Singapore, the United States, and Sweden are countries with high income economies. They are also on top of the 2019 Global Innovation Index (GII).
The 2019 GII is an annual ranking of countries in terms of their economies and innovation inputs, ouputs, and environment. Although the Philippines has improved its innovation performance to rank 54 of 129 countries, the 2019 GII Report showed that the country still lagged behind in terms of ease of starting a business, ease of getting credit, expenditure on education, and global research and development (R&D) companies.
The Philippine Innovation Act (RA 11293)
Innovation has always been among the necessary tools for businesses and thus, economies to thrive. Countries with rich economies have invested a lot in discovering new products, services and processes.
On April 17, 2019, President Rodrigo Roa Duterte signed Republic Act 11293 or the Philippine Innovation Act which puts forward the support to innovation, especially for Micro, Small, and Medium Enterprises (MSMEs), as a driver for sustainable and inclusive development.
The Philippine Innovation Act, which is expected to be implemented by January 2020, provides for a broader view of innovation and strategies, whether it be on product, process, organization, and policy, to increase productivity and public welfare.
The act is an initiative of the government to foster creativity and innovation explained Department of Trade and Industry (DTI)-Cordillera Director Myrna Pablo during the Regional Consultation on the Implementing Rules and Regulations of RA 11293 in Baguio City.
“The MSME sector needs to innovate. Innovate and be creative so that they can be at par with other countries who improve their products regularly,” Pablo said.
Under the act, there will be a National Innovation Council (NIC) chaired by the President with concerned government agencies and representatives from the business, MSME, academic, and scientific sectors as members.
NIC will lead the development of innovation goals, priorities, and strategies said National Economic Development Authority-Trade, Services, and Industry Staff Assistant Director Richard Emerson Ballester.
Boosting the entrepreneurial culture
One of the factors in fostering innovations among MSMEs is creating an environment that allows for entrepreneurs to think of new ideas, discover opportunities, and participate in both the local and global markets.
The business start-up and innovation development program under the innovation act helps small entrepreneurs to find and start their own businesses and improve their products. This start-up and innovation program will provide coaching, mentoring, technology extension, and standard-setting, among others.
Innovation centers and business incubators will also be established to encourage collaboration between the academe, big and small businesses, and research institutions towards innovating products for the market.
“There has to be a way for us to improve ideas, designs, and execution and this can be easily given to life by, for example the SLU Fabrication Laboratory to prototype ideas,” said Pablo.
DTI- Bureau of Trade and Industrial Policy Research Assistant Director Abigail Zurita said the pilot stage for Innovation Centers, initially in virtual platforms, are being implemented in five regions of the country.
Financing innovation and development
“Our MSMEs have to be fully supported. Like in financing, there should be low interest rates since these are small businesses,” said Pablo.
During the Regional Consultation on the Implementing Rules and Regulations of RA 11293 for Northern Luzon, MSMEs have raised concerns on difficult access to financing and credit lines.
“I hope we can have something in the act which will give special consideration by offering liberal credit terms for MSMEs,” added Pablo.
Aside from improving financial support access and liberal credit terms, an innovation development credit and financing program will also be created to cater to new technologies and innovations on products, processes, and organizations.
Strengthening Research, Development, and Extension (RD&E)
Research, development, and extension always come with innovation.
The Philippine Innovation Act, as part of the strategies for encouraging innovation, also adopted the establishment of RD&E centers in collaboration with concerned government agencies, the business sector, and the academe.
In the Cordillera, Department of Science and Technology (DOST) Director Nancy Bantog shared about the recently established the Regional Research, Development and Innovation Committee (RRCIC) under the Regional Development Council.
She said the RRDIC can give support in the identification of priority commodities and industries to be developed in the Cordillera.
Bantog also said that DOST was able to put up incubator areas at the Saint Louis University for the techhub center, at the University of the Cordilleras for the innovation and nurturing Space, and at the Benguet State University for the food innovation center. Upcoming also is the establishment of a metals engineering innovation center at the Ifugao State University.
“As we go along with this planning, we are looking at developing State Universities and Colleges and big universities as innovation centers,” Bantog added.
Protecting Intellectual Property
With products and services now being sold online, entrepreneur and artisans like Ariel Layugan of the Kulibeng Arts and Craft are concerned with the protection of their products, ideas, and designs.
“There is a worry to let out ideas, innovation, and new products into the market because these could be pirated and be owned by other countries,” Layugan said.
DTI-CAR Director Pablo explained that the role of the Intellectual Property Office (IPO) is very important in the copyright of patents and trademarks to protect ideas and products of MSMEs.
“Once you register your product or idea as your own patent or trademark, you will have the authority to use it. If others will copy your work, they will be subject to court proceedings,” Pablo added.
IPO and other government regulations and agencies in place to secure the rights of innovators are also reinforced including the streamlining of the registration of patents and trademarks to assist MSMEs.
Forwarding small business growth
“Although it is difficult to compete with the big companies but through this forum, we can see that the government is helping to protect us, especially our culture,” said Layugan as he shared about Cordillera weaves, fabric, and craft.
Since products and MSME ventures in the Cordillera are mostly traditional and culture-based like weaving and woodcarving, Pablo ensured that the cultural products and processes which makes the region unique, are still preserved while helping MSMEs respond to market needs.
“We look at the market and we try to weave it with culture and tradition,” she said.**JDP/JJPM-PIA CAR
