Phl urged to invest more in R&D
MANILA, Philippines - The Philippines needs to invest more in research and development (R&D) to boost the competitiveness of local industries particularly manufacturing deemed crucial in achieving inclusive growth, according to the country’s chief economic planner.
Socioeconomic Planning Secretary Arsenio Balisacan cited a report of the World Economic Forum (WEF) indicating that technological readiness, business sophistication and innovation are among the pillars of competitiveness.
“If you will notice, three of these pillars... are related to scientific and technical innovation,†he said during the annual scientific meeting of the National Academy of Science and Technology.
Balisacan said many neighboring countries have recognized the value of science and technology in long-term growth and economic development.
‘’(They) have accordingly made significant investments in R&D. Meanwhile, Philippine investment in R&D has stayed at a level of around 0.11 to 0.14 percent of GDP (gross domestic product), which is among the lowest in Asia,’’ he said.
Balisacan earlier said the Philippines needs to invest at least P220 billion in science and technology. The amount translates to two percent of the country’s GDP that reaches at P11 trillion to P12 trillion at current prices.
Developing countries are investing close to two percent of their GDP for science, he added.
Apart from promoting rapid growth, Balisacan stressed that scientific and technological innovations can also promote inclusiveness.
He said the industry sector has great potential to boost inclusive growth. Such growth creates enough jobs and reduces poverty for the majority of Filipinos.
Industry led the pace of the country’s economic expansion, growing at 10.9 percent in the first quarter of 2013, with manufacturing, the sector’s biggest component. GDP grew 7.8 percent during the period.
The main contributors to the strong growth were manufactures of food, household appliances, communication equipment and apparatus, chemical products, basic metals, machinery and other equipment, and transport equipment.
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