Monday, March 31, 2025

The East Ascendant: How Faster Internet and AI are Reshaping Global Technology Leadership

Startup Lessons Special Report

The Dawn of a New Technological Era

The global technological landscape is undergoing a profound transformation, propelled by the synergistic forces of increasingly rapid internet connectivity and the pervasive integration of Artificial Intelligence (AI). This convergence is particularly evident in the dynamic economies of the East, where technological advancements are occurring at an unprecedented pace, challenging traditional paradigms of innovation and influence. Nations like India, China, Japan, and South Korea are not merely adopting existing technologies but are rapidly advancing and adapting them, signaling a potential shift in the global balance of technological leadership. This report will delve into the evolution of internet infrastructure in these key Eastern economies, analyze the accelerating impact of AI, examine instances of rapid technological adoption and improvement, explore expert perspectives on this potential power shift, and discuss the implications for startups and global competition in this new era. The confluence of improved digital infrastructure and readily accessible advanced technologies is creating an environment ripe for swift innovation and intense competition, especially within the East. Faster internet access facilitates quicker retrieval of information, promotes global research collaborations, and accelerates the dissemination of knowledge. Simultaneously, AI offers potent tools for data analysis, product development, and process automation. The combination of these factors dramatically shortens innovation cycles, enabling faster prototyping, testing, and deployment of novel technologies, a trend particularly pronounced in regions with robust manufacturing capabilities and a large, digitally skilled populace. Furthermore, the historical pattern of technological innovation primarily flowing from West to East is being increasingly challenged. The rapid adoption and adaptation of technologies in the East, often characterized by greater speed and cost-efficiency compared to the West, indicate a growing capacity for independent innovation and the creation of solutions that could eventually shape Western markets. The emergence of companies like Deepseek serves as an early indicator of this potential reverse flow of technological influence.

Pexels: Photo by Zhang Kaiyv

The Foundation: Evolution of Internet Infrastructure in Key Eastern Economies

India: From Early Networks to the 5G Revolution

The story of internet infrastructure in India began in 1986 with the establishment of the Educational Research Network (ERNET) 1. Initially, access was limited to the educational and research community, and the network operated using both TCP/IP and OSI-IP protocols. A significant step was taken in 1991 with the installation of the first leased line between Delhi and Mumbai, operating at a speed of 9.6 kbit/s 1. By 1992, key institutions like the IITs and IISc Bangalore were connected, and a 64 kbit/s internet gateway link was established to the United States 1. In 1995, NICNet was created to facilitate communication among government institutions 1.

The first publicly available internet service in India was launched on August 15, 1995, by Videsh Sanchar Nigam Limited (VSNL), offering a speed of 9.6 kbit/s 1. For the subsequent decade, internet connectivity remained largely narrow-band, with dial-up speeds below 56 kbit/s 1. Integrated Services Digital Network (ISDN) access was introduced in 1997 1. Progress was initially slow due to factors such as stringent government policies, financial limitations, and insufficient infrastructure 2.

A turning point arrived in 2004 when the government formulated its broadband policy, defining it as an "always-on Internet connection with a download speed of 256 kbit/s or above" 1. While the broadband sector experienced accelerated growth after 2005, challenges persisted in last-mile access, which primarily relied on wired-line technologies 1. To overcome these limitations and enhance internet speed, the government shifted focus towards wireless mobile broadband in 2010, initiating the auctioning of 3G spectrum, followed by 4G spectrum auctions 1. In 2013, the minimum broadband speed was set at 512 Kbps, which was further increased to 2 Mbps in 2023 1. The launch of the PM-WANI (Prime Minister Wi-Fi Access Network Interface) policy in 2020 aimed to expand internet connectivity, particularly in rural areas, through the establishment of public Wi-Fi hotspots 1.

Since 2023, the rollout of 5G technology has been a major driver of internet speed in India, with ongoing efforts towards 6G innovation spearheaded by the indigenous Bharat 6G Alliance (B6GA) 1. As of September 2023, fiber (87.03%) was the dominant wired internet access technology, followed by Ethernet/LAN (7.54%) and DSL (2.86%). In the wireless domain, LTE held the largest share (82.9%), with 5G at 11.3%. By February 2024, India's internet was primarily supported by 17 undersea fiber cables, with additional cables connecting the Andaman and Nicobar and Lakshadweep archipelagos. The average monthly data consumption per user reached 20.27GB as of March 2024, a dramatic increase from just 0.27GB in 2014-15, representing a compound annual growth rate (CAGR) of 54% 4. This surge has been fueled by affordable data plans and the widespread adoption of smartphones, with over 650 million smartphone users in India as of mid-2024 3. The internet subscriber base now stands at 954.4 million, with a tele-density of 85.7% 4. This rapid expansion of internet access and bandwidth availability in India over the past decade, particularly driven by affordable mobile data and wireless technologies, provides a robust foundation for the country to effectively leverage AI and other advanced technologies. The remarkable growth in data consumption and the sheer number of internet users indicate a significant appetite and potential for the adoption of AI-powered applications and services across various sectors.

China: Building a Digital Powerhouse with Extensive Broadband and Mobile Connectivity

China's journey into the global cyberspace began with an email in September 1987, though a permanent internet connection was established on April 20, 1994 5. Initially, internet usage was heavily concentrated in urban areas, with less than 0.2% of the rural population having access by 2003 5. Recognizing this digital divide, the Ministry of Industry and Information Technology launched the "Connecting Every Village Project" in 2004, which involved building approximately 90,000 rural telecenters equipped with telephones, computers, and internet connectivity by 2011 5. This initiative significantly expanded internet access in rural regions, reaching 89% of administrative villages by 2011 5.

A significant milestone was reached in 2011 when China surpassed the United States in terms of installed telecommunication bandwidth 5. By 2014, China hosted more than double the national bandwidth potential of the U.S5.. To further enhance its digital infrastructure, China implemented a National Broadband Strategy in 2013, focusing on increasing the speed, quality, and adoption of broadband and 4G networks 5. This strategy yielded impressive results, with 96% of administrative villages having fiber optic networks and 95% having 4G networks by 2018 5. The affordability of mobile phones and internet data in China led to a rapid surge in mobile internet users, surpassing the number of computer internet users. By 2013, 500 million individuals were accessing the internet via their mobile phones 5. In 2015, the State Council introduced the "Internet Plus" initiative, a five-year plan aimed at integrating traditional manufacturing and service industries with big data, cloud computing, and the Internet of Things 5. China has also set ambitious goals for satellite internet, with the National Development and Reform Commission proposing its inclusion as part of the national infrastructure in April 2020 5. Several major cities have since proposed regional action plans to support the development of a domestic satellite internet constellation to serve rural areas 5.

As of December 2024, China had a staggering 1.1 billion internet users, representing a 78.6% internet penetration rate 5. The country boasts the world's largest internet infrastructure, equipped with advanced technologies, which is fueling the rapid growth of its digital economy 8. While the online access routes are owned by the Chinese government, private enterprises and individuals can lease bandwidth from the state 5. Key players in providing internet services include China Telecom, China Unicom, and China Mobile 5. China's internet infrastructure development has been characterized by strong governmental direction and substantial investment, resulting in a leading global position in terms of bandwidth capacity and the sheer number of internet users. This massive digital infrastructure provides a powerful platform for the widespread adoption and advancement of AI technologies across various sectors of the Chinese economy.

Japan: Pioneering Mobile Internet and Embracing Fiber Optics

The internet's arrival in Japan can be traced back to September 1984, when Jun Murai connected Keio University and the Tokyo Institute of Technology using a 300 bit/s line over a telephone line 9. In October of the same year, the University of Tokyo was connected, leading to the expansion of JUNET, which became the foundation of the internet in Japan 9. Initially, Nippon Telegraph and Telephone (NTT) envisioned a gradual progression from dial-up (56 kbit/s) and ISDN (64 kbit/s) to fiber to the premises (FTTP) 9. However, in the late 1990s, cable television operators began offering cable broadband services, though their adoption was limited by high initial costs and the availability of cheaper alternatives 9.

A pivotal moment in Japan's internet history occurred in 1999 when NTT DoCoMo launched iMode, the world's first large-scale mobile internet service 9. This innovation sparked significant public interest in the internet, with many Japanese users initially accessing it through mobile devices rather than personal computers 9. Also in 1999, Asymmetric Digital Subscriber Line (ADSL) services were introduced by Tokyo Metallic, followed by NTT and other companies 9. In 2001, SoftBank entered the market with a competitively priced 12 Mbit/s ADSL service, triggering a price war and accelerating the adoption of broadband services 9. By 2004, Japan was recognized for having the best cost-to-performance ADSL service globally 9.

Concurrently, NTT and electric power companies expanded their FTTP coverage 9. By 2005, Kansai Electric Power launched a 1 Gbit/s FTTH service 9. The widespread adoption of FTTH in Japan is attributed to government policies mandating local loop unbundling of NTT and low connection charges for new Internet Service Providers (ISPs), fostering a competitive market 9. Softbank emerged as the largest DSL operator by 2003 9. By March 2005, DSL had over 13.6 million subscribers, while FTTH was gaining momentum 9. Japan's approach to optical fiber deployment often involves shared lattice towers, which helps reduce costs and enhances resilience to earthquakes 9. Japan boasts a high internet penetration rate, with 91.3% of the population using the internet as of January 2020 9. The development rate of optical fiber in Japan is remarkably high at 99.3% 12. While Japan faced some initial bureaucratic hurdles in the development of its internet economy 11, it has successfully established a highly advanced and competitive broadband market, characterized by early mobile internet innovation and a strong commitment to fiber optic infrastructure. This robust infrastructure provides a solid foundation for leveraging AI and other data-intensive technologies.

South Korea: Leading the World in Internet Speed and Broadband Penetration

South Korea stands out as a global leader in internet infrastructure, with its journey beginning in 1982 with a national program focused on the rapid expansion and utilization of broadband 13. The country has consistently held the top position in the UN ICT Development Index since its inception 14. South Korea has the highest number of DSL connections per capita worldwide 14. While ADSL was the standard, VDSL adoption has grown rapidly, offering even faster speeds 14. ADSL typically provided speeds of 3 Mbit/s to 8 Mbit/s, with VDSL offering significantly higher speeds 14. The prevalence of apartment buildings in South Korea has facilitated the spread of DSL, along with a high penetration of consumer electronics 14. Many apartment complexes in metropolitan areas like Seoul and Incheon boasted speeds of up to 100 Mbit/s 14.

Kilnam Chon played a pivotal role in introducing the internet to South Korea, initiating a network development project in 1982 14. The first internet message from South Korea to the world was sent by Hyunje Park in 1990, marking the country's connection to the global network 14. The South Korean government has actively supported the internet, recognizing its importance to the nation's progress 14. Seoul has even been dubbed "the bandwidth capital of the world" 14. As of July 25, 2024, South Korea ranked 6th globally for mobile internet speed (139 Mbit/s) and 31st for broadband speed (150 Mbit/s) 14. The country has a remarkably high smartphone ownership rate of 97.6%, the highest in the world 14. Major Internet Service Providers (ISPs) include KT Corporation, SK Broadband, and LG Uplus, which provide broadband services and operate internet data centers in Seoul 14. South Korea's commitment to technological advancement is further demonstrated by the rapid adoption of 5G technology, with a significant 19.3% increase in usage compared to the previous year 17. The presence of multiple Internet Exchange Points (IXPs) underscores the economy's dedication to fostering a robust and resilient internet ecosystem 17. South Korea's proactive government support and early investment in broadband infrastructure have resulted in its position as a global leader in internet speed and penetration. This ultra-fast connectivity provides a substantial advantage for the development and deployment of data-intensive technologies like AI.

The Catalytic Impact of Increased Bandwidth on Information Flow and Technological Absorption

Bandwidth, in the context of computer networks, refers to the data transfer capacity of a network, essentially determining how much information can be transmitted over the internet within a specific timeframe 18. It can be likened to the number of lanes on a highway; a wider highway (higher bandwidth) allows more vehicles (data) to travel simultaneously, resulting in faster speeds 21. Higher bandwidth enables faster downloads of files, smoother streaming of videos without buffering, and quicker loading of web pages 18. Conversely, limited bandwidth can lead to a congested and sluggish online experience 18. The impact of bandwidth on streaming quality is critical, as higher bandwidth ensures smoother, high-definition content delivery with minimal interruptions 18. In online gaming, higher bandwidth reduces lag, making the experience more responsive, while low bandwidth can cause frustrating delays 18. Similarly, for video calls, adequate bandwidth is essential for clear video and audio, reducing the likelihood of freezing or dropped calls 18.

The significant investments in expanding internet bandwidth across India, China, Japan, and South Korea have fundamentally altered their capacity to access, process, and utilize information. This enhanced capacity directly accelerates the rate at which these economies can adopt and build upon existing technologies. Higher bandwidth facilitates quicker access to global research, large datasets required for AI training, and the latest software developments. It also improves collaboration among researchers and developers, enables seamless remote work, and provides greater access to online learning resources, fostering a more skilled and knowledgeable workforce. The ability to rapidly transfer large volumes of data is crucial for keeping pace with the latest technological advancements and for developing and deploying bandwidth-intensive applications, including many powered by AI. Furthermore, the reduced latency often associated with high-bandwidth connections enables real-time interactions and access to cloud-based resources, further streamlining the technology adoption process. The transformation in internet infrastructure in these Eastern economies has thus created a powerful engine for technological advancement, allowing them to move from being primarily consumers of technology to becoming significant innovators and contributors on the global stage.


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The AI Infusion: Fueling Rapid Technological Advancement

The rapid technological advancement in Eastern economies is significantly fueled by the widespread availability of AI tools, open-source platforms, and freely accessible research papers. This democratization of AI is lowering the barrier to entry for AI development in the East, allowing a broader range of organizations and individuals to participate in its advancement and application. Open-source AI frameworks like TensorFlow and PyTorch provide powerful tools that can be used and modified without significant upfront costs. Additionally, the increasing number of publicly available AI research papers and pre-trained models allows developers in the East to build upon existing work rather than starting from scratch, accelerating the development cycle. Online learning platforms and global knowledge-sharing initiatives play a crucial role in upskilling talent in AI across these economies. Platforms like Coursera, edX, and Udacity offer specialized courses and certifications in AI and machine learning, enabling individuals to acquire the necessary skills to contribute to this rapidly growing field. This accessibility to learning resources is fostering a large pool of AI talent in the East. Eastern companies are effectively leveraging these readily available AI models and frameworks to rapidly prototype and deploy AI-powered solutions across various industries. The ability to quickly experiment and iterate with AI technologies allows them to address specific local market needs and develop innovative products and services at a faster pace. For instance, in China, there is a high level of awareness and adoption of generative AI products, with at least 331 million people aware of them and 249 million having used them for tasks like answering questions and office assistance 8. This widespread familiarity and usage indicate a fertile ground for further AI innovation and application. The democratization of AI, driven by open-source initiatives and accessible learning resources, is indeed empowering Eastern economies to rapidly build expertise and integrate AI across diverse sectors, fostering a new wave of technological innovation.

Eastward Innovation: Case Studies of Accelerated Adoption and Improvement

Beyond Deepseek, numerous companies in Eastern economies have demonstrated a remarkable ability to rapidly adopt and improve upon Western technological advancements, particularly in critical areas like AI, software development, and hardware manufacturing. In China, Baidu has made significant strides in AI, particularly in search engine technology and the development of autonomous driving systems. Tencent has integrated AI extensively into its gaming and social media platforms, enhancing user experiences and creating new functionalities. Alibaba has leveraged AI to optimize its vast e-commerce operations and develop advanced cloud computing services. These companies have not only adopted Western AI concepts but have also innovated and adapted them to the unique characteristics of the Chinese market, often achieving scale and impact that rivals or surpasses their Western counterparts. In the realm of software development, India's IT services sector has witnessed phenomenal growth, evolving from providing basic outsourcing services to developing sophisticated mobile applications, enterprise software, and cutting-edge solutions for global clients. Indian companies have embraced agile methodologies and leveraged their large pool of skilled engineers to deliver cost-effective and high-quality software solutions, often improving upon existing Western software paradigms. In hardware manufacturing, the dominance of Taiwanese companies like TSMC in semiconductor manufacturing is well-established. South Korean giants like Samsung and LG have become global leaders in smartphone technology, consistently pushing the boundaries of innovation in display technology, camera systems, and processing power, often setting new industry standards that Western companies strive to match. Similarly, Chinese companies like Huawei and Xiaomi have rapidly advanced in smartphone technology, offering high-performance devices at competitive prices and gaining significant market share globally. The speed and cost-effectiveness of these Eastern companies' development processes can be attributed to factors such as agile methodologies, access to large and skilled talent pools, efficient supply chains, and a strong focus on rapid iteration and market responsiveness. This ability to quickly adapt, improve, and scale technologies has been instrumental in their rise as significant players in the global technology landscape.

Expert Perspectives: The Shifting Global Technology Paradigm

Many technology analysts and industry experts are increasingly recognizing the potential for a significant shift in global technological leadership from West to East. This perspective is supported by several key factors observed in the rapid technological advancements and infrastructure development within Eastern economies. The speed of innovation and adoption in the East is often cited as a crucial advantage. Countries like China and South Korea have demonstrated an impressive ability to rapidly implement new technologies and scale them quickly across their large populations. This agility is often facilitated by strong government support and strategic initiatives that prioritize technological development. The cost-effectiveness of development and manufacturing in the East, particularly in countries like India and China, provides a significant competitive edge. Access to large pools of skilled labor at competitive rates allows Eastern companies to develop and produce high-quality technological products and services at lower costs compared to their Western counterparts. The sheer market scale and growth potential of Eastern economies, especially India and China, offer a massive domestic market for new technologies. This large internal demand provides a strong foundation for local companies to innovate and scale before expanding globally. Furthermore, governments in many Eastern countries are actively promoting technological advancement through strategic policies, funding for research and development, and the creation of supportive ecosystems for startups. The growing talent pool and improving education systems in the East are also contributing to this shift. The increasing number of graduates in STEM fields and the focus on developing digital skills are creating a highly capable workforce that can drive future technological innovation. The observation that the internet in China has evolved from a "follower" to a "peer" and is becoming a "leader" 6 encapsulates this broader trend of Eastern economies moving beyond simply adopting Western technologies to becoming key drivers of global technological progress. While the West still holds advantages in certain areas, such as foundational research and established global brands, the rapid advancements in technology and infrastructure in the East, combined with their large and growing markets, strongly suggest a future where they play an increasingly dominant role in shaping the global technological landscape.

Democratization and Disruption: The Rise of Eastern Startups

The internet and the advent of AI have significantly democratized technology, effectively lowering the barriers to entry for startups not only in the East but globally. The widespread availability of cloud computing services, such as Amazon Web Services, Microsoft Azure, and Alibaba Cloud, has drastically reduced the initial capital investment required for startups. Instead of needing to purchase and maintain expensive hardware infrastructure, startups can now access computing power, storage, and networking resources on demand, paying only for what they use. Open-source software tools and libraries, particularly in areas like AI and software development, further reduce costs by providing free and customizable alternatives to proprietary software. Online platforms and marketplaces provide startups with access to a global customer base, eliminating the need for extensive physical distribution networks. The rise of AI has been particularly transformative for startups. Even small teams can now leverage sophisticated AI models and frameworks to develop powerful products and services that were previously only accessible to large corporations with significant resources. For example, a startup with a few developers can use pre-trained machine learning models to build applications for image recognition, natural language processing, or predictive analytics without needing to invest heavily in AI research and development. Startups in the East often possess a deep understanding of their local markets and cultural nuances, which they can leverage to create innovative solutions that are specifically tailored to the needs and preferences of their target customers. This localized approach can provide a significant competitive advantage over global players who may not have the same level of understanding of these specific market dynamics. The combination of readily available technology, reduced costs, and the ability to address specific market needs is creating a level playing field, allowing startups in the East to compete effectively with established players both domestically and internationally, driving innovation and disruption across various industries.

Navigating the Red Ocean: Competition in the Global Technology Market

The global technology market is characterized by increasing competition, fueled by the emergence of numerous startups and the rapid pace of technological innovation. This heightened competitive landscape presents both opportunities and challenges for startups from different regions. Startups from the East often possess key competitive advantages that allow them to effectively compete in this environment. One significant advantage is cost-effectiveness. Lower labor costs and efficient supply chains in many Eastern countries enable startups to develop and manufacture products and services at a more competitive price point compared to startups from the West. The speed of execution is another crucial advantage. Eastern startups are often known for their agility and ability to rapidly iterate and adapt to market feedback, allowing them to bring products to market quickly. Furthermore, a deep understanding of large local markets, particularly in India and China, provides Eastern startups with a significant advantage in catering to the specific needs and preferences of these vast consumer bases. Government support and strategic initiatives in many Eastern countries also provide a favorable environment for the growth of local startups. Conversely, startups from the East may face potential challenges in global branding and building trust in international markets, as well as navigating complex international regulations. Startups from the West, on the other hand, often benefit from established brand recognition, strong intellectual property rights protection, and mature innovation ecosystems in certain sectors. However, they may face disadvantages such as higher labor costs and potentially slower adoption of new technologies in some areas compared to the more digitally native populations in the East. The intense competition in the global technology market means that startups from both the East and the West need to constantly innovate and differentiate themselves to succeed. Eastern startups, with their advantages in cost-effectiveness, speed, and local market understanding, are well-positioned to challenge established players and gain significant market share on the global stage.

Charting New Waters: Blue Ocean Strategies in the East

In the face of an intensely competitive global technology market, adopting "blue ocean" strategies – creating new, uncontested market spaces – is becoming increasingly crucial for Eastern startups to achieve sustainable growth and avoid direct competition in "red ocean" scenarios dominated by established players. Instead of battling for market share in existing, well-defined markets, blue ocean strategies focus on identifying and creating entirely new market categories or significantly redefining existing ones. Eastern startups are demonstrating a propensity for this type of innovative thinking. For example, the emergence of mobile payment solutions like Alipay and WeChat Pay in China represents a successful blue ocean strategy. These platforms leapfrogged traditional banking infrastructure to create a ubiquitous mobile payment ecosystem that was largely unprecedented in the West at the time. These platforms not only facilitated payments but also integrated a wide range of other services, creating entirely new value propositions for users. Similarly, the development of unique social media platforms and entertainment apps in the East, often catering to specific cultural preferences and user behaviors, illustrates the creation of new market spaces that differ significantly from Western models. Eastern startups can leverage their deep understanding of local needs and emerging technologies to identify unmet customer needs or create entirely new ways of delivering value. This might involve combining existing technologies in novel ways, addressing underserved customer segments, or creating entirely new product or service categories. By focusing on creating new demand rather than competing for existing demand, Eastern startups can carve out uncontested market spaces where they can establish market leadership without facing the same level of direct competition from established players. This strategic approach is essential for long-term success in the hyper-competitive global technology market.

Conclusion: Reshaping the Future of Global Technology

The rapid advancements in internet infrastructure and the widespread adoption of AI in Eastern economies are not isolated regional trends but are collectively reshaping the global technology landscape. The significant investments in high-speed internet connectivity across India, China, Japan, and South Korea have created a robust foundation for the development and deployment of advanced technologies. Simultaneously, the democratization of AI is empowering individuals and organizations in the East to rapidly build expertise and apply AI across various industries. This has led to numerous examples of Eastern companies not only adopting but also improving upon Western technological advancements, often with greater speed and cost-effectiveness. Expert perspectives increasingly point towards a potential shift in global technological leadership, with the East positioned to play a more dominant role in the coming years due to factors like rapid innovation, cost-competitiveness, market scale, and strong government support. The democratization of technology is also leveling the playing field for startups in the East, allowing them to compete effectively with established players globally. In this increasingly competitive environment, the adoption of "blue ocean" strategies, focused on creating new market spaces, is crucial for Eastern startups to achieve sustainable growth. The convergence of faster internet and AI in the East is not just a regional phenomenon; it represents a fundamental shift in the global technology paradigm, leading to increased competition, the emergence of new centers of innovation, and a more multipolar technological world. This evolving landscape presents both significant opportunities and challenges for businesses, investors, and policymakers worldwide, requiring a dynamic and adaptive approach to navigate the future of global technology innovation and competition.

Valuable Tables:

Table A: Evolution of Internet Penetration and Speed in Key Eastern Economies

Country Year Internet Penetration Rate (%) Average Download Speed (Mbps)
India 1995 < 1 0.0096

2004 N/A 0.256 (Broadband Definition)

2013 N/A 0.512 (Minimum Broadband)

2024 85.7 (Subscribers) N/A
China 1997 < 1 N/A

2003 Urban: N/A, Rural: < 0.2 N/A

2013 45.8 N/A

2024 78.6 N/A
Japan 2000 31.1 N/A

2005 66.0 N/A

2010 78.2 N/A

2020 91.3 N/A
South Korea 2000 49.2 N/A

2005 74.0 N/A

2010 82.7 N/A

2024 97.0 150 (Broadband)

Note: Data for average download speeds was not consistently available across all snippets for all countries and years. Where available, it has been included. Penetration rates may be based on different metrics (e.g., households, individuals, subscribers) depending on the source.

Table B: Key AI Initiatives and Focus Areas in Eastern Economies

Country Key Government Initiatives/Policies related to AI Prominent Domestic AI Companies and their Focus Areas Examples of Rapid Adoption/Improvement of Western AI Technologies
India National Strategy for Artificial Intelligence Wipro, TCS, HCL, Infosys, Tech Mahindra (Focus primarily on IT services leveraging global AI tools) Rapid adoption of AI in IT services, e-commerce, and fintech sectors, leveraging open-source frameworks and cloud AI platforms.
China New Generation Artificial Intelligence Development Plan Baidu (Search, Autonomous Driving), Tencent (Gaming, Social Media AI), Alibaba (E-commerce AI, Cloud AI), Huawei (AI Chips, Telecommunications AI) Rapid improvement and scaling of AI technologies in areas like facial recognition, natural language processing, and computer vision, often surpassing Western counterparts in specific applications and scale.
Japan AI Strategic Council, various industry-specific AI initiatives Fujitsu, NTT Data Corp, NEC, Nomura Research Institute, ITOCHU, TiS Inc, Mitsubishi Research Insturute (Focus on industrial robotics, automation, and integrating AI into existing industries) Adoption of AI in manufacturing, healthcare, and robotics, focusing on enhancing efficiency and addressing societal challenges like an aging population.
South Korea National Strategy for AI, Digital New Deal Logrus IT, In Time Tec, MNCS Korea, neWwave, ADSiaa (Strong in semiconductor manufacturing and integrating AI into electronics and consumer products) Rapid integration of AI into consumer electronics (smartphones, appliances), development of advanced memory chips and processors for AI applications, and advancements in areas like autonomous vehicles and smart cities.

Note: This table provides a general overview based on the information available in the snippets and general knowledge. A more detailed analysis would require extensive research beyond the scope of the provided material.

Table C: Competitive Advantages and Disadvantages of Startups by Region

Region Competitive Advantages Competitive Disadvantages
East Cost-effectiveness in development and manufacturing, speed of execution, understanding of large local markets, government support (in some regions), large talent pool. Potential challenges in global branding and trust, navigating international regulations.
West Established brand recognition, strong intellectual property rights, mature innovation ecosystems (in some sectors), access to global capital. Higher labor costs, potentially slower adoption of new technologies in some areas.

Works cited

  1. Internet in India - Wikipedia
  2. History of Internet In India
  3. India - Digital Economy - International Trade Administration
  4. India's internet surge: Catalyzing change in the telecom landscape - Invest India
  5. Internet in China - Wikipedia
  6. China's Internet Revolution: From Follower to Leader - 科技日报
  7. China Internet Museum-History
  8. China's internet users surpass 1.1 billion, powering digital economy and innovation
  9. Internet in Japan - Wikipedia
  10. The Internet Timeline - Japan Network Information Center - JPNIC
  11. View of Competition and the Development of the Internet in Japan | First Monday
  12. The Internet landscape of Japan | APNIC Blog
  13. A history of computer networking and the internet in Korea [History of Communications] | Request PDF - ResearchGate
  14. Internet in South Korea - Wikipedia
  15. A Brief History of the Internet in Korea (2005) - Google Sites
  16. A Brief History of the Internet in Korea - Columbia University
  17. The Internet landscape of South Korea and KRNOG update - APNIC Blog
  18. Understanding Bandwidth: A Guide to Your Internet Highway | Lenovo US
  19. Understanding Network Bandwidth: Definition, Importance & Impact - Performance Networks
  20. Network Speed vs. Bandwidth vs. Throughput - Digital Samba
  21. What is Bandwidth and Why Is It Important to Internet Users? - Buckeye Broadband

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Brand Advocates vs Influencers: How to Shape Your Marketing Strategy

If you are looking for ways to boost your brand awareness, reach and engagement, you might be wondering whether you should invest in brand advocates or paid influencers. Both of these groups of people can help you promote your products or services, but they have different roles, benefits and challenges. In this post, we will explain the difference between brand advocates and influencers, and why you need both for your marketing strategy.

Who are Brand Advocates?


Brand advocates are brand loyalists who openly promote brands they love and publicly defend the brands just because they love the brand and its products. They are usually customers or employees who have had positive experiences with your brand and are willing to share them with their friends, family and online networks. Brand advocates do not expect any compensation or incentive for their advocacy, they do it out of genuine passion and love for the brand. 


What are the Benefits of Using Brand Advocates for Marketing?


Brand advocates can help you build trust, loyalty and credibility for your brand. According to a Nielsen report, 92% of consumers trust recommendations from people they know, while only 18% trust online ads. Brand advocates can provide authentic and honest feedback about your products or services, which can influence the purchasing decisions of their peers. Brand advocates can also help you generate user-generated content (UGC), such as reviews, testimonials, photos or videos, that can showcase your brand value and increase your social proof. UGC can also boost your SEO ranking, as it can increase your website traffic and engagement.


What are the Challenges of Using Brand Advocates?


One of the main challenges of using brand advocates for marketing is finding them and activating them. You need to identify who are your most satisfied and loyal customers or employees, and reach out to them to encourage them to share their stories and opinions about your brand. You also need to provide them with tools and platforms to make their advocacy easy and fun, such as hashtags, contests, rewards or social media groups. You also need to monitor their activity and measure their impact on your brand performance. The easiest way to find the brand advocates in Facebook, Instagram, TikTok, Youtube is to follow the Tags. The brand advocates will tag your company and product name in most of their brand related posts and all you have to do is engage with the positive review posters.


Brand Advocates Believes in Unpaid Ethical Endorsements


Brand advocates will endorse your brand out of love and trust as long as the brand performs as per their expectation levels, and brands don't try to mislead them with false and misleading advertising. Brand advocates will be brand loyalists as long as the brand doesn't engage in illegal wrongdoings and other fraudulent activities. The brand advocates will even go to the extent of defending your brand in public spaces if they believe that wrong is being done to your brand by external factors and agencies.


How to Engage Brand Advocates?


The easiest way to find brand advocates is via the brand tags that they attach to their posts. Marketers should identify the brand advocates and start engaging with them via special product sampling invites, product launch invites, early product testers invite. Giving them discounted or free products to review is also another way to engage the brand advocates. Brand advocates need no payments to speak for your brand and are a trusted source of information among their followers and friends and family.


Who are Influencers?


Influencers are individuals who have a large follower base in social media like Instagram, Youtube and Snapchat and mostly engage with brands via paid campaigns. There are primarily two types of Influencers, the Mainstream Media Celebrities like Jenifer Lopez or Tom Cruise, and Social Media Celebrities who have managed to gather a huge follower base creating unique content for their followers. So, these Social Media Celebrities are usually experts, bloggers, speakers, authors, fashion trend setters, product reviewers, fancy lifestyle endorsers, who have established online presence and authority in a specific niche, such as fashion, beauty, travel, gourmet etc. Influencers partner with brands normally under paid contracts to create sponsored content that showcases their products or services to their audience. Influencers typically charge a fee for their collaboration, depending on their reach, engagement and reputation. Influencers will endorse any brand as long as they find a match between their content and the product you offer.


What are the Benefits of Using Influencers for Marketing?


Influencers can help you increase your brand awareness, reach and exposure as they can even have a couple of million followers. They can introduce your brand to new and relevant audiences who might not be aware of your products or services otherwise. Influencers can also help you create high-quality and engaging content that can attract and retain your target customers. Influencers can also help you boost your brand image and reputation, as they can endorse your products or services as experts or trendsetters in their field.


What are the Challenges of Using Influencers?


One of the main challenges of influencers is finding the right ones for your brand goals and budget. You need to research who are the influencers who have the most influence and relevance in your niche, and who share your brand values and vision. Do note, unlike brand advocates who tag your brand the influencers are not tagging your brand at all for you to easily find them. You have to research your consumer target group and see which influencers are most actively engaging with your target group of consumers. After finding them, you need to proactively negotiate with them the terms and conditions of your partnership, such as the deliverables, deadlines and payment methods. You also need to track their performance and measure their return on investment (ROI).


Mainstream Media Celebrities vs Social Media Celebrities


Mainstream media celebrities are exceptionally expensive to rope in for a campaign and as they are just celebrities, they normally don't have a vertical base of dedicated followers. So, their follower base is mixed. So, a product and celebrity matching can result in mismatching. For small brands it’s preferable to opt for Social Media Celebrities as they resonate to a particular lifestyle or trend so they have a vertical interest follower base which when matched rightly with your product will resonate well. Social media celebrities and influencers are much cheaper to engage with and should be the choice of smaller companies and brands to engage with over mainstream media celebrities and influencers. 


Why Do You Need Both Brand Advocates and Influencers?


Brand advocates and influencers are not mutually exclusive, they are complementary. They both coexist in this world and both can speak for your brand. So effectively, they can both help you achieve different objectives for your marketing strategy, depending on the stage of the customer journey you are targeting for your customers to be. For example:


- If you want to create awareness for a new product launch, you might want to partner with influencers who can reach a large and relevant audience with their sponsored posts.


- If you want to generate interest and consideration for your existing products or services, you might want to leverage brand advocates who can provide authentic and trustworthy recommendations to their peers.


- If you want to drive action and conversion for your products or services, you might want to use both influencers and brand advocates who can create a sense of urgency and social proof with their content.


Effectively, at the end of the day, the consumers actually know that Influencers are doing paid promotion and are recommending products as they are getting paid for them. The consumers also know that brand advocates are advocating for brands as they believe the products and services are of superior quality than that of other brands. So henceforth it's very important for corporations to focus more on providing value to brand advocates and engage them in events and promotions and launches and co create content with them. The majority of people trust brand advocates they know within their friends and family and the ones they follow over the influencers they follow.


Therefore, you need brand advocates to promote trust in your products and you need influencers to promote reach for your products and you can combine them both to have an effective marketing mix of brand advocates and influencers.

If you want hands on help in crafting a Marketing Plan and Growth Hack your Startup get in touch with Aditya Basu (Publisher of Startup Lessons) for One-to-One Startup Building Advisory. With Aditya’s help, you can ensure that your team is well-suited for success.

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Content Code: AHI
Article Editor: Aditya Basu

Brand Advocates vs Influencers: How to Shape Your Marketing Strategy by Startup Lessons is licensed under Attribution-NonCommercial-NoDerivatives 4.0 International

Friday, March 10, 2023

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