Press Release
November 17, 2009

CO-SPONSORSHIP SPEECH For SB 3416

An Act Providing the Framework and Support System for the Ownership, Management, Use and Commercialization of Intellectual Property Generated from Research and Development Funded by Government and for Other Purposed

By Senator Edgardo J. Angara

In the latest Global Competitiveness Index published by the World Economic Forum, the Philippines ranked 87th out of 134 countries. This is a considerable drop of 16 places from last year's 71st rank.

The survey is topped by Switzerland and followed by the US in close second. Singapore, Sweden and Denmark round out the top five. In Southeast Asia, we only bested Cambodia at 110th place. Our neighbors have overtaken us by a considerable length: Singapore #3, Malaysia #24, Brunei #32, Thailand #36, Indonesia #54, and Vietnam #75.

The common denominator of these countries is that national productivity and growth are driven by technological innovation gained through advanced scientific research. Such innovation is backed by sufficient R&D investment, highly equipped research institutions, a dynamic academe-industry collaboration, a strong entrepreneurial drive, and a well defined intellectual property rights regime.

Clearly, we have a lot of catching up to do in terms of innovation and spurring knowledge-based industries. Innovation and a flourishing intellectual property environment equate to competitive advantage domestically and globally.

Currently, only an estimated 10 percent of university-research output are being transferred into industries because of intellectual-property issues. [1] In the 2009 Global Competitiveness Report 2009 by the World Economic Forum, the Philippines dropped 16 places from 71st in 2008 to 87th. [2] The report covers 133 countries from all continents including sub-Saharan Africa.

This explains in large part why the Philippine ranking in technology transfer trails far behind its Asian neighbors. We are disadvantaged in terms of innovation because of the weak transferring and commercializing of research and development results. Our research efforts are useless without the ability to transfer technologies - bringing them out of the lab and finding practical, commercial uses for them.

Technology transfer processes require a conducive policy environment with strong support from the public and private sectors

Senate Bill Number 3416 or the Philippine Transfer Technology Act of 2009 aims to address this issue by putting in place mechanisms and policies that encourage both government and private sectors to commercialize their intellectual property assets and invest in research and development.

Among these mechanisms and policies are:

  •  Royalty-sharing that is more attractive to government-supported innovators

  •  Supporting entrepreneurship among scientists and researchers

  •  Allowing government scientists and researchers to work in both public and private industries without violating the code of ethics for public officers

  •  Creating a revolving fund where income from the commercialization of government-funded research used to again drive research and development

  •  Mandating the Department of Science and technology to rationalize policies and procedures for the cost effective sharing of and access to government funded research.

These mechanisms and policies will ensure that knowledge gained from research finds a useful and practical application - making Philippine industries more competitive.

In developed countries, governments recognize that granting R&D institutions the rights to IP generated with public funds leads to better use of research results and spurs start-up businesses that create employment. R&D institutions also increase licensing and royalty revenues, contract research and greater cross-fertilization between the academe and the industry. Equally important are the intangible benefits to an institution's reputation and to the quality of its research that closer interaction with the private sector can generate.

The Philippine Technology Transfer Act of 2009 is a timely strategic planning that will foster innovation, growth, progress and economic security for the country.

With these benefits and more, I strongly believe that the Philippines must join this move towards technological advancement and development.

Maraming salamat po.

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