Innovation to become vital part of economic development

MANILA, Philippines — The Philippine Innovation Act, which is set to be implemented, will make technology and innovation a vital part of the development of the economy, the National Economic and Development Authority (NEDA) said.

The implementing rules and regulations (IRR) for the law was signed last Friday between NEDA, Department of Trade and Industry, and the Department of Science and Technology, setting the law in motion after its publication this month.

The law, signed last year, provides for the greater use of science and technology as a tool for economic development through increased spending on research and development and linking industries with frontier technologies that can improve operations and output.

This can be in the form of cost-sharing initiatives to enable industries to use new technologies as well as enabling greater access to researches done in the academe that can be commercialized.

“As we aim to transform the Philippines into a globally competitive economy, and with the rapid and constant technological advances under the Fourth Industrial Revolution, we must put even higher premium on innovation and working together to build a vibrant Science and Technology Innovation (STI) Ecosystem,” Pernia said during the IRR signing.

“This is what the Philippine Innovation Act will address and help us work on a faster development of our STI Ecosystem. It will champion technological advancement to enhance the competitiveness of the Philippine economy, especially the micro, small, and medium enterprises or the MSMEs,” he said.

The law provides for the establishment of the National Innovation Council that will formulate the National Innovation Agenda Strategy Document harmonize innovation policies and programs at all levels. 

The law also aims to resolve critical issues faced by the STI sector by providing mechanisms to inculcate a culture of STI and a vibrant intellectual property culture as well as establish much-needed STI infrastructure in the country.

A P1 billion revolving fund will be allocated for use for activities provided for in the law.

In the 2019 Global Innovation Index, the Philippines ranked 54th out of 129 economies, leaping 19 places from the previous year.