capital LP)
  • William F. Miller (Professor Emeritus, Stanford Graduate School of Business)
  • The Honorable Joe Nation, California State Assembly

BAY AREA ECONOMIC FORUM
Bay Area Economic Forum (www.bayeconfor.org) is a public-private partnership of senior business, government, university, labor and community leaders, develops and implements projects that: support the vitality and competitiveness of the regional economy, and enhance the quality of life of the regions residents. Sponsored by the Bay Area Council a business organization of more than 250 CEOs and major employers, and the Association of Bay Area Governments, representing the region's 101 cities and nine counties, the Bay Area Economic Forum provides a shared platform for leaders to act on key issues affecting the regional economy.

JOINT VENTURE: SILICON VALLEY NETWORK
Joint Venture: Silicon Valley Network (www.jointventure.org) is a nonprofit organization that provides analysis and action on issues affecting the economy and quality of life in Silicon Valley. The organization brings together new and established leaders from business, labor, government, education, non-profits, and the broader community to build a sustainable region that is poised for competition in the global economy.

STANFORD PROJECT ON REGIONS OF INNOVATION AND ENTREPRENEURSHIP
The Stanford Project on Regions of Innovation and Entrepreneurship (http://sprie.stanford.edu), or SPRIE, is dedicated to the understanding and practice of the nexus of innovation and entrepreneurship in the leading regions around the world. Current research focuses on Silicon Valley and high technology regions in 6 countries in Asia: People's Republic of China, Taiwan, Japan, Korea, Singapore and India. SPRIE fulfills its mission through interdisciplinary and international collaborative research, seminars and conferences, publications and briefings for industry and government leaders.

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Taiwan is a world premier manufacturing center, with many products leading in world market share, such as IC foundry (72.8%), Mask ROM (81.8%), WLAN (91%), CD-R Disc (79%), DVD-R Disc (82%) and others. In recent years, it has also performed well in patent productivity and S&T infrastructure. Currently, the challenge for Taiwan is to enter a new stage for economic development - to transform from a manufacturing-based economy in an innovation-based economy. What is the current status and prospects of Taiwan's industry technology innovation system? How does it perform? What are the gaps? What lessons have been learned from Taiwan's Ministry of Economic Affairs policies for public and private, university and industry networking?

As director general of the Department of Industrial Technology (DOIT) at the Ministry of Economic Affairs in Taiwan, Dr. Hwang is responsible for formulating industrial policy to upgrade technology levels in Taiwan. The DOIT works with research institutions, private companies and universities to implement Taiwan's annual Technology Development Program. Supported by a more than $5 billion annual budget, this program focuses on stimulating the development and transfer of knowledge-intensive technologies, upgrading R&D capabilities of research institutions, and promoting international scientific and technological cooperation across such key industries, as IT, biotech, materials, machinery, aerospace, communications and others. Since 1990, Dr. Hwang has led a distinguished career in government service in Taiwan's Ministry of Economic Affairs. He received a PhD in Information Engineering and MS in Computer Engineering from National Chiao-Tung University and a BS in Electronics Engineering from Chung Yuan Christian University.

Philippines Conference Room, Encina Hall

Dr. Jung-Chiou Hwang Director General Department of Industrial Technology, Ministry of Economic Affairs, Taiwan
Seminars
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Daniel Scheinman is the senior vice president of Corporate Development at Cisco Systems. He is responsible for business development, strategic alliances, strategic technology policy, and corporate public relations. As head of corporate development, his role has grown to include responsibility for mergers and acquisitions, strategy, major partnerships and alliances, and advanced Internet projects. Dan, who joined Cisco in 1992, was a founder of the company's legal and government affairs departments. Dan is responsible for leading the company's acquisition and strategic partnership strategies. Cisco's acquisition strategy is among the most acclaimed in the industry and has resulted in the company's successful entry into several new arenas. Over the past ten years with Cisco, Dan has worked with organizations around the world to help redefine the way public and private sectors work together. He has helped facilitate an ongoing dialogue between government and private sector leaders about the Internet economy. A thought leader in the use of media within the corporate environment, Dan pioneered a Web-based multimedia news room called News@Cisco. In addition to his responsibilities at Cisco, Dan is a founding member of TechNet. TechNet's mission is to build bipartisan support for policies that strengthen America's leadership of the New Economy. The National Law Journal has named him one of the 100 most influential lawyers in the United States, and he is on the board of visitors at Duke University Law School. Dan holds a Juris Doctorate degree from Duke University Law School and a political science degree from Brandeis University.

Philippines Conference Room, Encina Hall

Dan Scheinman Senior VP, Corporate Development Cisco Systems
Seminars
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