Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
House Bill No. _____
___________________________________________________________________
Introduced by Representative PABLO JOHN F. GARCIA
___________________________________________________________________
EXPLANATORY NOTE
The Constitution provides that “Science and technology are essential for national
development and progress. The State shall give priority to research and development,
invention, innovation, and their utilization; and to science and technology education, training,
and services [x x x].”1 It likewise states that “The Congress may provide for incentives,
including tax deductions, to encourage private participation in programs of basic and applied
scientific research. Scholarships, grants-in-aid, or other forms of incentives shall be provided
to deserving science students, researchers, scientists, inventors, technologists, and specially
gifted citizens.”2
Section 5(5) of Article XIV also provides, “The State shall assign the highest
budgetary priority to education and ensure that teaching will attract and retain its rightful
share of the best available talents through adequate remuneration and other means of job
satisfaction and fulfillment.”
Based on the World Economic Forum’s Readiness for the Future of Production
Report 2018, the Philippines is not yet prepared to manage the Fourth Industrial Revolution
as manifested in its weak performance across the drivers of production, which include
technology and innovation, human resources, global trade and investment, institutional
framework, sustainable resources, and demand environment, among others.3 The Fourth
Industrial Revolution is a way of describing the blurring of boundaries between the physical,
digital, and biological worlds.4
4
Devon
McGinnis,
What
Is
the
Fourth
Industrial
Revolution?,
available
at
https://www.salesforce.com/blog/what-is-the-fourth-industrial-revolution-4ir/.
3 See generally World Economic Forum, Readiness for the Future of Production Report 2018,
available at http://www3.weforum.org/docs/FOP_Readiness_Report_2018.pdf.
2 Const. art. XIV, § 11.
1 Const. art. XIV, § 10.
November 22, 2022
12:36 pm
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As with any industry or endeavor, human resources are the most crucial element.5 It
is the key engine of progress. The ingenuity and intellectual potential of Filipinos should be
fostered to enable our country to be more prepared for this world ever-barreling towards the
Fourth Industrial Revolution. And as we aim to bounce back from the COVID-19 pandemic,
all aspects of the economy, not just tangible industries such as the agricultural and
manufacturing sectors, must be empowered to help with this national revival—including the
Knowledge Economy.
The concept of the Knowledge Economy may be defined as production and services
based on knowledge-intensive activities that contribute to an accelerated pace of technical
and scientific advance, as well as rapid obsolescence.6 The key component of a knowledge
economy is a greater reliance on intellectual capabilities than on physical inputs or natural
resources.7
This sphere of activity is quite vast and involves anything that relates to the
productive application of knowledge. The movers of this economy include researchers,
entrepreneurs, scholars, inventors, innovators, and every Filipino in between whose minds
dwell on what’s possible for the better.
This bill aims to catalyze the Knowledge Economy by infusing greater incentives and
resources to its most important component—the people who belong to it. This bill will seek
more funding for activities such as the expansion of scholarships and training, the
implementation of entrepreneurship-related courses, the creation of skills development
programs, and other endeavors focused on innovation and empowerment. It also desires to
create more jobs, strengthen institutions, and reduce poverty.
It is hoped that this measure will help spark a wildfire of creativity and excellence that
will permeate the nation. May this help us bounce back from this pandemic in the short-term
and set a stronger foothold for long-term intellectual progress.
In view of the foregoing, the urgent passage of this bill is earnestly sought.
Rep. PABLO JOHN F. GARCIA
3rd District, Province of Cebu
7 Id.
6 Walter Powell and Kaisa Snellman, The Knowledge Economy, 30(1) Annual Review of Sociology
199 (2014), available at https://doi.org/10.1146/annurev.soc.29.010202.100037.
5 For more information about the DOST’s HR blueprint, see Department of Science and Technology,
Science
and
Technology
Human
Resource
Development
Plan
2017-2022,
available
at
https://sei.dost.gov.ph/images/downloads/publ/hrdpplan2017-2022.pdf. See also Albert, Tabunda, et.
al., Future S&T Human Resource Requirements in the Philippines: A Labor Market Analysis, available
at https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps2032.pdf.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
House Bill No. _____
___________________________________________________________________
Introduced by Representative PABLO JOHN F. GARCIA
___________________________________________________________________
AN ACT
STRENGTHENING THE  KNOWLEDGE ECONOMY HUMAN RESOURCES OF
THE PHILIPPINES BY INCREASING THE APPROPRIATIONS FOR
SCHOLARSHIPS, SCIENTIFIC RESEARCH, INNOVATION AND ENTERPRISE,
EDUCATION AND SKILLS TRAINING, AND FOR OTHER PURPOSES
Be it enacted by the House of Representatives and the Senate of the Congress of the
Philippines in session assembled:
CHAPTER I
PRELIMINARY PROVISIONS
Section 1.
Short Title. - This Act shall be known as the “Knowledge
Economy Human Resources Development Act”.
Section 2.
Declaration of Policy. - Science and technology are essential
for national development and progress. The State shall give priority to research and
development, invention, innovation, and their utilization; and to science and
technology education, training, and service. It is hereby declared the policy of the
State to foster inclusive and sustainable growth through an innovative Knowledge
Economy. To achieve this end, the State shall infuse more resources to promote the
advancement of raw scientific learning and research; their productive application
towards
entrepreneurial,
industrial,
and
other
developmental
uses;
and
the
enhancement of overall Filipino education and skills development. The State shall
likewise support the Science for Change Program (S4CP) of the Department of
Science and Technology.
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The State shall also aim to:
(a)
Achieve the United Nations Educational, Scientific and Cultural
Organization benchmark of 380 researchers, scientists and engineers per
million population;
(b)
Increase
the
government’s
Research
and
Development
expenditure to at least one percent (1%) of the Gross Domestic Product; and
(c)
Align all efforts in the Knowledge Economy to achieve greater
employment, less wealth inequality, and the elimination of poverty.
Section 3.
Knowledge Economy Defined. - The Knowledge Economy is
an
economic
system
in
which
production
and
services
are
based
on
knowledge-intensive activities that contribute to an accelerated pace of technical and
scientific advance, as well as rapid obsolescence. The key component of a
knowledge economy is a greater reliance on intellectual capabilities than on physical
inputs or natural resources. It includes every endeavor concerning the productive
generation and application of knowledge to areas such as scientific research,
information
and
communications
technology,
engineering,
innovative
entrepreneurship, industrial activity, education and skills development, and the like.
CHAPTER II
FRAMEWORK, FUNCTIONS, AND ROLES
Section 4.
Role of the National Innovation Council. - The National
Innovation Council (“NIC”) created under Republic Act No. 11293, otherwise known
as the “Philippine Innovation Act”, shall put the development of human resources for
the knowledge economy at the forefront of the National Innovation Agenda and
Strategy Development.
Section 5. Government-Industry-Academe Synergy. - To promote synergy
among the government, the industrial sector, and the academe, the Secretary of
Science
and
Technology,
Director
General
of
the
National
Economic
and
Development Authority, Secretary of Trade and Industry, Secretary of Labor and
Employment, Chairperson of the Commission on Higher Education, Secretary of
Education, and the Executive Members of the National Innovation Council shall form
a Knowledge Economy sub-group under the NIC.
Section 6.
Role of the Department of Science and Technology. - The
Department of Science and Technology (“DOST”) shall ensure that Filipino scientists,
teachers, researchers, and innovators are given full support and that all the benefits
under this Act and other laws are given to them to promote their participation in the
human resources of government or private institutions to accelerate the progress of


the nation. It shall provide such scholarships, stipends, research grants, and other
incentives as may be necessary to deserving Filipino thinkers in line with the
declared policies of this Act.
The DOST shall likewise foster a culture conducive to science and technology
in the country and encourage the participation of all sectors in the Knowledge
Economy.
Section 7. Role of the National Economic and Development Authority. -
The National Economic and Development Authority (“NEDA”) shall monitor the
development of the Knowledge Economy and its human resources and shall
accordingly advise the NIC and/or the above sub-group of desirable actions that may
be taken in order make the Knowledge Economy complement or otherwise conform
with the country’s socioeconomic policies, plans and programs. The NEDA shall
ensure that these endeavors shall be  continuing, coordinated, and fully integrated.
Section 8.
Role of the Department of Information and Communications
Technology. - The Department of Information and Communications Technology
(“DICT”) shall see to it that the country’s information and communications technology
agenda conforms with Knowledge Economy goals. It shall ensure, among others,
that government scientists and researchers as well as public schools, universities,
and colleges have adequate access to internet facilities and communications
infrastructure. It shall align its projects to ensure that technological development shall
reach and empower those who have the least access to knowledge resources and
opportunities.
Section 9.
Role of the Department of Trade and Industry and the
Department of Labor and Employment. - The Department of Trade and Industry
(“DTI”) shall make sure that Knowledge Economy capacity-building resources and
materials are available to promising Filipinos who seek to capitalize on innovative
knowledge-based businesses, industries, and other enterprising activities. The DTI
shall also incentivize start-ups and Micro, Small, and Medium Enterprises related to
these. The DTI shall likewise implement a workforce development program for skills
conversion and upgrading and the enhancement of employability of workers outside
the knowledge-based sector.
The Department of Labor and Employment (“DOLE”) in turn shall ensure that
jobs and opportunities concerning the Knowledge Economy, particularly those
closely
associated
with it such as fields in science, engineering, research,
technology, data, and the like, are promoted and offered as much as possible to
Filipinos.


Section 10. Role of the Commission on Higher Education and the
Department of Education. - The Commission on Higher Education (“CHED”) and
Department of Education (“DepEd”) shall ensure that up-to-date and age-appropriate
lessons as well as the proper encouragement concerning Knowledge Economy
careers, resources, opportunities, seminars, training, and the like are made available
to those whom they respectively cater to. They shall incorporate lesson plans and
skills development programs that capacitate Filipinos towards more participation in
the Knowledge Economy, with due regard to academic freedom.
CHAPTER III
APPROPRIATIONS
Section 11. Appropriations. - In order to fulfill the declared policies and
goals of this Act, the following amounts, or so much thereof as may be necessary,
are hereby appropriated to strengthen the Knowledge Economy human resources
development of the Philippines on top of any amounts that the funds mentioned in
this provision may already have under the annual General Appropriations Act:
(a)
One billion pesos (Php 1,000,000,000.00) for an increase in the
Science and Technology Scholarship Fund under the DOST, as provided in
Republic Act No. 7687 otherwise known as the “Science and Technology
Scholarship Act of 1994” and Republic Act No. 10612 otherwise known as the
“Fast-Tracked S&T Scholarship Act of 2013”. An additional one billion pesos
(Php 1,000,000,000.00) shall be appropriated to the Fund per year for a
period of five years;
(b)
One billion pesos (Php 1,000,000,000.00) for an increase in the
National Broadband Plan program under the DICT for information and
communications technology infrastructure for scientists, researchers, public
schools, universities, colleges, and needful areas as provided under Section 8
of this Act;
(c)
Five
hundred
million
pesos (Php 500,000,000.00) for the
activities
of
the
DTI
and
DOLE
concerning
capacity-building,
entrepreneurship, innovation, and employment as provided under Section 9 of
this Act; and
(d)
Five
hundred
million
pesos
(Php
500,000,000.00)
for
an
increase in the Philippine Science High School System for capital outlay; Five
hundred million pesos (Php 500,000,000.00) for an increase in the Higher
Education Development Program of the CHED for lessons, training, and skills
development programs; and Five hundred million pesos (Php 500,000,000.00)
for public science high schools under the DepEd.


CHAPTER IV
FINAL PROVISIONS
Section 12. Implementing
Rules
and
Regulations.
-
The
National
Innovation Council shall issue within sixty (60) days from the effectivity of this Act the
necessary rules and regulations for the effective implementation of this Act.
Section 13. Repealing Clause. - All laws, executive orders, proclamations,
rules, regulations and other issuances or parts thereof which are inconsistent with
the provisions of this Act are hereby repealed, amended, or modified accordingly.
Section 14. Separability Clause. - If any part or provision of this Act is held
unconstitutional or invalid, other parts or provisions thereof which are not affected
shall continue to remain in full force and effect.
Section 15. Effectivity. - This Act shall take effect fifteen (15) days following
completion of its publication in at least two (2) newspapers of general circulation.
Approved,