Should the gov't support startups? DOST-PCIEERD chief explains why

From the perspective of an average individual, supporting startups or a budding company might seem counterintuitive given that there are other businesses that require attention.

Dr. Enrico Paringit, Executive Director of the Department of Science and Technology - Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST-PCIEERD) believes that startups mainly provide new opportunities for the market and that they provide a fresh set of solutions.

"Kasi (Because) the world has changed, the country has changed. So that means we will have to respond to whatever needs that our country has and some of these needs can actually be met more precisely by the startup community," Paringit explained during a press conference at the 7th National Technology Business Incubator Summit (TBI) in Iloilo City.

"Sometimes old businesses and enterprises usually have a more conservative stand on this. So they may not be able to respond as quickly as how startups are doing it right now. So in that sense, they're more transformative in that sense. They take up the bold and the big challenges that sometimes, of course, they don't have the resources to do so," he added.

Due to their conservative nature, banks are not keen on risking it with startups, Paringit said.

For DOST's part, Paringit stated that they want to see the fruits of the labors of researchers, scientists, of engineers who have done a wonderful job but are not making out there in the market, which is now becoming a pattern.

"We want to provide them with that platform so that they can have a view of the market and see how they can tweak or design whatever products, whatever services, whatever business models, whatever prototypes that they have samples to have the right fit into the market," he said.

"So we're willing to put out a bit of investments into that. So that they will, you know, we will together see the fruits of their you know their wonderful work their ideas, families, So yun ang tinitingnan naming dahilan kaya binibigyan natin ng priority ang startups (That's the reason we're looking at on why we're prioritizing startups)," he added.

Supporting startups

DOST has already been forefront in spurring innovation across the country as it led the Innovative Startup Steering Committee, with members composed of representatives from the Department of Information and Communications Technology (DICT) and the Department of Trade and Industry (DTI).

“We at DOST recognize the crucial role we play in assessing, monitoring, developing, and expanding the Philippine Startup Development Program as mandated in the Innovation Startup Act,” said DOST Secretary Renato U. Solidum, Jr.  

RA 11337 or the Innovative Startup Act enabled the development of the Philippine Startup Development Program where startups will be supported by the respective mandates of national government agencies through programs, benefits, and incentives starting from the onset of ideas, development of products, to marketing, and expansion.  

True to its mandate, DOST continues to bolster the innovation startup ecosystem across the country through the various programs initiated and supported.  

Solidum added that since the enactment of the Innovative Startup Act and its Implementing Rules and Regulations in 2019, DOST have left an indelible mark on the landscape of Philippine startups.  

Under its three sectoral planning councils – Philippine Council for Industry, Energy, and Emerging Technology Research and Development (PCIEERD), the Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development (PCAARRD), and the Philippine Council for Health Research and Development (PCHRD), initiated the Startup Grant Fund (SGF) Program that was able to provide PHP 230 million to more than 60 startups to overcome their R&D roadblocks, to strengthen their intellectual property (IP) by means of protection, and development of the appropriate IP strategies.  

Meanwhile, the Women Helping Women Innovating Social Enterprises (WHWISE) Program focuses on women-led enterprises promoting equity and inclusivity to women entrepreneurs. The program has helped 15 enterprises since 2021 with a total funding of P53 million.  

Fostering collaboration with various higher education institutions and state universities and colleges, the Technology Business Incubation (TBI) program was developed to set up and capacitate TBI facilities at their institution. As of 2023, DOST established 54 TBI networks and is pursuing to add 27 new TBIs with a funding of PHP 400 million in the next two years.  

DOST also makes proactive efforts in reaching all 16 regions to accelerate the growth and strengthen the startup ecosystem across the country through the Regional Startup Enabler for Ecosystem Development (ReSEED) Program with a total funding of PHP 120 million.  

Moving forward, DOST commits to value and practice a strengthened collaboration among the members of the Innovative Startup Steering Committee to streamline a strategic plan of the committee for the next five (5) years and to harmonize their current programs for startup innovation in the country. DOST also hopes for the active participation of the private sector in backing up startups and startup enablers for a healthy economic ecosystem, among others.