The Philippine Technology Transfer Act has failed to commercialize publicly funded research and development (R&D) despite 15 years of implementation, leaving technology transfer at a “nascent stage,” according to state-run policy think tank Philippine Institute for Development Studies (PIDS).

“How successful was RA [Republic Act No.] 10055 in commercializing publicly funded R&D? Not at all,” PIDS senior research fellow Roehlano Briones and project technical specialist Helena Luz Pastolero said in a discussion paper titled “How Successful Was the Philippine Technology Transfer Act in Commercializing Publicly Funded R&D? The Case of Agrifood System Innovations” published last Monday, July 27.

RA 10055, or the Philippine Technology Transfer Act of 2009, seeks to standardize technology transfer processes, bridge commercialization gaps, and encourage innovation and economic growth by promoting the commercialization of government-funded research.

However, the PIDS study found that inventors and R&D institutions (RDIs) do not devote enough time, effort, and resources to developing commercially viable technologies because of weak market prospects, while private firms show limited interest in publicly funded R&D products for the same reason.

The authors described this as a “vicious circle” of underinvestment in technology transfer, compounded by weak coordination, fragmented information systems, and gaps in linking transferees with government support.

The study also found that earnings from technology transfer have been “miniscule,” with most transferred technologies involving food products. RDIs face difficulties securing intellectual property rights (IPRs), completing product development, and obtaining fairness opinion reports, while most transferees are small enterprises and payment-free transfers are common. Investments by transferees were modest and financed mainly by owners’ capital and bank loans rather than government support.

“Moreover, implementation of technology transfer is strong on safeguards but weak on enabling investment in production at scale,” the authors said.

“The market is usually regional or even nationwide, but sales, expenses, and net income are quite modest, with a wide variation in the return on investment (ROI),” according to PIDS.

To improve the commercialization of publicly funded R&D, the paper urged the government to gradually raise agricultural R&D spending to the one-percent benchmark mandated by law, strengthen support for human resources (HR) and laboratory facilities, prioritize patentable inventions, and reinforce collaboration between the public and private sectors through regional research, development, and innovation committees (RRDICs).

The study also recommended focusing technology transfer efforts on commercial licensing of patented technologies, streamlining regulatory and intellectual property registration systems, establishing specialized technology licensing centers, easing restrictions under RA 10055 on licensing arrangements and the use of licensing income by RDIs, and amending RA 8439 to strengthen incentives for commercialization and improve coordination between private enterprises and government support programs.