PREPARING THE GROUND FOR SUSTAINABLE DEVELOPMENT IN SCIENCE AND TECHNOLOGY

by William G. Padolina Secretary, DOST

INTRODUCTION
Global developments underscore the important role of science and technology: world trade has been liberalized, exerting pressure for innovation; economic activity has become knowledge-intensive, requiring competence in the emerging technologies; elaborately transformed manufactured products, developed through the individual countries systems of innovation, have become the major items in world trade, making the capability to add value the basis for competitiveness. It is, thus, appropriate that an assessment be made of the state of science and technology in the Philippines, especially the gains made during the administration of President Fidel V. Ramos This report will cover the stewardship of Dr. Ricardo T. Gloria who was Secretary of Science and Technology from 01 July 1992 to 06 July 1994. Following Dr. Glorias new appointment as Secretary of Education, Dr. William G. Padolina took over as Secretary from 07 July 1994, which position he still holds. It has been noted that economic activity in the global scene is becoming increasingly knowledge-intensive. Studies show that between 1964 and 1987, importation of raw materials and non-fuel minerals in the world market decreased from 17% to 6% of total imports, while more elaborate products like machinery and transport equipment increased from 19% to 33% of total imports over the same period. The observation that the elaborately transformed manufactured products such as pharmaceuticals, electronic equipment and motor vehicles are the major players in the growth of world trade underscores the role of science and technology in enhancing national capability to exploit new manufacturing techniques. The importance of technology is increasing in a knowledge-based economy. Rapid and continuous improvements in products and manufacturing techniques, as well as, efficient marketing strategies, give business the competitive edge. ____________________________ *Paper presented at the 2nd U.P. Public Lecture Series on the Philippine Presidency and Administration held at U.P. Diliman, Quezon City, on 13 March 1998.

PHILIPPINES 2000
The Medium Term Philippine Development Plan aims to achieve global competitiveness and people empowerment to propel the country towards a newly industrializing economy around the turn of the century. The Philippines expects to increase the production of worldelaboratetransformed manufactured goods and to provide world-class services sophisticated enough for an international clientele. This translates to having the policy and regulatory environment, the human capability, and the physical infrastructure to enable us to deliver such goods and services at the right price, quality and time. This necessitates a movement from what Alvin Toffler calls the first wave technologies to the third wave science-based technologies within an economic milieu that is trisected characterized by the existence of all three levels of technological development, in different areas and degrees of application.

PROSPECTS OF A GLOBALLY-COMPETITIVE PHILIPPINES

There are already products and services in the global market where we are able to compete. These are the export winners, to wit: 1. 2. 3. 4. ELECTRONIC PRODUCTS GARMENTS COMPUTER SOFTWARE FASHION ACCESSORIES  Fine and costume jewelry 5. GIFTS, TOYS AND HOUSEWARE  Ceramics  Basketware  Christmas decors 6. FRUITS FRESH AND PROCESSED  Mango  Pineapple  Banana  Papaya  Durian 7. MARINE PRODUCTS  Shrimps  Tuna  Seaweed 8. FURNITURE 9. METAL PRODUCTS  Machinery parts 10. MARBLE PRODUCTS 11. ORNAMENTAL FLOWERS 12. PROFESSIONAL SERVICES 13. CONSTRUCTION INDUSTRY

In addition to the above list, we include the traditional exports like gold, coconut oil, copra, meal, desiccated coconut, copper concentrates, iron ore agglomerates among others. A perusal of this list leads one to the conclusion that except for the electronic products and the metal components, and possibly some aspects of professional services, these export winners are not elaborately transformedmanufactured goods. Even for the electronics and semiconductors industry, the major activity in the assembly of imported components although there are now efforts to introduce some aspects of wafer fabrication and other upstream operations. In general, the use of superior technology is not widespread which results into low productivity and low value added products. On the other hand, our balance of trade is lopsided in favor of imports. The top imports are generally capital goods and elaboratelytransformed manufactured products such as: 1. 2. 3. 4. 5. 6. POWER GENERATING AND SPECIALIZED MACHINERY TELECOMMUNICATIONS EQUIPMENT TRANSPORT EQUIPMENT CHEMICALS SYNTHETIC TEXTILE YARN FUEL AND LUBRICANTS

There are many examples of world-class operations of elaborately manufactured products that exist in the Philippines today. Some of these are:  Motorola, Philippines manufactures semi-conductor products and is engaged in software development. This facility has won Golden Award of Motorola for four consecutive years, making it the worlds top rated Motorola operations.  Timex, Philippines located in Cebu supplies 90% of the Timex watches in the world and has been rated tops worldwide.  Locsin International, introduced seagrass as a material for furniture and received special awards for design excellence and innovative use of indigenous materials. Its market includes North America, Europe and Asia.  Republic Asahi Glass Corporation, the first manufacturing plant in the Philippines to be certified ISO 9000 for all areas of operation. The float glass plant in the Philippines is considered as one of the most advanced in the world.  Multiforms Corporations, developed pressure sensitive carbonless transfer paper and is considered as one of the most

technically advanced manufacturers and printers of custom crafted business forms. We have more than doubled our growth rate for both GNP and GDP from 1993 to 1996. Our GNP grew at the rate of 2.6% in 1993, 6.9% in 1996; while GDP grew at 2.1% in 1993, 5.7% in 1996. Many factors contribute towards the attainment of high standards of operations. The availability of a highly trainable workforce proficient in both spoken and written English is often cited as a distinct advantage of operating in the Philippines. A Hongkong-based consultancy group in a study made in 1994 considered educated manpower the source of our competitive advantage. In this study, the Philippines was ranked first among China, Thailand, Indonesia, Malaysia, South Korea, Taiwan, Japan, Singapore and Hongkong, in terms of the quality and availability of educated manpower. According to the latest manpower survey by UNESCO, our ratio is 29.9 per thousand population, the highest in ASEAN. Rapid improvements in the physical infrastructure primarily energy, transportation and telecommunications have also been important considerations. The Philippines was linked to INTERNET in March 1994. Macroeconomic structural reforms such as deregulation of the foreign exchange regime, lowering of tariffs, allowing entry of foreign banks and the opening up of critical industries to competition have also been put in place. It is noteworthy that since the promulgation of Executive Order 226 in July 1987 up till 25 July 1995, around P594M worth of R&D investments under BOI have come in and availed of the incentives allowed by law. There is every indication that political will and tangible improvements point to the establishment of an environment that will nurture economic growth under a liberalized world trade regime.

S&T DURING THE RAMOS ADMINISTRATION

Observers say that the Philippines must work hard to build the capability for third wave technologies. The Final Ranking of the Philippines in the 1997 World Competitive Report placed us at No 31 out of 46 countries, up from No. 35 in 1993. Likewise, we placed No. 29 out of 46 in science and technology, up from No. 31 in 1993, but down from No. 26 in 1996. Michael Porter in The Comparative Advantage of Nations argues that improved productivity results from a combination of interventions and policies put together at the right place and the right time and supported by an infrastructure whose positive effects have accumulated over time. Science and Technology (S&T) activities in the country are guided by the Science and Technology Master Plan (STMP) which was adopted in 1990 and the Science and Technology Agenda for National Development (STAND PHILIPPINES 2000) which was approved by the Cabinet in April 1993.

In order to achieve coherence and to assure synchrony of the S&T activities of various line departments, the Science and Technology Coordinating Council (STCC) was created in 1989. The STCC is composed of 10 members of the cabinet, eight representatives from the private sector, two representatives from academe and is chaired by the Secretary of DOST. It renders a yearly report to the President during a special meeting in the last quarter of the year. There is a general perception that the Philippines has the capability to attain global excellence. Whether the process of transformation will take long and whether we can navigate our way through this ecosystem of liberalized world trade are the most pressing questions that must be addressed considering the following constraints:  R&D investments remain at 0.22% of GNP as of 1992 with around 80% being done by government. This results into very limited opportunities to absorb scientists and engineers.  R&D personnel level is also low at 155 scientists and engineers per million population.  There is a shortage of scientists in the fundamental disciplines of chemistry, physics and mathematics but a relatively large pool for biology.  Around 30,000 engineering graduates are produced every year but their skills are not responsive to industry needs especially in engineering design.  Only 981 doctoral degree holders are involved in R&D.  Science teaching at all levels elementary, high school and college needs to be improved. Less than half of secondary science schoolteachers are qualified to teach.  Labor productivity in the Philippines is the lowest compared to Thailand, Indonesia and Pakistan.  Laboratory facilities need to be upgraded.  The Philippines accounts for 0.035% (rank 51) of the share of mainstream journal articles published in the 3300 most important scientific journals in the world.  Antiquated laws and weak implementation of Intellectual Property Rights (IPR) have deterred many foreign technologybased companies from establishing their operations in the Philippines.

In the past, science and technology have been marginalized and the cumulative effects of such neglect are now being felt. Some of the major problems and difficulties that beset us now are not insurmountable because creative science and technology-based solutions and policy reforms can provide much of the needed relief. It is imperative that we orchestrate interventions given the multifarious concerns that have to be addressed.

THE SCIENCE AND TECHNOLOGY AGENDA FOR NATIONAL DEVELOPMENT (STAND)

The Science and Technology Agenda for National Development (STAND Philippines 2000) was formulated during the term of Secretary Gloria and approved by the Cabinet on 23 April 1993. STAND Philippines 2000 is a market-oriented short- to-medium-term action plan designed to enhance private sector participation in science and technology activities and focuses S&T interventions in four priority areas of concern, namely: 1. 2. 3. 4. EXPORT WINNERS BASIC DOMESTIC NEEDS SUPPORT INDUSTRIES COCONUT INDUSTRIES

STAND highlights the need to harness the emerging technologies to gain competitive advantage especially for our export products. Furthermore, it is desirable to establish networking among public and private institutions as they undertake human resource development, policy review and technology transfer. The export winners, identical to that of the Department of Trade and Industry, consists of products which shall be given priority in terms of resource allocation, especially for research and development.

THE SEVEN-POINT AGENDA

The Seven-Point Agenda was formulated when Secretary Padolina took over the helm of the science agency. This agenda is a set of institutional improvements designed to more effectively implement the STMP and the STAND. The following articulates the seven major intervention steps to promote and enhance the development of S&T in the country:
1.

Global scan for advanced technologies critical to Philippine development. This requires access to future-oriented technological initiatives for achieving the goals of a newly industrializing nation. Every plan, program or project must have a monitoring component that gives continuous feedback and guidance on real-time redirection and change in the present global context.

2.

Formulation of a strategic R&D program. The reading of global developments will have to be translated into a research and development agency which will gradually shift our dependence on available factor-based advantaged to address short-term as well as long-term requirements in a world economy linked through a technology-intensive international trade. Organization of cross-disciplinary teams. This involves the purposeful coordination and integration of all experts in the different disciplines from the public and private sector in both the planning and implementation of technological interventions Intensification of industry oriented training. Maximum emphasis shall be accorded to industry-based skills development as the ultimate resource for technology-based international market competition, keeping in mind specialization and capacity building in selected sectors for optimal use of limited resources. Development of scientists, engineers, technicians, and managers emphasizing relevance and excellence, focusing on critical advances in technologies. Establishment of world-class facilities. A number of world-class laboratories and sophisticated facilities with up-to-date information services will be established to provide specialized capabilities especially for small and medium local enterprises. Increased private sector participation. Our initiatives should be designed to accelerate the increasing involvement of the private sector in the science and technology enterprise. Private sector should be encouraged to achieve higher market-driven value addition through increased use of available emerging technologies to gain competitive advantage. Improving the research management system. The climate and direction for innovation culture will be set by the formulation of appropriate policies and the building of the necessary physical infrastructure that will facilitate the conduct of research and development, as well as, technology transfer activities.

3.

4.

5.

6.

7.

DOST AGENCIES
There are 4,956 employees in the DOST system. Around 2% have doctoral degrees, 10% have masters degrees, and 57% have bachelors degrees. These personnel are deployed among 20 agencies, 14 regional offices 73 provincial science and technology center as follows:

No. of Personnel Central and Regional and Provincial Offices R&D Institutes Sectoral Planning Councils S&T Service Agencies Science Education Attached agencies TOTAL 541 1,799 449 1,802 305 60 ================ 4,956

DOST BUDGET
The DOST budget from 1992-1998 is shown in Table 1.

VANGUARD PROJECTS
The vanguard projects are expected to provide the critical and strategic technology support towards industrialization. These constitute the core projects of DOST, namely: 1. 2. 3. 4. 5. 6. 7. 8. 9. Metalworking Coconut Water resources in Laguna de Bay Biotechnology Information Technology New materials Upgrading of Centers of Excellence S&T Human Resource Development Marine Science Research and Development

ACCOMPLISHMENTS
1. BUDGET PERFORMANCE The budget of DOST has increased steadily over the years. The DOST budget passed the billion peso mark in 1992 with a P1.7B budget, double that of the 1991 budget of P865M. Since then, the budget has increased at an average of 15.58% per year with a total of P3.776B for 1998. From 1992 to the present, DOSTs share of the national budget has been 0.72% of the total and ranks among the 13th highest in terms of the budgetary allocation of the line departments. For the year 1997, the DOST budget was 0.118% of GNP and 0.123% of GDP. In 1997, about 21% of the budget was alloted for personal services, 57% for MOOE and 22% for Capital Outlay. In 1996, 18% of the budget was spent for R&D, 36% for STET, and 20% for STS.

The Engineering and Science Education Project was given adequate peso cover in the amount of P 3.035 B from 1992-1998. Additional funds for 1997 and 1998 were obtained for the following: Project RISE Biotechnology R&D P P 300M 60M

2. ORGANIZATIONAL STREAMLINING In order to streamline the operations involving the executive officers of the DOST, the positions of Undersecretary for Regional Operations and Assistant Secretary for Policy and Special Studies were not filled up upon the recall of the incumbents by the University of the Philippines. This rationalized the workload at the executive level. The Regional Operations and the Planning and Evaluation Service are now directly supervised by the Office of the Secretary. This has facilitated the communications flow from the regions to the central office and enhanced the role of the regional office as a front-line agency of the DOST. The reduction in the number of executive officers also set the trend for the DOST and its agencies to be prudent in the filling-up of vacant positions. The PSHS Eastern Visayas Campus started operations in 1994 while the Regional Office for CARAGA (Region 13) started operations in 1997. No new agency was formed during the period under review as the leadership concentrated on the consolidation of gains made so far. Another effort to re-engineer the DOST to allow for flexibility and responsiveness in its operations was the consolidation of 35 vacant positions from DOST agencies and their conversion into 17 higher paid positions (GR. 24 and Gr. 25) assigned to the OSEC and corresponding to the position titles of Assistant Scientist (Salary Grade 24) and Associate Scientist (Salary Grade 25). These positions are intended for young DOST staff who have obtained advanced degrees but cannot be promoted due to the extremely hierarchical structure of the organization. In addition to providing incentives for promising DOST staff to pursue advanced degrees, the new position titles attempt to flatten the organizational structure to allow for greater professional mobility. It was also agreed in the MANCOM, that two of these new positions will be used to temporarily accommodate a few returning Filipino scientists who are based abroad. It is understood that this will be an interim measure (at most 3 years) until such scientists find a permanent job. 3. S&T HUMAN RESOURCE DEVELOPMENT PROGRAM The DOST continues to implement the S&T Human Resource Development Programs designed to upgrade capabilities and increase the number of qualified S&T personnel. The total number of scholars supported to pursue undergraduate and graduate degree programs has increased from 3,100 in 1992 to 8,821 in 1996.

3.1.

Engineering and Science Education Project (ESEP) The implementation of the $85M World Bank and OECF funded Engineering and Science Education Project started in 1992 is nearing completion. As of 31 December 1997, 5,627 scholars have been supported, 4,477 of whom have finished or graduated; 29 engineering and science laboratories have been upgraded; 107 out of 110 high school laboratories have been constructed; 1,024 pieces of science equipment worth $27M have been delivered; and 8 libraries, electronically linked. The total project allotment released to date is PhP2.82B.

3.2.

DOST Human Resource Development Program (DOST-HRDP) As provided for in Republic Act 7227, otherwise knows as the Bases Conversion and Development Act of 1992 and amended in Republic Act 7917, the Department of Science and Technology is implementing the DOST Human Resource Development Program (DOST-HRDP). Its main components are the overseas Ph.D., post-PhD., and, in very justifiable cases M.S. and possibly Sandwich fellowships. Likewise, the program supports local scholarships for teacher training under the distance education scheme. On the first year of program implementation, a total of fourteen (14) Ph.D. and three (3) post-Ph.D. fellows have been approved in the various Science and Technology areas.

3.3.

Project RISE: Rescue Initiatives for Science Education Project RISE (Rescue Initiatives for Science Education) is a massive crash training program to increase the competence of science and mathematics teachers in the elementary, secondary and post-secondary levels. The training activities have been designed for 180 hours and is expected to process 20,000 teachers every year. For 1998, PhP300M has been budgeted for this program.

3.4.

Republic Act No. 7687: Scholarship Act of 1994 RA 7687 or the Science and Technology Scholarship Act of 1994 has been fully implemented, providing access to science and technology education to poor but deserving students. As of second semester SY1997-98, 6,611 scholars enrolled in different schools all over the country are being supported, consisting of 2,962 BS scholars in the sciences and engineering; 2,534 in 3-year technician courses and 1,115 scholars in 2-year technical courses. To date, 73 scholars have finished their technician courses. A total

10

of 4,224 examinees out of 29,675 have qualified for the scholarships for SY1998-99. 3.5. Project 5801 The SEI of the Department grants undergraduate scholarship awards to support students who want to pursue science and engineering courses. Several other projects/activities which seek to meet the ever-growing demand of the country for S&T manpower are continuously being implemented. These programs include: Junior Level Assistance Program in Engineering, Scholarship Program for Science and Math Education major in Physics and the Undergraduate Scientific Manpower Development Program (Proj. 5801) among others. The program supported scholars under various fields of science such as Basic Sciences, Engineering sciences, Science and Math Teacher Education and other applied sciences. A total of 9,978 scholar were supported under these various programs since 1992. 3.6. Distance Learning The upgrading of science and math teaching in high schools using distance learning has received continuing support from DOST. Currently funded from DOST Grants-in Aid, it is expected that such programs will be supported by the proceeds from the sales of military camps. 3.7. Regional Science Teaching Centers A total of PhP 124.8M has been allocated since 1992 to support the operations of 15 Regional Science Teaching Centers located in public and private institutions of higher learning. Scholarships, training programs and science laboratory equipment were provided to upgrade competencies of science and math teachers in the regions. 3.8. Philippine Science High School All four campuses of the Philippine Science High School System established under R.A. 8496 are now functional with a total of 1,980 students. In SY 96-97, 359 graduated from the three campuses. The Eastern Visayas campus will produce its first graduates in March 1998. 3.9. Support for S&T Related Youth Activities Continuing support was also given to the participation of Filipino students in the International Math and Physics Olympiad as well as

11

various national contests such as science quizzes, science-art contests, outstanding young scientists award, Gawad Agkatek. Private sector sponsorhip was also obtained for these activities. 3.10. Balik-Scientist Program Revived in 1994, 62 Filipino scientists have returned. Of these, 13 are in engineering, 20 in medical sciences, 23 in the natural sciences, 4 in the emerging technologies and 2 in agriculture. 3.11. Scientific Career System The Scientific Career System encourages the retention and development of highly qualified and productive scientists in the public service by allowing an outstanding researcher to receive higher compensation without assuming administrative functions. A total of 78 scientists have been conferred the appropriate ranks. 4. MODERNIZATION OF S&T FACILITIES 4.1. Establishment of ACTETSME The APEC Center for Technology Exchange and Training for Small and Medium Enterprises was established in 1996 in U.P. Los Baos as a joint project of DOST and DTI. Connected by Internet to other similar facilities in the APEC Region, this center is expected to respond to the training and technology transfer needs of local small and medium enterprises. 4.2. Electronics Testing and Calibration Center Established in 1996 as a cooperative undertaking of DTI, DOST and the Semiconductors and Electronics Industry Foundation, Inc. (SEIFI), this center is located in the premises of ITDI in Bicutan. Operated jointly with SEIFI, the local industry requirements for calibration and testing of precision instruments for semiconductor manufacture are being handled at the facility. 4.3. Construction of the Laboratory Building of the Advanced Science and Technology Institute At ASTI, one of the agencies of DOST engaged in microelectronics R&D, a modern 3600 sq. m. laboratory facility in the U.P. Diliman Technology Park was put up. This building now houses state-ofthe-art equipment for the information technology programs of DOST.

12

4.4.

Construction of the Offices and Laboratories of the Philippine Institute of Volcano and Seismology Located also in U.P. Diliman campus, this 9000 sq. m. building provides the permanent home for PHIVOLCS and contains modern facilities for studies in volcanology and seismology, including the monitoring equipment for earthquakes and related phenomena.

4.5.

Construction of the National Metrology Laboratory at Industrial Technology Development Institute This 6000 sq. m. facility houses the weights and measures standards and testing equipment for the National Metrology Laboratory, mandated by law to be housed at ITDI. This building contains controlled-environment rooms and precision-testing equipment following globally accepted standards and conditions. This facility is undergoing evaluation for international accreditation.

4.6.

IEC 25 and NATA Accreditation for the Metals Industry Research and Development Center The Metals Testing and Analytical Laboratories of MIRDC have been accorded the IEC 25 and National Association of Testing Authorities (NATA, Australia) accreditation. This confers global recognition to MIRDC laboratories with regard to length metrology, force and mass metrology, electrical testing and heat and temperature measurements. MIRDCs corrosion and physicochemical laboratories are likewise accredited.

4.7.

National Chemistry Instrumentation Center Funded by ESEP, this $1.2 facility at the Ateneo de Manila University houses state-of-the-art 400MHz Nuclear Magnetic Resonance Spectrometer and a High Resolution Mass Spectrometer. These equipment are designed to facilitate research activities involving the elucidation of the structure of molecules.

4.8.

Materials Science and Engineering Research Center This facility is being set up at U.P. Diliman and will be equipped with $4M worth of sophisticated equipment for materials science research. This includes equipment for molecular beam epitaxy, plasma-enhanced chemical vapor deposition and raman spectroscopy.

4.9.

Establishment of a Tool and Die Center In June 1997, MIRDC received a $5.5M grant from JICA to establish a tool and die center, the first in the country. The training center, which is located in the premises of the Center, is to be

13

equipped with state-of-the-art equipment and machinery designed to help upgrade the plastic molding tool technology in the country. 4.10. Establishment of the Meycauayan Jewelry Training Center A PhP10M common service and training facility for the fine jewelry industry was established jointly with the Meycauayan Jewelry Association to help improve the quality of the fine jewelry products produced in Meycauayan, the fine jewelry center of the Philippines. Aside from training, the facility will house equipment which can be used by jewelers who are interested in improving their product quality. 4.11. Establishment of the Ceramics Training Center at Bicutan In support of the decorative ceramics industry, DTI and DOST, in cooperation with the Ceramics Export Manufacturers Association, Inc. (CREMA), established a Ceramic Training Center at ITDI to provide training, production technology development and transfer to the local ceramics industry. 4.12. Regional Metals Testing Centers Under the supervision of MIRDC, these centers provide metal testing, quality control, consultancy, and training services to SMEs belonging to the metals and engineering sector. These centers are functioning and are located in Bacolod, Cebu, Cagayan de Oro, Davao, Urdaneta, and Quezon City. 4.13. Regional Food Testing Laboratories Located in the DOST Regional Offices, the laboratories are now being installed to provide services for physical, chemical, and microbiological analysis of food products. These laboratories are to assist the SMEs engaged in the food business in preparation for compliance with global standards under the WTO. 4.14. Pilot Gamma Irradiation Facility The Philippine Nuclear Research Institute is upgrading its gamma irradiation facility to 120,000 curies. This facility is now being used for the sterilization of selected medical products. 5. INFORMATION TECHNOLOGY PROJECTS In this day and age, information technology is considered pivotal to national progress. Thus, DOST has considered IT as a focus of activity.

14

5.1.

INTERNET The countrys link to INTERNET was pioneered by DOST in 1994. The initial network was configured and implemented by PHNet and was designed to connect to INTERNET the countrys premier universities and colleges, as well as, DOSTs research institutes. This catalytic intervention has given rise to one of the fastest growing INTERNET markets in Asia resulting into the establishment of 130 ISPs as of end 1997.

5.2.

Search for Product Excellence in IT DOST, together with the Information Technology Foundation of the Philippines (ITFP) spearheaded the First National Search for Product Excellence in Information Technology, which led to the discovery of three new products offered for commercialization. A second IT search has been launched in time for the announcements of winners to be made during the Centennial celebrations.

5.3.

Manpower Training in Information Technology: Y2K The millenium bug problem is seen both as a threat that should be carefully addressed and an opportunity to showcase the Philippines capability in information technology (IT). DOST sponsored/supported accelerated training programs to develop a critical number of Filipino programmers to provide Y2K solutions.

5.4.

Multi-Media Training Center The first Multimedia Training Center in the country was opened in July 1995 at the Cebu Institute of Technology. The project stands out as a first instance of technology transfer initiated through government-private sector partnership with Japan Multimedia Programming, Inc. (JAMP) and the Cebu Institute of Technology as counterparts. This center now provides the training for prospective employees of the Cebu operations of JAMP, and has now expanded to more advanced technologies for the production of computer games.

5.5.

Health Research and Development Information Network (HERDIN) Developed by the Philippine Council for Health Research and Development (PCHRD), HERDIN is a bibliographic database, available online or on CD-ROM, containing 21,000 abstracts or published Philippine literature on health r&d. To date, HERDIN has 95 online subscribers.

15

Rural Telephone Switch The Advanced Science and Technology Institute (ASTI) is now field testing in Leyte and Aurora, a PC-based rural telephone switch system that could be a cost-effective way of expanding the reach of the municipal telephone program. RESEARCH AND DEVELOPMENT The research and development agenda of DOST during the Ramos administration has been characterized by its commitment to harness science and technology to create new wealth. Thus there was strong emphasis on the commercial purposes of R&D projects without neglecting modest investments in fundamental or basic research. 5.6. Advanced Science and Technology Much effort was made to reorient the research and development agenda of DOST towards the application of the techniques of biotechnology, information technology and materials science to handle the R&D requirements of agriculture, manufacturing, and the service sector. There is obviously still a long way to go, but a start has been made. It is expected that as more and more highlevel trained scientists man the laboratories, the use of advanced science and technology will be more prevalent. Among the emerging technologies, it is probably in the field of biotechnology that more R&D activity can be noted. The tradition for biological research in the Philippines is strong, owing to the support given to agriculture and health research in the past. In biotechnology, there was an increase in the investment for R&D from 1992 to the present. However, it might be noted that no transgenic plant or microorganism has been produced in local laboratories. Most of the research in biotechnology has been in the field of agriculture and focussed on the incorporation of disease or pest resistance to crops and the improvement of their post-harvest characteristics. Industrial research in biotechnology has been confined to wastewater treatment and the production of ethanol and other substances from the fermentation of blackstrap molasses. In the health area, biotechnology research has been oriented to the area of diagnostics particularly the use of monoclonal antibodies. There is some breakthrough in the development of diagnostic kits of Hepatitis B. This kit is now being developed for commercial use. In information technology, research has largely been conducted by the Advanced Science and Technology Institute under the aegis of their Telecommunications Research and Development Unit. Their research projects have been geared towards providing a costeffective alternative for telecommunications technologies to reach

16

the countryside. Thus, their agenda includes the development of wireless transmission control protocol/INTERNET protocol network for rural areas and the development of digital signal processing technologies for rural telecommunications. Also under ASTI is the Integrated Circuit Center to service the technological needs of the local electronics industry. This center is currently involved in the design and development of Application Specific Integrated Circuits (ASICs) system boards, firmware, and integrated solutions for local business needs. Work has also started at ASTI towards the development of educational software for teaching of Physics. This project is a joint effort with ISMED. Other I/T projects which are based in the universities include the development of expert systems for experimental design, a PC-based distributed text retrieval system, software development using computer graphics and animation for fluid mechanics and machine translation from English to Filipino. Private sector research and development in information technology is at its infancy. But there are serious efforts to establish such a research base in the Philippines, especially in the area of computer software. Materials Science R&D in the Philippines is at an early stage of development. The facilities for such have been recent acquisitions through ESEP and confined mainly to the research group at the U.P. Diliman. A project of interest is the preparation of Bi-Sr-CaCu-O superconductor thin films using liquid phase epitaxy. Other projects include the formulation of thermochromic mixtures derived from coco-fatty acid esters of cholesterol and the utilization of coconut-based lignocellulosic material for the preparation of industrial polymers. 5.7. Marine Science Research and Development Of high priority in our research agenda is the increase in the support for Marine Science R&D. This is in recognition of our being a maritime nation. Thus, a PhP7.8M Marine Science Research Program for the Kalayaan Islands is being implemented to investigate the ecologically important Western Palawan biogeographical zone. Another ongoing project on the South China Sea is the Influence of the South China Sea on Philippine Shelf Reef System with a budget of PhP6.5M. 5.8. Integrated R&D Projects in Agriculture The need to understand the whole range of factors that will allow an agricultural operation to be efficient has necessitated the formulation of several integrated r&d plans. The period under review saw the formulation of a few of these plans to address the need to generate technologies to make agriculture competitive. These include:

17

a. b. c. d. e. f.

Comprehensive Fruits R&D Program to produce improved varieties of banana, papaya, pineapple, and durian. Mango Comprehensive Technology Transfer Program National Furniture R&D Program Integrated Ornamental Horticulture R&D Program Natural Fibers R&D Program Integrated Coconut R&D Program

The above programs are starting to yield high quality information relevant to the needs of the farmers. Furthermore, the use of biotechnology is being encouraged to further advance the frontiers of knowledge about these cropping systems. 5.9. Health and Nutrition DOST, through FNRI, generated information and technologies, through nutrition surveys, regarding food quality and nutritional disease assessment and management that led to the improvement of the delivery of services by nutrition program implementators in both the government and private sectors. This has resulted into the wide use of iron-enriched rice, FVRice, and iodine fortification methods. In pharmachemicals, studies on the separation of the optical isomers of ibuprofen are being conducted to effectively isolate the chiral forms and determine their biological activities. A multipurpose spectrophometer was designed and fabricated to measure blood constituents such as glucose, cholesterol, urea, uric acid and bilirubin. 5.10. Industry and Energy Research and development in the industry and energy sector have been focused on food processing and transport. It was noted that private sector participation in r&d was difficult to obtain and projects of high quality were difficult to come by. In cooperation with NAPOCOR, a 10-kw wind turbine generator was installed in Pagudpud, Ilocos Norte. Enough power was generated to provide the needs for 20 households. Likewise, in the remote town of Dulao, Malicbong, Abra, a 10-kw community-based micro-hydro power generation project now provides electricity to

18

run a rice mill in the daytime and light for 43 households in the evening. A prototype 20-seater hovecraft was launched in April 1997. Travelling at a cruise speed of 35 knots, it can land in areas where there are no ports. Minicontainer vans have also been designed to transport highly perishable marine and grain products. This is now being used for the Mindoro-Las Pias route. PCIERD and DTI are jointly implementing a Processed Food Development Program. The activities are aimed at increasing our food exports by improving product quality, packaging, marketing and promotion. To develop low-cost housing materials, the commercial production of wood-wool cement bonded board was assisted by FPRDI. Highly durable and water resistant, the board can be sold at 50% cheaper than the plyboard. Other farm wastes such as corn stalks, tobacco stalks, rice hull, rice straw may also be used to manufacture the cement bonded board. 5.11. Environment DOSTs role in environment R&D has been largely supportive of the efforts of DENR. A Science Watch Action Group was organized to determine the scientific basis and the appropriate response to interesting natural phenomena such as red tide occurrences, earthquakes, flashfloods, oil and chemical spills. The group has been active in the Marinduque mine tailings incident and several incidents of fishkills all over the country. DOST maintains two red tide monitoring stations (Region 3 and Region 8). These stations assist the National Red Tide Task Force by providing red tide updates. Biodiversity studies are being funded in Subic and Aurora. These involve mainly the identification and inventory of important flora and fauna and the identification of endemic species. The Laguna de Bay Rehabilitation Program was initiated in 1996 to start the effort towards improving the water quality of the lake, considering its potential as a multipurpose resource especially as a source of potable water for the Metro Manila area. This interdisciplinary program involves the formulation of a rehabilitation strategy that is community-based, covering the whole basin of the lake.

19

6. TECHNOLOGY TRANSFER AND COMMERCIALIZATION 6.1. Manufacturing and Productivity Extention (MPEX) Program The MPEX Program assists small-and medium-scale manufacturing firms in the form of productivity studies and consultancy services that will result in improvement in the flow of materials, reduction of product cost, reduction of rejects, increase in profits, among others. Productivity consultancy services were provided to 684 manufacturing companies since 1992. Productivity improvements documented ranged from 25% to as high as 200%. MPEX covers ceramics, food, furniture, jewelry, gifts, toys and housewares and the metal sectors.
6.2.

Consultancy for (CAPE) Program

Agricultural

Productivity

Enhancement

CAPE, which centers to the productivity improvement needs of medium and large-scale agricultural industry, was implemented as a parallel program to the MPEX program. The assistance is in the form of productivity studies and consultancy services. Since its inception in 1993, CAPE has assisted 320 agribusiness farms in 22 provinces covering a total area of 2,017 hectares in 4 agricultural sectors (aquaculture, livestock, horticultural and agronomic crops). Among its notable accomplishments were: (1) survival rate of aquaculture farms increased to 95% from the segmented 30-50% due to effective control of luminous bacteria; (2) export-quality mangoes increased from 50-85% of total harvest as a result of bagging; (3) a Practical Guide on the Cultural Management of Mango was prepared and can be used as an extension tool for other mango farmers and growers; and (4) others. 6.3. Expert Volunteer Pool (EVP) Program The EVP Program was established to involve experts in extending S&T services to the communities. Common services rendered were in the form of training/demonstration; consultancy services/technical assistance; lectures and fora; and repair and maintenance of laboratory equipment. A total of 1,991 volunteer experts have been accredited under STEVPP since 1992 of which 1,233 have been deployed benefiting 35,577 beneficiaries all over the country. 6.4. Municipal (MSTAP) Science and Technology Advisory Program

MSTAP was created to reinforce DOSTs thrust to fast-track the application of scientific and technological innovations in the rural areas. Under the program, experts from the academe act as technical consultants to the various municipalities providing access

20

to technologies appropriate and relevant to the areas. The program fast tracked technology delivery in 23 provinces through the assistance of 21 SCUs. Total investments made was PhP8.2M generating counterpart funding from LGUs amounting to PhP5.3M which was spent for training and other technology-based projects. 6.5. Program of Assistance to Inventors Assistance to inventors has likewise been expanded through RA 7459. To date, a total of 40 inventors wit 106 inventors with a business value of PhP97.57M have been endorsed to BIR for tax incentives and tax exemption availment for 16 inventor-owned companies valued at PhP3.07M. Another program, the Prototype Development and Testing Program, facilitates production of equipment ready for commercial transfer. The program provides financial assistance for fabrication of inventions/technology models/equipment which have commercial potential. From 1992 to 1997, it provide assistance for the fabrication of 44 prototypes. 6.6. Global Technology Search (GTS) Program The GTS program involves the search and acquisition of technology development and sustain the inflow of technologies to the production sectors. The program received 473 (1993-1996) proposals 6.7. Science and Technology Fairs National and Regional Technology Fairs were held annually to showcase new technologies ready for transfer. Since 1992, the Fairs have generated total sales of over PhP55M for participating companies. Investors Fora were organized to attract entrepreneurs to invest in technology ventures; they featured 108 technologies from 1993 to 1997. 6.8. Technology Business Incubators / Science and Technology Parks The Technology Business Incubators were set up in Bicutan, and Urdaneta, Pangasinan to assist new technology firms through technical, marketing and management support. Likewise, S&T Parks were established in UP Diliman, UP Los Baos, and UP Visayas to serve as a vehicle for the universities to interact with private industries and provide a conducive environment for innovation. The TBIs in the Bicutan area seem to be the more active ones while the S&T Park of UP Diliman is more fully occupied than the rest.

21

7. DISASTER AND HAZARD MITIGATION Active fault mapping activities were undertaken to study and monitor the geological characteristics in strategic sites of the country for their patterns in gravimetry, geomagnetism, geoelectricity and geothermy. As mentioned earlier, a four-storey building to house the basic work force and facilities of PHIVOLCS is being completed. After four (4) years of aggressive infrastructure development, PHIVOLCS seismic monitoring networks reached 50 percent of the desired monitoring capability. With the addition of 17 new stations, the network now has 29 seismological observatories and 12 permanent volcanological observatories located in strategic parts of the country. PHILVOLCs quick response team has been organized to investigate reported unusual geologic phenomena. Relative to the weather/flood forecasting and geophysical/astronomical services, operation and maintenance of the following were sustained: 329 weather observation and flood monitoring systems in various places in the country. These include the central analysis and forecasting center in Quezon City; and the Meteorological Satellite ground receiving and processing systems composed of the Geostationary Meteorological Satellite (GMS) and the National Oceanic and Atmospheric Administration (NOAA). Hazard and vulnerability maps were developed/formulated as baseline information for disaster reduction activities which include: 1) Flood Hazard Mapping of Taguig, Metro Manila; 2) Flood Vulnerability Mapping of Taguig, Metro manila; 3) Thunderstorm Hazard mapping of Luzon; and 4) Water Channel Mapping in Quezon City. 8. INTERNATIONAL RELATIONS To accelerate the S&T development in the country, international linkages on S&T are pursued with other countries in the form of bilateral cooperation, multilateral cooperation and regional cooperation. Agreements are contained in Memorandum of Understanding with other countries promoting exchange of experts, scholarship support, training in S&T areas of interest and joint research projects. Active bilateral cooperation agreements were forged with the following countries: France, Spain, Peoples Republic of China (PROC), Israel, Korea, India, and New Zealand, Romania, Croatia, Lithuania, Slovenia, Vietnam, Mexico, Panama, Australia, Japan, Germany, USSR, USA, Peru, Indonesia, Thailand and the European Community. New linkages were also established with the Science Council of British Columbia. Regional and multilateral cooperation programs were pursued with the following: A&T Policy Asian Network (STEPAN), Association for Science Cooperation in Asia (ASCA), Association of Southeast Nations-Committee on

22

Science and Technology (ASEAN-COST), Asia Pacific Economic Cooperation (APEC), International Atomic Energy Agency (IAEA), the International Center for Genetic Engineering and Biotechnology (ICGEB), International Association of Traffic and Safety Sciences (IATSS), and the Asian Conference on Scientific Cooperation (ACSC). 9. 9.1. S&T POLICY INITIATIVES

LAWS Enacted  R.A. 7687: An Act Instituting a Science and Technology Scholarship Program and for other Purposes (March 2, 1994) This Act is known as the Science and Technology Scholarhip Act of 1994. It encourages the development of the countrys science and technology human resources in line with economic development and to provide the capability required in the areas of research, development, innovation as well as their utilization. It provides scholarships and other forms of incentives to deserving science students and other specially gifted citizens to pursue higher education or training in areas of science and technology.  RA 7917: An Act Amending Section 8 of RA 7227, Outherwise Known as the Bases Conversion and Development Act of 1992, Providing for the Distribution of Proceeds from the Sale of Portions of Metro Manila Military Camps and for Other Purposes (February 24, 1995) Section 1, no. 8 of the Act states that part of the proceeds (2%) from the sale shall be used to finance the science and technology scholarships and training of young Filipino scientists and students in selected countries.  RA 7925: An Act to Promote and Govern the Development of Philippine Telecommunications and the Delivery of Public Telecommunications Services (March 1, 1995) This Act is also known as Public Telecommunications Policy Act of the Philippines. Telecommunications services shall be developed to safeguard, enrich and strengthen the economic, cultural, social and political fabric of the Philippines. The fundamental objective of this Act is to develop and maintain a viable, efficient, reliable and universal telecommunication infrastructure using the best available and affordable technologies, as a vital tool to nation building and development.  RA 8042: An Act to Institute the Policies of Overseas Employment and Establish a Higher Standard of Protection and Promotion of the Welfare of Migrant Workers, Their Families and Overseas Filipinos in Distress, and for Other Purposes (June 7, 1995).

23

Section 37 of the Act created the Congressional Migrant Workers Scholarship Fund which shall benefit deserving migrant workers and/or their immediate descendants below 21 years of age who intend to pursue courses or training primarily in the field of science and technology. The scholarship fund shall be administered by the DOLE in coordination with DOST.  R.A. 8248: An Act Further Strengthening the Science and Technology Program of the Government, Amending for the Purpose RA 7687, otherwise knows as the Science and Technology Scholarship Act of 1994 (and Creation of the Science and Technology Human Resource Development Council) (January 29, 1997) The Science and Technology Human Resource Development Council was created under this Act tasked to formulate and implement science and technology human resource development program, and a career system for technologists and technicians to complement the scientific career system including policies for the allocations of S&T scholarships. The PAGCOR shall provide funding support (PhP7M per month) to the scholarship for the implementation of the program.  R.A. 8364: An Act Transferring the Administrative Supervision of the Nueva Vizcaya Science High School in Bayombong Nueva Vizcaya From the Department of Education, Culture and Sports to the Department of Science and Technology (October 9, 1997) The Nueva Vizcaya Science High School established under RA 7622, shall be under the administrative supervision of the Department of Science and Technology (DOST). DOST shall promulgate the necessary rules and regulations for its implementation.  RA 8439: An Act Providing a Magna Carta for Scientists, Engineers, Researchers and other Science and Technology Personnel in Government (December 22, 1997) In order to provide for a program of human resource development in science and technology and to achieve and maintain the necessary reservoir of talent and manpower that will sustain its drive for total science and technology mastery, and Act providing a Magna Carta for Scientists, Engineers, Researchers and other S&T personnel was approved. The Act provides for a system of incentives and special salary scale for S&T personnel in the government.  RA 8435: An Act Prescribing Urgent Related Measures to Modernize the Agriculture and Fisheries Sectors of the Country in Order to

24

Enhance their Profitability, and Prepare said Sectors for the Challenges of Globalization through an Adequate, Focused and Rational Delivery of Necessary Support Services, Appropriating Funds therefore and For Other Purposes (December 22, 1997) This Act is also known as the Agriculture and Fisheries Modernizing Act of 1997. It ensures the development of the agriculture and fisheries sectors in accordance with the following principles: a) poverty alleviation and social equity; b) food security; c) rational use of resources; d) global competitiveness; e) sustainable development; f) people empowerment; and g) protection from unfair competition. The objectives of this Act include: 1. to modernize the agriculture and fisheries sectors by transforming these sectors from a resource-based to a technology-based industry; 2. to enhance profits and incomes in the agricultural and fisheries sectors by ensuring equitable access to assets, resources and services, and promoting higher value crops, value-added processing, agribusiness activities and agro-industrialization; 3. to all at all times; to ensure accessibility, availability and stable supply of food integration,

4. to encourage horizontal and vertical consolidation and expansion of agricultural and fisheries activities;

5. to promote empowerment by strengthening peoples organizations, cooperatives, and NGOs and by establishing and improving mechanisms and processes for their participation in government decision making and implementation; 6. to pursue a market-driven approach to enhance the comparative advantage in the world market; 7. To provide mesures that increase productivity and improve market efficiency while ensuring protection and preservation of the environment and equity for small farmers and fisherfolks.  RA 8293: An Act Prescribing the Intellectual Property Code and Establishing the Intellectual Property Office, Providing for its Powers and Functions, and for other Purposes (June 6, 1997; took effect Jan. 1998) This is also known as the Intellectual Property Code of the Philippines. An effective intellectual and industrial property system is recognized as vital to the development of domestic and

25

creative activity, facilitates transfer of technology, attracts foreign investments, and ensures market access for products. This Act streamlines the administrative procedures of registering patents, trademarks and copyright, to liberalize the registration on the transfer of technology, and to enhance the enforcement of intellectual property rights in the Philippines.  RA 8496: An Act to Establish the Philippine Science High School System (PSHS), and Providing Funds therefore (February 4, 1988) The Philippine Science High School System is being established to assume the leadership role in secondary level science and technology education. The Act aims to pursue the following objectives: a) integrate the existing PSHS at Diliman, Eastern Visayas, Western Visayas and Mindanao into one system of governance and management; b) ensure uniformity in quality standards and systematize operations of schools under the PSHS System; and c) rationalize the establishment of science high schools.  RA 8287: An Act Converting the Puerto Princesa City Pilot School Sta. Monica Annex in the City of Puerto Princesa, Province of Palawan, into a National Science High School to be Known as the Puerto Princesa City National Science High School, and Appropriating Funds Therefor (May 3, 1997).  RA 8304: An Act Converting the San Rafael National High School in the Municipality of Tigaon, Province of Camarines Sur, Into a Science High School to be Known as the San Rafael National Science High School, and Appropriating Funds Therefor (June 6, 1997) The purpose of the said high school shall be to offer a secondary course with special emphasis on subjects pertaining to the sciences, with the end in view of preparing its students for a science career.  RA 8469: An Act Establishing the Philippine Science High School Lanao del Norte Campus, and Appropriating Funds Therefor (January 19, 1998). The purpose of the said high school is to offer, on a scholarship basis, a free secondary course with special emphasis on the sciences and mathematics to prepare its students for science and technology careers.  RA 8424: The Tax Reform Act of 1997. Section 34, Chapter VII of the Act allows deductions from gross income research and development expenditures incurred during the taxable year in connection with trade, business or profession.

26

Research and development expenditures are treated as ordinary and necessary expenses which are not chargeable to capital account.  RA 8485: An Act To Promote Animal Welfare in the Philippines, Otherwise known as the Animal Welfare Act of 1998. (February 11, 1998) The purpose of this Act is to protect and promote the welfare of all animals (to include birds) in the Philippines by supervising and regulating the establishment and operations of all facilities utilized for breeding, maintaining, keeping, treating, or training of all animals either as objects of trade or as household pets. The killing of any animal other than cattle, pigs, goats, sheep, poultry, rabbits, carabaos, horses, deer and crocodiles is likewise declared unlawful except among other instances, when the animal is killed after it has been used in authorized research or experiments;  RA 8550: An Act Providing for the Development, Management and Conservation of the Fisheries and Aquatic Resources, Integrating All Laws Pertinent Thereto, and for Other Purposes, Otherwise knows as The Philippine Fisheries code of 1998. (February 25, 1998) This Act aims to achieve food security as the overriding consideration in the utilization, management, development, conservation and protection of fishery resources. It also calls for the creation of a National Fisheries Research and Development Institute (NFRDI) that shall be attached to the Department of Agriculture and serve as the primary research arm of BFAR. The Executive Director of PCAMRD-DOST shall be a member of the Governing Board of NFRDI. 10.2. Executive Orders  EO 130: Instituting the Balik Scientist Program under the Department of Science and Technology (October 25, 1993) As part of the S&T Human Resource Development Program, the Balik Scientist Program was revived under this E.O. The Program allows any foreign-based scientists, professionals, technician, or any person with special skill or expertise who is of Filipino origin or descent to practice his/her profession or expertise in the Philippines for a short term with a duration of at least one month or a long term duration of at least two (2) years. Incentives are provided.

27

 E.O. No. 247: Prescribing Guidelines in the Establishment of a regulatory Framework of the Prospecting of Biological and Genetic Resources, their By-products and Derivatives for Scientific and Commercial Purposes (May 18, 1995) This E.O. serves as a guide to regulate the research, collection, exploitation and the use of biological and genetic resources, as well as to preserve and protect the environment.  E.O. 270: Requiring all Philippine diplomatic and consular posts to assist in organizing expatriate Filipino scientists, technologists, engineers and allied professionals in their jurisdiction into overseas chapters of the Philippine Science and Technology Advisory Councils (STACs) (August 9, 1995) This Order was issued to utilize foreign-based STACs in Philippine capacity-building for technology assessment, acquisition and referral. DOST acts as the advisory agency in identifying the S&T requirements for tapping foreign-based scientists and information sources.  EO 468: Providing for the Creation of a National Council for the Promotion of Electronic Commerce in the Country (February 23, 1998) The National Council is created to serve as the coordinating body for the promotion of the development of electronic commerce in the country. It is tasked to formulate a National Program and Strategy (NPS) and coordinate/monitor its implementation. DOST sits in the Council as Member.  EO 469: Amending Executive Order No. 190 dated 19 July 1994 Approving and Adopting the National Information Technology Plan 2000 and Establishing the National Information Technology Council (February 23, 1998) The National Information Technology Plan was formulated and the National Information Technology Council was created to coordinate and oversee the implementation of the Plan and to harmonize and coordinate all IT initiatives. The NITC is chaired by the DOST Secretary and co-chaired by the NEDA DirectorGeneral and a Private Sector Representative with membership from other government agencies, private sector and academe. 10.3. Administrative Orders A.O. Nos. 202 and 273 further strengthened the composition of the Science and Technology Coordinating Council (STCC). Private sector membership was increased from three to eight representatives. Also represented are a foreign-based Science and Technology Advisory Council


28

(STAC) representative in the person of Mr. Diosdado Banatao of Silicon Valley, San Jose California, USA, NEDA, CHED and one from the public academic sector. STCC is now composed of 22 members. (July 5, 1995 & May 19, 1996 resp).  A.O. 378: Creating the National Steering Committee for an Enhanced Science and Mathematics Education Teacher Training Program (February 4, 1998) The Committee is headed by DOST and acts as a policy-making and major resource allocation body for the effective implementation of the project RISE (Rescue Initiatives for Science Education). RISE is a five-year teacher-training program for science and mathematics teachers at the public and private elementary, secondary and post-secondary technical/vocational schools nationwide. 10.4. Presidential Directives (May 1996) The following presidential directives were issued: 1) Establishment of a nationwide electronic network of schools in cooperation with Internet service providers; 2) Establishment of a private sector-operated coconut research institute; 3) Upgrading and modernization of early warming and forecasting systems of PHIVOLCS and PAGASA; 4) Expansion of research and development in marine science to include coastal resource management and off-shore technologies; 5) Improvement of support for small and medium enterprises by increasing available venture capital and training programs; and 6) Establishment /upgrading of regional analytical and testing laboratories for food, electronics, textile, metals, drugs and environment. Corresponding action plans/proposals were formulated and implemented. 11.
11.1.

DOST S&T POLICY INITIATIVES

S&T Activities in the Philippines are guided by the Science and Technology Master Plan (STMP), 1990-2000. DOST has been pursuing and directing efforts toward the attainment of its goal to become a newly industrializing country by the year 2000 through the following strategies: 1) modernization of the production sector; 2) upgrading of R&D capability; and 3) development of S&T infrastructure including human resource development and institution building. (1989) To integrate further the inputs of science and technology with the process of industrialization, the Science and Technology Agenda for National Development (STAND) has been formulated. STAND is a marketoriented, private sector-driven, short to medium-term action plan which predicates mastery of science and technology as a vital component contributing to economic growth-particularly in priority areas such as export
11.2.

29

winners, domestic needs, support industries and the coconut industry. It carries out its objectives through the implementation of the following strategies:       Utilization of emerging technologies; Increasing private sector participation; Government-academe-industry networking; Human resource development; Review of policies affecting science and technology; Technological dynamism and monitoring.

To ensure the implementation of S&T activities supportive of STAND, allocation levels for funding these activities have been set. Seventy percent (70%) of total DOST budget shall be allocated for STAND priority areas and the remaining 30 percent for other priority areas. Within the budget allocation for STAND programs, the distribution is as follows: 50 percent for export winners; 20 percent for basic domestic needs; 20 percent for support industries and 10 percent for coconut. (1993) The Science and Technology Education Plan (STEP) was formulated. STEP seeks to provide direction for the development of scientific and technological manpower. The Plan includes programs and projects covering curriculum/instructional materials development; manpower development (faculty staff); acquisition of facilities/equipment, research and development; institution building; and alternative learning system. (1993)
11.3.

The DOST Master Plan for the General Agreement on Tariffs and Trade (GATT) was formulated to indicate the strategic responses of the S&T sector to the challenges and opportunities posed by the ratification of the GATT. The two major concerns of DOST in supporting GATT are 1) technical assistance in the adjustment of sectors or industries affected by the conversion of all quotas and other quantitative restrictions (QRs) to tariffs, and 2) technical assistance to enhance the competitiveness of products subject to tariff reduction. (1995)
11.4.

DOST adopted the Seven-Point Agenda which had laid out the priorities for institutional reforms to make DOSt more responsive to the demands of S&T development. These are: 1) A vision for technological advances in the agriculture, manufacturing and services sectors; 2) A strategic research plan to operationalize the vision; 3) A cross-disciplinary approach involving the government and private sectors; 4) An educational program involving the academe to focus on technological systems and industry applications; 5) A large-scale contemporary instrumentation and laboratory infrastructure; 6) Involvement of industry in planning, development, transfer and promotion of technology; and 7) Improving the research management system. (July 7, 1994)
11.5.

Vanguard Projects were identified as lead projects, which are expected to provide the critical and strategic technology support to
11.6.

30

industrialization. These constitute the core competency of DOST. These projects are on metalworking, coconut, waters resources in Laguna de Bay, biotechnology, information technology, materials science, upgrading of centers of excellence and human resource development. (1994) Formulated the DOST Medium-Term Corporate Plan (19941998) through a series of planning workshops to be more congruent with the Medium-Term Philippine Development Plan (MTPDP) as well as with the Departments vision for Philippines 2000. The Plan contains the mission and vision statements, priorities, intervention areas, and programs/projects and other corresponding budgetary requirements. (1994)
11.7.

Implementing guidelines on the grant of honoraria/incentive pay for DOST and the National R&D System (NRDS) were issued. These provide better incentive pay to researchers, technical and support personnel in DOST and the NRDS to encourage productivity and acknowledge extraordinary performance, efficient delivery of services and output. (DOST Memorandum Circular No. 93-1, s. 1993)
11.8.

Guidelines for the Inventors Incentive Act were issued. These include the terms and conditions; the grant of cash rewards; and the management of both the Invention Development Assistance Fund and New Invention Guarantee Fund. (DOST Administrative Circular No. 001 series of 1994)
11.9.

Guidelines on Technology Transfer Arrangements in the National Research and Development System was formulated. The policy guidelines cover all technology transfer arrangements entered into by member agencies of the National Research and Development System with public or private clients whether domestic or foreign. The Guidelines defined terms of agreement involving licensing and know-how agreements. (DOST Memorandum Circular No. 93-2 s. 1993)
11.10.

DOST participation in gender-responsive activities and reconstitution of DOST focal point for women concerns were strengthened to institutionalize activities/efforts of women in S&T, (DOST Administrative Order No. 077)
11.11.

A Re-Entry Program for the Returning Doctoral and Masters Graduates was adopted. This recognizes the academic achievements of DOST personnel in obtaining doctoral and masters degrees in various fields relevant to their function, either as scholars or through their own expense. The program was designed to provide incentives to returning Ph.D./MS graduates, optimize their utilization in accelerating the countrys development and minimize the brain drain problem. (DOST Administrative Order No. 035, s. 1995)
11.12.

DOST implemented Section 24 of the 1995 General Appropriations Act (GAA) which provides that appropriations pertaining to research and development in the natural, agricultural, technological and
11.13.

31

engineering sciences for various government instrumentalities within STAND shall be released upon the recommendation of the Secretary of DOST. An Inter-agency Committee was created to review R&D projects and the budgets of 86 agencies (including 50 state universities and colleges and 36 government agencies) to rationalize the use of the government R&D budget and ensure that expenditures are aligned to the STAND. (1995) DOST Administrative Order No. 001 series of 1996 was issued which established the criteria for R&D Centers of Excellence in the country.
11.14.

Administrative Orders Nos. 004 and Memorandum Circular No. 001, series of 1996 were issued which established the guidelines in the computation of fees and charges and promulgated the new rates for testing, analytical and calibration services of the R&D institutes within the DOST System.
11.15.

DOST Memorandum Circular No. 004, series of 1996 was issued promulgating the guidelines for smooth implementation of the Global Technology Search Program and streamlining activities for technology upgrading through global and technology surveillance.
11.16.

SUMMARY AND CONCLUSIONS

Insights In spite of the constraints posed by civil service rules, COA regulations, DBM restrictions, and court, as well as administrative litigations, some progress was achieved in promoting science and technology during the Ramos administration. The support received from the executive and the legislature has been very instrumental in putting some reforms in place. Resources have been provided and the major elements of the policy framework are in place for a sustained effort to develop a world class science and technology enterprise. But there are still many concerns that need to be addressed. First and foremost is the continuing assault from within government to dismember DOST. The Agricultural Modernization Bill and the Fisheries Code Bill attempted to transfer PCARRD and PCAMRD to the Department of Agriculture. Furthermore, overtures were made during budget hearings to transfer the PSHS to the DECS. The discussions on the reorganization of the bureaucracy also proposed for the downsizing of DOST through the transfer of its existing agencies to other departments. These assaults continue to make DOST personnel insecure and have affected their work performance. Furthermore, the very simplistic approaches and reasons to dismember DOST are out of step with the present realities in the local and international scientific enterprises. Secondly, there is still a considerable lack of convergence among government programs across departments. High schools which were assisted
32

by ESEP with new laboratory buildings and equipment and teacher training, were not selected as the Regional Science High Schools by DECS. School computerization programs financed by CHED, DECS, and DOST are not synchronized and well planned. Special policies to improve the environment for doing science are negated by one size fits all pronouncements made by the fiscal authorities. The catching-up process is blocked by auditors following outdated rules and regulations. This lack of convergence poses as a serious roadblock for our country to accelerate development. The desire to have controls is welcome but they can be overdone and can result in paralysis. There is still a serious lack of highly trained scientists and engineers in the country. The number and quality of those who are active in research and development are hardly enough to propel a modest industrialization program. Interesting problems have come by our way, but there was no one around qualified to provide solutions. This limitation in human capability is a serious handicap and all efforts to correct this in order to attain a critical mass of scientists and engineers in the shortest possible time must be supported. Those who are now active must take immediate steps to retool and use advanced techniques in their experiments. Some of the agencies under DOST will have to be reengineered and their missions updated to optimize the use of public funds. The indicators used to monitor progress in the development of science and technology must continuously be updated. The latest data covers only up to the year 1992. Furthermore, other indicators must be developed so that an accurate picture of what is happening at ground level can be obtained. For example, the number of high school students able to avail of S&T scholarships must be regularly monitored. The technology content of new foreign direct investments in the country must be assessed so that we can have a sense of the balance of installed capabilities crucial for our national security. The management of science and technology require special skills and a special environment. The Magna Carta for S&T Workers in Government is a good start, but more interventions will have to be introduced to enhance the environment for doing science. Towards a Strong National System of Innovation As earlier discussed, there are strengths and weaknesses, the positives and the negatives that we have to contend with. To sustain growth, we must institute measures that will enable us to become globally competitive by improving our capability to produce elaborately transformed manufactured goods THROUGH A STRONG AND DYNAMIC NATIONAL SYSTEM OF INNOVATION.. For as long as our educated manpower continues to be recognized as very capable and ingenious, our bid to be globally competitive can be seriously pursued. For this we shall need political will and massive infusion of resources. Therefore, we must now move boldly and resolutely, focused towards enhancing our capability to produce elaborately transformed manufactured products.

33

Suggested future / Continuing interventions Given the trend towards the dominance of knowledge-intensive industries in world trade and recognizing the strong link between R&D expenditures and innovation, the following suggestions are offered: 1. Strengthen the human resource program through appropriate incentives:  Provide for automatic promotion for those who obtain advanced degrees especially a doctoral degree in technical fields.  Establish a flexible promotion scheme based on performance.

 Provide liberal incentives for scientists, researchers, technologists and engineers (public and private) such as honoraria (rates to be fixed by DOST per PD 1502); participation in conferences; consultancy for government researchers (amendment to Ethics Law); and increase royalty share of researchers in publicly funded research.  Provide continuous upgrading scheme through scholarships and secondment programs between the government and the private sectors.  Provide resources for extensive and rapid teacher education and training program in science and technology. 2. Re-engineer the science and technology establishment to allow for flexibility and responsiveness:  Revise position titles and new salary scales for scientists, engineers and technicians.  Authorize the Secretary of DOST to redeploy personnel based on certain guidelines. 3. Law. Exempt government institutions engaged in R&D from the Atrition

4. Expand fiscal incentives for R&D allow for a 150-200% deduction from taxes of R&D expenditures. 5. Encourage the establishment of venture capital firms (local and foreign) a mechanism for financing the technology upgrading of small and medium enterprises. 6. Provide corporate powers to DOST as proposed in the Rapid Technology Transfer Act. 7. Improve the intellectual property rights protection in the Philippines to encourage entry of more technology-based investments.

34

8.

Encourage government to be the first buyers of the new products.

9. Formulate an Industrial Policy based on selective targeting of product niches in the global market. Our ability to add further value to our commodities is still minimal as we lack the capital, and to some extent the confidence as a nation to position ourselves to become an end products processor or manufacturer or better yet as a producer of next generation products. We have presented in this report the highlights of the initiatives taken during the Ramos administration to prepare the ground for sustained development in science and technology. We hope that in our own humble way we have contributed to the creation of conditions to generate internal momentum for future growth. It is difficult to really assess quantitatively how much closer or farther we are to our goals. We realize that there are no quick and easy solutions toward the attainment of world-class competence in science and technology especially in an environment as technologically trisected as the Philippines. We look forward with eagerness to the realization, in the near future, of a strong and dynamic national system of innovation for the Philippines.

* * * * *

a:preparing.doc/aydz

35