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Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

8797

HOUSE BILL NO.

Introduced by HON. JOY MYRA S. TAMBUNTING

EXPLANATORY NOTE

Article XIV, Section 10 of the 1987 Constitution states that, “science and technology are essential
for national development and progress.” It likewise provides that the government, “shall give
priority to research and development, invention, innovation, and their utilization; and to science
and technology education, training, and services” and “support indigenous, appropriate, and self-
reliant scientific and technological capabilities, and their application to the country’s productive
systems and national life”.

Asia has witnessed a rapid development of science and technology parks (STPs) over the past
few decades, as evidenced by the emergence of new STPs and the successes of more prominent
ones from larger and more advanced economies in the region. STPs are increasingly viewed as a
means of closing technology gaps, particularly for developing nations, as STPs have the capacity
to upgrade production, promote collaboration in research and innovation, and climb global value
chains. STPs also promote the culture of competitiveness and innovation through tech-based
enterprises and knowledge-based institutions. Among the more prominent science parks in the
Philippines are the Laguna Technopark, Science City of Mufioz and the Science Park of the
Philippines.

Consistent with the above-mentioned constitutional provision, this measure seeks to adopt a
national strategy towards the establishment of a knowledge-based economy through incentivizing
the development of science and technology parks in the country. To this end, this measure shall
(1) grant subsidies and incentives for the development of STPs; (2) promote, develop, and
support capacity building activities; provide technical assistance, policy advice and support for
the establishment of centers of science park development; and (3) develop, promote, and ensure
mechanisms and platforms for the integration of a developmental approach to science, technology
and innovation, organizing capacity building, providing policy advice, facilitating the exchange of
experience and best practices, and conducting research and problem solving.

On behalf of the people of Parafiaque City’s Second District, and for the common good of the
Filipino people, the approval of the said measure is earnestly sought.

RA S. TAMBUNTIN
istrict, Parafiaque City



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS.
Second Regular Session

House siti no, 8797

Introduced by HON. JOY MYRA S. TAMBUNTING

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;

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;
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;

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;

b)

¢)

d


€) 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;
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.

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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) 9 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;

©) 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) Amanagement team with all. the skills necessary for managing the STP can be assembled;


©) Asstrong 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) Anentrepreneurial 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;

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

©) 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.

b)

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 shall propose project timelines for each.

ARTICLE IT
DEVELOPMENT OF SCIENCE AND TECHNOLOGY PARKS.

SEC. 9, Regional Science and Technology Parks. - The DOST in.consultation with DTI 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;

©) 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 shall 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 IIT
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 IV
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 V
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 VI
GENERAL PROVISIONS

SEC. 14, Implementing Rules and Regulations. ~ The DOST, DICT, DTI, DOF, and DPWH,
in coordination with other industries concerned, 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. Repealing 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. Separabi 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,