PHILIPPINE INNOVATION ACT (PIA)
• Innovation is the creation of new ideas that results in development of new
improved policies, products, processes or services.
• DOST, DICT, and DTI under the President
Abstract
• Promoting innovation; through a statutory approach
Problem
• Innovation is encouraged and supported by law through grant of incentives
• Intent of the law to place innovation at the center of development policies
• RequiresMethodology
the various departments and agencies of government
to implement a
Result
“whole of government” approach that will ensure policy coherence, alignment of
priorities, and effective coordination in program delivery.
Recommendation
• The PIA created the National Innovation
Council (NIC)
- To remove regulatory, informal, and other obstacles to innovative
hhhhh
undertaking.
- To suppress bureaucratic hurdles
INNOVATION CENTERS AND BUSINESS INCUBATORS
• The law mandates the NIC to encourage and support the establishment of
innovation centers and business incubators
• Innovation centers: centers of competence and innovation activities that
support collaborative research, development and extension initiatives
• Business Incubators: facilities where startups are hosted and business
development services are provided
ECTION 5
SECTION 5 OF THE PIA MANDATES THE GOVERNMENT TO ADOPT A
BROADER VIEW IN DEVELOPING ITS INNOVATION GOALS AND STRATEGIES
COVERING ALL POTENTIAL SOURCES OF INNOVATION INCLUDING:
• Product Innovation: introduction of a good or service that is new or significantly
improved;
• Policy Innovation: introduction of new or significantly different solution to
policy problems
CREDIT QUOTA
• Section 23 on credit quota requires all banking institutions, whether government
or private, to set aside at least four percent (4%) of their total loanable funds
for innovation development credit.
INNOVATIVE STARTUP ACT
• Provides more specific incentives that target startups offering innovative
products and services.
• Intent to provide incentives and remove constraints to encourage the
establishment of innovative startup businesses and to promote and develop
an ecosystem that nurtures an innovative entrepreneurial culture in the
Philippines.
• A startup enabler is a person or entity registered under the program that
provides goods, services, or capital to support the operation and growth of
startups.
PHILIPPINE STARTUP ECOZONE
• Special economic zones designed to spur the growth and
development of startups and startup enablers through private,
local government and national government initiative consistent
with the provisions.
STARTUP VISAS
• Special types of visa to incentivize foreign individuals to either found, work or
invest in a startup