Friday, February 22, 2008

consumers not producers

With all the local consumption of technology, I wonder why no Philippine company has made a worthy attempt at producing the technology that we have such a monstrous demand for. While i reckon that it's a nice idea, I see it to be one that is far removed from reality.

Tech-savy Filipinos
Filipinos eat up all the newest technology save from those that are prohibitively priced. We are the "text capital of the world". We have 20,000 internet gamers using the popular "GG client" unofficial website for phenomenally successful Dota at any given moment. That statistic is higher than china's, whose population is ten time ours.

Sample Success Story: Samsung
Although, the globally established korean brand, samsung is suffering from some scandals, they are one of Asia's greatest success stories. It is a brand that many koreans are proud of, not only out of a sense of nationality but simply because they products are good.

The ideal situation
From a very idealistic and theoretical point of view, it is but logical for us to produce our own tech gadgets to be able to meet local demand and give the less affluent Filipinos a chance to access the technologies they are suffered to do no more than drool over.

The more pragmatic view
However, from a practical point of view, it just doesn't seem to resemble anything close to reality when we talk of creating our own "samsung". My conclusion is based on the following:

1) Our government couldn't care less.
2) The economies of scale required for this type of business limits possible entrants.
3) Our economy rides on foreign investment that is generally opposed to local tech production. Foreign investors with the competence to produce technology already have vested interests in other countries. i.e. nokia, samsung, sony erricson. They will not bother funding a new competitor.
4) Our domestic perception of tech production is that we are not capable of it. Diligent research will tell us that, on the contrary, we are. Yet, it will be a long drawn battle to convince the domestic buyer.
5) There is a lack of local supporting industries. I liken this issue to why we have no automobile industry of our own. One very basic problem is that we virtually don't have a steel industry, which happens to be a very basic but significant supporting industry to the automotive industry.

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