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By Nora O. Gamolo, Senior Desk
Editor
Transferring technologies from
the academic to the real world is a primary task of government.
The Department of Science and Technology (DOST), which has in
its stable some of the country’s best scientific brains, has been
doing a good job of it.
DOST has been assisting some of
the country’s most noted small and medium enterprises (SMEs) since
2002 when it launched its flagship Small Enterprise Technology
Upgrading Program (SET-UP) for this sector.
“SET-UP is actually a
nationwide strategy to encourage and assist SMEs adopt technological
innovations to improve their operations and boost productivity and
competitiveness,” said DOST’s Secretary Estrella F. Alabastro.
The program enables firms to
adopt a science and technology oriented production set-up.
Entrepreneurs and their workers get free advice from DOST scientists
and consultants to address various technical problems, enabling
technology transfer and technological innovations to improve
productivity.
Improving productivity means the
production of more quality products, manpower development through
technical training courses for workers/employees, cost reductions,
management of wastes and observance of environmental standards, and
improvement of other operations-related activities.
For 2008, SET-UP is allocated a
measly P250 million in locally generated funds. These are funds
well-spent. Among others, the program supports companies involved in
food production, manufacture of furniture, gifts, toys, house wares,
handicrafts, natural fibers and dyes, development and utilization of
marine and aquatic resources, horticulture, metals and engineering.
Eligible to apply are
entrepreneurs and companies based in the Philippines and wholly
owned by Filipino citizens. These must be small- and medium-scale
businesses that can be classified under the identified priority
sectors. The owners and managers must be willing to apply
technological improvements in their existing operation.
Those interested to apply can
send a letter of interest to the nearest DOST office, identifying
current problems, improvements, and potential technological
interventions needed. If the project is found viable, the DOST
Regional Office endorses it to the National Program Management
Office for evaluation and final approval.
Once approved by the NPMO, the
Regional Technical and Evaluation Committee (RTEC) to identify and
provide the most suitable technological intervention specific for
each firm visit the enterprise.
If the entrepreneur or enterprise
is willing to become a “technology adoptor” of new or advanced
technologies developed by DOST scientists and consultants, these are
commercialized or transferred to companies for commercial use.
SET-UP program beneficiaries
acquire, among others, new equipment to mechanize and/or improve
their production line through venture capital funding from various
sources. DOST and other
government agencies help the entrepreneur amass the funding.
Properly capitalized to use the new technologies or
innovations, they can then improve the quality of their products
according to the best international standards that make products
exportable.
DOST consultants even help design
functional packages and labels, and assist in the establishment of
product standards.
The SET-UP program, for example,
assisted three furniture-making firms in Central Luzon: Country
Accents Inc. (wood and
rattan), Furnitureville Inc.
(classic and handcarved furniture), and Walch Furniture and Home
Furnishings (quality furniture for local and export markets).
The firms upgraded their
facilities, increased productivity, and improved product quality
during the program’s first year of implementation. Some facilities
the firms acquired were the furnace-type wood kiln dryer for Country
Accents and Walch Furniture; and additional machines and equipment,
including a dust collector, for Furnitureville.
The intervention improved
production efficiency and reduced raw material wastage.
The working environment for employees became healthier.
Consequently, the
firm-beneficiaries realize additional income and increased their
labor force, helping to reduce unemployment in the region. With
increased productivity and cost efficiency, the firms also exhibited
very good track records in loan repayment.
In 2003, four new firms were
assisted in Central Luzon. For these firms, SET-UP paved the way for
the acquisition of a dust collecting system (More Than A Chair),
woodworking machineries (DECO Crafts), mango dryer (Green Thumb Agri-Products),
and a mechanical mixer for dyeing, blocking machine and gas-fired
dryer (Aurora Hats and Crafts).
“Since 2002, SET-UP made it
possible for firms to acquire modern production equipment and
upgrade the quality and marketability of their products,” said
DOST Assistant Secretary Carol Yorobe, acting head of the work
combine that implements SET-UP.
A survey has shown that DOST
assistance has resulted in the participating firms’ increased
productivity on their first year by an average of 550 percent per
firm, and enabled them to generate 23,397 new jobs.
DOST and DOST-accredited
laboratories all over the country now provide testing and
calibration services to various clients, enabling companies to meet
international market standards and make their products more sellable
to local and foreign markets.
With assistance, proper packaging
and storage prolong shelf life of products, giving both
entrepreneurs and buyers more protection. Proper labels provide
detailed information needed by more demanding environment- and
health-conscious consumers.
SET-UP has also supported
hundreds of training programs attended by thousands of participants
from all over the Philippines. Training courses focused on key
industrial production issues and standards such as Hazard Analysis
and Critical Control Points (HACCP) for food processing, Good
Manufacturing Practices (GMP), and Quality and Environment
Management Systems (QMS/EMS).
Specific trainings on machining
for furniture, handloom weaving, seaweed culture and tissue culture
production, among others, are also provided under SET-UP. Technical
and consultancy services were also given to participating firms to
ensure the successful adoption of technologies.
The program is still being
improved. In 2006, the Inter-Agency Design and Engineering
Assessment (IDEA) Team, consisting of eight research and development
institutes under DOST. It was created to assist in the development,
assessment, and standardization of efficiency and performance
indicators of various equipment, tools, jigs and fixtures associated
with DOST-generated technologies that can be utilized by small and
medium firms.
For improvement in client
firms’ marketing expertise and methods DOST links up with other
government agencies. The Department of Trade and Industry sponsors
market encounters to bring together product buyers and sellers or
suppliers, completing a cycle of assistance for entrepreneurs.
That is, until the next
innovation is developed and commercialized anew.
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