REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

4093

House Bill

Introduced by Pangasinan Fifth District Representative
HON. RAMON N, GUICO JR.

EXPLANATORY NOTE

One of the hallmarks of prosperity is the accumulation of knowledge and the proficient
application of the same. Lessons learned from global leaders in innovation point us toward the
prioritization of science and technological activities in the pursuance of productivity growth and yet
we, as a country, remain largely unappreciative of the fact. According to the Department of Science
and Technology (DOST), the Philippines’ R&D expenditure in recent years has hovered between
0.14% and 0.18% of GDP, remaining far below UNESCO’s recommended 1% benchmark for
developing countries. By contrast, fellow developing nations have committed significantly more: South
Africa, Kenya, and Senegal each average around 0.8%, while Argentina and Costa Rica invest
approximately 0.6 %, and Mexico about 0.5 %—illustrating a vast gap despite similar economic status.

Being a developing economy, investing in science and technology is highly necessary if we are
to keep moving forward. The zeitgeist of the 21" century is characterized by rapid technological
advancements and the pathetic pace of our very own science and technology industries cannot hope to
compete in a global platform if this trend continues. As such, it is the determination of this
representation to declare, as a matter of state policy, the increased spending for science and
technological activities equivalent to 1% of the total Gross Domestic Product of the country.

‘The Philippines had, time and again, proven that we have individuals and industries no less than
prolific in science and technology; however, we must bear in mind that much of our potential remains
untapped waiting for sustained and sufficient support. If government's rallying cry is development,
then there is no way it should ignore the need for sustained science and technological activities.

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


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No._ 4093

Introduced by Pangasinan Fifth District Representative
HON. RAMON N. GUICO JR.

AN ACT
INCREASING THE YEARLY ALLOCATION FOR SCIENTIFIC AND TECHNOLOGICAL
ACTIVITIES (STA) AND FOR OTHER PURPOSES

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

SECTION 1. Short Title—This Act shall be known as the “Science and Technological
Activities Reinforcement (STAR) Act.”

SEC. 2. Declaration of Policy.—The State recognizes the need to sustain economic
development and ensure a high level of scientific and technological activities (STA). In pursuance of
this, it is hereby declared the policy of the State to allocate an amount equivalent to the prescribed
UNESCO norm of at least 1% of the total Gross Domestic Product (GDP) as annual budget for
scientific and technological activities (STA) as approved by the Science and Technological
Coordinating Council (STCC) created under Administrative Order No. 123, as amended by AO No.
125 and AO No. 202, series of 1995.

SEC. 3. Definition of Terms.—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 of Science and
Technology. STA shall include the following: Research and Experimental Development
(R&D); Scientific and Technological Services (STS); and Scientific and Technical
Education and Training (STET).

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.

Scientific and Technological Services (STS) is any activity concemed with scientific
and experimental development and contributing to the generation, dissemination and
application of scientific and technical knowledge.


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Scientific and Technical Education 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. 4. Responsibilities of the DOST.—The Secretary of Science and Technology in
consultation with the STCC shall identify priorities for research and development and science and
technology capability development program which would contribute to national development and
progress, and to prepare the corresponding budget pursuant thereto.

SEC. 5. Computation of Allocation.—The Gross Domestic Product to be reckoned in reaching
the annual budget for science and technology for a particular calendar year shall be the GDP of the
immediately preceding year. However, should the country’s GDP decreases, the annual budget for
scientific and technological activities (STA) shall be pegged at the GDP level before the decline.

SEC. 6. Phased Implementation.—The allocation for scientific and technological activities
(STA) shall be gradually increased until it reaches the prescribed norm on the fifth year, which shall
include both government and private sector activities. For the 6" year onwards, one percent of Gross
Domestic Product (GDP) 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 of
elaborately manufactured products and processes.

SEC. 7. R&D Appropriations.—The appropriations pertaining the R&D in the natural,
agricultural, technological, and engineering sciences for various departments, bureaus, offices, agencies
and state universities and colleges (SUCs) within the Science and Technology Agenda for National
Development (STAND) shall be released upon recommendation of the DOST Secretary. For this
purpose, the DOST shall issue the necessary guidelines for the implementation of this provision.

SEC. 8. Special R&D Fund.—A special fund for research and development to be known as
“R&D” shall be created and constitute from the following sources:

a. allocation of | percent of GDP for S&T activities;
b. all unused R&D allocations; and
c. all income derived from R&D acti

ies

‘The fund shall be used only for R&D activities of the agency/institute. The STC shall develop
the appropriate mechanism for the management of the R&D fund.

SEC. 9. Annual Compliance Report.—The Department of Budget and Management (DBM)
shall make a report of the President’s compliance with Section 2 of this Act to the Speaker of the
House of 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. 10. Implementing Rules and Regulations.—The STCC shall prepare the implementing
rules and regulations of this Act.

SEC. 11. Separability Clause—If any provision of this Act is declared unconstitutional, the
same shall not affect the validity and effectivity of the other provisions thereof.



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SEC. 12. Repealing Clause.—All laws, decrees, orders, rules and regulations and all other
issuances or parts thereof, which are inconsistent with this Act are hereby amended, repealed, or
modified accordingly.

SEC. 13. Effectivity—This Act shall take effect upon its approval.

Approved,