Rudolf Okonkwo's Column


It still amazes me that today in Nigeria, we are so tribalistic that if you were born in Kaduna State and your parents are from Anambra state, you have to go to Anambra state to vote.
Tuesday, October 8, 2002



Rudolf Okonkwo
NIGERIAWORLD COLUMNIST
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- PRESIDENT BUSH ADVISER, KENNETH NWABUEZE, TELLS NIGERIA

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n Saturday, the 21st of September 2002, he endorsed Republican candidate, Bill Simon, for the Governor of California and joined his technology committee. In a letter sent to him by Simon�s campaign, he was exalted as a �visible and accomplished technology leader here in California� whose endorsement will provide Bill Simon�s campaign the support they need as they plan to unseat Governor Gray Davis.

It was a familiar position for Kenneth Nwabueze. In the year 2000, he was named a member of the National Advisory Board for Governor George W. Bush for President. On December 12, 2001, President Bush in a ceremony held at the Roosevelt Room, appointed him to the President�s Council of Advisors on Science and Technology. On the board with him are high-tech industry luminaries like Michael Dell of Dell Computer Corp.; Gordon Moore, Chairman Emeritus of Intel Corp., Carol Bartz, CEO of AutoDesk Inc., Norman Augustine, retired chairman of Lockheed Martin Corp.; and Charles Vest, President, Massachusetts Institute of Technology (MIT). Members of the council are charged with the responsibilies of advising the President on issues involving science and technology and their roles in achieving national goals.

The 34-year-old Kenneth Nwabueze was born in Ogidi, Anambra State, Nigeria. He came to the United States at the age of 17. He studied Engineering at the California State University at Northridge, and Management at the Pepperdine University at Malibu. In 2002, he was honored at Howard University as one of the 50-most important African Americans in Technology. He is the founder and CEO of SageMetrics Corporation, a leading outsourced business intelligence provider with offices in North Hollywood, California and European Headquarters in London.

Mr. Nwabueze attributes his success in life to networking and what he called �mining� the network. At a recent conference organized by the Center for International Development at Harvard University, Kenneth Nwabueze answered questions presented to him by this reporter. Here are the extracts:

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It is sad to see that all the progress made by Igbos in the area of science and technology during the civil war has gone to waste because of the government tribalistic policies inherent in Nigerian system today.

Nigeriaworld. Bangalore, India, has become a center for software writing expertise for many U.S. companies. How did India achieve that feat and what will Nigeria do to replicate such?

Kenneth: In my recent speech at Harvard University I cited Bangalore, India as an example worthy of emulation by other developing nations seeking to develop technology clusters. There are essentially four factors necessary to develop a technology cluster in any nation. These factors include the availability of university and research institutions that conduct and write thesis on scientific processes, innovative entrepreneurs looking for new ideas to explore, investment bankers (venture capitalist) looking for new ideas to back, and government policies designed to govern, protect and encourage such transactions. The Indian government took major steps in the mid eighties to create monetary policies designed to encourage local and foreign investments in the area of technology. They strengthened their university curriculum to follow the same regimented standards used in the likes of MIT and Harvard. They also backed several venture capitalist firms by way of guaranteed loans.

Obasanjo�s administration can start by strengthening our educational system. I see Nigerian graduates with BS in Computer Science that has never written a single line of computer code in their life. They spent four years in the university and may have only seen a computer once or twice.

Nigeria needs to strengthen its monetary policies in the area of investment. It needs to enact laws that govern business contracts that are enforceable. The executive arm must police and prosecute those that break business contracts. We all laugh about �419� fraudsters, but the truth of the matter is that they are giving Nigerians the reputation of one not to be trusted. As one that is well connected in the investment community here in the US, you would not believe how many �419� letters that investors forward to me every week.

Nigeriaworld. The Uruguay Round International Trade Treaty requires less developed nations to adopt patent and other intellectual property laws that are as strong as those existing in the highly industrialized nations. This guarantees an enhanced export and licensing revenues for U.S. companies. But historically, the U.S. benefited from weak intellectual property laws of the 19th century, which helped the U.S. to embark on inexpensive emulation of products and technology. Do you think this stringent measure is fair to developing countries like Nigeria?

Kenneth: Yes. You need strong patent and intellectual property laws to protect and encourage investments to be made in the area of R&D. This is absolutely necessary in today�s world where it is becoming a lot easier to copy and duplicate ideas. Let�s think about it for a second, say that a university professor at UNN spent two years and N1 million of his money to research a biotech treatment for baldness. The moment he publishes his results, someone in Aba market copies the idea and runs off to China to mass-produce the new drug. Today in Nigeria, there is no remedy for the scientist that just spent two years of his life working on this new great idea. Now, on the other hand, if Nigeria had patent laws that protected his invention both at home and abroad, he can sue the fellow that copied the idea and the company in China that helped in manufacturing the drug.

It may seem that these laws will prevent developing countries from gaining access to valuable technologies necessary to sustain a living. It never stopped China. China is a great case study where stringent patent laws have actually helped their economy. A good portion of consumer products sold around the world today is made in China, under the authority of the patent owner. Most US companies will outsource to China to take advantage of cheap labor in China. Chinese governments do their best to protect intellectual properties. Does that mean that you won�t find people on the streets of China with bootleg copies of the new Microsoft Windows XP? Of course they are there. But you will also find people in the streets of New York with bootleg copies of Eddy Murphy�s new film, Pluto, that is not even in the theater yet.

Nigeriaworld. International Rice Research Institute recently developed new and superior hybrid of rice that is suitable for local climate and soil conditions in the Third World. Why has most modern technology failed to develop appropriate local adaptation and why has it been difficult to diffuse modern technology into local production and practice in less developed countries?

Kenneth: I haven�t really studied in details the intricacies of the technology involved, so I will not be able to comment in details at this time.

Nigeriaworld. Universities in Nigeria have done several scientific and technological works that have not been utilized. How does government-university partnership as well as private sector-university partnership in the Unites States transform scientific creativity into innovations to be utilized by the society at large? What lessons should countries like Nigeria learn from the U.S. experience?

Kenneth: Here is typical life cycle of technology innovation in the US. Imagine the setting to be Silicon Valley, California. An idea is born and proven on a micro-level at University of California, Berkeley. An ex-student, or professor, or lab technician who has an idea what this technology can be used for, talks to his buddy who was a business major at nearby Stanford University. The two meet for coffee at Starbucks near San Jose airport and decide to form a company called AirportStarbucks.com to focus on this new technology. They went to Sandhill Road to talk to the folks at Chase Bank Capital Partners and convince them that there is a demand for their new technology. Chase calls up its lawyers and instruct them to prepare legal documents to invest US$10M into the company for a 75% stake in the company. The company takes the investment money and completes the last mile of R&D needed to apply commercial use to the new technology. Well, is not that simple, but it is a simplified version of what happens when you implement the four steps I outlined above.

Most research at the micro-level are conducted at universities and national research institutes and are paid for with taxpayers� money. The results of the research, other than those sanctioned classified, becomes public property and are published in one of the national database. This is one way that the U.S. government partners with universities to develop technologies. There are federal agencies like the National Science Foundation (NSF) with annual budgets in excess of $4 billion and National Institutes of Health (NIH) with annual budgets in excess of $20 billion that fund these types of research. Companies also partner with Universities to fund research in specific areas that are of interest to them. Company -funded research results are usually not published to the public. It often becomes the private property of the company that funded the research. When I was at Lawrence Berkeley (one of the U.S. national research institute), I worked on a research project to improve charge carriers on silicon surface. The research was funded by the U. S. Department of Energy and the results were used by chip manufacturers for the Pentium III technology. During my undergraduate studies, I worked on a project to increase tensile strength of a new alloy material. Easton Corporation funded the research and received the results at the conclusion of our research.

The U. S. government partners with private sector as well to transform scientific research into commercial applications. The United States government owns and operates venture firms that invest in technology companies. In-Q-Tel based in California is one such firm that is funded by the CIA to invest in private startup technology companies that has potentials to develop technology that may someday by used by the government.

Nigeriaworld. What steps are needed to create institutions that are conducive to technological entrepreneurship in a country like Nigeria?

Kenneth: I have already hinted to several factors that are holding Nigeria back at this point. The truth of the matter is that technology is often driven by small businesses. Small businesses, in this case are defined as companies requiring limited amount of startup capital. Nigeria should start by creating an environment that is conducive to nurturing small startup companies. How can you run a technology company in Nigeria when getting a simple E1 line from NITEL takes forever? The government makes you jump through the hoops just to incorporate a business in Nigeria. Obasanjo�s administration should streamline the process for a small company to start an operation in Nigeria.

Hopefully, these new breeds of companies will not just focus on being government suppliers. I will hope that they can create products that can be used by Nigerians at large. Have you ever wondered why virtually every technology company in Nigeria is a supplier to the federal government? Is it that the government is creating a dependent system or is it that these are not technology companies, but rather contractors in disguise as tech companies? We need companies with original intellectual property. The biotech industry has a greater promise for Nigeria than any other high tech industry. We have the natural resources and we have the talent at home and abroad that can put Nigeria at forefront of the biotech sector.

Nigeriaworld. What role does venture capital markets play in innovation management? And how will underdeveloped nations benefit from such markets?

Kenneth: This was the subject of my address to the United Nations sponsored event at Harvard University. This is undeniably the most significant factor necessary to create a successful technology cluster. You hear so much about Silicon Valley in California and other parts of the world. I don�t think these clusters would have been successful without the roles played by venture capitalist market. Venture Capitalists (VC) don�t just bring money to the table, they help groom these startups into multi-national institutions.

Think about it, I am today running a multi-national data mining company with headquarters in Los Angeles and London. Back in 1997 it was just an idea in my head. Without the more than US$12M venture capital investment from JP Morgan and Ascend Venture Capital Partners, I wouldn�t have been able to get the company off the ground. One other advantage of bringing venture capital market into Nigeria may be to ensure the longevity of the company they invest in. Have you noticed how companies in Nigeria rarely survive beyond the lifetime of the initial founder and owner? In order words, people tend to go to their graves with knowledge and asset of the company. A VC funded company is usually owned by more than one person and the VC ensures that the investment is safe by always have a succession plan in place.

I am a big advocate of even having a government funded VC to stimulate the industry. In-Q-Tel is a venture firm based in Southern California that is funded by the United States Government. In-Q-Tel is there to stimulate interest in a particular type of technology that the government deem necessary to develop.

Nigeriaworld. If you were an adviser to President Olusegun Obasanjo of Nigeria on Science and Technology, what three top measures will you recommend that he institutes as a matter of urgency in the area of science and technology?

Kenneth: Nigeria has the brainpower and the natural resource to become one of the dominant players in the biotech industry. We have a window of opportunity that we must take advantage of before it closes door on us. So, my first advice would be that, Mr. President we need to create a national policy centered on developing and harnessing the power of our bio-resources. This will send a strong message to the global community on bio-resources available in Nigeria. We should create a venture type entity to seek out and invest seed capital in local biotech firms to enable them to continue their research.

Nigeria needs to be part of the global science community. We need to be engaged in the area of science and technology with the rest of the world. Every country that is currently progressing in the area of technology is an active member of the global community. They partner with their counterparts around the global to share information and ideas. It is my experience that the developed nations tend to pay for the cost of such partnership and co-op projects. We need to create a true and empowered National Science Foundation in Nigeria to take the lead in keeping us at par with the rest of the world. I had breakfast with the Director of U. S National Science Foundation the other day to discuss how to continue to reach out to countries like Nigeria and the lack of counterpart organizations in developing countries was one of the factors raised.

Technology is simply an enabler in solving a problem. The people behind the technology are more important than the technology itself. In the U. S, in addition to the quality of the technology, VC often will invest in the people running the technology even if the technology is second best at the moment. Character, domain expertise, and track record can determine the success of a new organization. Nigeria has citizens all over the globe that have the character and domain expertise to successfully run a world-class organization and we need to call upon them. We need a true national policy to enlist their help. Simply asking them to come home is not a policy and may not be enough. Many of the factors that caused them to leave in the first place are still there. I am amazed at the achievements of Nigerians all over the world. Imagine if we can find a way to tap our worldwide human resources like Israel, India, Australia, and many other countries have done.

Nigeriaworld. In Igbo language, science is called �Ogbaru Igbo ghari;� which literally translates into �That which is incomprehensible to the Igbo.� Also, a common expression says, �Bekee bu agbala� which literally translates into �White man is god�. How much of Africa�s backwardness in science and technology could be attributed to psychological defeat? And having missed the Industrial Age, what hope does Africa have in catching up in information technology?

Kenneth: That is true, but that was before the time of my great grand father. I don�t think that is the case nowadays. We just need to update the Igbo language. The technological impetus of the Igbos during the Nigerian civil war showed that the Igbos have, mastered the art of science. People like Philip Emeagwali, who has been called the father of Internet, and Professor Njoku who discovered anti-cholera vaccine has proven that the Igbos may have gone beyond mastering basic science to actually leading the advancement of science and technology.

I don�t know if it is more a case of psychological defeat or if it is more of the constant chaotic environment that the Africans subject themselves to. There has never been a period of stability in recent memory for African nations to focus on technology needed to improve the lives of their citizens. Even a country like Nigeria that has not been ravaged by civil war is always on the verge of catastrophy. It is hard to put on your creativity hat when you are just managing to get through your day.

Nigeriaworld. In the movie, �The Third Man� Orson Welles wrote that, �In Italy for thirty years under the Borgias they had warfare, terror, murder, bloodshed � they produced Michelangelo, Leonardo da Vinci and the Renaissance. In Switzerland they had brotherly love, five hundred years of democracy and peace, and what did they produce�? The cuckoo clock.�

Why is the whole world telling Africa that it needs democracy and peace before it launches its own renaissance? The marvelous achievement of the Igbo during the Biafran War attested to such possibilities. Why?

Kenneth: Anytime you let another man dictate what should be happening in your own household you are bound to regret it later in life. That is not to say you should not listen to advice given to you. You should, but take it with a grain of salt. Keep in mind that the advice is based on the other person�s personal experiences, which may differ from what your actual situation may be. No doubt about it, Africa needs democracy and peace to move forward. But because the speed at which democracy is being introduced is not at par with what the world think it should be is no cause for alarm. American democracy was not built overnight. Is it possible that out of the chaos in Africa will come a new form of democracy that will impact the world as we see it today? Yes, I do believe that Africa has such an untapped potential waiting to be unleashed.

It is sad to see that all the progress made by Igbos in the area of science and technology during the civil war has gone to waste because of the government tribalistic policies inherent in Nigerian system today. It still amazes me that today in Nigeria, we are so tribalistic that if you were born in Kaduna State and your parents are from Anambra state, you have to go to Anambra state to vote. In the U. S. if you are born in California, regardless of where your parents hailed from, you are a Californian. If you live long enough in California, you are even considered a Californian and you are allowed to vote on the affairs of the state. Why the government let it go to waste and continues to do so as we speak is mind-boggling. I was one of the founding fathers of IgboTimes magazine published here in the U. S. in the mid nineties. We did a piece on the Nnewi Automotive Industry few years back and I asked the question why haven�t the government encouraged such a budding industry that is so close to producing a viable means of transportation that is adaptive to Nigerian roads. I am always amazed at how Nigeria continues to shoot itself on the foot, time after time.