Title
Implementing Rules of Philippine Innovation Act
Law
Irr Of Republic Act No. 11293 (joint Neda-dost-dti Administrative Order No. 2 S2020)
Decision Date
Feb 7, 2020
The Implementing Rules and Regulations of the Philippine Innovation Act aim to foster innovation as a vital component of national development and sustainable economic growth, promoting a culture of strategic planning and innovation, improving innovation governance, and strengthening partnerships for inclusive growth and improved quality of life through innovation.

Declaration of Policy

  • Innovation is a vital component for national development and sustainable economic growth.
  • The State shall prioritize innovation aligned with constitutional mandates on Science and Technology.
  • Policies include strategic planning, knowledge dissemination, education investments, effective innovation ecosystem, good governance, and collaboration with private sector and academe.
  • Protection of traditional knowledge, cultural expressions, and genetic resources from misappropriation is emphasized.

Definitions

  • Comprehensive coverage of terms such as innovation (product, process, organizational, marketing, academic, policy, social), MSMEs, startups, intellectual property, innovation centers, governance, networks, and others.
  • Establishes a common understanding essential for effective implementation and coordination.

Objectives

  • Foster strategic innovation and planning.
  • Enhance innovation governance and policy coherence.
  • Strengthen MSME innovation capacities and reduce regulatory impediments.
  • Promote inclusive innovation focusing on marginalized sectors.
  • Protect traditional knowledge and encourage multi-sector partnerships.

Innovation Scope

  • Applies to all types and sources of innovation.
  • Encourages not just new technologies but also adaptation of global knowledge to local development.

National Innovation Council (NIC)

  • Policy advisory body overseeing the country’s innovation agenda.
  • Comprises government, private sector, academe, and scientific community representatives.
  • Responsible for strategy formulation, monitoring, coordination, and fund administration.

NIC Functions

  • Develops strategic innovation vision and policies.
  • Provides coordination, monitoring, evaluation, and communication.
  • Administers Innovation Fund with transparency and accountability.
  • Establishes metrics aligned with international indices for innovation.

NIC Secretariat

  • Located within NEDA, headed by an appointed Executive Director.
  • Supports NIC operations, policy drafting, consultation, coordination, monitoring, and program development.
  • Administers startup development programs and innovation metrics.

National Innovation Agenda and Strategy Document (NIASD)

  • Establishes long-term vision and goals aligned with national and international obligations.
  • Includes regional differentiated strategies considering local strengths.
  • Requires strict compliance by all agencies and LGUs.
  • Periodic review every 5 years.

Priority Areas for Innovation

  • Include food security, blue economy, education, health, energy, climate resilience, governance, digital economy, among others.

Inclusive Innovation

  • Strategies to involve marginalized and low-income sectors in innovation for improvement of welfare.

MSME Innovation

  • MSME internationalization and digitalization support programs.
  • Capacity building in business practices, intellectual property, marketing, and technology.
  • Collaboration among government agencies, academe, and private sector.
  • Collection and use of MSME data for planning.

Innovation Centers and Business Incubators

  • Encourage public-private-academe partnerships for business development and skills enhancement.
  • Programs to link educational and research institutions with industry.

Regional Innovation and Cluster Policies

  • Promote regional strengths and competitive advantages through cluster strategies.
  • RDCs play key roles in coordination and monitoring.
  • Establishment of Cluster Development Program funded by the General Appropriations Act.

Strategic RD&E Programs

  • Guided by national innovation agenda.
  • Includes relevance criteria, periodic review, resource inventory, and monitoring.
  • Support for centers of research excellence and collaborative activities.
  • Annual GERD recommendations to Congress.

Innovation Instruments

  • Use of technology programs, innovation networks, science parks, cluster policies, and human capacity programs.
  • Coordination among agencies to maximize these tools.

Whole of Government Approach

  • National innovation effort integrated across all relevant government agencies.
  • Establishment of a joint web portal for public access to innovation programs and services.
  • Streamlined processes for applications and transactions to reduce delays.
  • Regular progress reporting to NIC.

Diaspora for Innovation and Development

  • Mobilizes Filipino diaspora expertise for national innovation efforts.
  • Coordination of agencies to facilitate participation and inventory of skills.

Intellectual Property (IP) System

  • Strict enforcement of IP laws to protect inventions and innovations.
  • IPOPHIL to promote registration and streamline procedures.
  • Use of patent information to foster business and technology development.

Advocacy and Community Education

  • Information campaigns to promote the innovation agenda.
  • Partnerships with business sector, MSMEs, academe, LGUs.
  • LGUs mandated to develop innovation programs and may provide incentives.

Innovation Fund and Appropriations

  • Established with initial fund allocation of One Billion Pesos.
  • Administered by NIC to support innovative enterprises benefiting the marginalized.
  • Encourages public-private funding partnerships.

Innovation Development Credit and Financing

  • Programs to provide loans and financing for innovation development.
  • Coordination with BSP and private sector.

Credit Quota for Banks

  • Mandatory allocation of at least 4% of loanable funds for innovation credit.
  • Special provisions for agriculture and review after 3 years.
  • Sanctions for noncompliance include penalties.

Removing Barriers to Innovation

  • NIC to identify and eliminate regulatory and procedural impediments.
  • Government agencies and LGUs required to streamline application processes.
  • Collaborative approach involving DBM, GPPB, CSC, COA and others.
  • LGUs to integrate innovation agendas in local development plans.

Innovation Alliances

  • Framework to promote collaborative research and innovation consortia.
  • Regional Development Councils to support regional alliances.
  • Encouragement of international collaborations.

Government Procurement

  • Alignment with Government Procurement Reform Act.
  • Development of guidelines for innovative goods, pre-commercial procurement, and technology diffusion.
  • Ensures efficiency and transparency.

National Innovation Day

  • April 21 declared annual celebration to promote innovation awareness.
  • Involves government agencies, private sector, academe, LGUs.

Review and Amendment of Rules

  • IRR subject to review every five years.
  • Amendments require NIC approval and publication.

Penalty Provisions

  • Violations subject to criminal and administrative sanctions under existing laws related to governance and public officials.

Construction and Separability Clause

  • Rules to be interpreted consistent with fostering innovation policy.
  • Invalidity of any provision does not affect the rest.

Repealing and Effectivity

  • Conflicting rules are repealed or amended accordingly.
  • Rules take effect 30 days after publication and 15 days after archival filing.

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