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Brain Gain
By Michael Alan Hamlin
November 05, 2002

I learned a great deal about country marketing while working on the book, Marketing Asian Places, which was published last year. The opportunity to work on the book came in the form of an invitation from Philip Kotler, the Northwestern University marketing guru often referred to as the "Father of Modern Marketing." My firm organizes some of Phil's presentations in Asia, and on one of his visits he generously offered me the opportunity to work on this book as a co-author.

Among the things I learned about successful place marketing and its contribution to enhanced economic growth, is the importance of attracting smart people to live and work in a place. For many Asian governments that work hard keeping foreigners out of their countries - principally as a knee-jerk reaction to liberation from former colonial "masters" - the notion that a country can't rely on internal human resources for its development is startling, to be polite.

However, just a quick glance over my past view columns shows just how important a role foreigners; specifically, Filipinos, can play (and need to play) in development of the U.S. information and communication technology (ICT) sector. Last week, we saw Joey Gurango's contribution to empowering SMEs (in part by helping develop the Philippines' ICT sector at the same time). Previously, I noted that Marc Loinaz invented the first single-chip digital camera. Dado Banatao invented the first chipset for IBM clones, and now funds other would-be inventors and technopreneurs as a venture capitalist.

While other people might have eventually accomplished what these fellows did (and do), they did these things first and made significant contributions to their fields of specialization. It's a good thing for America that they did.

I also have mentioned a couple of times Paco Sandejas, in part because he is so good in throwing out "sound bytes," or short, highly accurate prescriptions for fixing the Philippines and getting it back on the track for rapid growth. In one conference Sandejas neatly summarized what the Philippines needs to do to create Silicon Valley-like technology hubs.

He said, of course, that the Philippines must attract smart people. And how does it do that? "By being a cool place to live and work." Sandejas has a fairly elaborate definition for what makes a place cool, but no one needed to hear it. A "cool place" says it all. And it says it so well that I have quoted in repeatedly in the past couple of years. And obviously, I still am.

But Sandejas ? an accomplished engineer in his own right with a bonafide Silicon Valley history developing high definition TV technology? is doing more than lust making recommendations about development. Recently he founded BGN Ventures, a venture capital firm. That's an interesting development for a number of reasons. Among those reasons is what BGN stands for. "It's a reminder that the firm is built around a human resource network Marc Loinaz and I started in 1992," Sandejas recently explained.

BGN is an acronym for Brain Gain Network, an initiative that Sandejas, Loinaz and many others eventually grew into a membership of over 750 scientists and engineers working in the U.S. and other countries. Members were, and are, united by a single goal: to someday return to the Philippines to make a direct contribution to the country of their origin. And the country that first educated them. The country that first prepared them to work among the world's brightest minds.

The network lost momentum, however, when its proponents earned their PhDs and went to work in laboratories where they spent 60 and more hours a week, according to Sandejas. "The network was run by volunteers, and after working up to 100 hours a week, there was little time left. And as we see in the Philippines, if there is no full-time effort and no budget, good ideas falter."

Sandejas says he has been inspired to revive the network now because of encouragement and support from friends and associates like Banatao, the Philippine government, and the private sector. His goal is to increase the value-added Filipino engineers contribute to the development of original technology, and eventually he wants that technology to be developed in the Philippines.

His goals differ from those of Gurango in style, but not substance. Gurango concentrates on software, while Sandejas' true love is hardware. Like Gurango, he believes that the Filipino engineers who live in work in the Philippines are among the most talented in the world, and have enormous potential. But to realize that potential, they need exposure to the big leagues.

Sandejas, in character, uses a sports analogy to illustrate his objective, noting that the South Korean soccer team was so successful in the 2002 World Cup because it recruited a foreign coach with extensive experience with world-class teams. That's where the Brain Gain Network comes in. He believes that the members' experience in the highly competitive technology hubs in developed countries, combined with their knowledge of local conditions, will contribute to the creation of "cool" technologies. And that together with local engineers and scientists, therefore, they can build world-class research centers.

Sandejas' effort is an important first step, because he's been there and done that and is now doing it in the Philippines. And this time he's making sure the Brain Gain Network stays vibrant. Because that's the name on the door.

(Michael Alan Hamlin is the managing director of consultancy TeamAsia and the author of three books on Asian economies and companies. His latest book is Marketing Asian Places, of which he is a co-author (Wiley, 2001). He can be reached at mahamlin@teamasia.com.).

Copyright © 2002 Michael Alan Hamlin. All Rights Reserved.

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