Upload
others
View
11
Download
0
Embed Size (px)
Citation preview
©2016 AZCA, Inc.
Chronicles of the Silicon Valley - Japan
Relationship and Lessons Learned
(or not Learned?)
An insider's view of large firms, startup firms, and
entrepreneurs since the 1970s
Stanford Silicon Valley - New Japan (SV-NJ) Project
Public Forum Series
February 3, 2016
Masa Ishii
Managing Director – AZCA, Inc.
Visiting Professor – Waseda University Business School
Visiting Professor – Shizuoka University Graduate School of Engineering0
Silicon Valley’s Geography
*- The term “Silicon Valley” was coined in 1971 by Don Hoefler in the column articles ”Silicon Valley in the USA” in the magazine Electronic News.
50 Miles
Waves of High-technology
1950 1960 1970 1980 1990 2000 2005 2010
Telecommunications, Internet
IoT
Semiconductor, IC
Robotics, IoT
Computer Systems, Peripherals
Big Data, AI
Software
Healthcare 1.0
Nanotechnology
Genentech
World’s Defacto
Standards
1939
Healthcare
2.0
Pre-Internet age Internet age
Silicon Valley Mechanism (… in essence)
More Money
• More people• More information• More technology
Accumulation of Knowledge
VC Investments by State
Source: NVCA
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
100% ($Billion) =
8.0 105.0 23.2 27.6 32.1 30.4 20.4 23.4 29.9 27.6 30.1 49.3
CaliforniaSilicon Valley
Other California
New England
Other Region
Midwest
Texas
NY Metro
Northwest
Notable Players in Silicon Valley
AZCA
William Hewlett &David Packard
Elon Musk
Andy Grove(3rd employee)
Pierre Omidyar(French-born Iranian-American )
Larry Ellison
Steven Jobs
Bill Gates
William Shockley
Sergey Brin
Jerry Yang
Mark ZuckerbergReid Hoffman
Source: AZCA
Brief Background
1964 AFS Program (Pennsylvania)
(1972 Tokyo University)
1972 Marubeni Electronics
1973 IBM Japan
(1978 Stanford University)
1981 McKinsey & Company
1985 AZCA, Inc.
1985 Logitech Board
1987 Pacific Technology Ventures
2002 Noventi
2006 PARC Senior Executive Advisor
2014 AZCA Venture Partners
©2016 AZCA, Inc.
1960s
7
©2016 AZCA, Inc.
1970s
8
©2016 AZCA, Inc.
1970s
9
1980s
©2016 AZCA, Inc.
10
Sendoff for Galvez House: 9/23/98
Galvez House: A sentimental send-off
The home since 1976 to Stanford's
Help Center and since 1979 to the
Center for International Security
and Arms Control (CISAC), Galvez
House will be torn down this fall,
along with the Band Shak next door
to make room for a new Alumni
Center next to Frost Amphitheater.
1980s
©2016 AZCA, Inc.
11
©2016 AZCA, Inc.
1980s
12
1988
1987
1989
1988
©2016 AZCA, Inc.
1990s
13
1990
1991
1997
©2016 AZCA, Inc.
JPY/USD
14
Nixon Shock
Carter Shock
Plaza Accord
EU Crisis
Lehman Shock
Asia Crisis
Euro Crisis
Source: fxciao.com
©2016 AZCA, Inc.
GDP Growth (% p.a.)
15Source: ecodb.net
US Japan
©2016 AZCA, Inc.
Characteristics of SV-Japan Relationship
16
SV(towards
Japan)
• Lots of opportunities for SV high-tech ventures to alliance with deep pocketed LECs in Japan
• SV ventures continued to try to alliance with Japanese LECs
• Internet age;Silicon Valley boom; net bubble
• SV ventures started goingto Taiwan, Korea, China, etc. directly -“Japan Passing”
• Net bubblecrashes; VC investments bottom in 2003
• SV ventures little interest in deals with Japanese companies
• Lehman shock• Helped by
strong ecosystem, SV companies continue to grow
• Bubbly again?• Renewed
interest in Japan
Japan(towards SV)
• High Yen/USD
• LECs started investing in SV to diversify into new businesses
• Many LECs were burned by deals with SV ventures
• Japan’s bubble economy crashed; little money to invest in SV/US
• Japan enters a long darkeconomic tunnel
• LECs try to diversify into new businesses, but their financial situation is prohibitive
• Japan continues to suffer from economic downturn
• Japanese management very conservative and defensive
• LECs struggle to recover, but many of them lose their positions to Korea, Taiwan, and some to China
• Wave of Japanese entrepreneurs to SV
• Abenomicsencourages networkwith SV and investments
• LECs desperate to find ways to grow
• Renewed interest in SV
1985 - 1990 1990 -1995 1995 - 2000 2000 - 2007 2007 - 2014 2014 -
©2016 AZCA, Inc.
Japanese Companies in the Bay Area
17Source: JETRO
377
422466
497
680
614
528 543587
547
630
719
0
100
200
300
400
500
600
700
800
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
©2016 AZCA, Inc.
AZCA’s Client Base (relative)
18
1985 1990 1995 2000 2005 2010 2015
US SMEs (high-tech ventures)
US LECs
Japanese LECs
Japanese SMEs
©2016 AZCA, Inc.
Select List of Presentations
19
Year Title
1991 Perspectives on US-Japan Corporate Partnership
1992 US-Japan Technology Relations: Where Are We Now and Where Are We Going After the Trade Talks?
1993 A Perspective on North America- Japan Corporate Partnership: Critical Success Factors – International Investment
1996 21世紀の成長戦略:シリコンバレーからのメッセージ
1999 シリコンバレーに学ぶ企業家精神: 日本へのメッセージ
2001 ベンチャー企業との連携によるニュービジネス創造
2005 アライアンスに見る日本企業の課題
2013 シリコンバレーのエコシステムの活用:事業拡大および新規事業開拓のために
©2016 AZCA, Inc.
20
©2016 AZCA, Inc.
21
©2016 AZCA, Inc.
22
©2016 AZCA, Inc.
23
©2016 AZCA, Inc.
24
©2016 AZCA, Inc.
25
©2016 AZCA, Inc.
26
©2016 AZCA, Inc.
27
©2016 AZCA, Inc.
28
©2016 AZCA, Inc.
29
©2016 AZCA, Inc.
30
©2016 AZCA, Inc.
31
©2016 AZCA, Inc.
• Approach to Innovation
• Attitude towards Risk
• Decision Making Process and Timing
• Organizational Skills for Alliance
• Management and Organization for SV – Japan HQ
Chronic Issues Facing Japanese Companies
in Capitalizing on SV’s Ecosystem
32
©2016 AZCA, Inc.
• Continued commitment in SV Ecosystem
• Top-down decision making
• Decisions only top management can make:
– New Organization
– Allocating Human resource
– Investment in Future
Strong Top Management Leadership
33
©2016 AZCA, Inc.
Discussion
34