Cebu High Technology Urban Centers
The dynamics of high technology urban spaces in Cebu should be viewed in the context of what is a high technology urban center in the Asian-European Perspective.The more successful experience has been in the microelectronics, pharmaceutical and biotechnology industries. The key distinction is that the major players in the industry are primary sources of innovation in their respective areas of specialization. The achievements of these industries have driven the economic restructuring process of the western world in the 1970s and beyond. Another distinction is the emergence of knowledge-intensive activities disengaged from industrial production. The direction of property management shifted from purely spatial and market value considerations to specific architectural symbols and landscaping. The experience is not specific to highly industrialized countries since high technology urban spaces have successfully evolved in Third World countries.
Putting the Cebu Picture in the Urban Space Perspective
Does Cebu have this high technology urban space?
The answer is no!
There are disparate characteristics found in several urban spaces but not one of these has all the distinctive characteristics of a successful high technology urban center within the perspective described above.
The creation of export processing or special economic zones have stimulated the growth of urban centers and literally built communities around it through worker migration. These centers are not high technology per se since it does not fall within the context of the distinction described here.
MEPZ I and MEPZ II locators for example are global companies considered leaders in their fields but their contributions in terms of knowledge-based activity is directly connected to their manufacturing operations and not disengaged from it. Their choice of location is not driven by any symbolism or landscaping consideration but by tax and other incentives offered to foreign direct investments. It did matter to the decision-makers and key executives though that the best resorts and leisure places are less than an hour's drive from their production sites.
An attempt was made to leapfrog development in the southern part of Cebu through an ambitious Naga Township but nothing came out of this project. It was envisioned to be a self-contained economic ecosystem but until now we still have to see a semblance of vertical development in the area.
AsiaTown IT Park was envisioned to attract information technology and IT-enabled service locators but we still have to see a company driven by a knowledge-based work force churning out leading edge innovations.
There are quite several observations of urban centers here in Cebu that needs to be shown. MEPZ I and MEPZ II attracted so many workers however commercial activities were targeting workers did not follow as quickly since there is no mall of considerable size anywhere in proximity. The zones however did attract a lot of banks and freight forwarders to the zones.
AsiaTown IT Park on the other hand is quite near at least 3 malls and in the major residential communities but it still has to attract major global companies to the site. Efforts to come up with a cohesive IT initiatives and strategy might stimulate growth around AsiaTown IT Park.
There has to be real initiatives to create an environment for development for projects like MEPZ, AsiaTown, Naga Township and others so it can grow beyond its existing borders.
Inhibitors to the Development of Urban Space Dynamics
There are so many factors that may have to come to fore in order to force this evolution. But there are very few that may have as much impact. Many inhibitors are still affecting this evolution.
A Weak SME Base
Our small and medium enterprises are not growing as rapidly as it should. The number of small and medium information technology enterprises alone is not very encouraging. You can disregard the number of computer retailers and Internet cafes from this number. We need small and medium enterprises that can deliver certain technologies and expertise.
Our Income Tax Base Burdens the Consumer
Government still relies on the low and middle income population for the bulk of its tax revenues hence the majority of the population has no savings or surplus to either invest or to buy high-technology goods or products created by high-tech production processes.
Government Processes Is Not Ready for Evolution
No amount of tweaking in government structure or political paradigm will change this. There is a need for credible over-haul of government processes and the integration of accountability in every level of government activity. The headlines about government spending to encourage the economy, have no direct correlation to economic activity because most of this cash are not really going to the SME base. Many small and medium enterprises consider government transactions as a wasteful business exercise.
Government is A Poor Consumer of Technology
The reluctance of our politics to use technology for efficiency, standardization, transparency and accountability makes government a low and slow consumer of any technology whatever the applications. There is little confidence in any development programs whether for social or ICT since these programs will still have to be implemented within existing (or the lack of) government processes already stress by poor credibility and consistently waning public trust. This reality naturally does not encourage market mechanisms to thrive. The best technology to ensure efficiency and standardization leading towards more transparency and accountability will not get deployed in this environment.
Private Investment in Infrastructure is Too Small and Too Slow
Since government itself does not make 'credible' investment as against high investment in infrastructure, private enterprise is not compelled to provide a counterpart investment. Political initiatives in government supports only small infrastructure projects instead of the more cost-effective mega projects that has longer and more strategic impact on the local economy.
Tell-tale Signs of Urban Space Dynamics
There are existing and specific areas already for the emergence of potential high technology urban centers. The challenge really is to either wait for these areas to evolve 'naturally' or to force evolution at a rapid pace by planning and deliberately creating the business culture and the innovation ecosystem.
The new framework to stimulate this evolution is to move from the framework of simply encouraging foreign direct investment and export to a sublime strategy of actually creating a technological base through legal channels of transferring technology, collaboration or encouraging research and product development in these areas.
There are already efforts in this direction at least in Cebu. The main concern is determining the number of stakeholders who should be involved and the development of a process to 'trigger' this evolution.
posted by Virgilio Paralisan @ 3:35 PM
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