Interview with the bounty hunter

"Stealing is a great strategy"
Dmitry Mindich, Anna Nikiforova, Tigran Oganesyan
"Expert" No. 46-2011

One of the main elements of Singapore's innovation strategy is the massive purchase of talent from abroad. However, in the long term, the main ideologists of the country primarily rely on their own scientific and engineering personnelPhilippe Yo (photo: Tigran Oganesyan) is very disliked in the largest universities and research centers in the USA and Western Europe.

And no wonder – after all, he has firmly established a reputation as one of the most aggressive talent hunters. This "serial kidnapper of people", as he was nicknamed by the Western media, has spent most of his working time outside of his native Singapore for the past decade. Abroad, he is constantly looking for scientists and technological engineers who are dissatisfied with the current financial situation or working conditions, who might be interested in the prospect of "registering" in an exotic city-state of Southeast Asia for a while.

But at home, he has long earned great respect and authority. Dr. Yo is recognized as one of the most effective managers among a whole galaxy of government managers who laid the foundation for Singapore's economic miracle. Almost all the projects that he managed during his long public career initially seemed unrealizable. But he coped with them. And in one of his many interviews, he stated without excessive modesty: "It takes me about five years on average to raise a new industry, after which I simply move on to solving the next task."

So, Yo stood at the origins of the Singapore defense industry and created Singapore Technologies Group, now a successful corporation – manufacturer and exporter of modern weapons. In the early 1980s, he became the first chairman of the National Council for Computer Technology, and largely thanks to his efforts, Singapore has become one of the leading players in the global semiconductor industry.

In the mid-1990s, Yo's attention shifted to the chemical industry for a while. The result of his work in this direction was the successful completion of the construction of Asia's largest ultra-modern petrochemical complex on the new artificial Jurong Island, and at the same time attracting multibillion-dollar investments from leading multinational companies to this island.

Since 1986, for almost two decades, Yeo has headed the Economic Development Council, a key government agency coordinating the development of a long–term innovation policy. And since April 2007, having retained the position of Special Adviser to the Prime Minister of Singapore for Economic development, he joined the Standards, Productivity and Innovation Board (The Standards, Productivity and Innovation Board, SPRING Singapore). This new state institution, headed by Philip Yeo, has an even more ambitious task – to create in a tiny country almost from scratch the very "creative class" – a layer of scientists, innovative entrepreneurs, managers who could manage the new economy of Singapore.
As Dr. Yo admitted to us during an interview, his favorite historical character is Alexander the Great, the king of a small and poor country, who surrounded himself with talented associates and conquered half the world. Books about Alexander, his army, campaigns and the great empire he created occupy an entire section of a huge bookcase in his office.

Philip Yo was pleased to tell us why the country is spending billions of dollars on the development of an innovative economy and why the main focus of his current work has become a large-scale program to stimulate the influx of the best brains. Moreover, not only through mass wholesale and retail purchases of foreign specialists, but also with the help of purposeful cultivation of national scientific and engineering personnel.

"If you want to build a great country, create your own army of talents," Dr. Yo advised at the conclusion of our conversation. It took place in an office located on one of the floors of a skyscraper that is part of Biopolis (photo: Tigran Oganesyan). The development and successful launch of the project to create this ultramodern technopark, on the territory of which various areas of biomedical research are actively developing today, has become another significant success of the indefatigable conductor of Singapore's innovation policy.

– It would be very interesting for us to understand the specifics of Singapore's innovation infrastructure. What difficulties arose during its creation, what mistakes should be avoided?

– Innovation is not a luxury, but a necessity. We have always been primarily export-oriented, since we have almost no domestic market of our own. We don't have any natural resources, so our main trump card is people, brains. Before gaining independence from the UK, we survived due to the geographical location that was advantageous from the point of view of international trade, and then from the mid-1970s we began to actively industrialize the economy. But, in fact, now we are engaged in producing products for other states. The annual volume of Singapore's net exports is very decent for such a small state – about 200 billion US dollars. However, at the same time, production accounts for only 20 to 24 percent of GDP. Therefore, in fact, our main problems are not related to the purely production component.

Let me explain it in a simple way. Let's say someone has a unique idea on the basis of which a particular product is being created, for example, an Apple computer. The problem for us is that we are engaged in the production, marketing and distribution of the product, and the idea itself does not belong to us, it is an asset of Apple. This is the main limitation of our growth: we, as manufacturers, receive little, and Apple, which does not produce itself, but only owns the idea, receives the main profit.

– And what are you trying to do to change this situation?

– Since it is necessary to create your own products and services and generate innovations to ensure sustainable economic growth, in 1991 the Economic Development Council (SIR), which I then headed, decided to create a special national council for science and technology. The main profit is provided by new ideas, so you need to develop your own ideas that make money.

The next step after developing your own idea is its successful commercialization. Of course, it's good to have a lot of scientists, but scientists themselves do not create new jobs. It is important to take the idea of a scientist and somehow apply it, for example, in the production of some product. Therefore, since the 1990s, SIR, together with the Council for Science and Technology, has been making major investments in the development of products and services based on ideas invented in our research institutions.

– The lack of its own research base, apparently, was a very serious obstacle to the innovative development of Singapore?

– In many ways it was, because we tried to be competitive. So far, at the moment, we are still only trying to reduce the cost of production compared to China, which is our main competition. And our main concern now is that whatever competitive advantage we have, it is constantly shrinking. We urgently need people who know how to think and plan. That's why we invest in people.

Moreover, we are simply forced to follow this path today. And in the 1970s we didn't have time for this, because the British were going home. We urgently needed to create new jobs, and the easiest way to achieve this goal was to enlist foreign companies on superlative terms. The same Apple has been here since the early 1980s. However, such a development model quickly led us to a dead end, since it cannot be effective in the long term. There are many other countries that have chosen the same path: China, Vietnam, India, almost all of our closest neighbors in the region.

– And how dependent is Singapore now on the global economic situation?

– During the recent global crisis, given the large number of our bankers, there was a rather sharp decline in Singapore. But we are small, and we recover easily. Once again, we have almost no domestic market, all our production depends on exports. And when the global market sags, we also suffer losses. But we have no debts and more than enough savings, that is, we do not have any special problems with importing everything we need for ourselves. And finally, due to the fact that we are small, we can, unlike most other countries, afford such a "luxury" as an active social policy, taking care of our own population. And we can afford to actively invest in the future of this population.

In the 1990s, we made a number of strategic mistakes, and my colleagues and I simply did not have enough experience at that time. We did not understand then that it was possible and necessary to attract foreign scientists and technologists, but it is necessary to grow our own personnel at the same time. That's what I'm doing right now.

And since 2001, on my initiative, a special program has been launched to train thousands of candidates of sciences. We spend a million dollars for each graduate student, 50 percent of which goes to pay for studying abroad.

When they all come back, they will play an important role in the science and economy of the country. My idea is that innovation comes from people, not from products and developments. We don't invest in innovation, we invest in people. People create innovations. All our seed funding funds and government agencies supporting entrepreneurship are just a means to achieve a more important goal. They all serve to support people who want to start their own business.

– To coordinate various innovative programs, to lead research and development, as well as their commercialization, not only excellent scientists are needed. Innovative project managers are needed, mentors of young talents are needed. Where do you get them from?

– Indeed, the search for such people has been and remains one of the most serious problems for us. We have to look for such specialists almost all over the world. For example, we hired about a hundred more experienced scientists – researchers whose average age was about 45-50 years. I expect that they will train our younger and unprepared guys. Generally speaking, finding the right number of mature and experienced people so that they can lead the young is another big headache of mine.

All this soil preparation takes a long time. And Russia, as far as I understand, needs everything "here and now". I was in Yaroslavl last year, and I got the feeling that you need everything to happen very quickly. But it doesn't happen that way! Although Russia, of course, is still lucky in this regard – you have a rich scientific tradition. There are still very few scientists in Singapore. They are mostly British. Therefore, we are now actively working in this direction.

However, by and large, in order to attract all these people, in fact, it is simply necessary to create a special environment.

– And how do you manage to create it?

– All that is needed for this is to provide people with appropriate financial support and freedom of action.

– It turns out that almost everything, in your opinion, is tied to money?

– Basically, all the specialists need is money.

– Well, then where can we get the ideologists of innovation themselves, leaders like you?

– You can buy them too. Just import them. For example, import me.

– Okay, we'll think about this offer. And in continuation of the topic of money: all the costs of financing your "personnel program" are borne by the state?

– Yes, everything is paid for by our government. Singapore is not like Russia, where there is oil and gas. We have to save money for the most necessary purposes. We manage the economy so that our savings increase by five billion dollars every year, and we invest this money in people.

– Do you have invited specialists from Russia?

– Yes, we have several researchers from Russia, Ukraine and even one woman from Kazakhstan. But so far, of course, there are few of them.

– How high is the competition for the best specialists and talents now? Does Singapore have to compete with the United States, China and other rapidly developing countries?

– Of course, I have to. They have a numerical advantage, we have our Eastern mentality. In addition, we all speak excellent English in Singapore, which is also a big plus.

– At the same time, do you invite foreign specialists engaged only in applied research?

– That's right. We don't have the time and money to study neutrinos. We are not able to do fundamental science.

– Well, do you still plan to develop fundamental research in the future?

– No, we just don't have enough people for that... and patience. It is you who still have a great human potential in Russia to continue to actively engage in fundamental science. In addition, in fundamental science, success largely depends on the case. We cannot afford to wait long for the results and hope for good luck. Therefore, we only need applied research and development in biology, medicine, genetics, computer science, and so on.

– But now everyone is engaged in the development of these areas, isn't it?

– Yes, but it doesn't matter, because specialists in these fields are in any case the best investment. We invest in people, and you invest in buildings. How can buildings change position?

– So you think that we should focus all our efforts on people?

"That's right. If I worked in Russia, I would launch a special program for prodigies, for the most gifted children. Instead of special construction projects. You invest too much in construction and invest almost nothing in talented people. Find funds, attract, develop and cultivate talents. Why do we need buildings? There's nothing good about them. And many people build these buildings better than you.

The main thing is to find a "godfather" for talented children, an experienced politician who would become their reliable patron. We need smart, smart children, choose such children from low-income families, high school age. Actively look for children with mathematical abilities. Mathematics is extremely important. Smart children who understand mathematics can study physics and all other sciences. Test them and choose 10 thousand of the best.

A billion-dollar book– In the book that is now in front of you, is there information about all the Singapore graduate students that you support?

- Yes. I am like a horse breeder – I select the "best horses". I have to take care of them all the time, and I know them all by name. In addition, I know the names of their girls (or guys), what they are fond of, in general, many details of their personal life.

– Can anyone read this book besides you?

— no. I don't give it to anyone. I have compiled this book for myself. When I travel around the world, I always take her with me, constantly keep track of who is doing what, add information about their achievements.

– Do your wards have to report to you regularly?

– Well, technically I'm not their boss, and when I come to them, we "just chat." Although, by and large, at the same time, of course, they provide something like reports on the work done.

– Is there a danger that the students you send to study abroad will not come back?

– They'll all come back. We pay a total of a billion dollars for them. They signed a contract and pledged to return. And among them there are even foreign students who are ready to work in Singapore after completing their studies. We are a small country, and if we don't steal brains, we simply won't survive. And what do you think the United States is doing? The same thing – talents are being stolen, and the scale of this theft is absolutely not comparable with ours.

– So, your entire "cohort of the chosen" receives education exclusively abroad? But there is also the National University of Singapore?

– The University of Singapore is good for basic higher education. Whereas my main interest is graduates, postgraduates. We produce about 30 thousand certified specialists a year. Of these, about 8 percent have the highest grades, and of these 8 percent, a very small proportion, crème de la crème, has one hundred percent results. It is in them that we are investing now.

– And what is the situation with the "quality control" of your wards?

– Our graduate students have publications in international journals. You can judge by them. Such works, as a rule, are of a very high level and meet all international standards. So in this regard, I have nothing to worry about.

I have another problem – I need to find a thousand such young talents, and, alas, there are not enough of my own yet. Young people in Singapore are still not competitive enough by world standards. That's why I have to steal people. We attract young professionals to Singapore, guaranteeing them financial support for about ten years ahead.

– And how do you choose the people you want to steal? What requirements do you have for them?

– First of all, they must be smart.

– But this is a very subjective criterion...

– Firstly, this can be judged based on which higher education institution they graduated from. This is the main indicator, the main criterion. We need graduates from Stanford, MIT, Harvard, Cambridge, Oxford. If you take the same USA, then you will find many universities there, but mostly they prepare bachelors and very few masters and PhD candidates. They are prepared only in the best universities.

– Well, what if you still choose the wrong person?

– I have no right to make a mistake. I choose only one thousand, I choose myself, and I know my job. We need only the smartest. There must be a special spark in them.

– And how do you calculate it? By their eyes?

– I'm talking to them. I meet them, ask them questions. I travel a lot, specifically looking for talents. I go to Boston, Cambridge. I see these students, drink tea with them. And I know how to determine which of them is really smart and quick-witted.

– Are there any regulatory bodies to which you yourself must report?

– I'm not being tested. At least not yet. It's a matter of trust and reputation. I have worked with many people. I have trained and trained many people. I'm not doing this for myself, but for future generations. Some people think that I spoil my wards, but I am sure that they are our future. Some of them will become great scientists, some – good managers, some - a future political leader. If you are creating a new society, you should be ready to invest and wait.

– Do you have an understanding of how the general system of support for your graduate students will be built when they return? How will you create a breeding ground in which the talents and ideas of your wards will turn into commercial projects?

– When our students start returning, starting this year, they will all need laboratories. But they will also need to do business studies. I will sponsor their education. They will receive an MBA in absentia (if the education is full-time, then they will launch science). In general, I will finance their training in business processes, but they will continue to work in laboratories. This is necessary because scientists are thinkers, not businessmen. They are not trained to run a business. Therefore, they need preparation. And again, everything depends on people, on their character and mindset. Some people are entrepreneurs by nature, some are not. For some, you need to create an environment, support them, and you can hope that their business will flourish. For others, the business itself is not going well, and they need additional support and training.

– How much do young scientists in Singapore receive today?

– It all depends on the scientist. Young scientists who will return from abroad will initially receive about six thousand dollars a month. But their salary can grow, there are no restrictions here. It is a real challenge for us to be an attractive place to live and work, both for our own and for foreign specialists. And we try to do everything to make both of them feel as comfortable as possible in Singapore.

– Do the salaries of your scientists and officials differ much?

– We pay people in the government very well. If you are smart enough, you will choose the most talented people and pay them so much that they work honestly.

– And what should be the salary so that officials do not take bribes?

– The ministers of our government receive two million Singapore dollars a year (about 1.55 million US dollars at the current exchange rate. – "Expert"), but they don't have any other bonuses or privileges. No houses or cars. That's all they have.

– Which companies, in your opinion, will be able to form the basis of Singapore's new economy in the future?

– The future, of course, is not for large corporations, but for small and medium-sized enterprises. The importance of large corporations is already declining, and it will be even less in the future. Therefore, one of our most important tasks today is to stimulate the creation of small and medium–sized enterprises, the cultivation of "national technological champions". They will be able to provide jobs for more people. Especially when they manage to reach the international level. Therefore, it is necessary first of all to focus attention on them, this is the basis. And in the last few years, the main successes of our economy have been associated with companies whose average annual income is no more than $ 10 million.

– In this case, what role do you assign to large high-tech corporations in the innovation system of Singapore?

– There are practically no international high-tech companies in Singapore. But with the help of various tricks, we managed to attract a huge number of industrial and research units of foreign giants of the world industry here. That is, in a sense, we also stole them from other countries.

Generally speaking, theft is a universal economic strategy! All these "stolen" large corporations came here and provided our economy with rapid growth and prosperity. Yes, now large international corporations are operating in Singapore primarily because we have provided them with significant tax benefits for production. But in the long term, an even more serious incentive for them should be the availability of highly qualified scientific and engineering personnel, since in the economy of the XXI century, large corporations primarily go where there are talents. If I run a company, I need talents, and I invest in those countries where I can find them in the necessary quantity and quality. Therefore, the thousand students I have selected and in whom I am investing money will undoubtedly be a very powerful bait for them in the near future.

Portal "Eternal youth" http://vechnayamolodost.ru
22.11.2011