TECH4GOOD
I was invited last month to the Demo Day of 10 startups that went through the 10-week 917Ventures Acceleration Program in partnership with 500 Global. I was so amazed by the promising startup ideas pitched during the event. It was a show of innovation being put into action. If it was an indication of what the Philippine startup ecosystem currently is, then I would say it is certainly alive and thriving!
917Ventures, a venture builder wholly owned by Globe, primarily helps Philippine startups launch and scale up their companies through their accelerator program. 500 Global, a venture capital firm with $2.7 billion in assets under management, brings to the program their world-renown startup acceleration techniques that put emphasis on preparing these young companies for the next stage of growth and scale.
Several weeks ago, I wrote about the top ASEAN startups that have made a very profound impact on everyone’s lifestyles including here in the Philippines. Think of Grab, Lazada, and Shopee (SEA) of Singapore, Gojek and Tokopedia of Indonesia which recently merged to become GoTo and iFlix of Malaysia. The Philippines is not far behind with our FinTech unicorns, GCash and Maya which have disrupted, not just our usual way of paying and sending money but also, made saving more convenient and hassle-free.
We do not only benefit from the convenience brought about by these disruptive ideas. They bring to the market innovative products and services and new business models that improve lives and drive economic growth. An example would be Grab which has transformed the transportation industry by making it easier for commuters to book rides and safe rides at that. Or Lazada which has disrupted the traditional way people shop. These platforms have also created fresh opportunities for Filipino entrepreneurs and allowed MSMEs to embrace digital tools to widen their markets thus resulting in economic growth and job creation.
Aside from introducing disruptive products and services that uplift our lives, digital startups also drive innovation by leveraging technology to improve existing processes. Retail giants like Amazon and Alibaba can offer their merchandise at lower prices because of the technologies they have used to improve the efficiency of their supply chains and logistics.
It is so disappointing to see that the Philippine ranking slipped to 6th in Southeast Asia and five slots lower to 57th in the global 100 rankings in the latest StartupBlink Global Startup Ecosystem Report. The country, however, ranked decently in sectoral innovations such as education technology where it ranked 38th, 41st in energy and environment, and 44th in food technology.
A positive development for the Philippine startup ecosystem is the entry of the City of Naga in the global top 1000 cities of the same report. We now have five cities included in the ranking with Manila ranked 100th, which is 13 slots lower than in the previous report, the City of Cebu at 449th (181 slots lower), the City of Cagayan de Oro at 708th (215 slots lower), the City of Naga at 952nd, and the City of Davao at 959th (173 slots lower). Obviously, some major interventions need to be done, not just to keep these cities in the top 100 rankings, but to add more Philippine cities to the list.
While startups are often associated with innovation and are actually related concepts, the two terms are not interchangeable. A startup is a company that is in the early stages of development and typically focused on bringing something new to the market, whether it be a new product, service, or business model. They are often characterized by a high degree of risk and uncertainty, as they are attempting to create something that has not been done before. Innovation, on the other hand, refers to the process of creating something new or improving an existing product or service.
How do we keep the Philippine startup ecosystem more dynamic and competitive? New policies such as the Ease of Doing Business Act, the Innovative Startup Act which mandates DOST, DTI, and DICT to provide grants to deserving startups, and the Philippine Innovation Act would certainly provide the right support needed from the government. But we need to see more energy from the academic and business sectors.
The first step in building an innovation ecosystem is to foster a culture of innovation and this has to start within campuses. This involves creating an environment that encourages and rewards creativity, risk-taking, and experimentation. Activities such as the annual Philippine Startup Week and Geeks on the Beach would certainly help create awareness. Investing in research and development is also essential to building an innovation ecosystem. This means funding research projects, supporting startups, and creating incubators and accelerators to help new businesses get off the ground. Finally, more focus should be given to building countryside hubs in order to make the Philippine startup ecosystem more inclusive.
(The author is the lead convenor of the Alliance for Technology Innovators for the Nation (ATIN), vice president of the Analytics Association of the Philippines, and vice president, UP System Information Technology Foundation.)