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SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session )
SENATE BILL No.
FEB 27 P6:08
1355
(In Substitution of Senate Bill No. 38)
R E diV liD  BY:
Prepared and subm itted jointly by the Committees on Economic Affairs, and 
Trade, 
Commerce 
and 
E ntrepreneurship, 
with 
S en ato rs 
Legarda 
and 
G atchalian as authors thereof
AN ACT
ADOPTING INNOVATION AS VITAL COMPONENT OF THE COUNTRY’S 
DEVELOPMENT 
POLICIES 
TO 
DRIVE 
INCLUSIVE 
DEVELOPMENT, 
PROMOTE THE GROWTH AND NATIONAL COMPETITIVENESS OF MICRO, 
SMALL 
AND 
MEDIUM 
ENTERPRISES, 
APPROPRIATING 
FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. S h o rt T itle. -The Act shall be known as “The Philippine
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Innovation Act.”
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SEC.2. D eclaration o f Policies. -  In conformity with the provision of the
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Constitution th at recognizes science and technology as “essential for national
5 
development and progress” and gives priority to “research 85 development,
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invention, innovation and their utilization,” the State hereby adopts the
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following policies:
8 
a) The State shall place innovation at the center of its development policies,
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guided by a clear and long-term  set of goals th at will take into consideration
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the key advantages of the country and the opportunities in the regional and
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global economic arena. As such, it shall harness innovation efforts to help
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the poor and the marginalized and to enable Micro, Small, and Medium
13 
Enterprises (MSMEs) to be a part of the dom estic and global supply chain.
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b) The State shall prom ote a culture of strategic planning and innovation and
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ensure th at knowledge is created, acquired, dissem inated, and used more
16 
effectively by individuals, enterprises, organizations, and com m unities to
17 
promote sustainable economic and social development.
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c) Investm ents in education, science, technology and innovation will be guided
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by a strategic direction tow ards strengthening the country’s knowledge-
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based economic development th at benefits all.
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d) The State recognizes the im portance of an effective and efficient innovation
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ecosystem  th at addresses and delivers action in various policy areas.


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including MSME development, education, trade, investm ent, finance, and
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agriculture, sustainable energy, climate change, am ong others. 
This
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requires the various departm ents and agencies of governm ent to im plem ent
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a “whole of governm ent” approach th at will ensure policy coherence,
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alignm ent of priorities, and effective coordination in program  delivery. This
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ecosystem should facilitate and support innovation efforts.
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e) The State recognizes the indispensable role of governance in maximizing the
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benefits from the country’s innovation policy. As such, it shall put efficient
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institutions in place, with the necessary authority to remove regulatory,
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informal, and other obstacles to the innovative undertaking.
11 
f) The 
business 
sector, 
academ e, 
scientific 
com m unity 
and 
research
12 
institutions play a crucial role in driving economic growth through
13 
innovation. As such, the Government will work and cooperate with these
14 
sectors and encourage the innovative efforts of businesses, MSMEs,
15 
academ e, and the scientific community.
16 
g) The State recognizes the value of sources of innovation th at are unique to
17 
the country such as traditional knowledge, traditional cultural expressions,
18 
and genetic resources and shall strive to promote their potentials for
19 
innovation while protecting them  from m isappropriation.
20 
SEC. 3. D efinition o f T erm s. -  The following term s shall have their respective
21 
meanings:
22 
a) “Cluster Policies” refer to policies which aim to support geographic
23 
concentrations of interconnected firms and related actors such as
24 
specialized service providers, academ ic or educational institutions, MSMEs,
25 
businesses, among others;
26 
b) “Genetic Resources” refer to genetic m aterial, which are any m aterial of
27 
plant, anim al, microbial or other origin containing functional units of
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heredity, of actual or potential value;
29 
c) “Inclusive Innovation” refers to the creation of new ideas th at results to the
30 
development of new products, processes and services th at help improve the
31 
welfare of lower-income and marginalized groups;
32 
d) "Innovation” m eans the creation of new ideas th at results in the
33 
development of new or improved policies, products, processes, or services
34 
which are then spread or transferred across the m arket;
35 
e) “Innovation Alliance” refers to a coalition of research and development-
36 
based technology com panies, academ ic or educational institutions, a n d /o r
37 
research institutions, MSMEs and other relevant organizations, th at have
38 
come together to support innovative efforts and enterprises;


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“Innovation C enters” refer to centers of competence and innovation 
activities, either housed in academ ic, educational, or non-academ ic facility 
th at supports collaborative research, development and extension (RDSgE) 
initiatives and innovation-related activities between and am ong academ ic or 
educational institutions, RD8sE centers, and business;
“Innovation Governance” refers to the institutional set up of the various 
elem ents of the national innovation ecosystem, including the institutional 
structures and the processes governing policy m aking and im plem entation, 
including program  delivery and monitoring, as well as the process of 
coordination and collaboration across public institutions and with relevant 
stakeholders;
“Innovation Networks” refer to the interconnected system  of com panies and 
organizations 
in 
the 
knowledge 
infrastructure, 
strongly focused 
on 
innovation;
“Innovative Goods and Services” refer to new or significantly improved 
products, services, processes, technical specifications or com ponents, 
m ethods, and tools th at enhance governm ent’s ability to deliver services; 
“M arketing Innovation” refers to significant changes in product design or 
packaging, placem ent, promotion or pricing;
“Multi-stage Process” refers to the various stages of product or solution 
development, from feasibility study, designing, prototyping, testing, and 
commercialization of products or services;
“Organizational 
Innovation” 
refers 
to 
business 
practices, 
workplace 
organization or external relations;
“Policy Innovation” refers to the introduction of new or significantly different 
solutions to policy problems;
“Pre-commercial Procurem ent” refers to the procurem ent of RD85E services 
for services, solutions, or products th at do not yet exist, which may involve 
contracting by development phase from the conduct of feasibility study, 
designing, prototyping, testing, and commercialization of products or 
services;
“Process Innovation” refers to the im plem entation of a new or significantly 
improved production or delivery method;
“Product Innovation” refers to the introduction of a good or service th at is 
new or significantly improved with respect to its features, applications, 
characteristics or intended uses;
“Project-based Competition” refers to a process whereby contractors bid for 
contracts for a specific project with the proponent being given the flexibility 
to subm it particulars detailing the unique scope and features of its


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proposal. The contracting agency shall aw ard the contract to the proponent 
deemed to have subm itted the best innovation solution or product;
“Social Innovation” refers to the process of identifying and delivering new 
services th at improve the quality of life of individuals and com m unities, 
including through employment, consum ption a n d /o r participation; 
“Technology Diffusion Procurem ent” refers to public procurem ent th at is 
undertaken on behalf of end-users with the view to accelerating the 
diffusion of innovative solutions or technologies th at offer the greatest 
advantage to users;
“Technology Platforms” are self-organized program s or arrangem ents th at 
allow a wide range of stakeholders to collaborate in identifying common 
needs and to assem ble a portfolio of funding sourced from governm ent or 
industrial sources or a mix thereof to address those needs;
“Technology Program s” refer to program s th at link industrial, academ ic or 
educational RD8sE efforts towards building national capacities in developing 
industrially im portant technologies;
“Traditional C ultural Expressions” refer to forms in which traditional 
culture is expressed; passed down from generation to generation, they form 
part of the identity and heritage of a traditional or indigenous community; 
and
“Traditional Knowledge” refers to a living body of knowledge, innovations, 
system s, and practices of indigenous peoples and local com m unities 
developed, sustained and passed on from generation to generation within a 
community, and often forming part of the com m unity’s cultural heritage or 
spiritual identity.
26 
SEC. 4. O bjectives. -  The overarching objective of this Act is to generate and
27 
scale up action in all levels and areas of education, training, research and
28 
development towards prom oting innovation and internationalization activities
29 
of MSMEs as driver of sustainable and inclusive growth.
30 
The specific objectives of this Act are as follows:
31 
a) Promote a culture of strategic planning and innovation to encourage creative
32 
thinking and knowledge creation and dissem ination towards expanding and
33 
m aintaining economic competitiveness;
34 
b) Improve innovation governance in the country and compel the adoption of a
35 
long-term vision and focused priorities for innovation as driver for
36 
sustainable and inclusive growth;


1 
c) E nsure effective coordination and eliminate fragm entation of innovation
2 
policies and program s at all levels;
3 
d) Strengthen the position of MSMEs in the innovation system;
4 
e) Remove obstacles to innovation by suppressing bureaucratic hurdles, and
5 
adapting the regulatory framework to support the creation of and diffusion
6 
of new knowledge, products, and processes;
7 
f) Encourage entrepreneurial attitude in order to stim ulate growth am bitions
8 
in businesses, specially among MSMEs;
9 
g) Explore, promote and protect the potentials for innovation of traditional
10 
knowledge, traditional cultural expressions and genetic resources; and
11 
h) Strengthen and deepen interactions and partnerships among different
12 
actors from the public and private sector, academ e, MSMEs, research &
13 
development institutions and com m unities towards prom oting inclusive
14 
growth and improving the quality of life through innovation.
15 
SEC.5. Inn o v atio n  Scope. -  The governm ent shall adopt a broader view in
16 
developing its innovation goals and strategies covering all potential types and
17 
sources of innovation, including product innovation; process innovation;
18 
organizational innovation; social innovation; m arketing innovation; academ ic or
19 
educational innovation; or policy innovation; am ong others. 
While the
20 
country’s innovation goals shall be directed at developing new technologies, it
21 
shall likewise seek to harness global knowledge and technology th at will aid in
22 
developing new processes or services for increasing productivity in the
23 
agricultural sector and of the MSMEs, and for prom oting over-all public
24 
welfare. As such, the National Innovation Council (NIC), as created in Sec. 9,
25 
shall set the country’s innovation goals and priorities, as well as assess the
26 
innovation program s of various agencies, guided by this provision.
27 
SEC. 6. N ational In n o v atio n  Agenda and S trateg y  D ocum ent.- The National
28 
Innovation Council (NIC), created under this Act, shall develop a National
29 
Innovation Agenda and Strategy Docum ent (NIASD) th at establishes the
30 
country’s vision and long-term goals for innovation and provides a road m ap
31 
and the strategies for improving innovation governance through clear-cut
32 
delineation and com plem entation of innovation efforts across agencies;
33 
deepening and accelerating innovation efforts, including inclusive innovation
34 
program s th at are targeting the poorest of the poor; and integrating and
35 
fostering public-private partnerships, including those with large businesses,
36 
MSMEs, academ e, and RD&E institutions.


1 
In developing the NIASD, the NIC will identify strategies to stim ulate regional
2 
capacity for development th at can contribute to differentiated innovation
3 
strategy across regions in the m edium  term . 
Such differentiated strategies
4 
shall take into consideration the competitive advantages and strengths of each
5 
province, region, and community.
6 
The NIASD will also include the innovation priority areas for which resources
7 
and budget will be provided. The agenda and strategies shall have a m inim um
8 
of ten-year horizon, subject to periodic review by the NIC.
9 
All ageneies shall strietly comply with the NIASD and will pursue this as a
10 
collective, national effort. 
The agencies concerned will ineorporate pertinent
11 
program s in their respective work program s and action plans, guided by the
12 
NIASD.
13 
The NIASD will be developed in consultation with governm ent agencies,
14 
Regional Development Councils (RDCs), Local Government Units (LGUs), and
15 
other stakeholders and shall be completed within six m onths from the adoption
16 
of this Act.
17 
SEC. 7. C onsiderations in S e ttin g  P riority A reas for Innovation. -  It is vital
18 
th at the challenges in the following areas be considered in developing the
19 
country’s priorities for innovation;
20 
• 
Food security and sustainable agriculture;
21 
• The blue economy;
22 
• Education and the academe;
23 
• Health;
24 
• 
Secure, clean and reliable energy;
25 
• 
Climate change and disaster resilience;
26 
• Resource efficiencies;
27 
• 
National and com m unity-based comparative advantages in the context of
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Global Value Chains;
29 
• 
Comparative strengths and advantages of sectors and comm unities;
30 
• 
Potentials for innovation of traditional knowledge, traditional cultural
31 
expressions and genetic resources;
32 
• Infrastructure needs;
33 
• Governance; am ong others.
34 
The NIC, in consultation with various sectors, will identify the priority areas as
35 
provided for in Sec. 5 of this Act.


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SEC.8. Inclusive Innovation. - The NIC shall develop strategies to promote
2 
creation of new ideas th at will be developed into new, quality products,
3 
processes, and services th at are aim ed at improving the welfare of low-income
4 
and marginalized groups, as well as create livelihood opportunities for these
5 
sectors.
6 
The NIC will likewise develop strategies for prom oting social innovation as a
7 
tool for delivering new services th at will improve the quality of life of individuals
8 
and com m unities, as well as enable the participation of com m unities in
9 
m eeting their needs. Such strategies will be incorporated in the NIASD.
10 
SEC.9. The N ational Inn o v ation C ouncil. - A National Innovation Council
11 
(NIC) is hereby established to develop the country’s innovation goals, priorities,
12 
and long-term national strategy.
13 
The NIC shall be constituted by the following:
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a) President of the Philippines -  Chairperson
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b) Director General of the National Economic and Development Authority -
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Vice-Chairperson
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c) Secretary of Science and Technology -  Member
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d) Secretary of Trade and Industry -  Member
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e) Secretary of Agriculture -  Member
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f) Secretary of Environm ent and Natural Resources -  Member
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g) Secretary of Health -  Member
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h) Secretary of Transportation -  Member
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i) Secretary of Energy -  Member
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j) Secretary of National Defense -  Member
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k) Secretary of Information and Com m unications Technology -  Member
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1) Chairperson of the Commission on Higher Education -M em ber
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m) Secretary of Budget and M anagem ent -  Member
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n) Secretary of Education -  Member
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o) Secretary of Interior and Local Government -  Member
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p) Secretary of Foreign Affairs -  Member
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q) Director-General of the Intellectual Property Office -  Member
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r) Seven Executive Members to be appointed by the President
33 
The Executive Members shall be appointed from the ranks of business,
34 
academ e, and the scientific comm unity, at least one of whom shall be a
35 
woman.
36 
There shall be at least one representative from the MSME sector, and at least
37 
one from the business sector. The representative of business and the MSME
38 
shall be recom m ended by a legally established and reputable business


1 
organization. 
Those to be appointed from the academ e and the scientific
2 
com m unity should have at least 7 years of experience in the field of science
3 
and technology, research and development, or innovation.
4 
The President may designate the Executive Secretary to preside over the
5 
m eetings of the NIC in his absence. 
The D epartm ent Secretaries and other
6 
m em bers may not designate alternate representatives other than their
7 
respective undersecretaries to the m eetings of the NIC.
8 
SBC. 10. F u n ctio n s o f th e  NIC. - The NIC shall have the following functions:
9 
a) Develop the country’s strategic vision for innovation and long-term
10 
innovation goal;
11 
b) Develop the country’s innovation strategies to ensure coherent strategic
12 
direction and program s by governm ent agencies;
13 
c) Set the country’s innovation priorities;
14 
d) Serve as a source of strategic intelligence for national research and
15 
innovation policymaking;
16 
e) Engage technological expertise in strategic and innovation policymaking;
17 
f) Coordinate with various sectors and agencies to promote policy and
18 
program  coherence;
19 
g) Monitor and assess the country’s strategic and innovation programs;
20 
h) Regularly review and update the country’s strategic and innovation policies;
21 
i) Guided by the legal m andates of the agencies/LGUs concerned, identify and
22 
task government agencies and LGUs th at will be tasked to im plem ent
23 
specific strategies under the 
NIASD;
24 
j) Com municate the country’s innovation policies, priorities, and agenda to
25 
local and international publics;
26 
k) Establish and adm inister the Innovation Fund;
27 
1) Identify a n d /o r approve program s th at may qualify for funding from the
28 
Innovation Fund;
29 
m) Develop m etrics and m onitor the progress of strategic innovation program s,
30 
including publicly-funded RDSsE projects;
31 
n) Subm it annual reports to the Philippine Congress on the progress of
32 
im plem entation of this Act; and
33 
o) Undertake other functions as m andated under this Act.
34 
SEC. 11. 
S e c re tariat to  th e  C ouncil. -  A Secretariat to the NIC shall be
35 
established within NEDA, to be headed by an Executive Director who will be
36 
appointed by the President and will have the rank of Undersecretary. 
The
37 
Executive Director shall have at least seven (7) years of experience and practice
8


1 
in the fields of Science and Technology, Research 8s Development, MSME,
2 
Innovation, Finance, or B usiness M anagem ent to qualify for appointm ent. The
3 
Executive Director will be nom inated by the NIC.
4 
An NIC Secretariat is hereby established whose staffing structure and
5 
complement will be subm itted by the NIC to the D epartm ent of Budget and
6 
M anagement for funding. Pending creation of these positions, the NIC shall
7 
constitute an interim  Secretariat within one m onth from the adoption of this
8 
Act, through the tem porary detail of personnel from its m em ber agencies.
9 
The Secretariat shall have the following functions:
10 
a) Provide secretariat support to the NIC, including the preparation of draft
11 
strategies, priorities, and other outputs to be adopted by the NIC;
12 
b) Consult with experts who can offer insights in innovation policymaking and
13 
priority setting;
14 
c) Coordinate with various agencies of the government, the private sector,
15 
academ e, scientific comm unity, and other sector towards achieving policy
16 
and program  coherence;
17 
d) G ather strategic intelligence and information to support the NIC in its policy
18 
making, as well as goal and strategy setting;
19 
e) Build strategic intelligence on hum an capital development;
20 
f) Assess the effectiveness of existing SSsT and Innovation grant program s and
21 
scholarships and subm it recom m endations to the NIC on these program s,
22 
guided by the NIASD;
23 
g) Draft a set of “relevance criteria” which will be used by the NIC to evaluate
24 
RD&E proposals for public funding through the Innovation Fund;
25 
h) Develop and adm inister m etrics for m onitoring and evaluation of the
26 
country’s innovation program s;
27 
i) Develop recom m endations for consideration by the NIC; and
28 
j) Perform other functions as may be directed by the NIC.
29 
SEC. 12. 
MSME Innovation. -  The NIC will develop strategies towards
30 
promoting MSME internationalization and participation in the local and global
31 
value chains. A com prehensive support program, from incorporation to
32 
internationalization, will be developed by the NIC and im plemented by the
33 
agencies concerned. These program s will include coaching and m entoring in
34 
the areas of design; technology extension services; standard business practices
35 
in contracting, accounting and project m anagem ent; quality control; standard-
36 
setting; business services such as commercialization and m anagem ent;
37 
patents; among others.


1 
The 
government, 
through the 
DTI, 
shall encourage 
and 
support the
2 
establishm ent of business incubators, in partnership with the private sector,
3 
towards fostering collaboration between small and big businesses in promoting
4 
skills and technology transfer, supplier development, access to finance, and
5 
creating m arketing opportunities for MSMEs.
6 
The DTI will scope high productivity innovative businesses to help them
7 
identify and exploit opportunities in overseas m arkets.
8 
The NIC shall develop m etrics for purposes of assessing the progress of work in
9 
these areas.
10 
SEC. 13. R egional In n o v atio n  an d  C luster Policy. -  The NIC will integrate in
11 
the NIASD strategies to promote regional innovation th at will harness the
12 
competitive advantages, as well as existing and potential strengths of regions
13 
and provinces. 
Such strategies shall promote regional development through
14 
sound science, technology and innovation program s. 
For this purpose, the
15 
RDCs will help coordinate and m onitor the im plem entation of the NIASDs in
16 
their respective regions.
17 
C luster policies or strategies shall be adopted by the NIC as a significant
18 
com ponent of the country’s innovation policy mix. In determ ining the feasibility
19 
and effectiveness of cluster policies in pursuit of innovation goals, other policy
20 
stream s, such as regional economic development policy, industrial/enterprise
21 
policy, higher education policy, am ong others, will be considered.
22 
The cluster policies shall be adopted to focus on regional hubs or provinces or
23 
sectors such as MSMEs, large firms, spinoffs and start-ups, academ ic or
24 
educational institutions and research centers, or com binations of these. For
25 
this purpose, the NIC shall establish a Cluster Development Program. Funding
26 
for this purpose will be incorporated in the annual General Appropriations Act.
27 
C luster strategies and program s will be im plem ented through the agencies
28 
concerned through a well-coordinated system  facilitated by the NIC.
29 
SEC. 14. S trateg ic R esearch, D evelopm ent an d  E xtension Program s. -  The
30 
NIC, guided by the country’s innovation agenda and development goals, will
31 
develop RDSsE them es. These them es will be adopted in the RD8&E program s of
32 
concerned agencies which will ensure th at a higher level of m ission orientation
33 
in publicly funded research is observed. For this purpose, the NIC will develop
34 
a “relevance criteria” th at will be adm inistered by the agencies concerned in the
35 
selection of RDSsE projects or program s for funding. It shall likewise prepare
36 
an inventory of academ ic or educational and RD8&E institutions, together with
10


1 
their resources and capacities to undertake RD8&E. This will provide the
2 
strategic intelligence for RDSsE public funding and grants.
3 
The NIC will also m onitor the im plem entation of these RDSsE projects and
4 
ensure th at these comply with the criteria established for the purpose and
5 
m eets the objectives for which these were funded. A system  for “peer review”
6 
may be established for this purpose.
7 
As part of strategies to address the m ulti-dim ensional nature of certain
8 
research requirem ents, the NIC shall:
9 
a) Establish 
centers 
of research 
excellence, 
to 
bring 
together 
m ulti-
10 
sector/stakeholder team s to address m ulti-disciplinary research agenda;
11 
b) Establish centers of collaborative research activity between academ ic and
12 
business; and
13 
c) M andate pertinent agencies to work with academ ic or educational and
14 
research institutions to provide research infrastructure to support key
15 
research areas.
16 
The NIC will recom m end to Congress the annual proposed level of Gross
17 
Expenditure on RSsD (GERD) based on the National Innovation Agenda and
18 
Strategy Document. This recom m endation will be subm itted by the beginning
19 
of each annual budget cycle.
«
20 
SEC. 15. In n o v atio n  In stru m en ts. -  The governm ent shall employ a range of
21 
instrum ents to achieve the objectives of this Act. These instrum ents include:
22 
a) Technology program s 
, ■
23 
b)'Innovation centers
24 
c) Innovation networks
25 
d) Technology platforms
26 
e) C luster policies
27 
f) H um an capacity building program s
28 
For this purpose, the NIC shall develop strategies by which government
29 
agencies concerned may harness these instrum ents to more effleiently deliver
30 
program s and promote greater collaboration am ong stakeholders. 
These
31 
agencies, enum erated in Sec. 16, shall subm it their respective action plans,
32 
guided by the strategies th at will be imposed by the NIC.
33 
The establishm ent of innovation centers shall be undertaken in coordination
34 
with the private sector, academ ic or educational institutions, and other seetors
35 
to maximize opportunities for collaboration and joint initiatives.
11


1 
SEC. 16. 
W hole o f G overnm ent A pproach. -  In order to effectively drive
2 
innovation across all areas of governm ent policy -  spanning education,
3 
training, health, energy, com m unication, industry, science 86 technology,
4 
defense, among others -  a “whole of governm ent approach” shall be adopted.
5 
This approach shall facilitate engagem ent with business, the RD85E sector,
6 
MSMEs, and the broader com m unity towards ensuring the full and effective
7 
im plem entation of the country’s innovation agenda.
8 
All government agencies 
concerned, 
including the 
following, 
shall 
be
9 
responsible for im plem enting the country’s innovation strategies, and as such,
10 
will observe the “whole of governm ent approach” provided herein:
11 
a) National Economic and Development Authority
12 
b) D epartm ent of Science and Technology
13 
c) D epartm ent of Trade and Industry
14 
d) D epartm ent of Agriculture
15 
e) D epartm ent of Environm ent and Natural Resources
16 
f) D epartm ent of Health
17 
g) D epartm ent of Energy
18 
h) D epartm ent of Transportation
19 
i) D epartm ent of National Defense
20 
j) D epartm ent of Information and Com m unications Technology
21 
k) D epartm ent of Budget and M anagem ent
22 
1) D epartm ent of Interior and Local Government
23 
m) D epartm ent of Foreign Affairs 
•
24 
n) D epartm ent of Education
25 
o) Commission on Higher Education
26 
p) Intellectual Property Office
27 
Government agencies shall m ake available for public access, a joint web portal,
28 
th at will bear information pertinent to innovation policies, strategies, program s,
29 
including services, grants, and financial assistance for related trainings. The
30 
agencies shall likewise ensure th at beneficiaries are guided on services th at are
31 
available. The web portal shall also include a database of all ongoing and
32 
completed innovation projects im plemented under the NIASD.
33 
It shall have interactive features th at will allow the public to access services or
34 
file applications for scholarships or other services and program s online.
35 
Inquiries shall be addressed within three (3) days from receipt thereof.
36 
Processing of applications for scholarships and other services shall be
37 
stream lined in accordance with the guidelines to be established by the NIC.
38 
Reforms to this effect shall be reported to the NIC within six (6) m onths from
39 
the adoption of this Act.
12


a ’ .-
1 
The online facility shall provide an acknowledgem ent receipt and reference
2 
num ber for each transaction for m onitoring purposes.
3 
Government agencies concerned shall subm it periodic progress reports to the
4 
NIC on the 
statu s of innovation 
strategies and projects. 
Reportorial
5 
requirem ents prescribed under this Act shall take into consideration reports
6 
required under other laws related to innovation, with the view to harm onizing
7 
and achieving efficiencies in the preparation of these reports. Reporting
8 
guidelines will be prepared by the NIC for this purpose.
9 
The enum eration of agencies provided herein is w ithout prejudice to other
10 
agencies th at the NIC may m andate.
11 
SEC. 17. D iaspora for Inn o v ation and D evelopm ent. -  A Diaspora for
12 
Innovation and Development Program is hereby established to enable the
13 
country to mobilize and tap the high level expertise of the Filipino Diaspora in
14 
pursuit of innovation and development efforts.
15 
The NIC, in coordination with the D epartm ent of Labor and Employment, the
16 
B ureau of Immigration, the B ureau of Custom s, the D epartm ent of Foreign
17 
Affairs, among other agencies, will establish the necessary m echanism s to
18 
facilitate the participation of qualified m em bers of the Filipino Diaspora in the
19 
country’s innovation drive.
20 
The NIC will develop an inventory of skills and talent requirem ents and the
21 
institutions or program s needing them  as basis for inviting Filipinos in the
22 
Diaspora to participate in the program.
23 
The NIC will develop the guidelines for this purpose, in coordination with the
24 
DOST and other agencies th at have existing program s and funding for
25 
purposes of mobilizing overseas Filipino talents for innovation and SSsT efforts.
26 
SEC. 18. 
In tellectu al P roperty S ystem  and M anagem ent. -  Republic Act
27 
No. 8293, as am ended, or the Intellectual Property Code of the Philippines, will
28 
be enforced to protect and secure the exclusive rights of scientists, inventors
29 
and innovators to their intellectual property and creations. 
The pertinent
30 
agencies of the governm ent shall promote the diffusion of knowledge and
31 
information for the promotion of national development.
32 
The Intellectual Property Office shall promote the registration of patents,
33 
tradem arks, copyrights, industrial designs and geographical indications among
34 
scientists, inventors and innovators to ensure protection of innovation against
35 
m isappropriation. 
Towards this end, it shall stream line adm inistrative
36 
procedures of registering patents, tradem arks, copyrights, industrial designs
37 
and geographical indications to liberalize the registration on the transfer of
13


1 
technology, and to enhance the enforcem ent of intellectual property rights in
2 
the Philippines. Reforms to this effect shall be reported to the NIC within six (6)
3 
m onths from the adoption of this Act.
4 
It shall undertake program s to assist MSMEs in the registration of patents,
5 
tradem arks, copyrights, industrial designs and geographical indications.
6 
SEC. 19. A dvocacy and C om m unity E ducation. -  The NIC, in cooperation
7 
with the various agencies concerned, will undertake an information and
8 
comm unity education program  to rally everyone around the country’s
9 
innovation agenda and priorities, and to generate public support to these
10 
initiatives. Such program  shall aim to inform the public on available program s,
11 
services, grants, and financial assistance for related trainings, among others, to
12 
widen the base of participation in the conduct of the country’s innovation
13 
agenda.
14 
The government will undertake its advocacy and com m unity education
15 
program, in partnership with the business sector and business associations,
16 
MSMEs, incubation centers and networks, Negosyo Centers, and academ ic or
17 
educational institutions.
18 
The NIC will develop a com m unication plan for this purpose.
19 
SEC. 
20. 
Inn o v atio n  
Fund. 
-  
An 
Innovation 
Fund 
to' strengthen
20 
entrepreneurship and enterprises engaged in developing innovative solutions
21 
benefiting the poorest of the poor is hereby established. This. Fund, from which
22 
grants will be issued, shall be adm inistered by the NIC Secretariat which shall
23 
screen and approve qualified proposals.
24 
Subject to availability of funds, an initial 
am ount of One Billion Pesos
25 
(PhPl,000,000,000), to be sourced by the DBM from governm ent savings, is
26 
hereby allocated for the initial year’s im plem entation of this Act, and such
27 
funds necessary for its continuous and effective im plem entation shall
28 
thereafter be included in the annual General Appropriations Act.
29 
Further, the NIC, in coordination with the agencies concerned, shall explore
30 
the possibility of accessing a growing range of bilateral and m ultilateral funds
31 
in order to be able to assist in the funding 
of RDSsE and other innovation
32 
efforts. 
Public-private 
partnerships shall 
also 
be 
encouraged 
in 
the
33 
development and im plem entation of innovation initiatives in the sphere of
34 
RDSgE, education, product development and testing, am ong others.
14


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18 
19
1
SEC. 21. 
R em oving B arriers to  Innovation. -  The NIC and its m em ber 
government agencies shall eliminate regulatory barriers and cut red tape to 
boost 
innovation 
efforts. 
Towards 
this 
end, 
the 
NIC 
shall 
facilitate 
consultations with stakeholders to identify and remove barriers to accelerating 
innovation efforts, including but not limited to procurem ent rules and 
regulations, and to align efforts and enhance collaboration.
Government agencies and all LGUs shall hereby improve efficiencies in 
addressing public transactions th at im pact on innovation, including reducing 
the num ber of days and costs of starting or expanding a business.
Government agencies and LGUs will undertake reforms in their system s and 
processes to ensure th at applications for starting a business and renewal of 
business licenses are processed within three (3) working days from the time the 
application is received. The processing of other governm ent perm its and 
clearances, as well as application for patents, shall likewise be stream lined 
towards ensuring a business environm ent th at fosters innovation.
For this purpose, the NIC shall develop and prescribe guidelines towards 
stream lining and improving the country’s perform ance in key indicators th at 
will facilitate and promote innovation. The NIC will identify these indicators for 
purposes of issuing the guidelines and m onitoring its strict im plementation.
20
21
22
23
24
25
26
SEC. 22. 
Inno v atio n  A lliances. -  The NIC shall establish the necessary 
conditions and framework th at will promote the establishm ent of Innovation 
Alliances. 
Such framework should encourage com panies to engage in 
collaborative research consortia among private sector entities and with 
academ ic or educational institutions. 
This framework shall also facilitate 
regional networking and alliances to promote knowledge and technology 
sharing as well as collaboration in innovation projects.
27
28
29
30
31
32
33
34
35
36
37
SEC. 23. G overnm ent P ro cu rem ent. -  Public procurem ent shall be conducted 
in accordance with Republic Act No. 9184 or the Government Procurem ent 
Reform Act and its Im plementing Rules and Regulations.
To help stim ulate innovation in the country, the NIC, in coordination with the 
Government Procurem ent Policy Board, shall develop public procurem ent 
guidelines, as authorized under RA 9184, covering the following:
a) Innovative Goods and Services —Requirem ents for innovative goods and 
services 
shall 
be 
identified, 
together 
with 
their 
clear 
output 
specifications, as well as functional or perform ance criteria. The 
guidelines shall also allow project-based competition to encourage 
participants to develop innovative solutions;
15


1 
b) Pre-Commercial Procurem ent -G overnm ent agencies are m andated to
2 
determ ine their long term  needs towards encouraging the development of
3 
innovative solutions in areas for which solutions are not currently
4 
available. Procurem ent contracts of this nature will involve a m ulti-stage
5 
process; and
6 
c) Technology Diffusion Procurem ent -  The governm ent may aggregate
7 
dem and and initiate a technology procurem ent process to promote
8 
technology diffusion and m arket transform ation.
9 
The guidelines to be issued by the NIC for this purpose shall ensure efficiency,
10 
transparency, tim eliness and relevance in the procurem ent process.
11 
SEC. 24. 
R ules an d  R egulations. -  The NIC shall prom ulgate the
12 
implementing rules and regulations (IRR) and other issuances as may be
13 
necessary to ensure the effective im plem entation of this Act within sixty (60)
14 
days from its adoption.
15 
SEC. 25. P enalty Provisions. -  Failure to carry out any of the provisions of
16 
this Act will be ground for the filing of crim inal or adm inistrative cases, as may
17 
be w arranted, under the Administrative Code of 1987, Republic Act No. 6770
18 
(The O m budsm an Act of 1989); Republic Act No. 6713 (Code of Conduct and
19 
Ethical Standards for Public Officials and Employees); Republic Act No. 3019
20 
(Anti-Graft and C orrupt Practices Act); Republic Act No. 
7160 
(Local
21 
Government Code of 1991), and Act No. 3815, as am ended (Revised Penal
22 
Code), and all other applicable general and special laws.
23 
SEC. 26. S eparability C lause. -  Should any provision herein be subsequently
24 
declared invalid or unconstitutional, the sam e shall not affect the validity or
25 
the legality of the other provisions not so declared.
26 
SEC. 27. R epealing C lause. -  All laws, presidential decrees, executive orders,
27 
rules and regulations, other issuances, and parts thereof, which are
28 
inconsistent with the provisions of this Act, are hereby repealed and modified
29 
accordingly.
30 
SEC. 28. EfTectivity. -  This Act shall take effect fifteen (15) days after
31 
publication in at least (2) new spapers of general circulation.
32 
Approved,
16