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TIME ASIAWEEK ASIANOW TIME


about Asia Buzz

Asia Buzz: Behind the Times
Asia doesn't innovate too well
By ERIC ELLIS

December 7, 2000
Web posted at 3:40 p.m. Hong Kong time, 2:40 a.m. EDT


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The Net is supposed to provide and allow for more provocative commentary, so here goes: Asia doesn't innovate too well. There, I said it. Now I just have to kick back and wait for the barrage of complaints from outraged readers, citing this invention, that gizmo, and perhaps even suggesting that I'm a racist. Well I am open to suggestions that disabuse me of this notion. And I hope I'm very wrong. But I don't see much out there that suggests I am.

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I should qualify my statement to mainstream gadgetry, the stuff that captures the public imagination...and wallets. A quick scout around my gizmo-laden so- called life and I see brand names like Palm, Microsoft, Hewlett-Packard, Nokia and Logitech. I figure that probably all of it was made in Asia, in places like Penang, or the badlands around Bangkok's Don Muang Airport. But how much was thought up, devised, conceived by Asians?

Ah, you say, probably quite a lot. What about all the Asians who populate Silicon Valley? These days you can walk down the main drag in Fremont and believe that you never left Hyderabad. Oracle, for instance, has so many subcontinental programmers at its Redwood City HQ, it has special caterers serving some of the best Indian food in California. And what about Yahoo!, eh? Jerry Yang sounds very German!

All true, but they're all doing their thing in the U.S. Ask yourself what high- tech gadget or gizmo that you use everyday, was built from the ground up, in Asia. You might have to go back to the late 1970s and Sony Walkman. And what Asian Internet firm dominates the world -- and shareholders of Pacific Century are disqualified? There's nothing particularly innovative about a telephone company with lots of debt.

I hear you suggesting that we should exclude the U.S., because with such a big market, how can anyone compete? Of course, in America there's a lot of room and capital to experiment with new ideas. America's Silicon Valley -- and there's lots of them across the country -- are full of serial entrepreneurs who try something out, perhaps fail, and try something else out until they get it right or until their backers run out of patience.

So how can tiny places like Singapore or Hong Kong compete with this type of system? Well Finland does. Nokia comes from a country with a comparable population, income and standard of living as Singapore and Hong Kong. It wasn't Creative Technologies, Singapore's leading tech light, that got us hooked on mobile telephony. Nor did Hong Kong give us instant messaging. That was Israel. But with a little imagination, they could have.

All of which is not to say that Asians are not capable of innovation. Japan has led some spectacular innovations in engineering, in making cars, in robotics, that have been adapted with huge success elsewhere. And when it comes to financial innovation, few can outdo Hong Kong and its myriad corporate products to make you -- or in the case of this year, relieve you of -- cash.

Perhaps some nerd, who has been beavering away in some hutong near Beijing University or some kampung outside Surabaya, has overcome slow telephone lines and corrupt bureaucracies to create next year's Next Big Thing. I hope so.

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