Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon Cfty
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL No.  8015
lntroducedbyR.pros.ntativ.DAVID"JayJay"C.SuAREZand
AIARIE VILLARAIA- SuAREZ
R®p~ntativ® ANNIA
EXPLANATORY NOTE
According to the Global Innovation  Index 2021,  the Philippines ranked  50th out Of 132
countriesintemsOfinnovationperformance.Thecountryshowedsienificantimprovementsin
indicators   such   as   knowhidge   and   technology   outputs,   creative   outputs,   and   business
sophistication.However,itstillneedstoaddnesschallengesininstitutions,humancapifal,and
inhastructure.
IntemsOfpatentapplieations,thelntellectualPropertyOfficeofthePhilippines(lpopHu
reported  a  total  Of  5,352  applications  fiLeid  in  2019,  wth  the  majorty  coming  from  fore©n
applicants.Thetopfieidsforpatentapplicationswereinfomationtechnology,biotechnology,and
phamaceuticals.
Therearealsoseveralsuccessfulinnovationsandinventionsthathavecomeoutofthe
Philippines,suchastheyo-yo,thebamboobieycle,andtheAirDisc.andevenaporfablewind
tufoine.Thecountryalsohasagrowingsfartupscene.withcompaniessuchasPayMongo,a
paymentplatform,andSenti,anAl-povreredsocialmediamonitoringtool,gainingtraction.
Inlsrael,thereisanindependentandpubliclyfundedagencycalLeidthelsraellnnovation
Authorftyaimedtowardsupportinginnovationendeavorsintheircountry.TheAuthortydesoribes
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a##s.adThdThkssf:nalg,#%:Ta:i_:fa;^J^Jh^-SEir_±_-s#:i:;:==l:=:I:inn::n%!:#iHsnoa##tipondon
=Sl::a:?SinE:sun:nctctiuri%s;=rtyE±*:effi^%i-a_-iE--,:.i_aFfEsrfe:aEfn.Feg?-#,'£p:nogvantieonw
pm#rkuect|:go#,a£%%:,::-£p.,=f±f;anir^-Fie-i"-f_#F.3-`L:Fneg.ftgm##rei'#ton%e
m#k:Egn#wa:=ck%sra:foinatendr€*ifiifjF!-a£FEFS^y.EE_E_#_t._e;?XIro3&,r§=ei,%cosm:oan#ees
#dkjan%Wcemdamckaent%abal#na#^E±S!8hjFF:;.-±!T±;gaff;£:tg:g#idTng#o##±£:::::::Povaan#e
andadvanoedmanufacturingintoin€iir-bir=i;=;a:s-.-"
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Ak)ngthesamelineaslsrael,thelnnovationAuthortyofthePhilippinesActisabillaimed
atesfablishingthelnnovationAuthortyOfthePhilippjnes(lAP),anageneythatwiwpromoteand
facilifateinnovationaorossvarioussectorsOfthePhilippineeconrmy.Thebillreoognizesthe
imporfanceofinnovationasakeydn.verofeconomicgrowh,jobcreation,andtheimprovement
ofthequalftyoflifeforFilipinos.
TheIAPsha«begovemedbyaboardOfdirectorsappointedbythePresident.ifeobjegives
anetofosteracultuleofinnovationandcreativftyinvarioussectorsOftheeconomy,supportthe
developmentandcommencializationofinnovativepnoductsandservices.facl.IifatethegrouthOf
innovation  ecosystems,  and  develop  and  implemem  policies  and  programs  that  promote
jnnovatjon and entrepreneurshjp.
The  IAP  sha«  have  several  functions,  including  identftying  and  evaluating  innovative
pnodudsandtechnologieswhcommeroialpotential,providingsupportandresoumestosfarfups,
entrepreneurs,  and  innovators  in  the  form  of  training,  menton.ng,  funding,  and  networking
opportunities,andprovidingresearohanddevelopmentsupporttostarfups,entrepreneurs,and
innovators.
TheIAPsha«befundedbythegovemmeutfortheestablishmentoftheIAP,whiletheIAP
shaw  generate  its  own  revenue  through  the  comnreroialkation  of  innovative  products  and
technologies.
Theboardofdirectorssha»submitanannualreporttothegovemmentontheactivities
andachievementsOfthelAP.TheIAPsha«alsobesubjecttoaudtsandevaluationsbythe
govemmenttoensuretransparencyandaccountabilfty.
ThegovemmentshawmakenegulationstogiveeffecttotheprovisionsofthisAct,including
provisionsrelatingtothecompceitienOfthebcardOfdinectors,thefundionsOftheIAP,thefundjng
Of  the   lAP,   and   any   other  matters   neessary   for  the   proper  functioning   of  the   lAP.
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon Cfty
NINETEENTH CONGRESS
First Regular Session
HOUSEBILLNo.     8015
IntroducedbyR®pres®ntativ®DAVID"Jay4ay"C.SuAREZandR®prosentativ®ANNA
II^E)|f=\,,I I  JL|,A-,    -1 ,--- _
RAFtlE vlLLAFun- SuAREZ
AN ACT
cREATiNGTHEINNOvATIONAUTHORurOFTHEpHiLlpplNEs(IAp)AND
APPROPRIATING FUNDS THEREFOR
SEC"Ow7.SAorfrjgre.-Thisactsha»beknownasthe"lnnovationAuthorftyofthe
Philippines Act. "
SIC.2.Ate/arafy.onoffo/I.ci.-ItisherebydeclaliedthepolicyOftheStatetopromote
innovationasakeydriverofeconomicgnowhandsocialprogress.
Towardsthisend,theSfateshawestablishthelnnovationAuthortyofthePhilippines(IAP)
thatshaMfosterandpiiomcteinnovationbyprovidingfunding,support,andtechnicalassistance
to innovators, startups, and researoh and development institutions.
SEC.3.04jeeeves.-Itsha«betheprimaryobjectivesofthisActtofosteracuftureof
innovation  and  creativfty  in  van.ous  sectors  of the  econony;  support  the  development  and
commeroializationOfinnovativeprodudsandservicesandtofacilitatethegrowhOfinnovation
ecoeystems in the Philippines;
SEC.4Cmao.odofde/mow®b.onAOwortyofZhoPfu./fppi.nee.-ThisActsha«create
the  Innovation  Authorfty  Of the  Philippines  (IAP),  which  shall  be  an  agency  attached  to  the
DepartmentofScienceandTechnology(DOST).
£oEfnfoETctione Of the National Innovation Authorty. - The Imp shall have the
following functions:
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`a.  Develop and implement policies,  programs, and projects that support innovation and
creativfty across all sectors of scoiety;
b.Promotethecreationandgrowthofinnovatwesfartupsandenterprisesthroughfinancial
and technical support, mentoring, and other services;
c.    Provide    support   for   research    and    development    technology   transfer,    and
commeroializationofinnovativepnoductsandservices;
d.  Facilitate the development of innovation  hubs and  centers across the  country,  and
providesupportservicestostartups,researchers,andjnnovators;
e.Fosterpartriershipsandcollaborationsbetweenindustry,academia,andgovemment,
andpronofethedevelopmentofinrovationecosystensinthecountry;
f.Establishandmajntainnetworkswithotherinnovationauthorifes,researohinsti(utions,
andindustryassociationsbothlcmallyandintemationally;
9.Provideaccesstofundingsouncesforinnovation,research,anddevelopmentactivities;
h.  Encourage the adoption and  use of emerging and  disruptive technologies,  such as
artificialjntelligence,blockchain,andtheintemetofthings,acrossa«sectorsOfsociety;
i.Coordinafeandharmonizetheinnovatjon-relatedactivitiesofgovemmentagencjesand
instrumenfalities,includingreseanchanddevelopmentinstitutions,fundingagencies,and
regulatory bodies;
j.ConductmonitoringandevaluationOftheimpactofinnovationpolicies,programs,and
projeds,andreporttothePresidentandtheCongressOfthePhilippinesonanegufarbasis.
SEC.  ¢.  Composition  of  the  National  Innovation  Authority.  -  The  lAP  sha«  be
composedOfaChairpersomwhoshawbeappointedbythePresident,andsin(6)members,who
sha«likewisebeappointedbythePresidentuponrecomrnendationOftheSecrefaryOfScience
and Technology.
TheChairpersonandthememberssha»havetherankofUnderseerefaryandsha«neceive
asalarygradeequivalenttothatofanUndersecrefaryOfthegovemment.
SEC.7.remofCma.-TheChairpersonandthemembersshallserveforatermOfsir
(6)years,unLeessoonerremovedforcausebythePresidentorbyvoluntaryrenunciationofoffice.
SEC.  8.  Powers and  Func6one  of the  Board of Dleetors  (BOD).  - The  Board  Of
Directors(BOD)shallhavethefollowingpovrersandfunctions:
a.DirectandsupervisetheoperationsoftheNationallnnovationAuthorfty,andensurethe
efficientandeffectivejmplementatonofitspolicies,pnograms,andprojects;
b. Represent the National Innovation Authorfty in all its transactions wth other agencies
and entities, both public and private;
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`c.ApprovethebudgetandtheannualvrockplanOftheNationallnnovationAuthorty,and
submitthemtothePresidentforapproval;
d.  Prepare and submit to the President and the Congress Of the Philippines an annual
reportontheactivitiesandaccomplishmentsOftheNationalInnovatonAuthorfty.
SEC.mRapord.»gAequn.rmonts.-TheIAP,aftertheeifectivftyOfthisAct,sha»submitits
annual  report to the Seorefary Of the  Departmeut Of Science and Technology (DOST) on  its
activities and achievements.
Sic."Appropn.afons.-TheSeerefaryOftheDeparfroentofScienceandTechnology
(DOST)shaMincludeintheirpnogramtheimplementationofthisAct,thefundingOfwhichshaM
beincludedintheannualGieneralAppropriationsAct(CIA)andshanaugmentsuchallocation
jntemallygeneratedbythePeparfroentOfScienceandlechnolngy(DOST).
sic.  72. who/emontr.»g R«/es and Reg«fafoes. -  The Office of the President, upon
effectivfty  of this  Act,  in  consuhation  with  other  concerned  agendes,  shaH  promu©ate  the
necessaryandappropriaterulesandregulationsfortheproperandeffectiveimplementatonof
this Act.
See.73.Squrab/JftyCfaus®.-IfanyprovisionofthisActisdeclanedunconstitutonal,the
remaining provisions shall remain in full force and effect.
See."Rapca/I.ngCfause.-AIIIaus,decrees,executiveorders,rulesandregulationsor
partsthereofjnconsistentwththisActareherebyrepeakrdormodifedaccordingly.
See.75.Efrofufty.-ThisActsha»takeeffiidfifteen(15)daysafteritspubljcationinthe
OfficialGazetteorinanevrspaperOfgeneralcirculation.
Approved,
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