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Philippines Must Increase S&T Investment to Boost Economic Growth
1. UNITY OF DIRECTION IN PHILIPPINE SCIENCE AND TECHNOLOGY
MANAGEMENT
ARNALDO T. AMOSCO, JR.*
Student, Doctor in Management Technology
Eastern Visayas State University
atamoscojr@yahoo.com
ROMEO L. DIGNOS
Student, Doctor in Management Technology
Eastern Visayas State University
rdignos@hotmail.com
Abstract
This paper evaluates the science and technology situation of the country (in
terms of Gross Expenditures on Research and Development and the number of
researchers per million populations) and the direction of the current S & T
management contributory to economic development and public welfare. Data show
that the Philippines has GERD of 0.12% of GDP and 156 Researchers Per million
population which is below UNESCO set standard which are GERD of 1% of GDP
and 380 Researchers per million population.
To improve these indices, current S & T managers implement the DOST-8
outcome geared towards generating more investment in R & D and focusing on
industries where the Philippines has competitive advantage (such as agricultural
modernization, micro, small, and medium enterprise (MSMEs) productivity
improvement, and ICT BPM improvement), and relevant technologies to help the
general public (such as: S & T enabled governance, improved health services, and
better disaster mitigation projects).
Keywords: unity of direction, science and technology, management, research and
development, ASEAN Integration
1. Introduction
Science, technology, and innovation are critical factors in the development of a
country. Cognizant of these, the Philippine government explicitly declared in its
1987 Philippine Constitution that the “State shall give priority to research and
development, invention, innovation and their utilization; and to science and
technology education, training and services. It shall support indigenous,
appropriate and self-reliant scientific and technological capabilities, and their
application to the country’s productive systems and national life.” (Article XIV.
Section 10)
The Department of Science and Technology is the primary cabinet department
mandated to lead in the management of science and technological efforts for the
maximum benefit of the people. But despite the efforts for the last 56 years when it
first started as the National Science and Development Board (NSDB) on June 13,
1958 by virtue of Republic Act 2067, the country failed to adopt a cohesive strategy
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2. that would orchestrate the science and technology community into a unified
direction.
Several government research institutions made remarkable contribution to
scientific knowledge creation such as in the field of biology, physics, information
technology, and others but failed to create impact on the technological
advancement of industries and the general public (UNESCO, 2010).
The questions raised now are: what needs to be done by the government to be
at par with our Asian neighbors? What should be done so that science and
technology development efforts would lead to the improvement of the quality of life
of the people?
2. OBJECTIVES
This paper examines the status of science and technology in the country and
identifies the factors that have prevented the growth of science and technology in
the Philippines and to gain insights on how the government will improve its science
and technological development efforts that would benefit the majority. This report
attempts to present major steps and courses of actions necessary in order for the
country to catch up with the rest of its neighbors in the Asian region.
3. CONCEPTUAL FRAMEWORK
The conceptual framework (Figure 1) shows that the contribution and
partnership of the public and private sector is critical in research and development
and the improvement of the science and technology human resource capabilities.
Better R & D and a well-established S & T manpower is essential for creating
technological advancement that are aligned and relevant to the needs of the
industry and the general populace. Technology application propels the industrial
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Private
Investment
Research and
Development
Technological
Advancement
Productivity
Growth
Job
Growth
S&T USERS:
General Public
S&T USERS:
Large
Companies
MSMES
Public
Investment
Economic
Growth
S&T Human
Resource
Development
Improved
Standard of
Living
Figure 1 Conceptual Framework
3. productivity and improves the way of life of the people which are among the
determinants of an inclusive growth necessary to attain sustainable economic
revolution.
This paper focuses on the three major issues that are critical in evaluating the
status of a country’s scientific and technological capabilities as mentioned by
UNESCO, 2010. These issues include: 1) Research and Development Expenditure;
2) Science and Technology Human Resource Development Program; and 3)
Science and Technology priority areas.
As far as the S & T expenditures and human resource capabilities are
concerned, data are obtained from reports both national and international and were
compared to other countries within the ASEAN region and also compared to
standards set by the United Nations. These data are used to determine how far our
performance is and what needs to be done compared to neighboring countries.
The S & T priorities are obtained from medium term plan of the current
administration through the Department of Science and Technology. These
programs were evaluated and aligned into two areas as: 1) industry or 2) public
welfare relevant.
4. Scenario of S & T Management in the Philippines
Science and Technology management is a mandate of the current Department
of Science and Technology. It started as the National Science and Development
Board (NSDB) on June 13, 1958 under Republic Act 2067. This act was amended
by RA 3589 and later Executive Order No. 784 in which the NSDB was reorganized
into the National Science and Technology Authority (NSTA) on March 17, 1982.
Five years later, the NSTA was elevated to the Department of Science and
Technology (DOST) under Executive Order No. 128 with expanded functions and
responsibilities to enable it to pursue the declared state policy of supporting local
scientific and technological efforts, developing local capability to achieve
technological self-reliance, promoting public and private sector partnership in S&T
activities and encouraging private sector to take greater role in research and
development activities.
As a department, the DOST consists of the Central Office, five (5) Sectoral
Councils, seven (7) Research and Development (R&D) Institutes, seven (7) Service
Institutes, two (2) Advisory Bodies, fourteen (14) Regional Offices and seventy
three (73) Provincial S&T Centers.
Under EO128, the DOST is tasked to provide central direction, leadership and
coordination of scientific and technological efforts and ensure that the results
therefrom are geared and utilized in areas of maximum economic and social
benefits for the people. As such, the DOST shall formulate and implement policies,
plans, programs and projects for the development of science and technology and
for the promotion of scientific and technological activities for both the public and
private sectors and ensure that the results of scientific and technological activities
are properly applied and utilized to accelerate economic and social development.
The DOST is further tasked to continuously review the state and needs of science
and technology in the context of the country’s development goals.
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4. The DOST, as mandated, crafted several development plans that are aligned to
priorities of past administrations. These policies include S&T development plans of
the DOST since 1986: the S&T Master Plan (1991-2000), Science and Technology
Agenda for National Development (STAND, 2000), The Medium Term Plan of the
Department of Science and Technology (DMTP, 1999-2004) and the recent
National Science and Technology Plan for 2002-2020.
5. The Philippine S & T Status and Direction
5.1. Research and Development Investment
Table 1 presents the Gross Expenditures on Research and Development
(GERD) and ratio of GERD against the Gross Domestic products of different
countries in the Southeast Asian region. The figure shows that the Philippines has a
meager 0.12% GERD from the GDP. It is even lower compared to Myanmar with
0.16% in 2002. UNESCO recommended a 1% GERD of GDP for developing
countries.
Previous administration’s science and technology strategies were geared
towards improving the GERD to 2% of GDP but trends showed a decreasing GERD
(Estella, 2011). This is a clear indication that the country needs to enhance its
research and development investment to keep pace with the other ASEAN
countries.
Table 1. The GERD of ASEAN Countries
Country
GDP
(current, billion
national currency
Gross Exp. On
R&D (in million
national currency
(GERD)
R&D
Intensity
(GERD as %
of GDP)
Brunei Darussalam
(2004)
13.31 5 0.04
Cambodia (2002) 16,781 8,347 0.05
Indonesia (2009) 5,603,871 4,671,35
5
0.08
Lao PDR (2002) 17,682 6,560 0.04
Malaysia (2011) 881 9,422 1.07
Myanmar (2002) 5,625 9,122 0.16
Philippines (2011) 9,735 12,046 0.12
Singapore (2010) 316 6,489 2.09
Thailand (2007) 9,042 22,654 0.25
Vietnam (2002) 535,762 1,032,56
1
0.19
Source: V Results of the 2011 Survey of R&D Expenditures and Human Resources and Updates on R&D
Indicators in the Philippines
The private sector participation in technology generation is also an indication of
the awareness of the industry on the importance of S & T Research and
Development in the improvement of their business performance. The 2011 data
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5. (Table 2) reflects a higher private sector R & D expenditures compared to
government. This trend is about 44.5% increase from the 2009 reported figure
(Estella, 2013). If this trend will be sustained the country’s public investment must
see to it that the private sector efforts must be supplemented through increased
allocation of R & D funds.
Table 2. 2011 Sector Contributions to R & D Expenditures
Sector of Performance
2011 R&D Expenditures (In million Pesos)
Amount %
All Sectors 12.045.69 100%
Government* 2,082.96 17%
Higher Education*
a. Public
b. Private
2,627.80
2,064.72
563.08
22%
17%
5%
Private Non-Profit* 46.65 0.40%
Private Industry** 7,289.28 61%
Source: V Results of the 2011 Survey of R&D Expenditures and Human Resources and Updates on R&D
Indicators in the Philippines
5.2. Science and Technology Priority Areas
Like the previous administrations, the current Science and Technology
management under the leadership of Secretary Mario G. Montejo has crafted
priority agenda for development. These priorities are called the DOST 8-Outcomes
(Appendix Table 1). In the 4th Quarter 2013 Release of S&T Post, a publication of
the Science and Technology Information Institute - Department of Science and
Technology (STII-DOST), the “8 Outcomes” of the DOST were formally introduced
through various write-ups. The DOST sets its targets and priorities relating to these
outcomes for the period 2014-2016.
5.2.1. Priorities for Technological Advancement
Each of the outcomes are examined and aligned as either industry or public
focus. The country’s S & T direction have a clearer focus by looking at the two
major contributors to economic development: the industry and the public welfare.
The industry focus was towards key sectors that dominates the Philippine economy.
These are the agriculture, micro small and medium enterprises, and the Information
and Communications Technology through the Business Process Management. The
public welfare focuses on S & T enabled governance, health services, and disaster
mitigation.
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6. Industry
5.2.1.1. Outcome 1 Agricultural Modernization
In order to achieve the expected outcomes for the agricultural sector, various
strategies will be employed by the DOST. These include harnessing cutting edge
technologies; adapting best practices and proven technologies; and localizing
mechanization. They also mentioned that said strategies may be implemented
through various actions such as addressing S&T gaps in major stages of production
of agriculture, aquaculture, and livestock. Specific to these are planting
materials/brood stock; crop management/grow-out management; harvest and
postharvest; and processing and value adding sectors. It is noteworthy that the
country’s major agricultural products such as coconut, rice, mango, banana,
milkfish, shrimp, tilapia, mud crab, among others are given specific focus and the
needed push.
5.2.1.2. Outcome 2 MSME relevant technology
Already, the DOST, thru SETUP or the Small Enterprise Technology Upgrading
Program, has been achieving its target of accelerating the growth of small
enterprises to propel the country’s economic advancement by assisting the MSMEs
in the adoption of technology innovations to improve their operations and expand
their business reach. In particular, SETUP provides its beneficiaries with financial
assistance, modern processing equipment, technology training, product
packaging/labeling assistance and consultancy services. SETUP also has other
activities and projects geared toward upgrading the capabilities of local MSMEs like
the establishment of Food Innovation Centers, will serve as hubs for research and
development and provide support services such as product and process
development, food testing and shelf life evaluation to enhance the competitiveness
of processed foods in both local and export markets.
5.2.1.3. Outcome 3 MSME and Industry support facility.
It has always been a fact the Philippine manufacturing sector is weak,
characterized by low-productivity, use of outdated technologies and low quality of
products and services. Socioeconomic Planning Secretary and National Economic
Development Authority (NEDA) Director General Arsenio Balisacan said in the 35th
Annual Scientific Meeting of the National Academy of Science and Technology
(NAST) that there is a need "to deepen the role of S&T in reviving the
manufacturing sector." To do this, the DOST will focus its attention to improve the
metals and allied industries and engineering (M&E), which has very small share in
the local market. M&E consists of major metal sectors such as die and molds, metal
casting and machine works. The DOST also aims to strengthen the local
electronics industries – from electronics assembly to the higher value services such
as electronics design and manufacturing.
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7. 5.2.1.4. Outcome 4 ICT-BPO a Philippine competitive advantage.
According to the 2010 IBM Global Location Trend Annual Report, the
Philippines has surpassed India as the leader in business support functions such as
shared services and business process outsourcing. Being the third largest English-
speaking country in the world, the Philippines is considered as one of the most
competitive outsourcing destinations in the world. To gain more employment
opportunities for many Filipinos in the countryside and ultimately bring inclusive
growth, the DOST envisions to create expansion areas for the Information
Technology – Business Process Management (IT-BPM) industry like Davao, Cebu,
Bacolod and Iloilo. It also aims to develop local talents in other IT services other
than call centers, such as animation, game and software development, healthcare
information management which are highly sought all over the world.
General Public Welfare
5.2.1.5. Outcome 5 ICT for S & T for Governance & Social Services
The Philippine government created the e-Government Master Plan of 2013-
2016 (EO 47) which sets the groundwork for an effective and transparent e-
government information system, providing agencies a framework that will
strengthen and integrate existing information systems that are vital to the delivery of
services and information. Technology will then play a vital role as catalyst to make
the government more efficient. To achieve these targets, the DOST will be
implementing various e-governance projects to rationalize government operations
and improve the delivery of goods and services to the people. Under this, the
Integrated Government Philippines (iGovPhil) Project aims to establish fiber optic
network among government agencies, establishment of a Government Data Center,
among others. To build stronger Internet connectivity in the countryside, the
government will be adopting and deploying Internet connectivity through the TV
white space, an emerging cost-effective technology that uses un-allocated
television frequency spectrum to provide data connectivity. With this technology,
the government can implement projects related to telemedicine, educational content
delivery, rural last mile connectivity and environmental sensor networks.
5.2.1.6. Outcome 6 S & T for Health Service
To address top health concerns confronting our country, the DOST embarks on
various strategies towards achieving improved quality healthcare and quality of life
through science, technology and innovation. Among these are the provision of
affordable and effective technologies to help address major public health problems
and development of technologies that will broaden the access and delivery of
appropriate medical care and the reduction of malnutrition in underserved
communities.
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8. 5.2.1.7. Outcome 8 Disaster Preparedness
Outcome 8 is focused on the advancement of technologies for disaster
preparedness and mitigation of the country. Several projects are now being
implemented by the DOST to make weather monitoring and forecasting easier and
very accurate. Among these is the implementation of Project NOAH which includes
the installation of hundreds of automated weather stations in strategic locations all
over the country. These stations have made real-time weather monitoring,
forecasting and timely-warnings possible. Other components of Project NOAH
include flood mapping and modeling in major river basins, storm development of
surge inundation maps, installation of landslide sensors in landslide-prone areas,
Doppler radar system development and other disaster management technologies.
The NOAH website (www.noah.dost.gov.ph) holds a myriad of weather data like the
probability of rain, amount of rainfall, a four-day weather forecast, storm track,
temperature, humidity, air pressure, wind speed, and wind direction. There are also
data on rain gauges and water level sensors to alert communities on rising water
level in rivers and to prepare for possible flooding. The DOST also aims to establish
additional seismic sensors and stations to further improve the delivery of warnings
and information on volcanic eruption, earthquake, tsunami and other geologic
hazards and disaster risks to the communities.
5.3. Science and Technology Human Resource Management
Every science aware person know that scientists and researchers drive the
vitality of the scientific enterprise system and that universities and government
research and development institutions play an important role being the heart of this
scientific enterprise system (Saloma, 2014).
The human resource component is as important index as research and
development expenditures. The total researchers and the number of researchers
per million populations of Southeast Asian countries are presented in Table 3.
Table 3 Researchers Indices of ASEAN Countries
Country
Total
Researchers
(headcount)
Population
(in million)
Researchers
per million
population
Brunei Darussalam (2004) 244 0.36 686
Cambodia (2002) 744 12.93 59
Indonesia (2009) 41,143 237.41 173
Lao PDR (2002) 209 5.62 38
Malaysia (2011) 73,752 28.76 2,564
Myanmar (2002) 4,725 45.61 104
Philippines (2011) 14,867 95.05 156
Singapore (2010) 36,561 5.08 7,199
Thailand (2007) 38,506 66.28 581
Vietnam (2002) 41,117 80.47 498
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9. Source: Results of the 2011 Survey of R&D Expenditures and Human Resources
and Updates on R&D Indicators in the Philippines
The Philippine figure is very low compared to the closest competitor within the
ASEAN region which is another clear indication of a weak R & D Human Resource
compliment. The UNESCO standard is set at 380 researchers per million people
(UNESCO, 2010).
The current science and technology policies are on the right track in putting the
human resource development among the priority areas of concern. Outcome 7 of
the Eight DOST Outcomes focused on developing highly skilled and globally
competitive S&T human resources in support of the national S&T programs.
Enhancing the Science and Technology Scholarship Programs of the DOST is
among the strategy to encourage S & T professionals to advanced studies and to
undertake research activities in S & T. The DOST targeted to have one scholar in
every municipality of the country by 2016).
The Philippines Science High School System (PSHS) under the DOST is
tasked to be the primary training ground for quality S & T workers by preparing high
school students for the stringent training of becoming an S & T worker. The PSHS
is aimed to be the leading science high school in ASEAN by 2015.
6. CONCLUSION AND RECOMMENDATION
The Philippines is in a state of marginal S&T. It has long been among the least
prioritized sectors in terms of budget allocation. The disregard for S&T has cause
an alarm in the science community. After all, evidences show that weak support for
S&T is one of the contributory factors to the country’s low productivity. Low
productivity means more people will live below the poverty level. Legislators are not
the only ones to blame for the marginalized status of S&T in the country. In any
case, it is useless to point an accusing finger on who is responsible for what at this
point, as it only becomes an exercise in pointlessness. DOST must therefore sets
its efforts in improving the appreciation of S&T as a way of maximizing whatever
resources it has at the moment.
The crafting of the Eight (8) DOST Outcomes as a medium term priority of the
DOST under the leadership of Secretary Mario G. Montejo sets the tone for a
unified direction in Science and Technology Management at least for 2014-2016
until a new S & T blueprint will be crafted with the new administration.
The DOST leadership is eyeing on the support of all sectors from agriculture to
advance science institutions, the academe, the private sector, and the general
populace to focus their efforts towards a unified direction of: 1) increasing the
Gross Expenditures on Research and Development to at least 1% of the GDP with
increased private investments by at least 50% of the current level; 2) Improving the
human resource indices in S & T by increasing the number of researchers per
million population to a par level to UNESCO standards of at least 380; 3)
development of technologies and programs relevant to the need of industry
especially the micro, small, and medium enterprises, which is the backbone of the
Philippine economy and technologies needed by the general populace such as S &
9
10. T for better governance, improved health services, and better disaster mitigation
programs.
.
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11. APPENDIX
Appendix Table 1. The 8-Outcomes of the DOST for 2014-2016
Outcome General Description
1 Science-based know-how and tools that enable the agriculture sector
to raise productivity to world-class standards.
2 Innovative, cost-effective and appropriate technologies that enable
MSMEs to develop and produce competitive products that meet
world-class standards
3 State-of-the-art facilities and capabilities that enable local industries
to move up the value chain and attain global competitiveness.
4 PH a global leader in Information Technology - Business Process
Management Services generating direct employment of 1.3 M
(520,000 of which in the countryside).
5 ICT-based transformation of governance broadening access to
government services (i.e. health and education) for those in the
countryside (PH in the top 50 global ranking of e-government by
2016).
6 Improved quality healthcare and quality of life thru science,
technology and innovation.
7 Highly skilled and globally competitive S&T human resources in
support of the national S&T programs
8 Science-based weather information and climate change scenarios
with associated impact assessments that enable concerned agencies
to develop appropriate mitigation strategies for a disaster and climate
change resilient Philippines.
Source: dost.gov.ph
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12. ACKNOWLEDGEMENT
The authors wish to express their heartfelt gratitude to the members of the DMT
604 Class Second Semester SY 2014-2015 for the support and inspiration in the
conducted of this study.
Our special thanks is extended to Professor Dr. Ramil Perez for the guidance
and supervision of the class.
Furthermore, we acknowledge the support of the DOST Human Resource
Development Program for funding our study. To the DOST-8 Regional Director
Engr. Edgardo M. Esperancilla for allowing us the use of DOST facility during our
study.
To our families for the love, and moral support and during wee hours of work,
thank you so much.
Finally, we thank God for everything especially the wisdom and good health.
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13. REFERENCES
Estella, Therese T. 2013. Results Of The 2011 Survey Of R & D Expenditures And
Human Resources And Updates On R & D Indicators In The Philippines.
Paper presented during the 12th National Convention on Statistics (NCS)
EDSA Shangri-La Hotel, Mandaluyong City October 1-2, 2013
IBM Global Business Services .2010.. Global Location Trends – Annual Report.
Philippine Constitution. 1987. Article XIV. Section 10.
Saloma, C. 2014. Human Resource Generation in Scientific Enterprise System.
Philippine Journal of Science. December 2014.
S&T Post. Against All Odds: The 8 DOST Outcomes Along the Road Less
Traveled. Vol. 31, No. 4, October-December 2013.
UNESCO. 2010. UNESCO Science Report 2010 The Current Status of Science
Around the World. Retrieved on March 3, 2015 from
http://unesdoc.unesco.org/
http://data.worldbank.org/indicator/SP.POP.SCIE.RD.P6/countries
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