Let others invent !

Let others invent !

(Spanish version here)

Many of us have heard the expression "?Qué inventen ellos!" (let them invent !,meaning that let other people invent than you or your group), attributed in different circumstances to the Spanish writer Miguel de Unamuno, in the first decade of the twentieth century. It comes amid a bitter controversy between two sides of intellectuals, publicly faced through newspaper articles, lectures and university debates, sometimes to the level of personal offense.

The controversy was about the relative position of Spain in Europe. One side, led by José Ortega y Gasset asserted that Spain was far behind major European powers (the British Empire, the German Empire or the French Republic) in terms of development. And the reason for this gap was that the scientific and technological production of Spanish was very low as compared with these countries. For this group, the future welfare of Spanish society should be based on convergence with these countries by encouraging scientific research and technological development.

José Ortega y Gasset

The other side, led by Unamuno, did not share this view and believed that the scientific and technological development was not the way to measure welfare and progress of society. He considered that the cultural and moral development was as important as the material welfare of society . They did not believe, ultimately, that the development model proposed by Ortega y Gasset was right for Spain and therefore did not believe that the country was behind the rest of Europe.

Miguel de Unamuno

This intellectual confrontation was not unique to Spain. The side of Ortega y Gasset assumed the ideas of positivism of the late nineteenth century. Unamuno had grown under the same ideology, but had been changing over time towards more humanistic or existentialist criteria.

Unamuno's expression was used by critics to revile and attribute to him and his followers the alleged backwardness of Spain in Europe. Despite the years the term continues to be used both in journalism and in political discourse. Overall, as a critique of Spanish society for their limited scientific and technological production and, in particular, the low priority that science and research are in political parties, public administration and the business community.

Actually, Unamuno probably never said the words attributed to him, at least not in the literal sense attributed to him. In 1911 he declared: "And here is the meaning of my exclamation, somewhat paradoxical, I admit, `let them invent ′, exclamation about which some people, whose gift is to not want to understand, pretend to be outraged".

Probably the closest thing to what Unamuno really thought is what he puts in mouth of one of the characters in his essay "El Pórtico del Templo" ("The Gate of the Temple") in 1906. "Therefore, let them invent and we will take advantage of their inventions.  Because, I trust and I hope that you will be convinced, as I am, that electric light shines here as well as where it was invented. "

If you look closely, in fact, what we see are two visions of economic development. Ortega defended research in basic sciences and in development of technology patents, as the genuine source of development. In Unamuno's vision, without ignoring science at all, this was not a top priority, as the usage or application of these technologies.

This discussion is still open today, if taken to the Spanish companies in the Digital Age. What should we do? Investing in the development of new technologies ? (in the hope that we will achieve leadership and we will be able to license them). Or acquiring technology developed by others and shape new applications and business models? Are both things incompatible?

To take a decision must consider some starting conditions. Research in basic science and advanced technologies is much more costly and of uncertain outcome than to trial its applications. Moreover, the benefits of the former are much higher, since they have a multiplier effect (as when Microsoft introduced its operating system on computers from hundreds of manufacturers).

In addition, not all research fields are equal. Unamuno gives us another clue: "great seamen cannot be developed in Switzerland ". There are companies, countries or territories with major comparative advantages for the development of certain technologies by tradition, necessity or luck (a genius was born or grwon in them). Conversely, you can also have major disadvantages that make investing in certain technologies in a company or country to be much more costly and of uncertain outcome, than others.

Based on this, in my opinion, both views can coexist in a company or country level. What is truly important is to properly choose the fields in which to invest heavily in research (where the goal of being a leader is achievable), and those in which we should acquire the technology and improve it or give it a better and original application.

If we look over in the past we can surely appreciate what Unamuno said:

  •  The smallpox vaccine was invented in the UK, but the Kingdom of Spain was the first to make an effective intercontinental vaccination campaign (Balmis expedition) between 1803 and 1806.
  •  Although electricity generation and street lighting were not developed in Spain, its diffusion was very quick and around 1880, it was in line with the rest of Europe and America.
  • The telegraph was not invented in Spain, but spread very fast. The Morse telegraph was adopted as a standard in continental Europe in 1851. But in 1855 public service was implemented in Spain and, in just three years, it had linked all provincial capitals and major cities. By 1900, the Spanish network was comparable to that of France.
  • The railways developed very rapidly. Spain developed its first commercial line in Cuba in 1837 and, despite its difficult terrain, between 1855 and 1865 a modern railway network was deployed very fast, in a similar pace as the rest of Europe.
  •  Cinema arrived to Spain a few months after it was invented in France in 1895.  Enthusiastic photographers and entrepreneurs rapidly adopted the technology. The first movie with a plot was filmed by 1897 and the first animated movie was shot on 1898.

Unamuno was well aware of these successes when he wrote his famous words. He also knew that in some fields, Spain could excel among the leaders. We can cite two: shipbuilding (revolutionized by the electric submarine of Isaac Peral) and the field of health, with very advanced development of public health and the pioneering research of Miguel Servet or Santiago Ramon y Cajal.

Currently, there is a cliché repeated through the media and in political debates, that Spain is at the bottom of developed countries in private investment in R&D, in patenting innovations or in the rankings of university research. All of which is a partial truth, because ignores some important aspects:

  • Not having invented the "smartphone" Spain is the European leader in the penetration of this technology (10 points above the European average)
  •  Not a manufacturer of equipment, Spain has 4G networks with faster download speeds world.
  • Not being a developer of basic software, Spain is the 7th world power in terms of lines of code developed, with global industry leaders in application software as Amadeus (tourism) and Indra (Defense),
  • Without being a leader in pharmaceutical research or medical equipment, the Spanish health system (as a whole) appears in the rankings among the top 5 in the world in terms of coverage, results and efficiency. Several hospitals and clinical units are always cited as world centers of excellence.
  • Although the Spanish University does not excel in science and technology, two Spanish Business Schools (IE and IESE) are always among the top 5 or top 10, in all world rankings.

Moreover, Spanish companies excel in some leading technologies such as renewable energies (despite controversies), transportation infrastructures, research in new materials such as graphene, some areas of the aviation industry, and, of course, in fashion and leisure industries.

This performance not only occurs between large companies. In recent years, hundreds of small startups have emerged to explore new business models. Apps as LogQuiz have already beaten the tens of millions of downloads such as Dogfight, iBasket, or similar. In the area of ??personal health care, Tu Peso Ideal and others reached several million downloads and have been leaders in the rankings, for a long time

So ... where should allocate their resources entrepreneurs and large Spanish companies?

In my opinion, these precedents are still worth in the Digital Age. Investing in research on new technologies in areas where there is no clear competitive advantages, will probably do not achieve any return. In these cases, it would be better to acquire the technology and look for creative ways to exploit ("take advantage of them" would have said Unamuno). In industry segments or niches with clear advantages, is where would you put the emphasis on R & D and maintain or achieve leadership.

The right choice will depend on objective and strategic analysis of the situation in each market (in summary, to "Make" or "Buy"). Professor Unamuno was not advocating against technology as such. He was thinking about how Spanish people should position before it, to get the most benefit. And his perspective is as valid today as in 1906.

Carles Iborra

Wealth Management, Corporate Finance, Strategy Consulting | ex-BCG | Member of several Investment Committees | LinkedIn Top Voice

9 年

Thank you for your article, Victor. While it is definitely true that Spain is by no means against technology, we cannot ignore the fact that Unamuno's way of thinking clearly jeopardizes the country's competitiveness. Even if we apply all kinds of technologies, are we aware of the humongous payments in royalties that Spain makes every year to the countries that own the rights and developed these technologies? Are we aware of the fact that in today's world innovation is closely linked to developing the tools and processes required to generate or deliver new services and products? Can anyone really deny that the Spanish government totally ignores innovation and R&D as a driver to boost economic growth? These are all clear examples of how Spain is totally missing the point in today's picture. It's true that in spite of this pathetic philosophy we can still find a few winners in Spain that manage to be on the cutting edge of technology. However, this simply proves how amazing it could be if the country really committed to R&D.

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