NORTHERN CALIFORNIA Produced by: NIHON GLOBAL MEDIA The Bay Area and Japan expand fields of investment

California and Japan’s shared doing business in Japan as a among small U.S. startups hop- heritage can be traced back to core aspiration and a strategic ing to find similar success across the first significant wave of Japa- imperative.” the Pacific. nese immigrants that arrived in The Bay Area “We have always looked at Ja- While most American corpo- the late 1800s to work on the “ pan as a real leader in terms of rations have been concentrat- state’s fruit and produce farms. presents many what is coming next,” he added. ing their international expansion While those farms might have Such sentiments only highlight toward China for the past two benefited from the additional new areas the huge potential that exists for decades, there is a growing con- workforce, California likewise ac- collaboration between two plac- sensus that Japan needs to make quired centuries-old knowledge of business es that put a huge premium on its investment climate more at- in agriculture, particularly in the innovation. tractive to U.S. businesses. cultivation of rice. opportunities In July 2013, Japanese tele- The Japanese government,

Serving as an initial pillar of com and Internet giant SoftBank through the Ministry of Economy, that relationship, agriculture still for the Corp. increased its stake in U.S. Trade and Industry, has recog- plays a major role in the rela- Japanese to get “ telecom company Sprint Corp. to nized the situation and set up the tionship between California and 80 percent via a $21.6 billion in- Invest Japan program, which aims Japan. In fact, the Asian country involved in. vestment. Clearly showing a very to attract foreign direct invest- imports more agricultural prod- of Japan Consulate General optimistic view of how global ment and promote the country ucts from the United States than Consul General of Japan in San business will develop. as Asia’s leading business center. from any other country. In 2012, Francisco Masato Watanabe “Mankind has had the “The United States and Japan exports of agricultural products agricultural revolution, the are very important partners, not to Japan reached $7 billion. industrial revolution and now just economically, but also po- “California’s relationship countries,” said Ross. Pacific & Japan of U.S.-based this third one — the information litically and in many other areas. with Japan is very important. While their shared history may software company Opower. revolution,” said SoftBank Corp. Closer ties, as well as more ex- It is one that we value greatly have begun with agriculture, Cali- Patrick Harshman, President Chairman and Chief Executive tensive and intensive collabora- because of how long we have fornia and Japan are also bringing and Chief Executive Officer of Officer Masayoshi Son in an tion, will certainly help the U.S. been trading partners,” stated their relationship into the 21st Harmonic Inc., which develops interview earlier this year. and Japan in their activities in California Department of Food century. video delivery technology for On the other hand, the enor- other parts of the world. Maybe and Agriculture Secretary Karen Arguably the center of the media providers, has also staked mous success of big Ameri- the U.S. and Japan can also do Ross. global technology sector, the his future in Japan: “Right from can companies such as Yahoo!, better in other parts of the world Association / Scott Chemis Travel SF Of the many relationships that Bay Area, specifically Silicon Val- the beginning of the founding Salesforce.com and Evernote in to promote peace and stability,” A container ship crosses under the iconic Golden Gate Bridge in San Francisco Bay. Every year, an estimated 1.24 have prospered between Japan ley, has attracted the attention of the company, we identified Japan has heightened interest said Watanabe. million metric tons of cargo passes through the Port of San Francisco. and the state’s agriculture sector, of tech-savvy Japanese for the California rice has been the most new way it is doing business and notable success. developing a new breed of com- In the last 20 years, Califor- panies dominating the digital nia has grown from a provider of economy. A new breed of American firms in center of renewed enthusiasm toward Japan bulk commodity rice to an ex- “Many Japanese political porter of high quality short– and leaders and companies are very medium-grain Japonica varieties interested in looking at Northern Since the 1980’s, Japanese in- expansion plans. But, there re- stories, other U.S. companies President of Marketing and This renewed enthusiasm in Airlines for selected trans-Pacific not only to Japan, but also the California and the Bay Area vestment in the United States has main some American firms that have been inspired to duplicate Product Management of Nutanix, doing business in Japan has been routes has increased capacity and rest of the world. specifically for innovation,” said climbed consistently. According firmly believe in the wisdom of those experiences. a developer of state-of-the-art infectious among new American coverage of the two airlines. “About half of the annual Consul General of Japan in San to a 2013 report by the Bureau entering the Japanese market, “Japan is a great entry infrastructure specifically for companies. That combination of opportu- rice harvested in California Francisco Masato Watanabe. of Economic Analysis of the U.S. particularly those from the tech- point for us into Asia Pacific business data centers. “Japan is the most important nity and accessibility has created is exported and Japan is, and Whether it is in information Department of Commerce, for- nology sector. because of the sophistication So, a new breed of American geographical region for our the optimum conditions for both has been, our largest export and communications technology, eign direct investment from Japan Yahoo!, Evernote and Sales- of technology within its culture. corporate leaders has made a expansion in 2014. We are Japanese and American compa- market for decades. Japan takes biotechnology, clean technology reached $308.3 billion the previ- force.com are among those That environment allowed us strong push toward gaining a bet- taking a deliberate approach nies to develop their businesses about 25 percent of our total or regenerative medicine, Ameri- ous year, making the Asian coun- American companies that have to find high quality partners that ter understanding of the intrica- into the Japanese market,” said overseas. crop every year, which is very can and Japanese companies are try the second–largest source of overseen success in entering Ja- understood the value of our cies and nuances of doing busi- Giacomo Marini, President and Whether it be in venture consistent,” explained California identifying new industries where- FDI. pan. product right away,” explained ness in Japan. Chief Executive Officer of Neato capital, consultancy or food, Rice Commission President Tim in they can collaborate. On the other hand, the United “From the beginning, Evernote Livescribe Chief Executive Officer “About five or 10 years ago, Robotics, a maker of smart California-based firms such as Johnson. “The Bay Area presents many States has been the largest con- and its leaders had a genuine Gilles Bouchard, whose company most U.S. businesses going to household cleaning robots. SunBridge Partners, AZCA Inc., As California’s agricultural ex- new areas of business oppor- tributor of FDI in Japan. That same love for Japan, one of the reasons designs and manufactures Japan that we took care of were The interest in Japan has Scrum Ventures, Turnstone ports to Japan grew, so did its tunities for the Japanese to get report states that American FDI for our success. (Japan) is a big “smartpens.” mostly online services or software extended beyond the IT Ventures, Cross Cultural understanding of the high stan- involved in. If we can promote a rose to $134 billion in 2012, an source of innovators and talent, Livescribe’s smartpens are able or mobile apps. Now, things have companies. Efforts by the Communications, RedBay dards set by the Japanese mar- model here for future American- increase of 6.3 percent from the and we have developed win- to convert handwritten notes and shifted toward business models Japanese government to ease Consulting and Sugimura ket. This has resulted in the con- Japanese business collaboration, previous year. win relationships with our local recorded audio files into digital that never existed in Japan,” said regulatory barriers into the Intellectual Property Services sistent improvement in quality then that would contribute to With the rise of China the past partners,” said Evernote Japan format that is accessible through Brandon K. Hill, Chief Executive Japanese market have ignited have seen positive results in their from the American side. strengthening ties between both 20 years, many companies seem Chairman Hitoshi Hokamura. various devices. Officer of btrax, Inc. an integrated excitement in the medical trans-Pacific business. “I have seen the influence of countries,” stressed Watanabe. to overlook Japan in their Asian In the wake of those success Given how discriminating the marketing services firm that help technology industry also. “We have tremendous the Japanese consumer on our While innovation is the new typical Japanese consumer is, only American companies set up op- Based in Northern California, opportunity to bring American industry being very pervasive. buzzword used to characterize the most-innovative American erations in Japan. medical device makers Spiracur, companies to Japan. It is my Rice mills in California have the Silicon Valley, many have not tech products have a chance of “If you look at the examples Vital Connect and Proteus Digital honor and enjoyment to ability to mill to the highest stan- forgotten that Japan was once making a significant impact on the of Airbnb, Square or Uber, those Health have embarked on plans see American and Japanese dards of Japanese quality. Califor- the center of state-of-the-art market. companies provide services that to offer their unique products to companies succeed,” said nia rice mills use Japanese equip- technology in the late 20th cen- “You cannot get away with never existed in Japan. U.S. busi- Japanese patients. philanthropist Nobuko Saito ment, handling technology and tury. In certain areas, albeit in mediocre service especially nesses used to simply provide With business between North- Cleary, who is also Chief taste machines for rice. The Japa- more traditional industries like in in Japan, where it is very better services than those that al- ern California and Japan predicted Executive Officer and President nese consumer has influenced manufacturing and electronics, sophisticated with fast moving ready existed in Japan. But today, to rise in the longterm, Japan’s All- of consultancy firm Cross- our industry and allowed us to Japan still is. businesses. It is great for us to more innovative services are get- Nippon Airways began to operate Cultural Communications. harvest rice to a gold standard of Several Japanese companies, be exposed to that because ting to the market,” Hill added. two routes to and from the Bay The thriving business between quality,” stressed Johnson. including Sony, Toshiba, of the influences it has on As innovation takes center Area, with flights from either San both countries has also facilitated With that strong commitment Hitachi, Canon, Toyota, Nissan our companies,” said Leslie stage, many U.S. companies have Francisco or San Jose. notable cultural and charitable ex- to meet the demands of each and Honda, still retain their Stretch, Chief Executive Officer looked toward Japan as an excel- “When we started operations changes. Saito Cleary is also chair- other’s market, businesses have dominance in their industries and of CallidusCloud, a leading lent expansion location. back in 1998, our passengers were person of Japanese Programs of identified other investment op- enjoy very high brand awareness. provider of sales and marketing “Japan is the market we are 98 percent Japanese. Today, we the Community School of Music portunities that capitalize on While competition from effectiveness software. investing most heavily in outside see that ratio divided 50-50,” said and Arts in Mountain View Cali- their own strengths and exper- other parts of Asia has emerged, A fellow American technology of the United States. It is possible ANA San Francisco and San Jose fornia, where she hosted former tise. Japan’s reputation for innovation entrepreneur believes in agility for American companies to be Office Sales Director Hiro Yama- first lady of Japan Kayoko Hoso- “I think science and technology remains intact. and flexibility. extremely successful in Japan if da. kawa during a special concert that are areas where we have huge “From a technology perspec- “Success in Japan requires they dedicate themselves to the On a larger scale, the Japanese featured musicians with autism common interests. There are tive, Japan is still the No. 1 coun- localizing our product to task, and approach the market carrier has also positioned itself from both countries. many opportunities for us to as- try in the region when it comes Association Travel SF that market. We made that in an appropriate way,” pointed to service the expanding passen- Clearly, the growth of business sure each other that we will keep to setting the gold standard,” said Reflecting the long-standing relationship between Japan and the United investment early, and that has out Dan Levin, Chief Operating ger traffic between the Americas between Northern California and our markets open and provide Nadeem Sheikh, Vice President States, Japantown in San Francisco is the oldest such enclave to exist in the accounted for our success in Officer of Box, a cloud-based and Asia. A successful joint ven- Japan is showing no sign of slow- the protection we want for our and Managing Director for Asia country. Today, ties remain strong on the cultural and business aspects. Japan,” said Howard Ting, Vice storage and platform provider. ture with American carrier United ing down.

California Rice builds on strong connection with Japan

Contributing more than $5 for the safest product. On the Fujitsu stays on top of the game billion and more than 25,000 quality side, we are the best,” jobs, California’s rice industry Mathews added. is an established and valuable Having established a steady Before the original tech believes it is vital for FSA to be component of the state’s econ- relationship over the past two boom of the 1990s, Japan was in Silicon Valley. omy. decades, California rice growers a global hotbed for high-tech “In the Bay Area, there are In fact, nearly half of its an- have expressed hope that busi- innovation. Japanese compa- very many venture capitalists, nual production of Japonica- ness ties will further expand in nies impressed the world with lawyers, incubation centers, style rice (a sticky variety very the Japanese market. highly coveted electronic prod- universities and other factors popular in Asia) goes abroad, “It may be a challenging topic ucts and gadgets. that support start-up compa- with Japan being the biggest but what we would like to see Wi t h t h e r i s e of nies. Being located at the heart customer. is access to the consumer in Ja- Silicon Valley, Japanese of innovation, we have access California rice growers have pan. Access to the actual store leaders, including Fujitsu to all those resources that are attributed their exacting stan- shelf has been very slow. But Semiconductor America, determining the future of the dards for quality and product we fully understand that these adapted swiftly to the changing market,” Yamaguchi said. safety to their long-standing things take time. Our goal is California Rice Commission demands and landscape of the Doubling as a marketing and relationship with the Japanese not to disrupt the rice farming Charley Mathews Jr., a fifth-generation California rice grower industry. sales branch for the Fujitsu par- rice industry. system in Japan, but only to From its headquarters in ent company in Japan, FSA “The Japanese market has the augment the available choices Sunnyvale, FSA provides in- succeeds in the United States highest standards. We have to for the consumers out there,” dustry-leading semiconductor because of the local knowl- go through lots of testing and Mathews stressed. products, integrating hardware edge provided by its workforce, quality sampling just to get our “We are not a competitor of and software to create intel- which is 85 percent American. rice to Japan. That has brought Japan and its rice farmers. This ligent, cost-effective platforms “The more innovation that the California rice industry to is about a relationship we have that reduce the development comes out of America, the a higher level,” explained fifth- spent decades developing. Our time for advanced, environ- more important Fujitsu be- generation rice grower Charley high standards and quality are mentally friendly solutions re- comes. America is Fujitsu Mathews Jr., also a former a by-product of that relation- quired in the global consumer, Semiconductor’s most impor- chairman of the California Rice ship. As we move forward, we communications, automotive tant market, so we are definite- Commission. recognize that our relationship and industrial markets. ly committed to the U.S. and “There are very few locations with Japan is the most impor- These include imaging, our customers here,” Yamagu- in the world that can match our tant and we always make sure graphics, memory and other chi said.

Fujitsu quality, our variety and our food that all our commitments are products. → www.fujitsu.com/us/ safety. This gives us a signifi- fulfilled. Japan is the main focus Fujitsu Semiconductor America President Satoru Yamaguchi President Satoru Yamaguchi semiconductors cant advantage, especially in Ja- for California rice,” he added. California Rice Commission pan where the consumer looks → www.calrice.org California rice contributes billions of dollars to the state's economy. NORTHERN CALIFORNIA An early focus on Japan pays off Silicon Image sets standard for mobile

Driven by Silicon Valley’s technology, Marvell enables our competitive advantage ethos of innovation, Marvell high-performance, low-power technologies to the storage and consumer electronics connectivity Semiconductor ventured into and cost-effective storage and device business, we became uncharted areas of silicon communication solutions. today’s market leader,” said technology and semiconductor “When we started in 1995, Chief Executive Officer and Co- devices for the communication we had zero percent market Founder Dr. Sehat Sutardja. For nearly 20 years, Silicon and storage markets. By share, but we have a 60 percent When Marvell was established Image has set the benchmark for using conventional digital market share now. By applying almost 20 years ago, it quickly delivering connectivity solutions focused on Japan, a decision that across a wide array of devices in Japan has always positively impacted the com- the home, office and on the go. pany significantly and eventually The company led the creation been an advanced catapulted Marvell to the top if of the highly successful DVI™, HDMI® and MHL® standards, and “ its segment. Today, Marvell is a technology partner global leader in providing com- more recently became a driving plete silicon solutions from stor- force behind the 60GHz Wire- ® age to mobile communications, lessHD standard. for us, pushing the Internet of Things (IoT), cloud Chances are, your mobile infrastructure, digital entertain- phone, tablet, DTV or note- limits of technology ment and in-home content de- book PC all include Silicon Im- age’s technology. The majority of

livery. Marvell “We owe our success in this global brands in the mobile, con- innovations to business to our Japanese friends. Marvell Semiconductor Chief sumer electronics and PC mar- Executive Officer and Co-Founder kets include either the company’s Today, we are a much larger Dr. Sehat Sutardja drive richer product

company and we have signifi- semiconductor products or intel- cantly improved our technology Reaping the benefits of an ear- lectual property to let these de- features ultimately

because of Japan. We would love ly focus on Japan, Marvell looks vices connect and interact with to engage with more customers forward to more collaboration in each other. Marvell in Japan now and in the years to that very tech–savvy market. In marketing Silicon Image’s providing a “ Marvell Semiconductor headquarters in Silicon Valley come,” said Sutardja. →www.marvell.com connectivity products, Chief Executive Officer Camillo better consumer Martino continues to develop partnerships in Japan and establish relationships that experience. have greatly contributed to the Silicon Image The express lane to U.S. and Japanese markets company’s success. Silicon Image Chief Executive Officer Camillo Martino “Our typical model has been Sitting on about 4,200 acres the development of support We have invested and continue to form a founding group with of land, the Port of Stockton infrastructure for related busi- to invest, whether it is on the industry leading companies and specification, the digital inter- ing the limits of technology in- nine of the top ten DTV brands. has served as the main gate- ness, such as a biomass plant ship channel, the rail systems, work together to develop the face technology that can now be novations to drive richer product The MHL technology standard, way to California’s Central Val- that supplies energy to the or our marine highway barge best technology for a given mar- found in over four billion prod- features ultimately providing a launched in 2010, is now in more ley and several areas outside port. services. We have a lot of great ket application. From there, we ucts worldwide. better consumer experience. than half a billion products across California. Since it opened 80 The board also recently ap- logistics synergies all coming continue our collaboration with Hitachi, Panasonic, Sony and This is why Japan is very impor- the globe. years ago, the port has capital- proved a contract for a major together right here in the Cen- the top industry leaders and Toshiba joined Silicon Image in tant to Silicon Image and why we For 2014, the company hopes ized on its relationship with rice American railroad operator to tral Valley and away from areas partners who can truly make the developing the HDMI specifica- will continue to work on building to see Japan account for 25 per- growers in northern California operate train lines in and out that have really been hit hard technology a worldwide stan- tion, in addition to Philips and long-term, mutually beneficial cent of total business revenue, to consolidate its growth. of the port. With the import of by congestion” said Aschieris. dard. Japanese companies have Technicolor S.A. (formerly Thom- strategic relationships with our driven by continuing advance- “Our relationship with Japan Japanese-made steel expect- “I cannot tell you enough played a very important role in son S.A.). Japanese customers for many ments in its HDMI, MHL and goes back many decades. Japan ed surge this year, the Port of how important Japan really is that process,” said Martino. “Our customers in Japan were years to come.” 60GHz solutions. Martino points is very important to us. We Stockton in positioning itself as to the success of the Port of The Sunnyvale, California- amongst the first to adopt HDMI Following the creation of out that Japan is critical to Sili- actually maintain an overseas an efficient and cost-effective Stockton. Companies in Japan based company, founded in technology in their products HDMI, Silicon Image was joined con Image’s model for growth representative in Tokyo,” said option to other ports, which have enjoyed personal and 1995, made its first foray into the and helped pave the way for the by Sony, Toshiba, Samsung worldwide, as Japan is recognized Director Richard Aschieris. have grown more congested in quick service. We have very industry standards business with worldwide adoption of the HDMI and Nokia to develop MHL, the globally for its early adoption of As business shows signs of the past few years. good attention to detail, which the creation of DVI in 1999, fol- standard,” said Martino. “Japan mobile connectivity standard the latest technology innovations further improvement, the pri- “We are very conscious is appreciated in Japan. We rec- lowed in 2002 by the creation has always been an advanced now found in four of the top and standards. vate sector has recognized the about the quality of service at ognize the value of the Japa- of the highly successful HDMI technology partner for us, push- five smartphone brands and in →www.siliconimage.com huge potential of the port. It our facilities. We have these nese market to us and are open has orchestrated $2.3 billion great transportation assets to expanding our business rela- of Stockton Port worth of projects, including the that are really good for reach- tionship with Japan” he added. Port of Stockton Director Richard expansion of port facilities, and ing into the rest of the country. →www.portofstockton.com Aschieris At the global core of innovation Creating successful U.S.-Japan Empowering employees, Around the world, Silicon petition, but market transfor- Valley has become synony- mations that make them lose medical device partnerships mous with innovation and sleep. And many transforma- powering projects transformation. Located in the tions are happening here. Sili- world’s hotbed of high tech- con Valley creates new para- Based in Menlo Park, Cali- Clarizen has unveiled a game- nology, Renesas Electronics digms, whereas other regions fornia, Synergy Ventures has America Inc. has played an are more focused on inventing brought together pioneering changing solution to project management. Based on its ro- essential part in the Japanese new solutions,” he also said. medical technology companies parent company’s initiative to Renesas Electronics America in the United States and Japa- bust growth around the world, the San Mateo-based company grow globally. has also fully capitalized on the nese corporations and investors “Our company is going huge talent pool in the area. for nearly two decades. “Our company is called Syner- has attracted a host of early adopters in only nine years. through a transformation pro- “Hiring Silicon Valley talent Led by founders Allan gy because we value the impor- cess and as part of this pro- allows us to take part in the in- Johnston and Robert Okun, tance of blending the strengths Developed mainly to raise productivity and profitability, cess, we are first and fore- novation cycle. We also benefit Synergy has fostered more than of all sides. This is the best for- most transitioning from being from very rich software eco- 30 Japan-U.S. medical device mula for success when col- Clarizen’s software can be found powering projects within more Japan-centric to being global. systems that are redefining our relationships and has been laboration takes place between Compared to other overseas economy. When you look at involved in transactions totaling the U.S. and Japan. It has to be than 2,500 organizations in 76 countries across the globe, in- headquartered companies op- the new apps economy, it was over $700 million — including a win–win situation,” Okun ex- erating in the Americas, we can invented and is being nurtured Synergy Fund investments and plained. cluding more than a quarter of Fortune 500 companies. say that we are one of, if not here,” Sebt said. Japan partnerships. “We strive to establish long- the most global company out “All of this is being accom- “By understanding the needs term success for each side. This “There are three micro- trends happening in the market here,” said President and Chief plished based on the acknowl- of both sides, we help establish philosophy is critical to our suc- Executive Officer Ali Sebt. edgment that we now live in a Renesas long-term mutually beneficial cess in corporate deals and Syn- right now supporting Clarizen’s Clarizen growth. The first trend is that “Many CEOs in Silicon Val- borderless society,” he added.. Renesas Electronics America Inc. President and Chief Executive Officer relationships in Japan,” said Dr. ergy’s venture funds, and we’re Clarizen Chief Executive Officer ley will say that it is not com- → http://am.renesas.com Ali Sebt Johnston. continuing this mission in the enterprises have moved to using Avinoam Nowogrodski This ability to understand the Synergy Ventures III fund, with cloud computing. The second needs of investors and the acuity a select group of forward think- trend is social networking for ning Clarizen has experienced to form strong connections with ing Japan corporate investors,” he enterprises. We see a lot of huge success and is close to fi- partners comprise the compa- added. promise in this area because nalizing joint ventures with sev- ny’s prescription for success. →www.synergyventures.net we are basically bringing a new eral companies in the country. type of collaboration for the “We have partnerships in Sin- workplace that drives results,” gapore and other countries in the explained Chief Executive Asia Pacific. However, our current Officer Avinoam Nowogrodski. partnerships and potential part- Skylark Group taps Applied Predictive “Thirdly, we are also in the era nerships in Japan are the most of user empowerment, wherein essential to Clarizen’s future,” No- users have a voice in the compa- wogrodski stressed. Technologies’ advanced software ny. We provide a platform where → www.clarizen.com employees can collaborate to- American-owned Applied gether with coworkers and truly Predictive Technologies, the be impactful for the company,” world’s largest purely cloud- Nowogrodski added. based predictive analytics In Japan, where the ethos of software company, announced kaizen (continuous improvement) in April that the Skylark Group is deeply ingrained, award-win- has licensed APT’s Test & Learn software. Skylark will be using the soft- ware to test a variety of critical business issues, including pro- motions, pricing, chirashi (news- paper inserts) and remodels to program to maximize profitabil- accurately measure the impact ity. of such initiatives and target pro- Headed by Chief Executive gram rollouts. Officer Anthony Bruce, APT cur- An advanced test manage- rently works with more than 100 ment solution, APT’s Text & Learn companies across the globe, software helps organizations ef- including Walmart, Starbucks, ficiently design and execute tests Procter & Gamble, Subway and to analyze a variety of programs. Hilton Hotels. It also allows them to accurately With offices on the East and understand the profit impact of West coasts of the United States, new programs, identify which APT also has regional offices in areas or customers respond best Taipei, Tokyo and London. and fine-tune elements of the →www.predictivetechnologies.com