maedaSlides

“Entrepreneur Engineering” with Japanese New Business Model: 

“Entrepreneur Engineering” with Japanese New Business Model Nov.4, 1999 US-Japan TMC, Stanford Noby MAEDA Research Fellow, NISTEP, STA Professor, Kochi University of Technology

Slide2: 

Competition & Collaboration World Innovation Neuer Kombinationen Creative Destruction US - JAPAN Mission of

COC Innovation Index3’99 Council on CompetitivenessThe New Challenge to America’s ProsperityFindings from the Innovation Index: 

COC Innovation Index 3’99 Council on Competitiveness The New Challenge to America’s Prosperity Findings from the Innovation Index 1995 US No.1 1999 Japan No.1 US No.3 2005 Japan No.1 US No.6

Slide4: 

Japan Committed to S&T 1981 ERATO Up to date: 57 Projects Exploratory Research for Advanced Technology 1988 NISTEP established National institute of Science & Technology Policy 1991 R&D Free Ride Criticism 1995 S&T Basic Law S&T Basic Plan $126B $170B/5years (+35%) 1999 Millennium Projects IT, Environment, Bio etc.

Slide5: 

USA Enhancement of S&T 1980 Stevence-Wydler Technology Innovation Act 1980 Bayh-Dole Act 1982 SBIR 1985 Young Report : Global Competition-The New Reality 1986 Federal Technology Transfer Act 1991 Council on Competitiveness

Japanese Economy: 

Japanese Economy IMD’s National Competitive Power: 1st 16th R&D: 1st 2nd 1980‘s Japan as No.1 1991 Bubble Broke Out <Long Depression> 1998 Big Bang-Japan 1999 “Venture Congress” Three Big Tide Behind Globalization 20 Years De-Regulation 20 IT Revolution 10

Slide7: 

Venture Boom USA: 1967~ 1978~ 1993~ JAPAN: 1970~ 1982~ 1994~Now 1st 2nd 3rd INTEL Micro Soft Internet Get Out Fin.Ind.VC Gov. Policy Many Registrations

Slide8: 

Number of IPO per Year 1986 1990 1996 1999 1,000- 500- Image chart USA Japan Germany

What You Know as a History: 

What You Know as a History No Entrepreneurs to overcome them. SONY 1946 Ibuka/Morita HONDA 1948 Honda KYOCERA 1959 Inamori Big Entrepreneurial Success

Slide10: 

Company “Establish” “Shut Down” Ratio 1982 1996 1999 20%- 10%- 16% 13% 4.7% 4.6% Germany USA Japan Image chart

CEOs’ ages when they founded their firms: 

CEOs’ ages when they founded their firms

What You See Today: 

What You See Today IPO Ave. Year 5~6 29 Year No. of IPO/Year 500 100 Co. Equity % of Founder at IPO 4 70% New Employ’t by SME/Y 1,500 90K Univ. of Entre. Lecture 500 50 Co.Establish, Shut Down 16/13 4.6/4.7% VC Support Hands on Loan USA JAPAN Recent Development is different!!!

The yearly number of start-ups: 

The yearly number of start-ups

Many Recent Success Stories: 

Many Recent Success Stories HIS Travel 1980 1995 Sawada NOVA English 1990 1996 Saruhashi Hikari Com.Sales 1988 1996 Shigeta Plaza Create Photo 1988 1994 Ohshima Doutor Coffee Shop 1976 1993 Toba Rakuten Network Shop 1988 2000? Mikitani DegiQub Game Sales 1996 1999 Suzuki Very Few Tech. Oriented Entrepreneurs Some are over $2 Billion Sales

Supporting Policy/Registration: 

Supporting Policy/Registration 10~20 Years Behind USA US JAPAN V C Co. 1946 1972 - 26 SBIC 1958 1963 - 5 Bayh-Dole Law 1980 1999 - 19 SBIR 1983 1998 - 15 Stock Option 1995 Angel Tax 1997 TLO 1940~ 1999 - 50

Slide16: 

Key Issue of Japan University Enterprise R&D Lab. R&D Collaboration

STRATEGY VS KAIZENProf. M.Porter says: Japan has no Strategy.: 

STRATEGY VS KAIZEN Prof. M.Porter says: Japan has no Strategy. How Old New To achieve To improve What

Slide18: 

Large --> Silicon Valley Model Co. GE Portfolio Model National--> Pan Euro Model Kaizen Model --> ? Japan ? EURO Money Net Economy

Slide19: 

Manufacturing : JAPAN < USA JAPAN 1980’s USA 1990’s J I T + I T = SCM KANBAN TQC + I T = Six Sigma KAIZEN US Exceeded Japan in Manufacturing

Slide20: 

BOX Network Merchandise

Slide21: 

Manufacturing Business Model Device Box Device OS BOX OLD NEW STB, Portable Phone, Automobile, IC Card, etc

Slide22: 

Five-Circle Model Manufacturing SONY Device Box Merchandise OS Network E-Business

Slide23: 

Built in the Japanese Strength to Ultra Small Motor,Bearing KANAGATA/Mold System LSI Battery Device O S Box Network Merchandise Level up to IT Environment to keep influence to the Network, where $$$ comes in the New Age. $

Slide24: 

Value Chain Approach : US v.s JAPAN AV1980’s Japan USA Device Box Contents PC 1990’s Game 1995 Device OS Box Network Merchandise $ USA Japan 2000 USA Japan

Slide25: 

OS for Terminals Home: STB Automobile: ITS Navigation System Outdoor: Cell Phone Windows CE v.s. Non WINTEL

Slide26: 

From Professional IT Society to Personal IT Society Home Audio WALKMAN PC Cell Phone Cell Phone Banking, Shopping, E-mail

Slide27: 

Other Key Factors for Network Economy Penetration 1. Clever Portable Phone Terminal 2. Physical Portal : 24h Convenience Store 3. Express Distribution Service to Home Highly IT Armed Seven-Eleven, Yamato Express Japanese Advantages

“Network” Penetration Ratio: 

“Network” Penetration Ratio % No.of Store per 100K persons Data: 1999 Japan Communication white Paper, etc.

Slide29: 

Three Layers Structure of Japan 1980`s 1990`s 2000`s 2010`s 2020`s Soft Bank 1981 High Guts Elite High Tech Elite Young IT Elite Service Venture Tech New Wave Internet Venture Future Angels Future Angels 1 2 3 1999 Angels

Slide30: 

Small Independent Organization is the Key. Device OS Box Network Merchandise Dynamic Module Combination

Slide31: 

New Waves in Japan

Characteristics of the New Waver: 

Characteristics of the New Waver Blue Chip’s Elite Engineer Started with Age 40’s USA Univ. or Business Experience Global Mind and Action IPO or M&A Exit Strategy Keep as a CEO, but not to their kids Future Angel

Slide33: 

R&D Oriented Emerging Entrepreneurial Company in JAPAN Technology Co.Name CEO Found IPO Person $M Technical Specialty Mfg.Tech. INCS 49 ‘90 - 110 30 3D Speed Tooling SAMCO 57 ‘79 - 100 33 Thin Film Tech. System LSI Megachips 57 ‘90 ‘98 90 60 Game LSI Thine 51 ‘92 40 95 AV LSI Realvision 45 ‘96 40 10 3D Image LSI IT,Network I I J 52 ‘92 ‘99 270 300 Internet Provider Rakuten 35 ‘97 - 40 60 Network Mall Mag Mag 29 ‘97 - 10 5 Mail Magazine Future 44 ‘89 ‘99 150 40 System Integration Game Soft many companies

Slide34: 

Key Issue of JAPAN - New Combination - Independent Personality

Japan is Ready to Compete / Collaborate with USA: 

Japan is Ready to Compete / Collaborate with USA for Global Innovation