Senator Juan Edgardo “Sonny” Angara has sought the establishment of Science and Technology Parks (STPs) nationwide to help support the government’s bid to boost research and development, invention and innovation efforts in the country that are essential for national development.
(Joseph Vidal / Senate PRIB / FILE PHOTO / MANILA BULLETIN)
In filing Senate Bill No. 1944 or the proposed “Science and Technology Parks Act of 2020,” Angara said it is essential for the government to establish STPs “to largely promote the culture of competitiveness and innovation through tech-based enterprises and knowledge-based institutions.”
Angara, who chairs the Senate Finance Committee, noted that the country’s innovation performance has been continuously rising as evidenced by the country’s continuous climb in the Global Innovation Index (GII).
The senator noted that from rank 100 in 2014, the Philippines rose to 50 in the GII 2020 report. The year 2019 was also the most notable year as the Philippine’s GII position jumped 19 notches from 73rd to 54th due to big improvements seen in its scores for business sophistication, institutions, knowledge and technology and creative outputs.
“Leveraging on the momentous improvement of the Philippines GII ranking, it is now imperative to sustain efforts to continuously boost our economy’s innovation performance,” Angara said in the explanatory note of the bill.
“This bill seeks to ensure the development of an ICT (information and Communications Technology) ecosystem that will lead towards achieving the Sustainable Development Goal 9 or the Industry, Innovation and Infrastructure,” he said.
Citing the GII 2020 report, Angara noted that the Philippines performed above expectations in terms of innovation for its level economic development for the second consecutive year.
“With the enactment of Republic Act No. 11293, or the Philippine Innovation Act and Republic Act No. 11337 or the Innovative Startup Act, the country’s GII position is expected to progress further in the coming years,” the senator said.
The measure primarily seeks to grant subsidy and incentives for the development of STPs; promote, develop and support capacity building activities; provide technical assistance, policy advice and support for the establishment of centers for science park development.
It also seeks to develop, promote, encourage and ensure mechanisms and platforms for the integration of a developmental approach to science and technology, organizing capacity building, providing policy advice and facilitating interchange on best practices acts and conducting research and problem solving.
Under the bill, the Departments of Science and Technology (DOST), Trade and Industry (DTI), Information and Communications Technology (DICT), Finance (DOF), Public Works and Highways (DPWH) would be tasked to create specific mechanisms to identify the extent of incentives and support for the creation of STPs.
Based on the measure, qualified STP developer and/or locator whose activities may form part of the Strategic Investments Priority Plan, shall be entitled to 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 country’s National Internal Revenue Code.