BEYOND BUDGET

*Assalamu alaikum wa Rahmatullahi wa Barakatuh.* The great inventor Thomas Edison said: “The value of an idea lies in the using of it.” In a fast-paced world, one has to quickly discern opportunities—act on them—in order to make innovation happen. Agility and innovation are important abilities to have, especially as we prepare our youth to a new world that is constantly evolving. Last week, I was in Baguio City where I met with the diligent and dedicated members of the Cordillera Administrative Region Association of State Universities and Colleges (CARASUC). We had an engaging discussion on what they have been doing to advance research and development (R&D) programs in CAR, as we all agree that these are core elements of academic excellence. Indeed, creativity is the impetus that drives innovation and makes its effects more profound to the people. Our meeting struck a chord in my heart. It led me to reminisce. I first witnessed the passion of the CARASUC, led then by former Ifugao State University President Dr. Serafin Ngohayon, when I was still working with the late Senate President Edgardo J. Angara (SEJA). SEJA supported a lot of R&D projects by CAR SUCs, which is why until now, the members of CARASUC have a high regard for him. For many people, including them and me, SEJA is truly a visionary. He would always tell me— “Good research is the partner of innovation.” SEJA was pivotal in the creation of a Congressional Commission on Science, Engineering and Technology (COMSTE) that takes a thorough and urgent evaluation of the science and technology (S&T), and engineering research and development system in both public and private sectors. I remember during the 2007 budget hearings; SEJA challenged the CAR-based state colleges and universities to craft an R&D program that would lead toward restoration of the grandeur of CAR. Five banner programs were launched by SEJA then: Agroforestry Development of the CAR, Organic VELERO (vegetable, legumes and root crops) Development, Textile-Industry Development, Fish-Shell Development, and Rice Terraces Conservation and Development. Back then, he always underscored the power of knowledge as a driving force in building and strengthening a country's economic growth and performance. “Unless we act now, the damage will become irreversible,” he said.
Creation of CARASUC RDE Consortium, innovation clusters
Responding to SEJA’s challenge, in 2007, the six SUCs in CAR constituted a consortium called the CARASUC Research, Development and Extension Consortium. Its project implementation kicked-off in April 2008. Further, in 2011, SEJA called for the creation of “Innovation Clusters,” a tripartite collaboration for R&D among the academe, government and industry, that will serve as Public-Private Partnerships in S&T. Its establishment was supported and embraced by the SUCs. These clusters were devised to produce accurate research output, laying down the foundation for our country to advance as a truly knowledge-based, S&T driven economy. SEJA passed away in May 2018 and continues to be missed by peers and colleagues, but his passion for positive transformation resonates with Senator Loren Legarda who established the National Innovation Council (NIC).National Innovation Council
The NIC, of which I am a member of, is a mandate of the Philippine Innovation Act, which passed into law in April 2019. It is currently chaired by no less than President Ferdinand R. Marcos Jr. The NIC is assigned to work on the country's innovation goals, priorities, strategies through the creation of the National Innovation Agenda and Strategy Document (NIASD). The document will serve as a detailed roadmap toward improving the country's innovation governance. Under the Act, innovation is embraced as “a vital component of the country’s development policies to drive inclusive development, and promote the growth and national competitiveness of micro, small, and medium enterprises.” MSMEs are crucial to the country's sustainable and inclusive economic growth. Thus, the agenda and strategy document that the NIC is currently formulating will outline the country's 10-year vision and long-term goals for innovation. Last February, during the NIC’s meeting with President BBM, 10 National Innovation Priority Areas for development, funding, and innovation in the next 10 years were defined: learning and education; health; food and agriculture; finance; trade; transportation and logistics; public administration, security and defense; energy; blue economy; and water. More than ₱116 million has been provided for the establishment of the Innovation Fund in the 2023 GAA. This revolving fund aims to strengthen entrepreneurship and support enterprises engaged in developing innovative solutions.Need for support
Where is the Philippines in terms of innovation? From 51st in 2021 the country's 2022 Global Innovation Index (GII) went eight notches down to 59th from among 132 countries. However, according to the World Intellectual Property Organization, the Philippines is among the middle-income economies with the fastest innovation catch-up along with China, India, Iran, and Vietnam. As the country goes through changes, the importance of supporting innovation programs related to the priority areas defined by the NIC couldn't be more emphasized. Indonesia and Thailand are among the countries that invested in innovation early on. They are among the countries embracing the value of innovation as a driver of growth. And it's palpable how innovation has boosted their respective growths. I remember then, SEJA said that if we really want to grow as a nation, we need to prioritize our spending to improve our capacity for innovation. “We need to invest more on education, health, research and development, and basic infrastructure,” he said in 2006. That is why in our 2023 National Budget, funds were allotted to support R&D programs and our country's innovation efforts. The Department of Science and Technology has been allotted a total of ₱7.9 billion for R&D, while more than ₱4.4 billion has been allocated to the Department of Education, SUCs, and the Department of Migrant Workers. I truly believe SUCs will play a vital role in the areas of R&D and innovation. So we should give them all the necessary support and encouragement to continue and pursue these intertwined tracks. As I always say, our country must continue to invest in education for the benefit of our youth today, and the next generation. In the words of SEJA, “Good research comes hand-in-hand with innovation… We’ve got to pull together and put every effort in pushing our standards of education even higher.” Beyond budget, research and development are key to laying the elements of progress; but innovation is the doorway to the nation's long-term growth and stability. *(Amenah F. Pangandaman is the current Secretary of the Department of Budget and Management.)*