Commentary from Carnegie: How Japan Pushed to Globalize Its Startup Ecosystem During the APEC Week

My latest commentary from Carnegie:

Lots happened during APEC week that was somewhat buried behind the headlines of the Biden-Xi summit. Various Japanese leaders were in town, including Prime Minister Kishida, METI Minister Nishimura, and Startup Minister Shindo. PM Kishida's summit with President Yoon at Stanford, Minister Nishida's opening of the Japan Innovation Campus in Palo Alto and signing an MOU with Berkeley's Skydeck, and the Minister Shindo getting lots of input from Silicon Valley Japanese VC, entrepreneurship, and ecosystem players were all part of broader efforts to globalize Japan's startup ecosystem. Nobody is naive enough to think that a few partnership or accelerators here are there will be enough, but Japanese entrepreneurs face enough hurdles to be successful entrepreneurs, let alone compete in Silicon Valley, so my view is that the more efforts are underway, the better.

Here is the link to the commentary: https://carnegieendowment.org/2023/12/06/how-japan-pushed-to-globalize-its-startup-ecosystem-during-apec-week-pub-91163

CIGS Seminar @ the Industry Club of Japan in Tokyo

On December 6, I delivered a talk at the Industry Club of Japan for the Canon Institute for International Studies (CIGS). I was honored to give a talk at such a incredible venue.

TMIP Seminar @ EGG in Tokyo

On December 4, I gave a talk at EGG's wonderful office in the Shin Maru building in front of Tokyo Station, a talk co-sponsored by the Tokyo Marunouchi Innovation Platform (TMIP) and Carnegie Endowment for International Peace.

Comment quoted in The Economist

A wonderful piece in the Economist that opens with the late Aoki Masahiko's prediction that it would take 30 years and a generational change for the Japanese economy to emerge from its "lost decades."

He was my mentor at Stanford (my undergraduate thesis advisor and then again later when I was a researcher in the office next to his), and I'm sure everybody who has known him still misses him terribly. I know I do.

It was extra special to be quoted in this same article for my framing of traditional Japan coexisting in parallel with the new and dynamic areas. This framing, which I labeled "syncretism" for my PhD dissertation and early work on foreign multinational firms in Japan, is also quite useful for understanding how Japan's startup ecosystem emerged and is maturing.

Noah Sneider doesn't have a byline in this article, but it's obvious he wrote much of this; both the Economist and Japan are lucky to have him as their Tokyo correspondent.

Link to the article: https://www.economist.com/asia/2023/11/16/is-japans-economy-at-a-turning-point

Opportunities for US-EU-Japan Cooperation in San Francisco

I was delighted to participate in a thought provoking and action-oriented panel, "Opportunities for US-EU-Japan Cooperation." It took place on a docked boat in SF Bay (Bay Area Council Economic Institute). Featured a short keynote by the Director General of the European Commission's Directorate of Energy on EU Strategies for Carbon-Free Energy.

It was a great collaboration between the Bay Area Economic Institute, the Berkeley Roundtable on the International Economy, Carnegie Endowment for International Peace, and eit Hub Silicon Valley.

New Japan Summit 2023 Tokyo

The New Japan Summit in Tokyo was a big success! Thanks to Techblitz for organizing it and to the sponsors. We at Carnegie were delighted to co-host, along with Japan Management Association and Stanford US-Asia Technology Management Center. Some of the sessions, including my keynote and some of the fireside chats will become articles from Techblitz.

Several hundred in person participants and 1500+ people online, showcasing some exciting startups from inside and outside Japan, and lots of learning from large Japanese firms who are engaging in important open innovation efforts. Shibuya Startups, partnering with the Shibuya Ward government and with some corporate investors, and utilizing a Japanese government policy that few municipalities are making use of, actually offers an entrepreneurship visa for one year even to founders who have not started their companies yet. It's quite competitive, but the first batch of startups are underway.

Articles by Techblitz about Key Note and discussions at New Japan Summit 2023

Key Note: 大企業はまず「フレーミング」を変えよ
Discussion with Kazuhiko Chuma from KDDI: 「電話がなくなった」その時、KDDIはどうした
Discussion with Shiho Watabe from Shibuya Startups: Why Japan？選ばれる理由をシブヤに創る

New interview: "Worst Practices" to avoid

My latest piece in Japanese, focused on "worst practices" of companies attempting to create new businesses and engage in open innovation.

I believe there isn't a universal 'best practice' for new businesses, open innovation, or even utilizing Silicon Valley. This is because each company's situation, strategy, talent, and challenges differ.

However, there are 'worst practices' that, when implemented, usually don't work out well.

I think that the best strategy for a company starts with avoiding these 'worst practices' to find what works best for them

I want to spotlight many of these cases that aren't know very well to English language audiences (and in many cases even within Japan), so if other companies can learn from them and engage in more successful collaborations, I am happy to amplify and spotlight new rounds of cases and help create a new narrative for the global and innovative aspects of Japan.

Here is the link to the articles: Part 1 / Part2

New Article series: Silicon Valley Revisited

My new series I've wanted to write for a long time is starting to roll out!

"Silicon Valley Revisited: Beyond Celebration and Condemnation"

A series of articles I'm writing introduces core aspects of the Silicon Valley economic model for policymakers, executives, entrepreneurs, and leaders worldwide. Much has been written about the region’s ecosystem in the past couple of decades, but there are compelling reasons to examine it anew in the post-pandemic era. Even as recent U.S. popular discourse has shifted from celebrating the region’s economic ecosystem to urging caution toward and sometimes outright condemning it, international interest in Silicon Valley is still strong. While many aspects of the economic ecosystem remain similar to that of a decade ago, there have also been substantial changes that merit attention and analysis.

Carnegie California is the best place from where to write this, as part of a truly global think tank that recognizes that California is a critical region that influences many aspects of the world and US relationship to the world and to other parts of itself.

Link to the article: Silicon Valley Revisited

Innovative Japan, Global Japan: Japan's premier AI Lab, Matsuo-ken

We were delighted to host members of Matsuo-ken on their trip to Silicon Valley, with big thanks to Baba-san, Mitsubishi Corp's Silicon Valley Branch Manager and leader of its very interesting M-Lab in downtown Palo Alto.

Matsuo-ken (Matsuo Institute, Inc) is a spinout from Professor Matsuo's University of Tokyo Lab that is a leader in Japan's AI scene, having spun out over 19 startups by his count. Professor Matsuo himself is everywhere all at once these days, and he's the Japanese government's key person on various committees driving Japan's AI policy.

These young engineers and scientists haven't really had a chance to visit abroad during Japan's long pandemic de facto lockdown, so although their trip is short, I hope it's thoroughly transformative to some of them. Their enthusiasm was such that our evening chat and networking session after our presentations went way past our scheduled time.

In the pre-pandemic era, I was a little concerned that there were too many groups coming through, but after the pandemic shutdown, I'm much more concerned that not enough people are venturing outside Japan and getting stimulated and motivated to do new and exciting things at a global scale. (A star Japanese student in my class at Stanford last spring had participated on a short trip to Silicon Valley when in high school, which had transformed his worldview and he applied to, and became an undergraduate at Stanford -- these short trips can sometimes really have an impact on people.)

I'm looking forward to the impact that many of these emerging stars will have on Japan's AI scene and startup ecosystem.

Innovative Japan, Global Japan : Daikin's global internship program

Global Japan, Innovative Japan: Daikin, best known as a global HVAC company, headquartered in Japan but with 100 production facilities around the world and sold in 170 countries, has an interesting partnership with the University of Tokyo. Daikin's global internship offers Univ of Tokyo students the opportunity to visit various parts of the world, such as 3 weeks around the world (North America, Europe (Belgium), and Asia (Bangkok)) or 2 weeks in North America (Silicon Valley, DC, Houston).

I had the pleasure of talking about Silicon Valley (and Stanford and Berkeley) to students on the North America and Global programs on August 22. After a couple years of very limited travel by Japanese abroad, it's great to see these opportunities for enthusiastic Japanese youth to go see the world! This programs are very short, but with the pandemic, inflation outside Japan, and the weak yen, the more opportunities there are for youth to experience the world outside Japan -- even for a bit -- the better.

PECC in Seattle

On August 15, I had a great time joining a panel, "Digital Solutions to Environmental Challenges and Climate Change" by PECC (Pacific Economic Cooperation Council), part of the APEC (Asia Pacific Economic Cooperation) 2023 meetings in Seattle. I brought perspectives informed by some of the interesting and valuable things underway by Japanese global companies, and a few trajectories of development underway in Silicon Valley. This year was PECC's 30th meeting, themed: "Achieving a Sustainable and Inclusive Asia-Pacific Through Innovation" with representatives from all over APEC.

Thank you to PECC organizers and Japan Institute of International Affairs (JIIA) for the invitation. It was an honor to join.

At the reception, an APEC flag flew over the Space Needle (although we couldn't see it from directly below), and strong language by the governor of Washington and mayor of Seattle, the first Asian mayor of the city, committing to combat climate change was particularly striking given some of the deep divisions in the US.

Talk @ Toranomon Hills Business Incubation Center 「ARCH」

On July 24, I gave a talk at ARCH, the Business Incubation Center at Toranomon Hills.

I talked about the AI revolution, building on various things I've been involved with and talked about for several years now, but updated for our new world of generative AI.

ARCH is one of the new and dynamic parts of Japanese large firms' open innovation landscape -- a collaboration space and programs for large firms to create new businesses, find new collaboration partners, and learn how to transform their organizations. ARCH is operated by Mori Building and World Innovation Lab, and despite opening just as the pandemic hit, it now has over 120 companies and 900 people from those companies as members.

Glow Tech Nagoya

I was delighted to give a hybrid talk at Glow Tech Nagoya at the Nagoya Innovator's Garage. It's the third year of this startup accelerator program for early stage startups sponsored by the City of Nagoya. The political leadership, city officials, university-related people, and large companies are all in for this program, and it was great to meet many of these people in person. Nagoya City is doing fascinating things such as having "entrepreneurs in residence" help the city government (in its first iteration, some very successful entrepreneurs originally from Nagoya joined) and an upcoming program, Nagoya City Lab, will enable startups to utilize a wide range of Nagoya City resources as a testbed to accelerate and further develop their products.

Putting a spotlight on these exciting entrepreneurial activities spearheaded by regional governments while making useful connections across various interpersonal networks is part of my role at Carnegie, which fits exactly with my personal mission.

I added the link to the video of a webinar at Glow Tech Nagoya held on October 17
https://www.youtube.com/watch?v=clBlLT4Gwzg

Smithsonian documentary series

I was one of the interviewees in this Smithsonian documentary series about major disasters -- this episode was about the Fukushima nuclear accident.

I've written about the accident for some academic publications, and I'm still working on my objective non-fiction account that is a terrifying page-turner, which I got distracted from for several years, but I'm glad some of what I've done through the deep dives was useful.

My analyses is actually a bit different than the documentary -- I'm ideologically neutral about nuclear power, and I don't blame the government as hard as the narration and some other analysts.

I love how these things always choose the least flattering photos, but ironically, the day before I got hit by a big grad student's shoulder playing soccer so my cheek was swollen and I couldn't enunciate as well as I wanted to. Given the topic, it was a most appropriate time to appear a bit battered up though...

I have the deepest respect to everyone on the front lines at the plant who battled sleeplessly for more than a week to try to mitigate the disaster.

Link to the Smithsonian documentary series: https://www.smithsonianchannel.com/episodes/12wq3e/ten-steps-to-disaster-fukushima-nuclear-disaster-season-2-ep-7

Copenhagen Business School Executive Education program

I was delighted to give a talk again this year to the Copenhagen Business School Executive Education program on May 1.

Carnegie Webinar: Accelerating U.S.-Japan Tech Innovation

On March 30, I was delighted to moderate a webinar featuring an overview by myself and wonderful panelists:

Ambassador John Roos, founding partner at Geodesic Capital, ambassador to Japan from 2009-2013, and former CEO of Wilson Sonsini, Silicon Valley's premier law firm.

Kaori Fukunaga from NTT Data, senior director in Next Generation Partners and Incubation based in Silicon Valley, who will walk us through how the previously domestic-oriented firm is now surprisingly global and innovative.

It was clear to me in my latest trip to DC that conceptions about Japan's economic drivers need to be updated -- there is plenty of traditional, but also a great deal of new and exciting. Put differently, looking at areas that haven't changed much and bemoaning the lack of change is an approach that is bound to miss the areas of dynamic change. We need to understand both, but there is way too little focused on the latter, so Carnegie's Global Japan, Innovative Japan research and programming focuses on the latter for a global audience.

Youtube link to the webinar is here

Zero Emission Technology New Japan Summit 2023 in Kyoto

On March 3, I had the honor of giving a live online keynote speech at the Zero Emission Technology New Japan Summit organized by Ishin. The summit was held under the concept of "from oil to air, from rural areas to the cutting edge, from constraints to expansion," aiming for "zero-carbon urban development through zero-carbon manufacturing."

The summit featured several prominent speakers and industry leaders in the field of clean energy. The focus of the summit was on the urgent need for zero-emission technology to address the growing global climate crisis.

Carnegie Seminar @ DC : "Why the US-Japan Tech Alliance Needs Silicon Valley"

My first in-person event at Carnegie was held in Washington DC on February 21.

I talked about how Washington and Tokyo can harness the cutting-edge collaborations taking place in Silicon Valley to help transform the vital U.S.-Japan alliance.

The video is available here (in English)

Conversation with former Digital Minister Karen Makishima: Digitally Transforming Japan

I'm delighted and honored for the chance to have a conversation with former Digital Minister Karen Makishima about what the new Digital Agency has accomplished, her vision, and what next steps are needed to accelerate Japan's digital transformation, co-hosted by the Carnegie Endowment for International Peace and Stanford Shorenstein APARC Japan Program.

The video is available here (in English)

Carnegie New Research Article: Startup Japan

I'm delighted to introduce my new research article series, Startup Japan.

It's the culmination of over a decade of research, and I've spending lots of time with Japan's exciting startup community.

The first couple pieces are live now, and the next ones will be out soon. I have a lot of material and am focused on making it easily readable and accessible. Much thanks to the hard-working and friendly folks at Carnegie to make this happen! More to come!

Startup Japan: Here are some of the main pieces coming soon, filled with data, company cases, and useful ways to frame various issues.

- Overview and snapshot of Japan’s startup ecosystem

- Understanding startup ecosystems: their components and complementarities

- Japan’s venture capital industry

- Labor mobility

- University-industry relations

- Government support

- Large firm–startup symbiosis

- Social legitimacy of startup ecosystem

- Startup ecosystem support businesses

Link to the start page of the column series: https://carnegieendowment.org/programs/asia/startupjapan