Declaration of Policy
- Innovation is a vital component of development and economic growth.
- State prioritizes research, development, invention, innovation, and utilization.
- Innovation efforts to aid marginalized groups and MSMEs.
- Promote culture of strategic planning, knowledge creation, and dissemination.
- Investments focused on strengthening knowledge-based economic development benefiting all.
- Recognizes need for an effective innovation ecosystem with whole-of-government approach.
- Governance must remove regulatory and other obstacles to innovation.
- Collaboration with business sector, academe, and scientific community encouraged.
- Protect traditional knowledge, cultural expressions, and genetic resources.
Definitions
- Terms defined include Blue economy, Business incubators, Cluster policies, Genetic resources, Inclusive innovation, Innovation (various forms), Innovation alliances, Innovation centers, Innovation governance, Innovation networks, Innovative goods and services, Marketing innovation, Multi-stage process, Organizational innovation, Policy innovation, Pre-commercial procurement, Process innovation, Product innovation, Project-based competition, Social innovation, Technology diffusion procurement, Technology platforms, Technology programs, Traditional cultural expressions, Traditional knowledge.
Objective
- Promote innovation and internationalization of MSMEs for inclusive growth.
- Foster strategic planning and innovation culture.
- Improve innovation governance and coordinate programs.
- Strengthen MSMEs in innovation system.
- Remove bureaucratic and regulatory obstacles.
- Encourage entrepreneurship.
- Promote and protect traditional knowledge.
- Foster public-private partnerships.
Innovation Scope
- Broader view on innovation types: product, process, organizational, social, marketing, academic, policy.
- Harness global technologies to improve productivity and welfare.
National Innovation Council (NIC)
- Chair: President of the Philippines.
- Members: Key government department heads and seven appointed executives.
- Executives include representatives from business, MSMEs, academe, scientific community.
- Functions: Develop strategy, coordinate agencies, monitor programs, administer Innovation Fund, report to Congress, etc.
Secretariat to NIC
- Located in NEDA, headed by an Executive Director appointed by the President.
- Functions: Support NIC, coordinate stakeholders, gather intelligence, draft policies, develop metrics, implement startup development programs.
National Innovation Agenda and Strategy Document (NIASD)
- Sets vision, goals, and strategies for innovation over at least 10 years.
- Prioritizes regional differentiation.
- Guides agency programs and budgets.
- Developed with stakeholders within six months from effectivity.
Priority Areas for Innovation
- Food security, blue economy, education, health, energy, climate change, resource efficiency.
- Regional comparative advantages and potentials.
- Traditional knowledge and cultural expressions.
- Infrastructure, governance, human capital, digital economy, transportation.
Inclusive Innovation
- Promote innovation benefiting low-income and marginalized groups.
- Enhance women's participation and skills in STEM.
- Promote social innovation for quality of life improvements.
MSME Innovation
- Promote MSME internationalization and value chain participation.
- Support programs: coaching, mentoring, technology extension, quality control, commercialization, patent support.
- Startup MSME innovation programs coordinated with private sector.
- Metrics developed for monitoring progress.
Innovation Centers and Business Incubators
- Encourage partnerships among government, private sector, academe, and R&D institutions.
- Support technology transfer, collaboration, access to finance and marketing.
- Link tertiary and research institutions with industry.
Regional Innovation and Cluster Policy
- Strategies to promote regional innovation based on competitive strengths.
- Cluster policies to be integrated with other policy streams.
- Cluster Development Program funded by General Appropriations Act.
- Implemented via coordinated government agencies.
Strategic RD&E Programs
- Develop themes aligned with national innovation goals.
- Relevance criteria for project funding.
- Inventory and monitoring of research institutions.
- Establish centers of research excellence and collaborative research.
- Annual Gross Expenditure on R&D recommendations to Congress.
Innovation Instruments
- Utilization of technology programs, innovation centers, networks, platforms, cluster policies, human capacity programs.
- NIC to coordinate strategies and agency action plans.
Whole of Government Approach
- Coordinated implementation across multiple government agencies.
- Creation of a joint innovation web portal.
- Streamlined application and processing systems.
- Mandated periodic reporting to NIC.
Diaspora for Innovation and Development
- Program to engage Filipino diaspora expertise.
- Coordination among various agencies.
- Inventory of skills and institutional needs.
Intellectual Property System and Management
- Enforcement of existing IP laws to protect innovators.
- IPOPHL to assist MSMEs in IP registration.
- Streamlining of IP administrative procedures.
- Reporting reforms to NIC.
Advocacy and Community Education
- Information campaigns to widen participation.
- Partnership with private sector, MSMEs, incubators, LGUs.
- LGUs to create local innovation programs and may provide incentives.
Innovation Fund
- Initial fund of P1 billion for entrepreneurship benefiting the poor.
- Administered by NIC.
- Encourages public-private partnerships.
Innovation Development Credit and Financing
- Development of credit programs for innovation financing.
- Coordination with Bangko Sentral ng Pilipinas and private sector.
Credit Quota
- Banks required to allocate at least 4% of loanable funds to innovation credit.
- Loans to agriculture counted under Agri-Agra Law compliance.
- Joint review by NIC and BSP after 3 years.
- Penalties for non-compliance assessed and directed mostly to Innovation Fund.
Removing Barriers to Innovation
- NIC to work with government to remove regulatory and bureaucratic obstacles.
- Streamline business licensing and permit processing to within 3 working days.
- Guidelines to improve innovation environment.
Innovation Alliances
- Framework to encourage collaborative research consortia and regional networks.
Government Procurement
- Compliance with Government Procurement Reform Act.
- NIC to coordinate guidelines facilitating innovative goods and services procurement.
- Use of multi-stage and technology diffusion procurement strategies.
Declaration of National Innovation Day
- April 21 declared as National Innovation Day.
- Programs to be implemented involving government, private sector, LGUs, and schools.
Implementing Rules and Regulations
- NEDA, DOST, DTI to promulgate within 60 days from effectivity.
Penalty Provisions
- Noncompliance subject to criminal and administrative penalties under various laws.
Separability Clause
- Invalidity of any provision does not affect others.
Repealing Clause
- Inconsistent laws and regulations repealed or modified.
Effectivity
- Takes effect 15 days after publication in Official Gazette or newspaper.