National Innovation Systems, National Innovation Systems, Policy Framework and Programs Policy Framework and Programs for the Philippinesfor the PhilippinesIssues Identification

Prof. Prof. FortunatoFortunato T. De La T. De La PeñaPeñaUndersecretary for S&T ServicesDepartment of Science and Technology

A Paradigm Shift

“market failure”rationale

“systemic failure”rationale

Constitutional Provisionspriority to R&D, invention, innovation and their priority to R&D, invention, innovation and their utilization; and to S&T education, training and utilization; and to S&T education, training and servicesservicesprovide for incentives, including tax deductions, provide for incentives, including tax deductions, to encourage private participation in programs of to encourage private participation in programs of basic and applied scientific researchbasic and applied scientific researchregulate the transfer and promote the regulate the transfer and promote the adaptionadaptionof technology from all sources for the national of technology from all sources for the national benefitbenefitprotect and secure the exclusive rights of protect and secure the exclusive rights of scientists, inventors, artists, and other gifted scientists, inventors, artists, and other gifted citizens to their intellectual property and creationcitizens to their intellectual property and creation

Institutional Evolution

NSDB, 1958(R.A. 2067)

NSTA, 1982(E.O. 784)

DOST, 1987(E.O. 128)

DOST MandatesProvide central direction, leadership and Provide central direction, leadership and coordination of all scientific and technological coordination of all scientific and technological efforts in the countryefforts in the countryFormulate S&T policies, programs, and Formulate S&T policies, programs, and projects in support of national development projects in support of national development prioritiespriorities

DOST Organizational Structure

DOST

5 SectoralCouncils

6 S&T Service Ins.

2 Collegial Bodies

7 R&D Institutes

15 Regional Offices

S&T Policy Environment

S&T Master Plan (1991S&T Master Plan (1991--2000)2000)RA 6959 RA 6959 -- Establishment of Provincial Centers Establishment of Provincial Centers for S&Tfor S&T

President Corazon C. President Corazon C. AquinoAquino

S&T Policy Environment

Stand PhilippinesStand PhilippinesRA 7459 RA 7459 –– Inventors Incentives ActInventors Incentives ActRA 7687 RA 7687 –– S&T Scholarship ActS&T Scholarship ActRA 8439 RA 8439 –– Magna Magna CartaCarta for S&T Personnelfor S&T PersonnelRA 8496 RA 8496 –– Integrating PSHS campuses into Integrating PSHS campuses into

one system of governanceone system of governance

President Fidel V. RamosPresident Fidel V. Ramos

S&T Policy Environment

DOST MediumDOST Medium--Term Plan (1999Term Plan (1999--2004)2004)Crafted the vision of a competent and Crafted the vision of a competent and competitive science community with a social competitive science community with a social conscienceconscience

President Joseph President Joseph EjercitoEjercito EstradaEstrada

S&T Policy Environment

SETUPSETUPTECHNICOMTECHNICOMSUPRESUPRE--GOVGOVRepublic Act 9036Republic Act 9036Republic Act 9107Republic Act 9107Policy Statement and Framework on Modern Policy Statement and Framework on Modern BiotechnologyBiotechnologyRepublic Act 9236Republic Act 9236Republic Act 9242Republic Act 9242

President Gloria President Gloria MacapagalMacapagal--ArroyoArroyo

MTPDP

Adopting policies focused on making the Adopting policies focused on making the Philippine National Innovation System workPhilippine National Innovation System workoo Product/financial market reformsProduct/financial market reformsoo Reduction of barriers to technology Reduction of barriers to technology

entrepreneurship/obstacles to start upsentrepreneurship/obstacles to start upsoo Venture capital promotionVenture capital promotionoo Removing disincentives to technology Removing disincentives to technology

entrepreneursentrepreneursoo Educational improvementsEducational improvementsoo Support to R&DSupport to R&Doo IPR protectionIPR protection

Medium-Term Philippine Development Plan (2004-2010)

MTPDP

Enhancing the competitiveness of S&T Enhancing the competitiveness of S&T workersworkersoo Improving educational system to meet industry Improving educational system to meet industry

needsneedsoo Greater access to skills upgrading opportunitiesGreater access to skills upgrading opportunitiesoo Quality standards, accreditation and certification Quality standards, accreditation and certification

systemssystemsoo ICT use promotionICT use promotionoo Tapping Filipino experts from abroadTapping Filipino experts from abroad

Medium-Term Philippine Development Plan (2004-2010)

MTPDP

Accelerating knowledge creation and transferAccelerating knowledge creation and transferoo More resources for field extensionMore resources for field extensionoo More funds for knowledge managementMore funds for knowledge managementoo Networking Networking oo Upgrading S&T facilitiesUpgrading S&T facilitiesoo Technology parksTechnology parksoo Strengthening extension centersStrengthening extension centers

Medium-Term Philippine Development Plan (2004-2010)

MTPDP

Promoting technology entrepreneurshipPromoting technology entrepreneurshipoo Support services to new entrepreneurs and Support services to new entrepreneurs and SMEsSMEsoo SETUP and SETUP and TechnicomTechnicom implementationimplementationoo Technology diffusion Technology diffusion oo Commercialization by biotech productsCommercialization by biotech productsoo R&D costR&D cost--sharing through contract researchsharing through contract researchoo Venture capital financingVenture capital financingoo LBP/DBP financing for SUC projectsLBP/DBP financing for SUC projectsoo Network and alliancesNetwork and alliances

Medium-Term Philippine Development Plan (2004-2010)

DOST Budget Trend(In Millions)(In Millions)

1,7001,700

2,7702,770

2,4472,447

2,4202,4202,5662,566

2,8192,819

2,5452,545

2,8542,854

2,6942,6942,4522,452

3,1823,1822,8572,857

3,5703,5703,7763,776

3,1563,156

--

500500

1,0001,000

1,5001,500

2,0002,000

2,5002,500

3,0003,000

3,5003,500

4,0004,000

9292 9393 9494 9595 9696 9797 9898 9999 0000 0101 0202 0303 0404 0505 0606

0.14% of GDPR&D Expenditure

(2002)

1.0% of GDPUNESCO

Recommendation

NATIONAL R&D EXPENDITURESNATIONAL R&D EXPENDITURES

Assessment of Philippine S&T

Assessment of Philippine S&TR&D Expenditures as a Percentage of GDPR&D Expenditures as a Percentage of GDP

Japan (2001)Japan (2001)South Korea (1996)South Korea (1996)USA (2002)USA (2002)Australia (2000)Australia (2000)Singapore (1995)Singapore (1995)New Zealand (1999)New Zealand (1999)Hong Kong (1996)Hong Kong (1996)Malaysia (1996)Malaysia (1996)Philippines (2002)Philippines (2002)Thailand (1996)Thailand (1996)Indonesia (1994)Indonesia (1994)

3.093.092.822.822.822.821.531.531.131.131.031.030.610.610.240.240.140.140.130.130.070.07

Source: UNESCO Statistical Yearbook, 1999Survey on National R&D Expenditures and Manpower

Assessment of Philippine S&T

10,20010,2008,6008,6007,6007,6007,2007,2006,4006,4002,3182,31845445418218210310393938989

Japan (2001)Japan (2001)USA (1999)USA (1999)New Zealand (1999)New Zealand (1999)Australia (2000)Australia (2000)South Korea (2001)South Korea (2001)Singapore (1995)Singapore (1995)Hong Kong (1996)Hong Kong (1996)Indonesia (1988)Indonesia (1988)Thailand (1996)Thailand (1996)Malaysia (1996)Malaysia (1996)Philippines (2002)Philippines (2002)

Scientists and Engineers in R&DScientists and Engineers in R&D(per million population) (per million population)

CountryCountry

Source: UNESCO Statistical Yearbook, 1999Survey on National R&D Expenditures and Manpower

R&D Personnel of Selected Countries (1987R&D Personnel of Selected Countries (1987--1997)1997)

Low number of scientific publicationsLow number of scientific publicationsUSA USA –– 11stst place place 163,526163,526

Taiwan Taiwan 4,6554,655

Thailand Thailand 470470

Malaysia Malaysia 416416

Philippines Philippines -- 2929thth place place 164164

Indonesia Indonesia –– Last placeLast place 142142

Assessment of Philippine S&T

Patents Granted to ResidentsPatents Granted to Residents

Korea Korea –– 33rdrd placeplace 34,05234,052

Thailand Thailand –– 2222ndnd placeplace 6565

Malaysia Malaysia –– 2727thth placeplace 2828

Philippines Philippines -- 2828thth place place 66

Assessment of Philippine S&T

DOST 8-Point Agenda1.1. Putting in place five comprehensive priority Putting in place five comprehensive priority

R&D programsR&D programsoo BiotechnologyBiotechnologyoo ICTICToo Environment Environment oo PharmaceuticalsPharmaceuticalsoo Basic ResearchBasic Research

DOST 8-Point Agenda2.2. Expanded implementation of existing SETUP, Expanded implementation of existing SETUP,

TechnicomTechnicom and Techno and Techno GabayGabay ProgramsPrograms3.3. Implementation of highImplementation of high--impact programs in impact programs in

each regioneach region4.4. Better ways of helping inventorsBetter ways of helping inventors

DOST 8-Point Agenda5.5. Launching of Innovation Promotion ProgramLaunching of Innovation Promotion Program

oo Business plan competitionBusiness plan competitionoo Success stories of Filipino technology Success stories of Filipino technology

entreprenuerentreprenueroo Networking with Filipino S&T experts Networking with Filipino S&T experts

abroadabroadoo Conducive financial and legal framework Conducive financial and legal framework

for business startfor business start--upup

DOST 8-Point Agenda6.6. Innovative human resources development Innovative human resources development

programsprograms7.7. Upgrading of Upgrading of faciltiesfacilties8.8. Policy development and advocacy programPolicy development and advocacy program

oo Groundwork for comprehensive technology Groundwork for comprehensive technology transfer legislationtransfer legislation

oo Revisit S&T parks programRevisit S&T parks programoo Evaluation of DOST programsEvaluation of DOST programsoo DOST Rationalization ProgramDOST Rationalization Programoo International cooperationInternational cooperation

DOST 8-Point Agenda6.6. Innovative human resources development Innovative human resources development

programsprograms7.7. Upgrading of Upgrading of faciltiesfacilties8.8. Policy development and advocacy programPolicy development and advocacy program

oo Groundwork for comprehensive technology Groundwork for comprehensive technology transfer legislationtransfer legislation

oo Revisit S&T parks programRevisit S&T parks programoo Evaluation of DOST programsEvaluation of DOST programsoo DOST Rationalization ProgramDOST Rationalization Programoo International cooperationInternational cooperation

ConclusionInnovation depends on how we all work Innovation depends on how we all work togethertogetherWe should work together to make National We should work together to make National Innovation System produce benefits for FilipinosInnovation System produce benefits for Filipinos

Thank You