EDITORIAL - Slipping innovation

After four consecutive years of improving rankings, the Philippines slipped two spots in the latest Global Innovation Index, placing 52nd out of 139 economies in the 2026 GII.

The GII, drawn up by the World Intellectual Property Organization, had ranked the Philippines at 59th spot in 2022, 56th in 2023, 53rd in 2024 and 50th last year. The government had aimed for 49th place this year.

Among the indicators, the country saw the steepest declines in human capital and research, broader innovation, market sophistication, business sophistication and innovation outputs.

The country did see slight improvements in institutions, innovation infrastructure, knowledge and technology outputs and creative outputs.

Undersecretary Rosemarie Edillon of the Department of Economy, Planning and Development called for additional focus on the weak areas, particularly in boosting access to financing for startups. Edillon noted that when Philippine startups reach a certain level of development, they find it necessary to move out and register overseas, particularly in Singapore, to raise financing.

Singapore led Southeast Asian states in the 2026 GII, ranking fifth globally. Malaysia followed at 34th. The Philippines now trails neighbor Vietnam, which ranked 43rd globally, with Thailand at 44th.

The rankings track other economic indicators within the region, with the Philippines only slightly ahead of Indonesia, which placed 55th globally. Cambodia was a far 93rd overall; Brunei placed 98th; Laos, 108th and Myanmar, 125th.

Even without the GII, the Philippines can see how innovation powers economies. Switzerland topped this year’s GII, followed by Sweden, the United States and South Korea. China placed 10th, ahead of Japan at 12th.

Apart from the development of a startup capital market, the Philippines already knows that it needs to invest more in human resource development. The quality of education is critical in innovation. Those global leaders in innovation have invested heavily in education and research to meet national needs. South Korea’s existential need for strong self-defense capability, for example, fueled its rapid industrialization.

China, in just a few decades, has sent its citizens and rockets into space, become a nuclear power and now makes the world’s largest number of electrified vehicles.

The Philippines began reviving emphasis only in recent years on the teaching of STEM subjects – science, technology, engineering and mathematics – while launching programs to promote creativity and innovation.

These programs must be sustained, and supported with the needed funding and other resources. Improved GII rankings will then fall into place.