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Manila Bulletin devider Business devider Trade & Industry devider Gov't-industry-academe collaboration critical for inclusive growth – Pascual

Gov't-industry-academe collaboration critical for inclusive growth – Pascual

Published Oct 16, 2023 05:16 am

Department of Trade and Industry (DTI) Secretary Alfredo E. Pascual has highlighted anew the strength of government-university-industry collaboration in pursuing innovation and technological development in a summit held over the weekend.

During the Government-University-Industry Leaders’ (GUILd) Summit 2023 on Saturday, Oct. 14, at the Batangas State University, Pascual emphasized that the synergy between these three sectors is critical in advancing the industrial transformation and pursuing the country’s inclusive and sustainable growth.  

“Ultimately, a successful Industry 4.0 ecosystem requires a collaborative culture. Businesses, governments, academia, research institutions, and startups must collaborate seamlessly, sharing knowledge, resources, and expertise,” Pascual said.

In his presentation of the blueprint for prosperous innovation, Pascual discussed the DTI’s pioneering programs and technologies aligned with its science, technology, and innovation (STI) driven approaches, aiming to fortify the country’s economic position by transforming industries and revitalizing the workforce.

He said that the DTI has identified six STI-based strategic actions including embracing Industry 4.0 by adopting new technologies like AI; developing innovative SMEs and nurturing startups; integrating industry development, trade, and investment policies; strengthening regional innovation and entrepreneurship ecosystems; upskilling and reskilling the workforce; and creating an enabling economic environment by building competitive physical and digital infrastructure.

“As we put STI at the heart of our industrial policy, we are focused not only on creating new solutions or inventions but also on their exploitation and diffusion, including the feedback between the various phases of the innovation process,” Pascual said.

Further, Pascual stressed that the DTI is pushing for a market-oriented research policy with a focus on promoting research and development (R&D).

He also cited that the DTI is working with both public and private sectors, and the academia in building an environment conducive to innovation and positioning the Philippines as an investment destination with a strong global commerce presence. 

DTI is fostering innovation and digitalization through the establishment of a National Center for AI Research and Industry 4.0 Pilot Factory. 

The Smart Industry Readiness Index (SIRI) is also being scaled to aid manufacturers in their transformation. 

DTI is also working with the Department of Science and Technology (DOST) and Information and Communications Technology (ICT) to develop a robust startup ecosystem.

Similarly, DTI is collaborating with scientists from the National Academy of Science and Technology (NAST) and the Philippine American Academy of Science and Engineering (PAASE) to provide STI solutions for regional industries, particularly in the production and processing of high-value crops.

Further, DTI focuses on supporting Technology Readiness Level 5 (TRL 5+) and above to bridge the gap between research and commercialization, enabling innovative technologies to reach the market and positively impact society. It offers various TRL 5+ interventions, including pilot programs, regulatory support, intellectual property protection, market access, infrastructure, networking, innovation grants, subsidies, tax incentives, export assistance, and skills development.

DTI also negotiated with the Asian Development Bank (ADB) for a loan program called Promoting Research and Innovation to Strengthen Transformation of Industries and Enterprises (PRISTINE) Project, which aims to improve the innovation ecosystem and establish applied R&D, skills development, and innovation infrastructure. 

It includes establishing the DTI Innovation Gateway in Manila, establishing regional innovation hubs, and developing a Philippine Hub of Entrepreneurial Networking and Innovation Exchange (PHOENIX), positioning the Philippines as a global commerce destination.

The Philippines' innovation and entrepreneurship ecosystem has been criticized for weak connections between industry and academia, with factors such as low gross expenditure in R&D, lack of incentives, mistrust, lack of a strong culture of research, limited post-doctoral research training, and procurement laws contributing to the fragmentation.

Philippine industries generally exhibit low economic sophistication due to limited technology adoption, inadequate investment in R&D, and insufficient capability to translate technology into commercialization. This results in limited industrial transformation, competitiveness, job creation, and productivity. 

Pascual said that the Philippines has improved its Global Innovation Index ranking from 59th in 2022 to 56th in 2023, indicating above-average development performance in business sophistication, knowledge and technology outputs, and market sophistication, but more interventions are needed to advance its human capital and research, infrastructure, and institutions.

“The academia, government, and industry must foster a triple helix collaboration to foster impactful R&D and innovation, prepare a future-ready workforce, facilitate knowledge diffusion, nurture startups, and promote lifelong learning,” Pascual added.

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