Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _____________ 
--------------------------------------------------------------------------------------------------------------------- 
Introduced by Representative 
BRIAN DANIEL POE LLAMANZARES, PhD, MNSA 
--------------------------------------------------------------------------------------------------------------------- 
AN ACT PROMOTING NATIONAL DEFENSE INNOVATION AND TECHNOLOGY 
TRANSFER THROUGH LOCAL AND INTERNATIONAL COLLABORATION 
STRATEGIES, CREATING THE DEFENSE TECHNOLOGY INNOVATION OFFICE, 
AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
This legislative proposal, the "National Defense Innovation and Technology Transfer 
Act," is a critical piece of legislation needed to address long-standing policy gaps that have 
hindered the Philippines' ability to build a truly self-reliant and modern defense capability. While 
current laws exist, they are either too general or too focused on short-term solutions, failing to 
create a comprehensive and sustainable framework for defense innovation. This bill is essential 
for national security because it moves beyond simply buying foreign military equipment and 
instead focuses on building the domestic capacity to produce, innovate, and transfer key 
technologies. 
Existing laws like the Revised AFP Modernization Act (RA 10349) and the Philippine 
Technology Transfer Act (RA 10055) are foundational but incomplete. RA 10349 primarily 
focuses on the procurement of military hardware, but it lacks a dedicated mechanism for 
systematically transferring the technology and expertise needed for local production. This has 
resulted in a continued reliance on foreign suppliers for maintenance, spare parts, and future 
upgrades, which is costly and leaves the country vulnerable to supply chain disruptions. RA 
10055 is too broad; it governs technology transfer for all government-funded research, not the 
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unique and sensitive domain of defense, which requires specialized security protocols and legal 
frameworks. 
While the recently passed Self-Reliant Defense Posture Revitalization Act (RA 12024) is 
a significant step, this bill provides the necessary, granular details and specialized structures to 
make that policy a reality. 
This  proposed bill fills these policy gaps by introducing several innovative and vital 
components: 
1. Creation of a Centralized Office: The establishment of the Defense Technology
Innovation Office (DTIO) is a game-changer. It provides a single, dedicated body
within the DND with the explicit mandate and expertise to manage complex
technology transfer agreements, intellectual property rights, and compliance with
international defense trade standards like the Wassenaar Arrangement. This
prevents the fragmentation of efforts and ensures a coordinated, professional
approach.
2. Formalizing the Innovation Process: The bill doesn't just encourage innovation; it
creates a structured framework for it. By mandating the development of a
National Defense Technology Transfer Framework, it provides a clear roadmap
for due diligence on foreign partners, risk assessment, and long-term integration
of technology. This systematic approach is absent in current laws.
3. Dedicated Funding and Long-Term Incentives: The creation of a Defense
Innovation Capacity Fund ensures that R&D, training, and infrastructure
development are consistently funded and are not subject to the ad-hoc nature of
annual procurement budgets. This commitment of resources is crucial for building
a sustainable defense industry. Additionally, the bill provides specific, explicit
incentives for joint ventures, which encourages foreign partners to invest in the
Philippines' domestic defense industry.
4. Proactive Strategic Planning: The bill's mandate to create a Defense Technology
Watch Unit is a forward-looking measure. This unit will continuously monitor
global trends, allowing the Philippines to anticipate emerging threats and
opportunities, and make strategic investments that will keep its defense
capabilities on the cutting edge. This shifts the national approach from reactive to
proactive, a vital step in modern defense.
The establishment of a comprehensive and coordinated framework for defense innovation 
and technology transfer is a matter of paramount national interest. This Act will empower the 
Philippines to move from a posture of reactive defense procurement to one of strategic, 
self-reliant defense. It will not only strengthen our Armed Forces but also stimulate economic 


growth, create high-skilled jobs, and position the country as a credible and capable partner in the 
global defense landscape. 
The bill's provisions, including the creation of a specialized office, a dedicated innovation 
fund, and a mechanism for international collaboration, are designed to fill existing policy gaps 
and ensure that the nation is prepared to meet the complex security challenges of the 21st 
century. Its passage will signal a resolute commitment to securing our sovereignty and fostering 
a future where the Philippines can confidently stand on its own in matters of national defense. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
HON. BRIAN DANIEL POE LLAMANZARES, PhD, MNSA 
Representative 
FPJ Panday Bayanihan Party-List 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _____________ 
--------------------------------------------------------------------------------------------------------------------- 
Introduced by Representative 
BRIAN DANIEL POE LLAMANZARES, PhD, MNSA 
--------------------------------------------------------------------------------------------------------------------- 
AN ACT PROMOTING NATIONAL DEFENSE INNOVATION AND TECHNOLOGY 
TRANSFER THROUGH LOCAL AND INTERNATIONAL COLLABORATION 
STRATEGIES, CREATING THE DEFENSE TECHNOLOGY INNOVATION OFFICE, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. 
This Act shall be known as the "National Defense Innovation and Technology Transfer Act." 
SECTION 2. Declaration of Policy. – It is the policy of the State to:​
a) Strengthen the defense capabilities of the Philippines by fostering innovation, technology
transfer, and collaboration between local and international stakeholders;​
b) Promote self-reliance in defense production by bridging capability gaps through the
acquisition and adaptation of foreign defense technologies;
c) Encourage joint ventures, research collaborations, and capacity-building initiatives to enhance
the domestic defense industry;
d) Uphold national security interests, intellectual property rights, and compliance with
international arms control regulations.
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SECTION 3. Creation of the Defense Technology Innovation Office (DTIO). 
a) There is hereby created the Defense Technology Innovation Office (DTIO) under the 
Department of National Defense (DND), which shall serve as the primary agency for: 
(1)​Facilitating technology transfer agreements between foreign defense entities and 
Philippine defense manufacturers; 
(2)​Overseeing and regulating the import, adaptation, and integration of defense 
technologies; 
(3)​Ensuring compliance with national laws and international defense trade standards.​
 
b) The DTIO shall have the following powers and functions: 
(1)​Develop and implement the National Defense Technology Transfer Framework;​
 
(2)​Review and approve technology transfer agreements and joint venture proposals;​
 
(3)​Conduct due diligence and risk assessments on prospective foreign partners;​
 
(4)​Monitor and evaluate the effective integration of transferred technologies into local 
production;​
 
(5)​Coordinate with relevant agencies, such as the DTI, DFA, and DICT, for technology 
promotion, intellectual property protection, and export controls;​
 
(6)​Establish guidelines for intellectual property rights protection and safeguards against 
unauthorized dissemination of sensitive technologies;​
 
(7)​Submit an annual report to Congress on technology transfer activities, partnerships, and 
industry capacity-building outcomes.​
 
SECTION 4. Incentives for Joint Ventures and Technology Partnerships. – Foreign defense 
companies and their Philippine counterparts engaging in joint ventures, co-production 
agreements, or technology-sharing collaborations shall be entitled to:​
 
 a) Tax incentives as provided under existing laws;​
 b) Expedited processing of permits and licenses;​
 c) Access to government-backed financing schemes for approved projects;​
 d) Priority access to government defense procurement contracts where applicable. 
 


SECTION 5. Research and Development Collaboration. – The DTIO shall facilitate research 
and development (R&D) partnerships between Philippine universities, research institutions, and 
defense industries by:​
 
 a) Creating grants and funding mechanisms for joint R&D projects on advanced defense 
technologies;​
 b) Supporting internship and exchange programs for Filipino scientists, engineers, and defense 
professionals in foreign technology hubs;​
 c) Encouraging local innovation hubs and incubators for dual-use technologies with defense 
applications. 
 
SECTION 6. Funding for Capacity Building. – A Defense Innovation Capacity Fund shall be 
established, sourced from the national budget, to:​
 
 a) Provide training and upskilling programs for local defense engineers, technicians, and 
industry workers;​
 b) Support study grants and international exposure programs for Filipino defense personnel and 
researchers;​
 c) Fund infrastructure upgrades for defense manufacturing facilities to meet global standards. 
 
SECTION 7. Safeguards and Compliance Measures. 
a) The DTIO shall enforce strict compliance protocols to prevent unauthorized export, leakage, 
or misuse of transferred defense technologies.​
 b) All technology transfer agreements must include: 
(1)​End-use monitoring clauses; 
(2)​Non-transferability provisions without prior government approval; 
(3)​Confidentiality and intellectual property protections in line with Philippine and 
international law. 
c) The Philippines shall align its practices with global defense trade frameworks, including the 
Wassenaar Arrangement, Arms Trade Treaty, and other relevant international standards. 
SECTION 8. Global Trend Monitoring. – The DTIO shall maintain a Defense Technology 
Watch Unit to:​
 
 a) Monitor global trends, innovations, and emerging technologies in the defense sector;​
 b) Identify opportunities and risks for the Philippine defense industry;​
 c) Recommend strategic priorities for R&D investments and technology acquisitions. 
 


SECTION 9. Appropriations. – The amount necessary for the initial implementation of this 
Act shall be charged against the current appropriations of the DND. Thereafter, such sums as 
may be necessary shall be included in the annual General Appropriations Act (GAA). 
 
SECTION 10. Implementing Rules and Regulations (IRR). –Within ninety (90) days from the 
effectivity of this Act, the DND, in consultation with relevant stakeholders, shall promulgate the 
necessary IRR for the effective implementation of this Act. 
 
SECTION 11. Separability Clause. – If any provision of this Act is declared unconstitutional or 
invalid, the remaining provisions not affected thereby shall remain in full force and effect. 
 
SECTION 12. Repealing Clause. – All laws, executive orders, rules, and regulations 
inconsistent with this Act are hereby repealed or modified accordingly. 
 
SECTION 13. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation. 
 
Approved, 
 
 
 
 
HON. BRIAN DANIEL POE LLAMANZARES, PhD, MNSA 
Representative 
FPJ Panday Bayanihan Party-List