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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
Republic Act No. 11293 or Philippine Innovation Act was enacted in line with the State’s policy to foster innovation as a vital component of national development and sustainable economic growth. It was principally authored and co-sponsored by Senate President Pro Tempore Loren Legarda, who aims to create an efficient national innovation system that shall be implemented in all areas of governance in the country. Fostering innovation in the country may be one of the key ingredients to faster economic growth and to encourage global competitiveness among Filipinos.
WHAT IS INNOVATION?
Section 3(f) of RA No. 11293 defines innovation as the creation of new ideas that results in the development of new or improved policies, products, processes, or services which are then spread or transferred across the market.
OBJECTIVES
Section 4 of RA No. 11293 provides that the objective of this Act is to generate and scale up action in all levels and areas of education, training, research and development towards promoting innovation and internationalization activities of MSMEs as driver of sustainable and inclusive growth.
The specific objectives of this Act are as follows:
(a) Promote a culture of strategic planning and innovation to encourage creative thinking and knowledge creation and dissemination towards expanding and maintaining economic competitiveness;
(b) Improve innovation governance in the country and compel the adoption of a long-term vision and focused priorities for innovation;
(c) Ensure effective coordination and eliminate fragmentation of innovation policies and programs at all levels;
(d) Strengthen the position of MSMEs in the innovation system;
(e) Remove obstacles to innovation by suppressing bureaucratic hurdles, and adapting the regulatory framework to support the creation of and diffusion of new knowledge, products, and processes;
(f) Encourage entrepreneurial attitude in order to stimulate growth ambitions in businesses, especially among MSMEs;
(g) Explore, promote and protect the potentials for innovation of traditional knowledge, traditional cultural expressions and genetic resources; and
(h) Strengthen and deepen interactions and partnerships among different actors from the public and private sector, academe, MSMEs, research and development institutions and communities towards promoting inclusive growth and improving the quality of life through innovation.
INNOVATION SCOPE
Section 5 of RA No. 11293 provides that the government shall adopt a broader view in developing its innovation goals and strategies covering all potential types and sources of innovation, including product innovation; process innovation; organizational innovation; social innovation; marketing innovation; academic or educational innovation; or policy innovation. While the country‘s innovation goals shall be directed at developing new technologies, it shall likewise seek to harness global knowledge and technology that will aid in developing new processes or services for increasing productivity and for promoting overall public welfare.
Section 3(r) provides for the definition of product innovation, which is the introduction of a good or service that is new or significantly improved with respect to its features, applications, characteristics or intended uses.
Section 3(q) provides for the definition of process innovation, which is the development and/or introduction of a new or significantly improved production or delivery method.
Section 3(n) provides for the definition of organizational innovation, which is the development and/or introduction of new or significantly improved methods in business practices, workplace organization or external relations.
Section 3(t) provides for the definition of social innovation, which is the process of identifying and delivering new services that improve the quality of life of individuals and communities, including through employment, consumption and/or participation.
Section 3(l) provides for the definition of marketing innovation, which is the significant changes in product design or packaging, placement, promotion or pricing.
THE NATIONAL INNOVATION COUNCIL
RA No. 11293 establishes the National Innovation Council, to develop the country’s innovation goals, priorities, and long-term national strategy. The NIC shall be composed of the following:
(a) President of the Philippines – Chairperson;
(b) Director General of the National Economic and Development Authority (NEDA) – Vice Chairperson;
(c) Secretary of Science and Technology – Member;
(d) Secretary of Trade and Industry – Member;
(e) Secretary of Agriculture – Member;
(f) Secretary of Environment and Natural Resources -Member;
(g) Secretary of Health – Member;
(h) Secretary of Transportation – Member;
(i) Secretary of Energy – Member;
(j) Secretary of National Defense – Member:
(k) Secretary of Information and Communications Technology – Member;
(l) Chairperson of the Commission on Higher Education – Member;
(m) Secretary of Budget and Management – Member;
(n) Secretary of Education – Member;
(o) Secretary of the Interior and Local Government – Member;
(p) Secretary of Foreign Affairs – Member;
(q) Secretary of Labor and Employment – Member;
(r) Director General of the Intellectual Property Office of the Philippines – Member; and
(s) Seven (7) Executive Members to be appointed by the President.
The Executive Members shall be appointed from the ranks of business, entrepreneurs, academe, and the scientific community, at least one (1) of whom shall be a woman.
There shall be at least one (1) representative from the MSME sector, and at least one (1) from the business sector. The representatives of business and the MSME shall be recommended by a legally established and reputable business organization. Those to be appointed from the academe and the scientific community shall have at least seven (7) years of experience in the field of science and technology, research and development, or innovation.
The President may designate the Executive Secretary to attend on his behalf and preside over the meetings of the NIC. The Department Secretaries and other members may not designate alternate representatives other than their respective undersecretaries to the meetings of the NIC.
Majority of the members shall constitute a quorum.
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