If you look-up “Silicon Valley Philippines” on Google, the top hits will direct you to an IT reseller on the Shopee online shopping platform or to a facebook account also of another IT reseller. That’s not exactly what I was hoping to find.
Silicon Valley, of course, is the global seat for high technology and innovation located in Northern California in the United States. The growth of Silicon Valley was a confluence of events with Stanford University playing a particularly important role in its early development. It promoted a culture of collaboration among high tech companies and Frederick Terman, then dean of the university’s school of engineering, urged their faculty and graduates to establish their own companies in the region. This was enabled by the presence of a skilled research base found in the universities in the area, the availability and access to venture capital and a steady demand for their products and services by the U.S. Department of Defense.
It is one of my burning aspirations for the country to have our very own version of Silicon Valley. I envision it as an enclave with world-class schools that are properly equipped with the latest technologies, leading-edge connectivity, data centers, a gamers and animation center for excellence, a vibrant pool of venture capitalists and an environment that nurtures collaboration - global, regional and local - and the free flow of people and ideas towards the next big thing. It will be an area where “world-class” salaries are paid to keep our very significant IT talents at home, allowing us to move up the value chain - intellectual as well as labor - and become a vital part of the global supply chain for technologies of the future.
For example, in the mobility-sphere, the battle will not only be about being able to mass-produce the vehicles and platforms that will move people around. It will also be – if not more importantly so – about the operating and energy management systems that will run the car. Yes, the future of mobility is increasingly becoming a battle for the software that enables consumers to focus more on how mobility can add value to life than just the ownership and operation of vehicles. So, while the Philippines may have arguably missed the wave of vehicle manufacturing, I believe it is very well situated to ride the wave of software development that will fuel the race for mobility in the generations to come.
In my various travels over the years, especially for business, it has always been a source of pride and joy to meet Filipinos working in various fields around the world. The usual notions are as domestic helpers, retail staff, hospitality providers, seamen and entertainment talent. I salute them as the bedrock of our “mga bagong bayani ng Pilipinas” (new heroes of the Philippines). But there are also many Filipinos who have earned respect and recognition in fields such as accountancy, management, engineering, education, the medical field and, almost ubiquitously, in the IT world. It was hard for me not to encounter fellow-Filipinos whenever I engaged in matters relating to IT. Over time, I began to imagine – and believe! – that the Philippines could be an essential part of the global IT supply chain if we could only gather all our talents in the field right here in our own shores.
Some might argue that our confidence in our IT abilities is misplaced and that our professionals are on the low-end of the value chain. After all, our ranking in various preparedness surveys reveal that we are among the more challenged countries in terms of digital competency and knowledge. In the emerging field of Artificial Intelligence (AI), for instance, the 2023 survey of Oxford Insights shows the Philippines dropping 11 places in terms of government AI readiness. Nonetheless, the country still ranks 65 out of 193 countries surveyed – or in the upper second quartile. Moreover, we scored 51.98 on the index, 7 points or 15% higher than the average score of 44.94 points. So, there is hope.
Unfortunately, a Salesforce survey of AI-readiness for Asia-Pacific countries places the Philippines last on the list. The survey rated digital evolution and governance, the number of AI startups and human capital. I agree that the digital transformation of the economy may be in need a serious boost and should be among the urgent priorities underlying our national development plan. I hope related government agencies level-up their efforts in positioning the country for the future.
I have said it before, and I will say it again: the state of IT and digital preparedness in the Philippines may not necessarily be reflective of our true potential. Our best and brightest are making significant contributions – albeit offshore. We need to keep them onshore to make us an essential part of the global technology fiber.
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