The Philippines

7.4.4.1 Key characteristics of the S&T system in the Philippines

The Philippines is the second-largest member state in the ASEAN in terms of population (92.2 million people in 2009), but ranks among the lower-middle income economies of the region with regard to GNI per capita ($ 2,050 in 2010 ²⁰⁸). Although economic growth accel-erated in the last decade, it remained much slower com-pared to that in the ASEAN region as a whole ²⁰⁹. The country faces many challenges. The level of internation-al competitiveness is low, while unemployment is high and poverty widespread. Recognizing the importance of innovation for the country’s catching-up process, the Philippine government adopted a proactive S&T policy approach in recent years. The so-called Filipinnovation strategy developed in 2007 represents this new policy direction towards innovation-driven development. This strategy has four key priorities: ‘strengthening Filipino human capital; supporting business incubation and ac-celeration efforts; regenerating the policy environment for innovation and, finally, upgrading the Filipino mind-set towards a culture of innovation’ ²¹⁰.

The country’s weak economic performance explains to some extent why expenditure on research and de-velopment (R&D) in relation to GDP is well below the average level recommended for developing countries.

However, up-to-date and internationally comparable statistics on innovation are not available. Currently, an innovation survey is being prepared that aims to assess recent S&T development, providing data and elaborat-ing policy tools and initiatives. The focus of this survey is on food, manufacturing, electronics and information and communications technology (ICT). ²¹¹ Based on the latest available data, the Philippines’ expenditure on R&D amounted to only 0.12 per cent of GDP in 2005. ²¹² There was also a dramatic lack of human capital. Due to more attractive career opportunities for highly-qual-ified personnel abroad, the issue of brain drain had a strong impact on the R&D personnel development. Be-tween 2002 and 2005 the stock of research personnel increased by 14.7 per cent on average per year, with the total number rising from 9,325 to 14,087. In relation to

208 See table 16

209 Posadas, Roger (2009): Scientific and Technological Capabilities and Economic Catch-Up, in: Philippine Management Review, 2009(16), pp. 132 f 210 DOST Department of Science and Technology (2008b): Filipinnovation.

Unleashing the Innovative Spirit of Filipinos For Global Competitiveness, Manila

211 De La Peña, Fortunato T. (2010): Towards and Innovation-Led Develop-ment Path in the Philippines (Ongoing Initiatives on Innovation Studies: In-novation Survey), Presentation prepared for the 11th National Convention on Statistics (NCS), EDSA Shangri-La Hotel, 4–5 October 2010, online at: http://

www.nscb.gov.ph/ncs/11thNCS/papers/invited%20papers/ips-07/02_On-going%20Initiatives%20on%20Innovation%20Studies%20Innovation%20 Survey.pdf, most recent access date: 14 September 2011

212 According to estimates by the Department of Science and Technology (DOST), expenditure on R&D currently amounts to 0.3 per cent.

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the overall population, however, this translated into just 165 R&D personnel per million. ²¹³ The low levels of R&D investment and personnel have also been attributed to institutional weaknesses and policy failures, especially with regard to incentives for companies to invest in inno-vation. ²¹⁴ Among the various flaws discussed by Philip-pine experts are: the weak R&D collaboration between the public and the private sector, the lack of an efficient system for the transfer of technology and problems with regard to technology ownership and protection of in-tellectual property rights. ²¹⁵ In order to understand the current system of innovation in the Philippines, and the interactions among actors, interviews were conducted with representatives from the government, research institutes and universities in June 2011. The following mapping of actors in the innovation landscape is based mainly on these interviews, but is also complemented by information obtained from the respective institu-tion’s websites.

The Philippine innovation system is complex and has a multi-layer structure with institutions on both the central government level and on the local community level (see figure 88). The Department of Science and Technology (DOST) has had the mandate to formulate and implement S&T policy since 1986. Although DOST has a central role in S&T policy-making and the super-vision of government research institutes (GRIs), there are also line ministries, the private sector and univer-sities that conduct research. The DOST emanated from the National Science and Technology Authority (NSTA) that was set up in 1982, which introduced five S&T coun-cils for sectoral policies, programmes and strategies. ²¹⁶ These five councils are the:

• Philippine Council for Industry, Energy Research and Development (PCIERD)

• Philippine Council for Agriculture, Forestry and Natural Resources Research and Development (PCARRD)

• Philippine Council for Health Research and Devel-opment (PCHRD)

• Philippine Council for Aquatic and Marine Research and Development (PCAMRD)

• Philippine Council for Advanced Science and Tech-nology Research and Development (PCASTRD) Following restructuring and rationalization, the number of research councils was cut by one in June 2010. The

213 DOST (2009): Innovation, pp. 8–11; Gonzales, Katharina G. / Yap, Josef T. (2011) How can government increase in R&D activities in the Philippines?

PIDS Philippine Institute for Development Studies, Policy Notes, No. 2011-01, Makati City

214 Reyes-Macasaquit, Mari-Len (2009): Sources of Innovation of Philippine Firms: Production, Logistics and Knowledge Networks, in: ERIA Research Project Report 2008 No. 4-1, Jakarta; Cororaton, Caesar B. (2002): Research and Development and Technology in the Philippines, PIDS Philippine Insti-tute for Development Studies, Discussion Paper Series No. 2002-23, Makati City

215 Reyes-Macasaquit (2009), p. 91

216 Reyes-Macasaquit, Mari-Len (2009): Sources of Innovation of Philippine Firms: Production, Logistics and Knowledge Networks, in: ERIA Research Project Report 2008 No. 4-1, Jakarta, p. 4

PCASTRD and the PCIERD merged into the Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD). The newly-es-tablished council covers all sectors related to industry, energy, utilities, infrastructure and advanced science.

The new Director of PCIEERD, appointed in April 2011, announced on the occasion of the merger’s first anni-versary that, ‘the union will result in the consolidation and streamlining of policies, strategies, programmes and projects that impact on the priority sectoral con-cerns; the enhancement and strengthening of linkages and networks; and the creation of a culture of sharing ideas and experiences’ ²¹⁷.

While four research councils pursue their mandates in specific sectors, the PCASTRD was responsible for the integration and the coordination of the national re-search system for advanced S&T. The PCASTRD’s priority areas included biotechnology, electronics technology, ICT, material science, photonics technology and space technology applications. One such policy was the ‘Na-notechnology Roadmap’, which aims to prioritize R&D projects. The PCIERD focused on the planning, moni-toring and promotion of S&T research for later applica-tion in the fields of industry, utilities and infrastructure.

It cooperates closely with the private sector in order to provide market-driven directions and research efforts, share risks and benefits and plan for long-term projects.

The PCIERD offers grants-in-aid for approved research proposals open to both the public and private sector.

The priority areas are energy, environment and food.

The PCARRD takes a leading role in research on ag-riculture and natural resources. In 2006, it published the ‘Integrated S&T Agenda in Agriculture, Forestry and Natural Resources for CY 2006–2010’. Based on inten-sive consultation with representatives from the scien-tific community, industry sector, donor agencies, etc., the strategy intends ‘to develop a common agenda for cooperation and partnership among the various stake-holders, and participating research and development (R&D) institutions and users’. ²¹⁸ Thematic areas for R&D include poverty alleviation and food security, global competitiveness, frontier and cutting-edge science, natural resource management and sustainable devel-opment and agricultural and forestry services. The re-search agenda contains a detailed list of target products, R&D agendas and areas, thematic programme areas and responsible consortia (PCARRD 2006: 4). Climate change and the manifold challenges associated with this issue have been studied by the PCARRD and are presented in the document, ‘The Philippine S&T

Agen-217 DOST (2011): PCIEERD Celebrates First Anniversary and Unveils New Logo, Philippine Council for Industry and Energy Research Development, Manila, online at: http://www.pcierd.dost.gov.ph/index.php/submitted-articles/131-logoanniv PCIERD 2011, most recent access date: 15 September 2011

218 DOST (2006): Integrated S&T Agenda in Agriculture, Forestry and Natu-ral Resources for CY 2006–2010, Philippine Council for Agriculture, Forestry and Natural Resources Research and Development (PCARRD)

da on Climate Change (PSTACC) 2010–2016’ ²¹⁹. Through adaptation and mitigation the council expects that spe-cific strategies could be applied to sustain productiv-ity and competitiveness. The document was designed to harmonize national efforts and serve as a reference for S&T collaboration among the various stakeholders.

For all three sectors PCARRD is dealing with, agriculture, forestry and natural resources, those areas that are most vulnerable to climate change are mapped, monitored, assessed and S&T priorities proposed. The document lists also the completed, on-going and proposed re-search projects and the agencies involved. ²²⁰

The Council for Health Research and Development (PCHRD) aims to provide leadership in health research.

It coordinates, promotes and facilitates health research activities and provides technical, financial and logistical support. PCHARD publishes the regularly updated Na-tional Unified Health Research Agenda (NUHRA). Priori-ties in the 2008–2010 NUHRA include health financing, governance, health regulations, health service delivery, health technology development, health research ethics, and health information system. ²²¹ In the ‘Funding Priori-ties 2009–2010’, the PCHRD gave information about the short-listed research priority topics for which funding was available. ²²²

The remaining research council, the PCAMRD, is called the ‘Water and Fish R&D Center’. It coordinates R&D in national aquatic resources, in order to achieve the sustainable management of these resources. An im-portant aspect of this council’s activity is the capacity building in costal resources and fishery management, which is co-funded by a number of international donor institutions (PCAMRD, website). In the council’s annual reports, all R&D topics and projects funded through grants-in-aid allocations are listed. ²²³

219 DOST (2010): Philippines S&T Agenda n Climate Change, Agriculture, Forestry and Natural Resources Sectors, Philippine Council for Agriculture, Forestry and Natural Resources Research and Development (PCARRD), Ma-nila

220 DOST (2010), pp. 2, 10, 21

221 DOST (2008c): National Unified Health Research Agenda 2008–2010, Philippine National Health Research System, Philippine Council for Health Research and Development (PCHRD), DOST Department of Science and Technology, Manila, p. 2

222 DOST (2009): National Unified Health Research Agenda, Funding Pri-orities 2009–2010, Philippine Coucil for Health Research and Development (PCHRD), Manila

223 DOST (2008a): Annual Report 2008, Philippine Council for Aquatic and Marine Research and Development (PCAMRD), Los Baños, Philippines

Figure 88: Organizational Structure of the DOST Advisory Bodies (2):

NAST National Academy of Science and Technology NRCP National Research Council of the Philippines Sectoral Planning Councils (4):

PCARRD Philippine Council for Agriculture, Forestry and Natural Resource Development

PCAMRD Philippine Council for Aquatic and Marine Research Development

PCHRD Philippine Council for Health Research and Development PCIEERD Philippine Council of Industry, Energy and Emerging Technology Research and Development

Research and Development Institutes (7):

ASTI Advanced Science and Technology Institute FNRI Food and Nutrition Research Institute

FPRDI Forest Products Research and Development Institute ITDI Industry Technology Development Institute

MIRDC Metals Industry Research and Development Center PNRI Philippine Nuclear Research Institute

PTRI Philippine Textile Research Institute Government R&D Coordination Council (1):

PCCRD Presidential Coordinating Council for Research and Development Source: Based on Yorobe (2010)

In sum, all councils have the mandate to formulate plans, strategies, policies and programmes for S&T develop-ment, allocate government and external R&D funds to programmes, monitor and evaluate R&D programmes and projects and generate external funds for R&D. The councils’ sectoral policies and programmes are em-bedded in DOST’s medium- and long-term planning.

In its critical review of S&T plans, the DOST briefly as-sessed the Science and Technology Master Plan (STMP), the Science and Technology Agenda for National De-velopment (STAND) and the DOST Medium-Term Plan (DMTP). These plans addressed the weak performance in terms of low expenditure on R&D and the lack of sci-entists and private sector involvement in S&T. The STMP (1991–2000), for example, requested an increase in R&D expenditure from 0.2 to 1 per cent by 2010. Due to the lack of financial support from the government, this fig-ure was difficult to achieve and therefore reduced to

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0.5 per cent R&D to GDP in the updated version of the DMTP, in 2009. A similarly disappointing outcome was reported for the STAND, which focused on picking spe-cific industries as ‘export winners’ and supporting them.

Here, the shortcoming was that too many industries were selected, resulting in little funds eventually allo-cated to each individual sector. The DMTP (1999–2004) focused on flagship programmes with a long-term view of S&T development, but had to spend too many re-sources on short-term poverty alleviation. ²²⁴

A long-term policy direction and vision is given in DOST’s National Science and Technology Plan (NSTP), covering the period 2002–2020 and in the DOST Sev-en-Point Agenda (DSPA) for the time span 2006–2010.

The broad vision for 2020 is to achieve the level of world-class S&T universities, a well-developed SME sec-tor based on S&T, internationally-recognized scientists and engineers, and the development of the Philippines into a model of S&T management and governance. The plan recommends that the following ideas and chal-lenges should be considered in the future: niching and clustering, human resource development, support of in-dustries — especially SMEs –, acceleration of technology transfer, building of S&T infrastructure, international linkages in S&T, improvement in S&T governance and the popularization of S&T to create a culture of inno-vation. ²²⁵ The NSTP proposed a number of long-term priority areas for S&T: 1) agriculture, forestry and natural resources; 2) health / medical sciences; 3) biotechnol-ogy; 4) information and communications technologies;

5) microelectronics; 6) materials science and engineer-ing; 7) earth and marine science; 8) fisheries and aqua-culture; 9) environment; 10) natural disaster mitigation;

11) energy; and 12) manufacturing and process engi-neering. ²²⁶ For each of these areas specific thrusts were recommended. In its Seven-Point Agenda (2006–2010), the DOST requested focus on R&D programmes in six core areas: biotechnology, ICT, health products, envi-ronment (including water resources), alternative energy, food and agriculture.

Research institutes

The DOST’s research and S&T services institutes receive funding from the ministry to implement the policy direc-tions and guidelines. Some of the GRIs focus on specific industries; others on cross-cutting areas. In contrast to Western research institutes, the portfolio of Philippine GRIs does not only revolve around research in the nar-row sense but follow three so-called major final out-puts (MFO). Besides R&D, they have to get involved in technology transfer and S&T services. Based on DOST’s budgetary allocation in 2008, the research institute for

224 DOST (n.d.): Medium-Term Philippine Development Plan (DMTP) 1999–

2004, Manila, pp. 5–6

225 DOST (n.d.): National Science and Technology Plan 2002–2020, Manila 226 Ibid.

the food industry received the largest amount of funds, followed by the research institutes for the nuclear in-dustry, metals inin-dustry, forestry, textiles and ICT; the re-search institute for industrial technology got the largest budget for cross-cutting research activities (see table 18).

The Advanced Science and Technology Institute (ASTI) has a mandate to undertake long-term research to improve S&T infrastructure, conduct R&D in biotech-nology and microelectronics and develop computer and information technologies. ASTI’s current research in ICT concentrates on advanced networking, wireless technologies and network applications and software.

The focus in microelectronic research is on printed cir-cuit board and ASTI–VCTI open laboratories, while for the transfer of R&D output, technology diffusion, col-laborative R&D, trainings and seminars are emphasized.

International bilateral cooperation with companies and GRIs focus on Taiwan and Singapore. The institute com-prises 65 regular staff, while project-related personnel increases the total staff number to 120. Capacity build-ing and international visibility of the institute’s research was assessed as being crucial by the ASTI’ director.

The Food and Nutrition Research Institute (FNRI) conducts research on the citizenry’s nutritional status, with a special focus on malnutrition. In five-year inter-vals, a national nutrition survey is conducted by FNRI.

The institute also develops and recommends policy measures and is involved in the diffusion of knowledge and technologies in food and nutrition. For this purpose, the institute offers technology incubators and library fa-cilities on food and nutrition information as well as train-ing for SMEs. The focus on malnutrition is strongly relat-ed to the DOST’s project on S&T-basrelat-ed interventions to address malnutrition among children. Research at FNRI covers medical nutrition studies, nutrition intervention and policy studies, nutrition biochemical and education studies.

The Metals Industry Research and Development Center (MIRDC) is supporting the metals and engineer-ing industry. Among the services offered by the institute are: the training of engineers and technicians, trade accreditation services, quality control and testing and business advisory services. The center is currently in-volved in a joint project on the ‘Clustering of the Re-gional Enterprises of CAR for Agro-Industrial Machinery and Parts Manufacturing’ (CREAMM). This project aims to improve the productivity of metals and engineering companies by organizing them into clusters. Similar to the MIRDC, the Philippine Textile Research Institute (PTRI) was established to support the development of one single industry. It conducts applied R&D for the tex-tile sector, transfers it to the end-users or other govern-ment units and offers technical services and trainings.

Currently, the PTRI assists the Philippine industry in find-ing market niches, focusfind-ing on local natural fibre — such as from pineapple, coconut and banana.

The Forest Products Research and Development

In-stitute (FPRDI) conducts basic and applied R&D to im-prove the value-added chain of wood and non-wood products. Its R&D programmes are focusing on mate-rial science, bio-based composites, furniture and handi-crafts, bio-energy, paper and paper products, and clean production technologies for forest-based industries. As of 2010, the total number of staff amounted to 171, in-cluding 12 PhDs.

The Philippine Nuclear Research Institute (PNRI) is one of the oldest GRIs. It emanated from the Philippine Atomic Energy Commission, established in 1958, and conducts R&D in the peaceful uses of nuclear energy.

Its mandate also covers the transfer of research results to end-users and the licence and regulatory activities with regard to the production, transfer and utilization of radioactive materials. Research includes the application of radiation and nuclear materials in the sectors of food and agriculture (crop improvement through mutation breeding), for pest control and animal production, but also in industrial production and technology. The PNRI offers irradiation services at two gamma irradiation fa-cilities as well as nuclear training.

Unlike the other GRIs, the Industrial Technology Development Institute (ITDI) is involved in cross-cut-ting and multidisciplinary R&D activities based on the national R&D priority plan. ITDI comprises eight divi-sions, focusing on chemicals and energy, environment and biotechnology, food processing, materials science, packaging technology, technological services, stand-ards and testing and the national metrology laboratory.

In addition to the GRIs, seven government S&T serv-ice institutes are part of DOST. Some of these institutes pursue research activities as well, although only to a limited extent. Based on annual reports that describe their work performance, these institutes receive funding

In addition to the GRIs, seven government S&T serv-ice institutes are part of DOST. Some of these institutes pursue research activities as well, although only to a limited extent. Based on annual reports that describe their work performance, these institutes receive funding

Im Dokument Spotlight on: Science and Technology Cooperation Between Southeast Asia and Europe (Seite 63-76)