Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bint no2342

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT TO ESTABLISH GUIDELINES AND INCENTIVES FOR THE
DEVELOPMENT OF SCIENCE AND TECHNOLOGY PARKS (STPs) IN THE
PHILIPPINES, AND FOR OTHER PURPOSES

This measure proposes the establishment of Science and Technology parks (STPs)
nationwide to promote the culture of competitiveness and innovation through tech-
based enterprises and knowledge based institutions.

It proposes the grant of subsidy and incentives for the development of STPs as well
as the provision of technical assistance, policy advice and support for the
establishment of centers for science park development;

As one of the primary authors of Republic Act No. 11293, or the Philippine Innovation
Act, and Republic Act No. 11337, or the Innovative Startup Act, this proposal is
intended to further support the country’s steady rise in the Global Innovation Index.
The Philippines has already climbed from 100 in 2014 to rank 50 in 2020.

Moreover, the Philippine Constitution mandates that the State shall give priority to
research and development, invention, innovation, and their utilization; and to science
and technology education, training, and services. The government should be able to
provide mechanisms and platforms for the integration of a developmental approach
into science, technology and innovation.

In view of the foregoing, the approval of this bill is most earnestly sought.

‘A

LUIS RAYMU! RAY” ILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House BILL No 242

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT TO ESTABLISH GUIDELINES AND INCENTIVES FOR THE
DEVELOPMENT OF SCIENCE AND TECHNOLOGY PARKS (STPs) IN THE
PHILIPPINES, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Science and Technology
Parks Act".

SEC. 2. Declaration of State Policy. - The State recognizes science and technology
as essential for national development and progress and shall give priority to research
and development, invention, innovation and their utilization, and to science and
technology education, training, and services. It shall support indigenous, appropriate,
and self-reliant scientific and technological capabilities, and their application to the
country's productive systems and national life. Towards this end, the State shall
develop a national strategy for, and incentivize the building of a knowledge-based
economy anchored on a national workforce that is well-equipped with 21st century
skills, through the establishment of Science and Technology Parks throughout the
country.

SEC. 3. Definition of Terms. - The following terms as used in this Act shall mean:

(a) Digital Transformation means the strategic adoption or use of digital technologies
to transform services or businesses, through replacing non digital or manual
processes with digital processes, tools and solutions in order to improve productivity,
deliver better user experiences, manage business risk, and control costs;

(b) E-readiness (electronic readiness) is a measure of the degree to which a country
is prepared to partake in electronic activities and, thus, benefit from ICT in education;

(c) Innovation refers to the creation of new ideas using new or existing technologies
that results in the development of new or improved products, processes, or services,
which are then spread or transferred across the market;


(d) Research Parks are master planned property and buildings designed primarily for
private and public research and development facilities, high technology and science-
based companies, and support services;

(e) Science Park refers to all property development that is designed to support the
clustering of knowledge-based enterprises in order to commercialize science and
technology. Science parks aim to foster the development and growth of knowledge-
based economies by bringing together scientific research with governmental
organizations and their business support and development programs in one physical
location;

(f) Science and Technology Park (STP) encompasses any kind of high technology
cluster such as technopolis, science park, science city, cyber park, industrial park,
innovation center, research and development (R&D) park, university research park,
research and technology park, science and technology park, science city, science
town, technology park, technology incubator, technology park, technopark, technopole
and technology business incubator run by an organization managed by specialized
professionals whose main aim is to increase the wealth of its community by promoting
the culture of innovation and the competitiveness of its associated businesses and
knowledge-based institutions;

(g) Technology Business Incubator is a facility designed to help startup technology-
based businesses by providing them with the necessary resources, services and
support needed during the development stage.

ARTICLE I
DEVELOPMENT OBJECTIVES AND STRATEGIES

SEC. 4. Development of a National Ecosystem. - To leverage science, technology and
innovation (STI) which are the major pillars of developing economies in the Fourth
Industrial Revolution, the State shall ensure the development of a national ICT
ecosystem that will lead towards the Sustainable Development Goal (SDG) which is
the building resilient infrastructure, promoting inclusive and sustainable
Industrialization, and fostering innovation by 2030, To achieve the foregoing goal, the
State shall:

(a) Promote, develop, and grant subsidy and incentives for the development of science
and technology parks or science parks, which shall have research and development
centers, technology business incubators and other innovation centers;

(b) Promote, develop, and support capacity building activities to upgrade the
knowledge of managers of science and technology parks across the country;

(c) Provide and make available technical assistance, policy advice and support for the
establishment of centers for science park development around the country;

(d) Develop, promote, encourage, and ensure mechanisms and platforms for the
integration of a developmental approach into science, technology and innovation,
organizing capacity building, providing policy advice, facilitating the exchange of


experience and best practices, and conducting research and problem solving in
science park and technology incubator development.

SEC. 5. Government Support for Science and Technology Park Projects. - In the
identification of science and technology park projects that can be qualified for
government support, the following essential precursory conditions must be in place:

(a) The key tenants or the anchor tenants, such as national research institutes which
are committed to staying in the STP;

(b) A management team with all the skills necessary for managing the STP can be
assembled;

(c) A strong science base in the surrounding areas of the STP is already available;

(d) The city or area where an STP is located is attractive to talented people and
students;

(e) An entrepreneurial culture is available in the city or country where an STP is to be
located;

(f) Finance, especially seed and venture capital, is available in the city or country
where an STP is to be located.

SEC. 6. Incentives and Support for the Creation of Science and Technology Parks. -
The Department of Science and Technology (DOST), the Department of Trade and
Industry (DTI), the Department of Information and Communications Technology
(DICT), the Department of Finance (DOF), and the Department of Public Works and
Highways (DPWH) shall collaborate to create specific mechanisms to identify the
extent of incentives and support for the creation of STPs, which can be under any of
this model:

(a) Fully-government owned either through the national government or any of its
agency, or a local government unit, a state university, or a government corporation;

(b) Publicly owned or majority of ownership pertains to government with private sector
counterpart at less than fifty (50) percent;

(c) Privately-owned or more than fifty (50) percent with government counterpart or
subsidy;

(d) Fully owned by private sector with assistance from government in various forms
such as seed money, technical support, and others.

SEC. 7. Technologies for Business Commercialization Through the Science and
Technology Parks. - The DOST in consultation with the DTI and the DICT shall identify,
list, and recommend for prioritization of the technologies that are ideal and desirable
for business commercialization through the STPs.


SEC. 8. Design and Plans of Science and Technology Parks. - The DOST, DICT, and
DPWH shall prepare the design and plans of the proposed science and technology
parks in every location and shalll propose project timelines for each.

ARTICLE Ill
DEVELOPMENT OF SCIENCE AND TECHNOLOGY PARKS

SEC. 9. Regional Science and Technology Parks. - The DOST in consultation with
DTl and DICT shall design, prepare, develop, and recommend various components of
a science and technology park in every region, subject to the following:

(a) Effectiveness of the incubation and innovation programs to be offered by an STP,
ideal for the generation of innovative business ideas, growth of entrepreneurial spirit,
and responsiveness to global market demand;

(b) List of potential key anchor tenants of the STP which shall eventually constitute the
backbone of the STP and help ensure that the STP can deliver its most important
designated functions;

(c) Possibility of clusters and spin-offs of universities into science and technology
parks.

SEC. 10. Proof of Social Benefits. - If the national government or any local government
unit, or through a government corporation or state university, finances the
development of an STP or provides other incentives such as tax exemption or
reduction, the said STP shall sufficiently prove that it provide social benefits such as
advanced research and development (R&D) or boosts economic development in the
region, province, city or municipality where it shalll be located. The economic or social
contribution of an STP should be measured and monitored by a framework to be
developed by DOST in consultation with the National Economic Development
Authority (NEDA).

ARTICLE IV
INCENTIVES

SEC. 11. Incentives. - A qualified science and technology park (STP) developer and/or
locator, whose activities may form part of the Strategic Investments Priority Plan, shall
be entitled to such fiscal and non-fiscal incentives, including but not limited to income
tax holiday, special corporate income tax, enhanced deductions and such incentives
as may be provided under the National Internal Revenue Code, as amended. Local
government units are encouraged to provide for their own set of incentives according
to their taxation power.

ARTICLE V
DEVELOPMENTAL PROGRAMS.

SEC. 12. Promotion of Science and Technology Parks. - The DOST and DICT shall
regularly develop, guide, assist or spearhead programs, projects and activities to
promote science and technology parks.


ARTICLE VI
SUPPORT ECOSYSTEM

SEC. 13, Linkages to Existing Projects and Initiatives Anchored on Innovation. - The
DOST, DTI, and DICT shall ensure appropriate linkages between existing projects and
initiatives anchored on innovation and science and technology parks closest to their
location or area of interest and shall assist stakeholders in pursuing linkages.

ARTICLE Vil
GENERAL PROVISIONS

SEC. 14. Implementing Rules and Regulations. - The DOST, DICT, DTI, DOF, and
DPWH, in coordination with other industries concemed, shall issue the necessary
rules and regulations for the effective implementation of this Act within a period of
ninety (90) days after its effectivity. The non-promulgation of the implementing rules
and regulations shall not prevent the implementation of this Act upon its effectivity.

SEC. 15. Appropriations. - The amount necessary to effectively carry out the
provisions of this Act shall be charged against the current appropriations of the
concerned government agencies. Thereafter, such sums as may be necessary for the
continued implementation of this Act shall be included in the annual General
Appropriations Act.

SEC. 16. Repeating Clause. - All laws, executive orders, presidential decrees, rules
and regulations or parts thereof which are in conflict or inconsistent with the provisions
of this Act are hereby repealed, amended or modified accordingly.

SEC. 17. Separability Clause. - If any part or provision of this Act shall be declared as
unconstitutional or invalid, the other parts or provisions hereof which are not affected
thereby shall continue to be in full force and effect.

SEC. 18. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,