Public Spending on R&D: Recent Issues in the Philippines

Abstract

The intensity of research and development (R&D) that is necessary to accelerate innovation leading to economic growth is nuanced by industry needs, the readiness of end-users and the transition from R&D to commercialization. In the Philippines, the public R&D sphere is affected by a myriad of wicked problems: low budgets, complex procurement rules, missing markets that hamper technology transfer, lack of human resource complement and lack of clear and coherent vision on how to harness innovation to improve productivity. This article focuses on institutional issues that affect R&D growth in the Philippines. Using data from official budget sources and key informants from selected government agencies, we reviewed the institutional setup for the development and implementation of R&D programmes and projects (PAPs). We also identified the factors that either facilitate or hinder R&D growth and proposed policy recommendations and legislative action. We recommend that there should be an articulated vision of what type of innovation to focus on, complemented by policies to reform or relax bottlenecks regarding budgetary and procurement processes. To promote an R&D culture, the government may prioritize data sharing and provide a clear rationale on the roles, scope and limitations of existing and proposed research centres.