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Friday, June 06, 2008

 

Promoting innovation

 
In the past three months, The Manila Times has exalted science and technology by coming out with at least two special report series on the sector, and by starting a new column, entitled Prometheus Bound, which has a group of scientists as guest columnists writing in round-robin manner.

These reports recognize this sector that the Department of Science and Technology (DOST) manages. Led by committed Filipinos who have decided to stick it out in the country rather than join the long-term exodus of Filipino professionals, DOST has long been laboring to help meet our needs and keep our country afloat in the realm of science. That DOST is celebrating its golden anniversary this year is proof that both the sector and the bureaucracy that drives it have succeeded in bridging many challenges that besiege this very important component of development.

More can be done, however. The Philippine government, for the moment the single biggest source of funds for this sector, has to strengthen scientific and technical education and initiate other forms of human capital development, provide direct public support through funding for public sector and university research, or fiscal incentives; and hurdle serious governance problems if it were to adopt innovation or new scientific breakthroughs or technologies for growth.

These were actually the main points on the country’s scientific and technological development raised during the 2008 Philippine Development Forum that met in Angeles City in March.

Participants included people in government, the development community, funders, business and civil society. Ironically, they did not include the DOST.

The climate for innovation in the Philippines was part of the Draft Report on Philippine Development prepared by the World Bank for the meeting. We hope that their discussions will result in implementing a proactive development agenda that will also spur innovation.

Innovation is the generation, diffusion, absorption and application of new technologies, knowledge or ideas now widely regarded as crucial drivers of long-term economic growth and development. It requires the introduction of new or improved goods, services, production processes and marketing methods, as well as better modes of business organization in general.

The World Bank report noted that the Philippines is second lowest among the larger economies in East Asia in the extent of penetration of some “old” technologies already available for more than a century and present in virtually all countries. These technologies indexed are electricity consumption per capita, agricultural machinery (tractors per 100 hectares), outgoing international phone traffic and international air carrier departures.

The UNESCO Statistics on Research and Development had reported that in the Philippines, research and development (R&D) in 2002-03 was only 0.15 percent of Purchasing Power Parity (PPP) relative to its gross domestic product (GDP). This is substantially lower than an estimated average of around 0.4 percent of GDP for all countries with income levels similar to its own.

Recent R&D intensity is also lower than estimates of around 0.25 percent of GDP for the early 1990s. Around 60 to 70 percent of R&D in the Philippines is undertaken by business enterprises, with 15 to 20 percent by public sector institutes and the rest from higher education institutions. There is underspending or low investment for R&D in the Philippines across the board: by businesses, the public sector and higher education institutions.

It was, however, also noted that there is a small but growing volume of international patenting by Philippines-based inventors, representing additions to the frontier of global knowledge. The volume of patenting, mostly by those connected to multinational companies, has increased in the 21st century, reaching a record 35 patents in 2006. The average number of Philippines patents increased from 5 per year in 1990-1996 to 21 per year in 2000-2006.

The Philippines is relatively weak in absorbing innovation due to weak investment climate, and wrong policy approaches to innovation. They are aggravated by chronic political and economic crises: macroeconomic volatility, policy uncertainty, poor governance and weak infrastructure.

It is also hard to do business in the Philippines, where it is very difficult to start and close a business and little protection for investors and intellectual property rights (IPRs).

Despite the high number of college graduates, there is an extremely small number of researchers in the country—a mere 8,866 in 2003 as reported by UNESCO, or only 111 per million population. The Philippines is also poor in the perceived quality of its research institutions and the interactions between business and research institutions.

If the country is to absorb new knowledge and innovate, we need significant improvements in investment climate, macroeconomic stability, governance and more logistical support and infrastructure to assist innovation.

Some of our outstanding scientists have shared two ever indispensable extras: belief in the country and people, and commitment to forging a better collective future.

opinion@manilatimes.net

   
 

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