THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
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S.B. No. 
Introduced by Senator Jinggoy Ejercito Estrada 
EXPLANATORY NOTE 
The Philippines is falling behind its neighboring countries in the area of science 
and technology research and development, Unless appropriate and immediate action is 
done to reverse the trend, the country may find more difficulty in securing a place in this 
increasingly competitive world, especially in the advent of the new world order of 
g I o bal iza t i o n . 
It is ironic that despite the country's continuous economic hardships, the 
Philippine government still has not done much for the development of science and 
technology which could be the tool to turn the situation around. 
For years, the country's annual Research and Development (RBD) budget 
receives a measly average of 0.21% share from the total Gross Development Product 
(GDP) or an amount between P3 to 4 million, which is only equivalent to the R&D 
budget of a single firm in the United States. In Asia, Japan allotted the most of R&D with 
2.92%, this explains why they are among the top technologically advanced countries in 
the world. Korea comes second with 2.33%, Singapore comes next with 1.12%, 
followed by Malaysia and Indonesia with 0.37% and 0.26% respectively. 
This bill calls for the allocation of at least 1% of the country's Gross National 
Product to the annual budget of S&T activities which is the norm prescribed by 
UNESCO. In order for us to assure the upliftment of our already crippled economy, the 
passage of this bill is earnestly sought. 
JI~~GO%EJERCITO 
ESTRADA 
') Senator 


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THIRTEENTH CONGRESS OF THE 
) 
.
I
 
I 
~ ., 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
Introduced by Senator Jinggoy Ejercito Estrada 
AN ACT 
INCREASING THE YEARLY ALLOCATION FOR SCIENTIFIC AND 
TECHNOLOGICAL ACTIVITIES (STA) 
SECTION 1. TMe. - This Act be known as the “Science and Technology Funding 
Act of 2004. 
SEC. 2. Policy Statement. - In order to sustain economic development and 
ensure a high level of scientific and technological activities (STA), the State shall 
endeavor to allocate an amount equivalent to the prescribed UNESCO norm of the least 
1% of the total Gross National Product (GNP) as annual budget for scientific and 
technological activities (STCC) created under Administrative Order No. 123, as 
amended by A 0  No. 202, series of 1995. 
SEC. 3. Computation of Allocation. - The gross national product to be 
reckoned in reaching the annual budget for science and technology for a particular 
calendar year shall be the GNP of the immediately preceding year. 
SEC. 4. Phase Implementation. - The allocation for scientific and technological 
activities (STA) shall be gradually increased until it reaches the prescribed norm on the 
gfh year which shall include both government and private sector activities. The first five 
years shall focus on the enhancement of agricultural productivity to ensure sufficiency of 
basic food and services and initiated system towards the production of more elaborately 
transformed products. For the 6th year and onwards, one percent of Gross National 
Product (GNP) 
shall be allocated solely for research and development (R&D); activities 
of the government and private sectors and shall aim to attain competency and mastery 
in the production and processes. 
SEC. 5. Definition of Term. - For purposes of this Act, Scientific and Technical 
Activities (STA) shall be defined as all systematic activities which are closely concerned 
with generation, advancement, dissemination, and application of scientific and technical 


knowledge in all fields f Science and Technology. STA include the following: Research 
and Experimental Development (STS); and Scientific and Technical Education and 
Training (STET). 
a) Research and Development (R&D)-is 
any systematic and creative work 
undertaken in order to increase the stock of knowledge of man, culture and 
society, and the use of this knowledge to devise new applications. 
b) Scientific and Technological Services (STS) is any activity concerned with 
scientific and experimental development and contributing to the generation, 
dissemination and application of scientific and technical knowledge. 
CJ 
Scientific and Technical €ducation and Training (STET) are activities 
comprising higher education and training leading to a university degree, post- 
graduate and further training organized lifelong training for scientist and 
engineers and specialized non-university higher education. 
SEC. 6. The Deparfment of Science and Technology. - The Secretary of the 
Department of Science and Technology in consultation with STCC identify priorities for 
research and development and S&T capability development program which would 
contribute to national development and progress, and to prepare the corresponding 
budget in pursuant thereto. 
SEC. 7. R&D Appropriations. - The Appropriations pertaining to R&D in the 
natural, agricultural, technological and engineering science for various departments, 
bureaus, offices, agencies and SUCs within the Science and Technology Agenda for 
National Development (STAND) shall released upon recommendation of the Secretary 
of the DOST. For this purpose, the DOST shall issue the necessary guidelines for the 
implementation of this provision. 
SEC. 8. Special Fund for R&D. - A special fund for research and development 
to be known as “R& D Fund” shall be created and constituted from the following 
sources: 
a) allocation of I 
percent of GNP for S&T activities; 
b) all unused R&D allocations; and 
c) all income derived from R&D activities. 
The fund shall be used only for R&D activities of the agencyAnstitute. The STCC 
SEC. 9. Implementing Rules and regulafions (lRR’. - The STCC shall prepare 
shall develop the appropriate mechanism for the management of the R&D fund. 
the implementing rules and regulations of this Act. 


SEC. 10. Annual Compliance Report. - The Secretary of the Department of 
Budget and Management (DBM) shall make a report of the President' s compliance with 
Section 2 of this Act to Speaker of the House of the Representatives and the president 
of the Senate before any proposed annual general appropriation bill shall be taken by 
both chambers for final consideration and approval 
SEC. 11. Effecfivify. -this act shall take effect upon its approval. 
Approved,