4.7.D-preparing the Ground for Sustainable Development in Sc

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PREPARING THE GROUND FOR SUSTAINABLE

DEVELOPMENT IN SCIENCE AND TECHNOLOGY

by

William G. PadolinaSecretary, DOST

INTRODUCTION

Global developments underscore the important role of science andtechnology: 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, havebecome the major items in world trade, making the capability to add value thebasis for competitiveness. It is, thus, appropriate that an assessment bemade of the state of science and technology in the Philippines, especially thegains made during the administration of President Fidel V. Ramos

This report will cover the stewardship of Dr. Ricardo T. Gloria who wasSecretary of Science and Technology from 01 July 1992 to 06 July 1994.Following Dr. Glorias new appointment as Secretary of Education, Dr. WilliamG. 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 isbecoming increasingly knowledge-intensive. Studies show that between 1964and 1987, importation of raw materials and non-fuel minerals in the worldmarket decreased from 17% to 6% of total imports, while more elaborateproducts like machinery and transport equipment increased from 19% to 33%of total imports over the same period.

The observation that the elaborately transformed manufacturedproducts such as pharmaceuticals, electronic equipment and motor vehicles

are the major players in the growth of world trade underscores the role ofscience and technology in enhancing national capability to exploit newmanufacturing techniques. The importance of technology is increasing in aknowledge-based economy. Rapid and continuous improvements in productsand manufacturing techniques, as well as, efficient marketing strategies, givebusiness the competitive edge.

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*Paper presented at the 2nd U.P. Public Lecture Series on the PhilippinePresidency and Administration held at U.P. Diliman, Quezon City, on 13March 1998.

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PHILIPPINES 2000

The Medium Term Philippine Development Plan aims to achieve globalcompetitiveness and people empowerment to propel the country towards a

newly industrializing economy around the turn of the century. The Philippinesexpects to increase the production of worldelaboratetransformedmanufactured goods and to provide world-class services sophisticatedenough for an international clientele. This translates to having the policy andregulatory environment, the human capability, and the physical infrastructureto enable us to deliver such goods and services at the right price, quality andtime. This necessitates a movement from what Alvin Toffler calls the firstwave technologies to the third wave science-based technologies within aneconomic milieu that is trisected characterized by the existence of all threelevels of technological development, in different areas and degrees ofapplication.

PROSPECTS OF A GLOBALLY-COMPETITIVE PHILIPPINES

There are already products and services in the global market where weare able to compete. These are the export winners, to wit:

1. ELECTRONIC PRODUCTS2. GARMENTS3. COMPUTER SOFTWARE

4. FASHION ACCESSORIES Fine and costume jewelry5. GIFTS, TOYS AND HOUSEWARE Ceramics Basketware Christmas decors

6. FRUITS FRESH AND PROCESSED Mango Pineapple Banana Papaya

Durian7. MARINE PRODUCTS Shrimps Tuna Seaweed

8. FURNITURE9. METAL PRODUCTS Machinery parts

10.MARBLE PRODUCTS11.ORNAMENTAL FLOWERS12.PROFESSIONAL SERVICES

13.CONSTRUCTION INDUSTRY

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In addition to the above list, we include the traditional exports like gold,coconut oil, copra, meal, desiccated coconut, copper concentrates, iron oreagglomerates among others.

A perusal of this list leads one to the conclusion that except for theelectronic products and the metal components, and possibly some aspects ofprofessional services, these export winners are not elaboratelytransformedmanufactured goods. Even for the electronics and semi-conductors industry, the major activity in the assembly of importedcomponents although there are now efforts to introduce some aspects ofwafer fabrication and other upstream operations. In general, the use ofsuperior technology is not widespread which results into lowproductivity 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 elaboratelytransformedmanufactured products such as:

1. POWER GENERATING AND SPECIALIZED MACHINERY2. TELECOMMUNICATIONS EQUIPMENT3. TRANSPORT EQUIPMENT4. CHEMICALS5. SYNTHETIC TEXTILE YARN6. FUEL AND LUBRICANTS

There are many examples of world-class operations of elaboratelymanufactured products that exist in the Philippines today. Some of these are:

Motorola, Philippines manufactures semi-conductorproducts and is engaged in software development. This facility haswon Golden Award of Motorola for four consecutive years, making itthe worlds top rated Motorola operations.

Timex, Philippines located in Cebu supplies 90% of theTimex watches in the world and has been rated tops worldwide.

Locsin International, introduced seagrass as a materialfor furniture and received special awards for design excellence andinnovative use of indigenous materials. Its market includes NorthAmerica, Europe and Asia.

Republic Asahi Glass Corporation, the first manufacturingplant in the Philippines to be certified ISO 9000 for all areas ofoperation. The float glass plant in the Philippines is considered asone of the most advanced in the world.

Multiforms Corporations, developed pressure sensitive

carbonless transfer paper and is considered as one of the most

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technically advanced manufacturers and printers of custom craftedbusiness forms.

We have more than doubled our growth rate for both GNP and GDPfrom 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 ofoperations. The availability of a highly trainable workforce proficient in bothspoken and written English is often cited as a distinct advantage of operatingin the Philippines. A Hongkong-based consultancy group in a study made in1994 considered educated manpower the source of our competitiveadvantage. In this study, the Philippines was ranked first among China,Thailand, Indonesia, Malaysia, South Korea, Taiwan, Japan, Singapore andHongkong, 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 importantconsiderations. The Philippines was linked to INTERNET in March 1994.Macroeconomic structural reforms such as deregulation of the foreignexchange regime, lowering of tariffs, allowing entry of foreign banks and theopening up of critical industries to competition have also been put in place. Itis noteworthy that since the promulgation of Executive Order 226 in July 1987up till 25 July 1995, around P594M worth of R&D investments under BOI havecome in and availed of the incentives allowed by law. There is everyindication that political will and tangible improvements point to theestablishment of an environment that will nurture economic growth under aliberalized world trade regime.

S&T DURING THE RAMOS ADMINISTRATION

Observers say that the Philippines must work hard to build thecapability for third wave technologies. The Final Ranking of the Philippines inthe 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 andtechnology, up from No. 31 in 1993, but down from No. 26 in 1996. MichaelPorter in The Comparative Advantage of Nations argues that improvedproductivity results from a combination of interventions and policies puttogether at the right place and the right time and supported by aninfrastructure whose positive effects have accumulated over time.

Science and Technology (S&T) activities in the country are guided bythe Science and Technology Master Plan (STMP) which was adopted in 1990and the Science and Technology Agenda for National Development (STANDPHILIPPINES 2000) which was approved by the Cabinet in April 1993.

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In order to achieve coherence and to assure synchrony of the S&Tactivities of various line departments, the Science and TechnologyCoordinating Council (STCC) was created in 1989. The STCC is composedof 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 lastquarter of the year.

There is a general perception that the Philippines has the capability toattain global excellence. Whether the process of transformation will take longand whether we can navigate our way through this ecosystem of liberalizedworld trade are the most pressing questions that must be addressedconsidering the following constraints:

R&D investments remain at 0.22% of GNP as of 1992with 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 andengineers per million population.

There is a shortage of scientists in the fundamentaldisciplines of chemistry, physics and mathematics but a relativelylarge pool for biology.

Around 30,000 engineering graduates are producedevery year but their skills are not responsive to industry needsespecially in engineering design.

Only 981 doctoral degree holders are involved in R&D.

Science teaching at all levels elementary, high schooland college needs to be improved. Less than half of secondaryscience schoolteachers are qualified to teach.

Labor productivity in the Philippines is the lowest compared toThailand, Indonesia and Pakistan.

Laboratory facilities need to be upgraded.

The Philippines accounts for 0.035% (rank 51) of the share ofmainstream journal articles published in the 3300 most importantscientific journals in the world.

Antiquated laws and weak implementation of IntellectualProperty Rights (IPR) have deterred many foreign technology-based companies from establishing their operations in thePhilippines.

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In the past, science and technology have been marginalized and thecumulative effects of such neglect are now being felt. Some of the majorproblems and difficulties that beset us now are not insurmountable becausecreative science and technology-based solutions and policy reforms canprovide 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 NATIONALDEVELOPMENT (STAND)

The Science and Technology Agenda for National Development(STAND Philippines 2000) was formulated during the term of Secretary Gloriaand approved by the Cabinet on 23 April 1993. STAND Philippines 2000 is amarket-oriented short- to-medium-term action plan designed to enhance

private sector participation in science and technology activities and focusesS&T interventions in four priority areas of concern, namely:

1. EXPORT WINNERS2. BASIC DOMESTIC NEEDS3. SUPPORT INDUSTRIES4. COCONUT INDUSTRIES

STAND highlights the need to harness the emerging technologies togain competitive advantage especially for our export products. Furthermore, itis desirable to establish networking among public and private institutions as

they undertake human resource development, policy review and technologytransfer. The export winners, identical to that of the Department of Trade andIndustry, consists of products which shall be given priority in terms of resourceallocation, especially for research and development.

THE SEVEN-POINT AGENDA

The Seven-Point Agenda was formulated when Secretary Padolinatook over the helm of the science agency. This agenda is a set of institutionalimprovements designed to more effectively implement the STMP and theSTAND. The following articulates the seven major intervention steps topromote and enhance the development of S&T in the country:

1. Global scan for advanced technologies critical to Philippinedevelopment. This requires access to future-orientedtechnological initiatives for achieving the goals of a newlyindustrializing nation. Every plan, program or project must have amonitoring component that gives continuous feedback andguidance on real-time redirection and change in the present globalcontext.

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2. Formulation of a strategic R&D program. The reading of globaldevelopments will have to be translated into a research anddevelopment agency which will gradually shift our dependence onavailable factor-based advantaged to address short-term as well aslong-term requirements in a world economy linked through a

technology-intensive international trade.

3. Organization of cross-disciplinary teams. This involves thepurposeful coordination and integration of all experts in thedifferent disciplines from the public and private sector in both theplanning and implementation of technological interventions

4. Intensification of industry oriented training. Maximumemphasis shall be accorded to industry-based skills developmentas the ultimate resource for technology-based international marketcompetition, keeping in mind specialization and capacity building in

selected sectors for optimal use of limited resources. Developmentof scientists, engineers, technicians, and managers emphasizingrelevance and excellence, focusing on critical advances intechnologies.

5. Establishment of world-class facilities. A number of world-classlaboratories and sophisticated facilities with up-to-date informationservices will be established to provide specialized capabilitiesespecially for small and medium local enterprises.

6. Increased private sector participation. Our initiatives should bedesigned to accelerate the increasing involvement of the privatesector in the science and technology enterprise. Private sectorshould be encouraged to achieve higher market-driven valueaddition through increased use of available emerging technologiesto gain competitive advantage.

7. Improving the research management system. The climate anddirection for innovation culture will be set by the formulation ofappropriate policies and the building of the necessary physicalinfrastructure that will facilitate the conduct of research and

development, as well as, technology transfer activities.

DOST AGENCIES

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

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No. of Personnel

Central and Regional and Provincial Offices 541R&D Institutes 1,799

Sectoral Planning Councils 449S&T Service Agencies 1,802Science Education 305Attached agencies 60

================TOTAL 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 strategictechnology support towards industrialization. These constitute the coreprojects of DOST, namely:

1. Metalworking2. Coconut3. Water resources in Laguna de Bay

4. Biotechnology5. Information Technology6. New materials7. Upgrading of Centers of Excellence8. S&T Human Resource Development9. Marine Science Research and Development

ACCOMPLISHMENTS

1. BUDGET PERFORMANCE

The budget of DOST has increased steadily over the years. The DOSTbudget passed the billion peso mark in 1992 with a P1.7B budget, double thatof the 1991 budget of P865M. Since then, the budget has increased at anaverage of 15.58% per year with a total of P3.776B for 1998. From 1992 tothe present, DOSTs share of the national budget has been 0.72% of the totaland ranks among the 13th highest in terms of the budgetary allocation of theline departments. For the year 1997, the DOST budget was 0.118% of GNPand 0.123% of GDP. In 1997, about 21% of the budget was alloted forpersonal 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.

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The Engineering and Science Education Project was given adequate pesocover in the amount of P 3.035 B from 1992-1998.

Additional funds for 1997 and 1998 were obtained for the following:

Project RISE P 300MBiotechnology R&D P 60M

2. ORGANIZATIONAL STREAMLINING

In order to streamline the operations involving the executive officers of theDOST, the positions of Undersecretary for Regional Operations and AssistantSecretary for Policy and Special Studies were not filled up upon the recall ofthe incumbents by the University of the Philippines. This rationalized theworkload at the executive level. The Regional Operations and the Planningand Evaluation Service are now directly supervised by the Office of the

Secretary. This has facilitated the communications flow from the regions tothe central office and enhanced the role of the regional office as a front-lineagency of the DOST. The reduction in the number of executive officers alsoset the trend for the DOST and its agencies to be prudent in the filling-up ofvacant positions.

The PSHS Eastern Visayas Campus started operations in 1994 while theRegional Office for CARAGA (Region 13) started operations in 1997. No newagency was formed during the period under review as the leadershipconcentrated on the consolidation of gains made so far.

Another effort to re-engineer the DOST to allow for flexibility andresponsiveness in its operations was the consolidation of 35 vacant positionsfrom DOST agencies and their conversion into 17 higher paid positions (GR.24 and Gr. 25) assigned to the OSEC and corresponding to the position titlesof Assistant Scientist (Salary Grade 24) and Associate Scientist (Salary Grade25). These positions are intended for young DOST staff who have obtainedadvanced degrees but cannot be promoted due to the extremely hierarchicalstructure of the organization. In addition to providing incentives for promisingDOST staff to pursue advanced degrees, the new position titles attempt toflatten the organizational structure to allow for greater professional mobility. It

was also agreed in the MANCOM, that two of these new positions will be usedto temporarily accommodate a few returning Filipino scientists who are basedabroad. 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 ResourceDevelopment Programs designed to upgrade capabilities and increase thenumber of qualified S&T personnel. The total number of scholarssupported to pursue undergraduate and graduate degree programs has

increased from 3,100 in 1992 to 8,821 in 1996.

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3.1. Engineering and Science Education Project (ESEP)

The implementation of the $85M World Bank and OECF fundedEngineering and Science Education Project started in 1992 isnearing completion. As of 31 December 1997, 5,627 scholars have

been supported, 4,477 of whom have finished or graduated; 29engineering and science laboratories have been upgraded; 107 outof 110 high school laboratories have been constructed; 1,024pieces of science equipment worth $27M have been delivered; and8 libraries, electronically linked. The total project allotment releasedto date is PhP2.82B.

3.2. DOST Human Resource Development Program (DOST-HRDP)

As provided for in Republic Act 7227, otherwise knows as theBases Conversion and Development Act of 1992 and amended in

Republic Act 7917, the Department of Science and Technology isimplementing the DOST Human Resource Development Program(DOST-HRDP).

Its main components are the overseas Ph.D., post-PhD., and, invery justifiable cases M.S. and possibly Sandwich fellowships.Likewise, the program supports local scholarships for teachertraining 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 thevarious Science and Technology areas.

3.3. Project RISE: Rescue Initiatives for Science Education

Project RISE (Rescue Initiatives for Science Education) is amassive crash training program to increase the competence ofscience and mathematics teachers in the elementary, secondaryand post-secondary levels. The training activities have beendesigned for 180 hours and is expected to process 20,000 teachersevery 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 1994has been fully implemented, providing access to science andtechnology education to poor but deserving students. As of secondsemester SY1997-98, 6,611 scholars enrolled in different schoolsall over the country are being supported, consisting of 2,962 BSscholars in the sciences and engineering; 2,534 in 3-yeartechnician courses and 1,115 scholars in 2-year technical courses.

To date, 73 scholars have finished their technician courses. A total

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of 4,224 examinees out of 29,675 have qualified for thescholarships for SY1998-99.

3.5. Project 5801

The SEI of the Department grants undergraduate scholarshipawards to support students who want to pursue science andengineering courses. Several other projects/activities which seekto meet the ever-growing demand of the country for S&T manpowerare continuously being implemented.

These programs include: Junior Level Assistance Program inEngineering, Scholarship Program for Science and Math Educationmajor in Physics and the Undergraduate Scientific ManpowerDevelopment Program (Proj. 5801) among others.

The program supported scholars under various fields of sciencesuch as Basic Sciences, Engineering sciences, Science and MathTeacher Education and other applied sciences. A total of 9,978scholar were supported under these various programs since 1992.

3.6. Distance Learning

The upgrading of science and math teaching in high schools usingdistance learning has received continuing support from DOST.Currently funded from DOST Grants-in Aid, it is expected thatsuch programs will be supported by the proceeds from the sales ofmilitary camps.

3.7. Regional Science Teaching Centers

A total of PhP 124.8M has been allocated since 1992 to support theoperations of 15 Regional Science Teaching Centers located inpublic and private institutions of higher learning. Scholarships,training programs and science laboratory equipment were providedto upgrade competencies of science and math teachers in theregions.

3.8. Philippine Science High School

All four campuses of the Philippine Science High School Systemestablished under R.A. 8496 are now functional with a total of 1,980students. In SY 96-97, 359 graduated from the three campuses.The Eastern Visayas campus will produce its first graduates inMarch 1998.

3.9. Support for S&T Related Youth Activities

Continuing support was also given to the participation of Filipinostudents in the International Math and Physics Olympiad as well as

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various national contests such as science quizzes, science-artcontests, 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, 13are in engineering, 20 in medical sciences, 23 in the naturalsciences, 4 in the emerging technologies and 2 in agriculture.

3.11. Scientific Career System

The Scientific Career System encourages the retention anddevelopment of highly qualified and productive scientists in thepublic service by allowing an outstanding researcher to receivehigher 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 Smalland Medium Enterprises was established in 1996 in U.P. LosBaos as a joint project of DOST and DTI. Connected by Internetto other similar facilities in the APEC Region, this center isexpected to respond to the training and technology transfer needsof local small and medium enterprises.

4.2. Electronics Testing and Calibration Center

Established in 1996 as a cooperative undertaking of DTI, DOSTand 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 forcalibration and testing of precision instruments for semiconductor

manufacture are being handled at the facility.

4.3. Construction of the Laboratory Building of the AdvancedScience and Technology Institute

At ASTI, one of the agencies of DOST engaged in microelectronicsR&D, a modern 3600 sq. m. laboratory facility in the U.P. DilimanTechnology Park was put up. This building now houses state-of-the-art equipment for the information technology programs ofDOST.

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4.4. Construction of the Offices and Laboratories of the PhilippineInstitute of Volcano and Seismology

Located also in U.P. Diliman campus, this 9000 sq. m. buildingprovides the permanent home for PHIVOLCS and contains modern

facilities for studies in volcanology and seismology, including themonitoring equipment for earthquakes and related phenomena.

4.5. Construction of the National Metrology Laboratory at IndustrialTechnology Development Institute

This 6000 sq. m. facility houses the weights and measuresstandards and testing equipment for the National MetrologyLaboratory, mandated by law to be housed at ITDI. This buildingcontains controlled-environment rooms and precision-testingequipment following globally accepted standards and conditions.

This facility is undergoing evaluation for international accreditation.

4.6. IEC 25 and NATA Accreditation for the Metals IndustryResearch and Development Center

The Metals Testing and Analytical Laboratories of MIRDC havebeen accorded the IEC 25 and National Association of TestingAuthorities (NATA, Australia) accreditation. This confers globalrecognition to MIRDC laboratories with regard to length metrology,force and mass metrology, electrical testing and heat andtemperature measurements. MIRDCs corrosion and physico-chemical laboratories are likewise accredited.

4.7. National Chemistry Instrumentation Center

Funded by ESEP, this $1.2 facility at the Ateneo de ManilaUniversity houses state-of-the-art 400MHz Nuclear MagneticResonance Spectrometer and a High Resolution MassSpectrometer. These equipment are designed to facilitate researchactivities 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 equippedwith $4M worth of sophisticated equipment for materials scienceresearch. This includes equipment for molecular beam epitaxy,plasma-enhanced chemical vapor deposition and ramanspectroscopy.

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 trainingcenter, which is located in the premises of the Center, is to be

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equipped with state-of-the-art equipment and machinery designedto 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 jewelryindustry was established jointly with the Meycauayan JewelryAssociation to help improve the quality of the fine jewelry productsproduced in Meycauayan, the fine jewelry center of the Philippines.Aside from training, the facility will house equipment which can beused by jewelers who are interested in improving their productquality.

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 toprovide training, production technology development and transfer tothe local ceramics industry.

4.12. Regional Metals Testing Centers

Under the supervision of MIRDC, these centers provide metaltesting, quality control, consultancy, and training services to SMEsbelonging to the metals and engineering sector. These centers arefunctioning 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 nowbeing installed to provide services for physical, chemical, andmicrobiological analysis of food products. These laboratories are toassist the SMEs engaged in the food business in preparation forcompliance with global standards under the WTO.

4.14. Pilot Gamma Irradiation Facility

The Philippine Nuclear Research Institute is upgrading its gammairradiation facility to 120,000 curies. This facility is now being usedfor the sterilization of selected medical products.

5. INFORMATION TECHNOLOGY PROJECTS

In this day and age, information technology is considered pivotal tonational progress. Thus, DOST has considered IT as a focus of activity.

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5.1. INTERNET

The countrys link to INTERNET was pioneered by DOST in 1994.The initial network was configured and implemented by PHNet andwas 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 fastestgrowing INTERNET markets in Asia resulting into the establishmentof 130 ISPs as of end 1997.

5.2. Search for Product Excellence in IT

DOST, together with the Information Technology Foundation of thePhilippines (ITFP) spearheaded the First National Search forProduct Excellence in Information Technology, which led to thediscovery of three new products offered for commercialization. A

second IT search has been launched in time for theannouncements of winners to be made during the Centennialcelebrations.

5.3. Manpower Training in Information Technology: Y2K

The millenium bug problem is seen both as a threat that should becarefully addressed and an opportunity to showcase thePhilippines capability in information technology (IT). DOSTsponsored/supported accelerated training programs to develop acritical number of Filipino programmers to provide Y2K solutions.

5.4. Multi-Media Training Center

The first Multimedia Training Center in the country was opened inJuly 1995 at the Cebu Institute of Technology. The project standsout as a first instance of technology transfer initiated throughgovernment-private sector partnership with Japan MultimediaProgramming, Inc. (JAMP) and the Cebu Institute of Technology ascounterparts. This center now provides the training for prospectiveemployees of the Cebu operations of JAMP, and has now

expanded to more advanced technologies for the production ofcomputer games.

5.5. Health Research and Development Information Network(HERDIN)

Developed by the Philippine Council for Health Research andDevelopment (PCHRD), HERDIN is a bibliographic database,available online or on CD-ROM, containing 21,000 abstracts orpublished Philippine literature on health r&d. To date, HERDIN has95 online subscribers.

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Rural Telephone Switch

The Advanced Science and Technology Institute (ASTI) is now fieldtesting in Leyte and Aurora, a PC-based rural telephone switch

system that could be a cost-effective way of expanding the reach ofthe municipal telephone program.

RESEARCH AND DEVELOPMENT

The research and development agenda of DOST during the Ramosadministration has been characterized by its commitment to harness scienceand technology to create new wealth. Thus there was strong emphasis on thecommercial purposes of R&D projects without neglecting modest investmentsin fundamental or basic research.

5.6. Advanced Science and Technology

Much effort was made to reorient the research and developmentagenda of DOST towards the application of the techniques ofbiotechnology, information technology and materials science tohandle the R&D requirements of agriculture, manufacturing, andthe service sector. There is obviously still a long way to go, but astart has been made. It is expected that as more and more high-level trained scientists man the laboratories, the use of advancedscience and technology will be more prevalent.

Among the emerging technologies, it is probably in the field ofbiotechnology that more R&D activity can be noted. The traditionfor biological research in the Philippines is strong, owing to thesupport given to agriculture and health research in the past. Inbiotechnology, there was an increase in the investment for R&Dfrom 1992 to the present. However, it might be noted that notransgenic plant or microorganism has been produced in locallaboratories. Most of the research in biotechnology has been in thefield of agriculture and focussed on the incorporation of disease orpest resistance to crops and the improvement of their post-harvestcharacteristics. Industrial research in biotechnology has beenconfined to wastewater treatment and the production of ethanol andother substances from the fermentation of blackstrap molasses. Inthe health area, biotechnology research has been oriented to thearea of diagnostics particularly the use of monoclonal antibodies.There is some breakthrough in the development of diagnostic kitsof Hepatitis B. This kit is now being developed for commercial use.

In information technology, research has largely been conducted bythe Advanced Science and Technology Institute under the aegis oftheir Telecommunications Research and Development Unit. Their

research projects have been geared towards providing a cost-effective alternative for telecommunications technologies to reach

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the countryside. Thus, their agenda includes the development ofwireless transmission control protocol/INTERNET protocol networkfor rural areas and the development of digital signal processingtechnologies for rural telecommunications. Also under ASTI is theIntegrated Circuit Center to service the technological needs of the

local electronics industry. This center is currently involved in thedesign and development of Application Specific Integrated Circuits(ASICs) system boards, firmware, and integrated solutions for localbusiness needs. Work has also started at ASTI towards thedevelopment of educational software for teaching of Physics. Thisproject is a joint effort with ISMED. Other I/T projects which arebased in the universities include the development of expert systemsfor experimental design, a PC-based distributed text retrievalsystem, software development using computer graphics andanimation for fluid mechanics and machine translation from Englishto Filipino. Private sector research and development in information

technology is at its infancy. But there are serious efforts toestablish such a research base in the Philippines, especially in thearea of computer software.

Materials Science R&D in the Philippines is at an early stage ofdevelopment. The facilities for such have been recent acquisitionsthrough ESEP and confined mainly to the research group at theU.P. Diliman. A project of interest is the preparation of Bi-Sr-Ca-Cu-O superconductor thin films using liquid phase epitaxy. Otherprojects include the formulation of thermochromic mixtures derivedfrom coco-fatty acid esters of cholesterol and the utilization ofcoconut-based lignocellulosic material for the preparation ofindustrial polymers.

5.7. Marine Science Research and Development

Of high priority in our research agenda is the increase in thesupport for Marine Science R&D. This is in recognition of our beinga maritime nation. Thus, a PhP7.8M Marine Science ResearchProgram for the Kalayaan Islands is being implemented toinvestigate the ecologically important Western Palawan

biogeographical zone. Another ongoing project on the SouthChina Sea is the Influence of the South China Sea on PhilippineShelf 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 anagricultural operation to be efficient has necessitated theformulation of several integrated r&d plans. The period underreview saw the formulation of a few of these plans to address theneed to generate technologies to make agriculture competitive.

These include:

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a. Comprehensive Fruits R&D Program to produce improvedvarieties of banana, papaya, pineapple, and durian.

b. Mango Comprehensive Technology Transfer Program

c. National Furniture R&D Program

d. Integrated Ornamental Horticulture R&D Program

e. Natural Fibers R&D Program

f. Integrated Coconut R&D Program

The above programs are starting to yield high quality informationrelevant to the needs of the farmers. Furthermore, the use of

biotechnology is being encouraged to further advance the frontiersof knowledge about these cropping systems.

5.9. Health and Nutrition

DOST, through FNRI, generated information and technologies,through nutrition surveys, regarding food quality and nutritionaldisease assessment and management that led to the improvementof the delivery of services by nutrition program implementators inboth the government and private sectors. This has resulted into thewide use of iron-enriched rice, FVRice, and iodine fortificationmethods.

In pharmachemicals, studies on the separation of the opticalisomers of ibuprofen are being conducted to effectively isolate thechiral forms and determine their biological activities.

A multipurpose spectrophometer was designed and fabricated tomeasure blood constituents such as glucose, cholesterol, urea, uricacid and bilirubin.

5.10. Industry and Energy

Research and development in the industry and energy sector havebeen focused on food processing and transport. It was noted thatprivate sector participation in r&d was difficult to obtain and projectsof high quality were difficult to come by.

In cooperation with NAPOCOR, a 10-kw wind turbine generatorwas installed in Pagudpud, Ilocos Norte. Enough power wasgenerated to provide the needs for 20 households. Likewise, in theremote town of Dulao, Malicbong, Abra, a 10-kw community-based

micro-hydro power generation project now provides electricity to

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run a rice mill in the daytime and light for 43 households in theevening.

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 totransport highly perishable marine and grain products. This is nowbeing used for the Mindoro-Las Pias route.

PCIERD and DTI are jointly implementing a Processed FoodDevelopment Program. The activities are aimed at increasing ourfood exports by improving product quality, packaging, marketingand promotion.

To develop low-cost housing materials, the commercial productionof 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 tomanufacture the cement bonded board.

5.11. Environment

DOSTs role in environment R&D has been largely supportive of theefforts of DENR.

A Science Watch Action Group was organized to determine thescientific basis and the appropriate response to interesting naturalphenomena such as red tide occurrences, earthquakes,flashfloods, oil and chemical spills. The group has been active inthe Marinduque mine tailings incident and several incidents offishkills all over the country.

DOST maintains two red tide monitoring stations (Region 3 andRegion 8). These stations assist the National Red Tide Task Forceby providing red tide updates.

Biodiversity studies are being funded in Subic and Aurora. Theseinvolve mainly the identification and inventory of important flora andfauna and the identification of endemic species.

The Laguna de Bay Rehabilitation Program was initiated in 1996 tostart the effort towards improving the water quality of the lake,considering its potential as a multipurpose resource especially as asource of potable water for the Metro Manila area. Thisinterdisciplinary program involves the formulation of a rehabilitationstrategy that is community-based, covering the whole basin of thelake.

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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 andconsultancy services that will result in improvement in the flow ofmaterials, reduction of product cost, reduction of rejects, increase inprofits, among others. Productivity consultancy services wereprovided to 684 manufacturing companies since 1992. Productivityimprovements documented ranged from 25% to as high as 200%.MPEX covers ceramics, food, furniture, jewelry, gifts, toys andhousewares and the metal sectors.

6.2. Consultancy for Agricultural Productivity Enhancement(CAPE) Program

CAPE, which centers to the productivity improvement needs ofmedium and large-scale agricultural industry, was implemented asa parallel program to the MPEX program. The assistance is in theform of productivity studies and consultancy services. Since itsinception in 1993, CAPE has assisted 320 agribusiness farms in 22provinces covering a total area of 2,017 hectares in 4 agriculturalsectors (aquaculture, livestock, horticultural and agronomic crops).Among its notable accomplishments were: (1) survival rate ofaquaculture farms increased to 95% from the segmented 30-50%due to effective control of luminous bacteria; (2) export-qualitymangoes increased from 50-85% of total harvest as a result ofbagging; (3) a Practical Guide on the Cultural Management ofMango was prepared and can be used as an extension tool forother mango farmers and growers; and (4) others.

6.3. Expert Volunteer Pool (EVP) Program

The EVP Program was established to involve experts in extendingS&T services to the communities. Common services renderedwere in the form of training/demonstration; consultancy

services/technical assistance; lectures and fora; and repair andmaintenance of laboratory equipment. A total of 1,991 volunteerexperts have been accredited under STEVPP since 1992 of which1,233 have been deployed benefiting 35,577 beneficiaries all overthe country.

6.4. Municipal Science and Technology Advisory Program(MSTAP)

MSTAP was created to reinforce DOSTs thrust to fast-track theapplication of scientific and technological innovations in the rural

areas. Under the program, experts from the academe act astechnical consultants to the various municipalities providing access

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to technologies appropriate and relevant to the areas. The programfast tracked technology delivery in 23 provinces through theassistance of 21 SCUs. Total investments made was PhP8.2Mgenerating counterpart funding from LGUs amounting to PhP5.3Mwhich was spent for training and other technology-based projects.

6.5. Program of Assistance to Inventors

Assistance to inventors has likewise been expanded through RA7459. To date, a total of 40 inventors wit 106 inventors with abusiness value of PhP97.57M have been endorsed to BIR for taxincentives and tax exemption availment for 16 inventor-ownedcompanies valued at PhP3.07M. Another program, the PrototypeDevelopment and Testing Program, facilitates production ofequipment ready for commercial transfer. The program providesfinancial assistance for fabrication of inventions/technology

models/equipment which have commercial potential. From 1992 to1997, it provide assistance for the fabrication of 44 prototypes.

6.6. Global Technology Search (GTS) Program

The GTS program involves the search and acquisition oftechnology development and sustain the inflow of technologies tothe production sectors. The program received 473 (1993-1996)proposals

6.7. Science and Technology Fairs

National and Regional Technology Fairs were held annually toshowcase new technologies ready for transfer. Since 1992, theFairs have generated total sales of over PhP55M for participatingcompanies. Investors Fora were organized to attract entrepreneursto invest in technology ventures; they featured 108 technologiesfrom 1993 to 1997.

6.8. Technology Business Incubators / Science and TechnologyParks

The Technology Business Incubators were set up in Bicutan, andUrdaneta, Pangasinan to assist new technology firms throughtechnical, marketing and management support. Likewise, S&TParks were established in UP Diliman, UP Los Baos, and UPVisayas to serve as a vehicle for the universities to interact withprivate industries and provide a conducive environment forinnovation. The TBIs in the Bicutan area seem to be the moreactive ones while the S&T Park of UP Diliman is more fullyoccupied than the rest.

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7. DISASTER AND HAZARD MITIGATION

Active fault mapping activities were undertaken to study and monitorthe geological characteristics in strategic sites of the country for their patternsin gravimetry, geomagnetism, geoelectricity and geothermy.

As mentioned earlier, a four-storey building to house the basic workforce and facilities of PHIVOLCS is being completed. After four (4) years ofaggressive infrastructure development, PHIVOLCS seismic monitoringnetworks reached 50 percent of the desired monitoring capability. With theaddition of 17 new stations, the network now has 29 seismologicalobservatories and 12 permanent volcanological observatories located instrategic parts of the country.

PHILVOLCs quick response team has been organized to investigatereported unusual geologic phenomena.

Relative to the weather/flood forecasting and geophysical/astronomicalservices, operation and maintenance of the following were sustained: 329weather observation and flood monitoring systems in various places in thecountry. These include the central analysis and forecasting center in QuezonCity; and the Meteorological Satellite ground receiving and processing systemscomposed of the Geostationary Meteorological Satellite (GMS) and theNational Oceanic and Atmospheric Administration (NOAA).

Hazard and vulnerability maps were developed/formulated as baselineinformation for disaster reduction activities which include: 1) Flood HazardMapping of Taguig, Metro Manila; 2) Flood Vulnerability Mapping of Taguig,Metro manila; 3) Thunderstorm Hazard mapping of Luzon; and 4) WaterChannel Mapping in Quezon City.

8. INTERNATIONAL RELATIONS

To accelerate the S&T development in the country, international linkageson S&T are pursued with other countries in the form of bilateral cooperation,multilateral cooperation and regional cooperation. Agreements are containedin Memorandum of Understanding with other countries promoting exchange of

experts, scholarship support, training in S&T areas of interest and jointresearch projects.

Active bilateral cooperation agreements were forged with the followingcountries: 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 establishedwith the Science Council of British Columbia.

Regional and multilateral cooperation programs were pursued with the

following: A&T Policy Asian Network (STEPAN), Association for ScienceCooperation in Asia (ASCA), Association of Southeast Nations-Committee on

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Science and Technology (ASEAN-COST), Asia Pacific Economic Cooperation(APEC), International Atomic Energy Agency (IAEA), the International Centerfor Genetic Engineering and Biotechnology (ICGEB), International Associationof Traffic and Safety Sciences (IATSS), and the Asian Conference on ScientificCooperation (ACSC).

9. S&T POLICY INITIATIVES

9.1. LAWS Enacted

R.A. 7687: An Act Instituting a Science and TechnologyScholarship Program and for other Purposes (March 2, 1994)

This Act is known as the Science and Technology Scholarhip Actof 1994. It encourages the development of the countrys scienceand technology human resources in line with economic

development and to provide the capability required in the areas ofresearch, development, innovation as well as their utilization. Itprovides scholarships and other forms of incentives to deservingscience students and other specially gifted citizens to pursuehigher 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 of1992, Providing for the Distribution of Proceeds from the Sale of Portionsof 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 technologyscholarships and training of young Filipino scientists and studentsin selected countries.

RA 7925: An Act to Promote and Govern the Development ofPhilippine Telecommunications and the Delivery of PublicTelecommunications Services (March 1, 1995)

This Act is also known as Public Telecommunications Policy Actof the Philippines. Telecommunications services shall bedeveloped to safeguard, enrich and strengthen the economic,cultural, social and political fabric of the Philippines. Thefundamental objective of this Act is to develop and maintain aviable, efficient, reliable and universal telecommunicationinfrastructure using the best available and affordabletechnologies, as a vital tool to nation building and development.

RA 8042: An Act to Institute the Policies of OverseasEmployment and Establish a Higher Standard of Protection and

Promotion of the Welfare of Migrant Workers, Their Families andOverseas Filipinos in Distress, and for Other Purposes (June 7, 1995).

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Section 37 of the Act created the Congressional Migrant WorkersScholarship Fund which shall benefit deserving migrant workersand/or their immediate descendants below 21 years of age whointend to pursue courses or training primarily in the field of

science and technology. The scholarship fund shall beadministered by the DOLE in coordination with DOST.

R.A. 8248: An Act Further Strengthening the Science andTechnology Program of the Government, Amending for the Purpose RA7687, otherwise knows as the Science and Technology Scholarship Act of1994 (and Creation of the Science and Technology Human ResourceDevelopment Council) (January 29, 1997)

The Science and Technology Human Resource DevelopmentCouncil was created under this Act tasked to formulate and

implement science and technology human resource developmentprogram, and a career system for technologists and techniciansto complement the scientific career system including policies forthe 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 Supervisionof the Nueva Vizcaya Science High School in Bayombong Nueva VizcayaFrom the Department of Education, Culture and Sports to the Departmentof Science and Technology (October 9, 1997)

The Nueva Vizcaya Science High School established under RA7622, shall be under the administrative supervision of theDepartment of Science and Technology (DOST). DOST shallpromulgate the necessary rules and regulations for itsimplementation.

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 developmentin science and technology and to achieve and maintain thenecessary reservoir of talent and manpower that will sustain itsdrive for total science and technology mastery, and Act providing aMagna Carta for Scientists, Engineers, Researchers and otherS&T personnel was approved. The Act provides for a system ofincentives and special salary scale for S&T personnel in thegovernment.

RA 8435: An Act Prescribing Urgent Related Measures toModernize the Agriculture and Fisheries Sectors of the Country in Order to

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Enhance their Profitability, and Prepare said Sectors for the Challenges ofGlobalization through an Adequate, Focused and Rational Delivery ofNecessary Support Services, Appropriating Funds therefore and For OtherPurposes (December 22, 1997)

This Act is also known as the Agriculture and FisheriesModernizing Act of 1997. It ensures the development of theagriculture and fisheries sectors in accordance with the followingprinciples: 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-basedindustry;

2. to enhance profits and incomes in the agricultural andfisheries sectors by ensuring equitable access to assets, resources andservices, and promoting higher value crops, value-added processing,agribusiness activities and agro-industrialization;

3. to ensure accessibility, availability and stable supply of foodto all at all times;

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

5. to promote empowerment by strengthening peoplesorganizations, cooperatives, and NGOs and by establishing and improvingmechanisms and processes for their participation in government decisionmaking and implementation;

6. to pursue a market-driven approach to enhance thecomparative advantage in the world market;

7. To provide mesures that increase productivity and improvemarket efficiency while ensuring protection and preservation of the environmentand equity for small farmers and fisherfolks.

RA 8293: An Act Prescribing the Intellectual Property Codeand Establishing the Intellectual Property Office, Providing for its Powersand 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 propertysystem is recognized as vital to the development of domestic and

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creative activity, facilitates transfer of technology, attracts foreigninvestments, and ensures market access for products. This Actstreamlines the administrative procedures of registering patents,trademarks and copyright, to liberalize the registration on thetransfer of technology, and to enhance the enforcement of

intellectual property rights in the Philippines.

RA 8496: An Act to Establish the Philippine Science HighSchool System (PSHS), and Providing Funds therefore (February 4, 1988)

The Philippine Science High School System is being establishedto assume the leadership role in secondary level science andtechnology education. The Act aims to pursue the followingobjectives: a) integrate the existing PSHS at Diliman, EasternVisayas, Western Visayas and Mindanao into one system ofgovernance and management; b) ensure uniformity in quality

standards and systematize operations of schools under the PSHSSystem; and c) rationalize the establishment of science highschools.

RA 8287: An Act Converting the Puerto Princesa City PilotSchool Sta. Monica Annex in the City of Puerto Princesa, Province ofPalawan, into a National Science High School to be Known as the PuertoPrincesa City National Science High School, and Appropriating FundsTherefor (May 3, 1997).

RA 8304: An Act Converting the San Rafael National HighSchool in the Municipality of Tigaon, Province of Camarines Sur, Into aScience High School to be Known as the San Rafael National Science HighSchool, and Appropriating Funds Therefor (June 6, 1997)

The purpose of the said high school shall be to offer a secondarycourse with special emphasis on subjects pertaining to thesciences, with the end in view of preparing its students for ascience 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 scholarshipbasis, a free secondary course with special emphasis on thesciences and mathematics to prepare its students for science andtechnology 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 duringthe taxable year in connection with trade, business or profession.

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Research and development expenditures are treated as ordinaryand necessary expenses which are not chargeable to capitalaccount.

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 allanimals (to include birds) in the Philippines by supervising andregulating the establishment and operations of all facilities utilizedfor breeding, maintaining, keeping, treating, or training of allanimals 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 theanimal is killed after it has been used in authorized research orexperiments;

RA 8550: An Act Providing for the Development, Managementand Conservation of the Fisheries and Aquatic Resources, Integrating AllLaws Pertinent Thereto, and for Other Purposes, Otherwise knows as ThePhilippine Fisheries code of 1998. (February 25, 1998)

This Act aims to achieve food security as the overridingconsideration in the utilization, management, development,conservation and protection of fishery resources.

It also calls for the creation of a National Fisheries Research andDevelopment Institute (NFRDI) that shall be attached to theDepartment of Agriculture and serve as the primary research armof BFAR. The Executive Director of PCAMRD-DOST shall be amember of the Governing Board of NFRDI.

10.2. Executive Orders

EO 130: Instituting the Balik Scientist Program under theDepartment of Science and Technology (October 25, 1993)

As part of the S&T Human Resource Development Program, theBalik Scientist Program was revived under this E.O. The Programallows any foreign-based scientists, professionals, technician, orany person with special skill or expertise who is of Filipino origin ordescent to practice his/her profession or expertise in thePhilippines for a short term with a duration of at least one month ora long term duration of at least two (2) years. Incentives areprovided.

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E.O. No. 247: Prescribing Guidelines in the Establishment of aregulatory Framework of the Prospecting of Biological and GeneticResources, their By-products and Derivatives for Scientific andCommercial 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, aswell as to preserve and protect the environment.

E.O. 270: Requiring all Philippine diplomatic and consularposts to assist in organizing expatriate Filipino scientists, technologists,engineers and allied professionals in their jurisdiction into overseaschapters 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 andreferral. DOST acts as the advisory agency in identifying the S&Trequirements for tapping foreign-based scientists and informationsources.

EO 468: Providing for the Creation of a National Council forthe Promotion of Electronic Commerce in the Country (February 23, 1998)

The National Council is created to serve as the coordinating bodyfor the promotion of the development of electronic commerce inthe country. It is tasked to formulate a National Program andStrategy (NPS) and coordinate/monitor its implementation.

DOST sits in the Council as Member.

EO 469: Amending Executive Order No. 190 dated 19 July1994 Approving and Adopting the National Information Technology Plan2000 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 tocoordinate and oversee the implementation of the Plan and toharmonize and coordinate all IT initiatives. The NITC is chaired bythe DOST Secretary and co-chaired by the NEDA Director-General and a Private Sector Representative with membershipfrom other government agencies, private sector and academe.

10.3. Administrative Orders

A.O. Nos. 202 and 273 further strengthened the composition ofthe Science and Technology Coordinating Council (STCC). Private sector

membership was increased from three to eight representatives. Alsorepresented are a foreign-based Science and Technology Advisory Council

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(STAC) representative in the person of Mr. Diosdado Banatao of Silicon Valley,San Jose California, USA, NEDA, CHED and one from the public academicsector. STCC is now composed of 22 members. (July 5, 1995 & May 19, 1996resp).

A.O. 378: Creating the National Steering Committee for anEnhanced Science and Mathematics Education Teacher Training Program(February 4, 1998)

The Committee is headed by DOST and acts as a policy-makingand major resource allocation body for the effectiveimplementation of the project RISE (Rescue Initiatives for ScienceEducation). RISE is a five-year teacher-training program forscience and mathematics teachers at the public and privateelementary, secondary and post-secondary technical/vocationalschools nationwide.

10.4. Presidential Directives (May 1996)

The following presidential directives were issued: 1)Establishment of a nationwide electronic network of schools incooperation with Internet service providers; 2) Establishment of aprivate sector-operated coconut research institute; 3) Upgradingand modernization of early warming and forecasting systems ofPHIVOLCS and PAGASA; 4) Expansion of research anddevelopment in marine science to include coastal resourcemanagement and off-shore technologies; 5) Improvement ofsupport for small and medium enterprises by increasing availableventure 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 andimplemented.

11. DOST S&T POLICY INITIATIVES

11.1. S&T Activities in the Philippines are guided by the Science and

Technology Master Plan (STMP), 1990-2000. DOST has been pursuing anddirecting efforts toward the attainment of its goal to become a newlyindustrializing 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 developmentand institution building. (1989)

11.2. To integrate further the inputs of science and technology with theprocess of industrialization, the Science and Technology Agenda forNational Development (STAND) has been formulated. STAND is a market-oriented, private sector-driven, short to medium-term action plan which

predicates mastery of science and technology as a vital componentcontributing to economic growth-particularly in priority areas such as export

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winners, domestic needs, support industries and the coconut industry. Itcarries out its objectives through the implementation of the followingstrategies:

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 ofSTAND, allocation levels for funding these activities have beenset. Seventy percent (70%) of total DOST budget shall beallocated for STAND priority areas and the remaining 30 percentfor other priority areas. Within the budget allocation for STAND

programs, the distribution is as follows: 50 percent for exportwinners; 20 percent for basic domestic needs; 20 percent forsupport industries and 10 percent for coconut. (1993)

11.3. The Science and Technology Education Plan (STEP) wasformulated. STEP seeks to provide direction for the development of scientificand technological manpower. The Plan includes programs and projectscovering curriculum/instructional materials development; manpowerdevelopment (faculty staff); acquisition of facilities/equipment, research anddevelopment; institution building; and alternative learning system. (1993)

11.4. The DOST Master Plan for the General Agreement on Tariffsand Trade (GATT) was formulated to indicate the strategic responses of theS&T sector to the challenges and opportunities posed by the ratification of theGATT. The two major concerns of DOST in supporting GATT are 1) technicalassistance in the adjustment of sectors or industries affected by theconversion of all quotas and other quantitative restrictions (QRs) to tariffs, and2) technical assistance to enhance the competitiveness of products subject totariff reduction. (1995)

11.5. DOST adopted the Seven-Point Agenda which had laid out the

priorities for institutional reforms to make DOSt more responsive to thedemands of S&T development. These are: 1) A vision for technologicaladvances in the agriculture, manufacturing and services sectors; 2) A strategicresearch plan to operationalize the vision; 3) A cross-disciplinary approachinvolving the government and private sectors; 4) An educational programinvolving the academe to focus on technological systems and industryapplications; 5) A large-scale contemporary instrumentation and laboratoryinfrastructure; 6) Involvement of industry in planning, development, transferand promotion of technology; and 7) Improving the research managementsystem. (July 7, 1994)

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

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industrialization. These constitute the core competency of DOST. Theseprojects are on metalworking, coconut, waters resources in Laguna de Bay,biotechnology, information technology, materials science, upgrading of centersof excellence and human resource development. (1994)

11.7. Formulated the DOST Medium-Term Corporate Plan (1994-1998) through a series of planning workshops to be more congruent with theMedium-Term Philippine Development Plan (MTPDP) as well as with theDepartments vision for Philippines 2000. The Plan contains the mission andvision statements, priorities, intervention areas, and programs/projects andother corresponding budgetary requirements. (1994)

11.8. Implementing guidelines on the grant ofhonoraria/incentive payfor DOST and the National R&D System (NRDS) were issued. These providebetter incentive pay to researchers, technical and support personnel in DOSTand the NRDS to encourage productivity and acknowledge extraordinary

performance, efficient delivery of services and output. (DOST MemorandumCircular No. 93-1, s. 1993)

11.9. Guidelines for the Inventors Incentive Act were issued.These include the terms and conditions; the grant of cash rewards; and themanagement of both the Invention Development Assistance Fund and NewInvention Guarantee Fund. (DOST Administrative Circular No. 001 series of1994)

11.10. Guidelines on Technology Transfer Arrangements in theNational Research and Development System was formulated. The policyguidelines cover all technology transfer arrangements entered into by memberagencies of the National Research and Development System with public orprivate clients whether domestic or foreign. The Guidelines defined terms ofagreement involving licensing and know-how agreements. (DOSTMemorandum Circular No. 93-2 s. 1993)

11.11. DOST participation in gender-responsive activities andreconstitution of DOST focal point for women concerns werestrengthened to institutionalize activities/efforts of women in S&T, (DOSTAdministrative Order No. 077)

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

11.13. DOST implemented Section 24 of the 1995 General

Appropriations Act (GAA) which provides that appropriations pertaining toresearch and development in the natural, agricultural, technological and

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engineering sciences for various government instrumentalities within STANDshall be released upon the recommendation of the Secretary of DOST. AnInter-agency Committee was created to review R&D projects and the budgetsof 86 agencies (including 50 state universities and colleges and 36government agencies) to rationalize the use of the government R&D budget

and ensure that expenditures are aligned to the STAND. (1995)

11.14. DOST Administrative Order No. 001 series of 1996 was issuedwhich established the criteria for R&D Centers of Excellence in the country.

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

11.16. DOST Memorandum Circular No. 004, series of 1996 was issuedpromulgating the guidelines for smooth implementation of the GlobalTechnology Search Program and streamlining activities for technologyupgrading through global and technology surveillance.

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, someprogress was achieved in promoting science and technology during theRamos administration. The support received from the executive and thelegislature has been very instrumental in putting some reforms in place.Resources have been provided and the major elements of the policyframework are in place for a sustained effort to develop a world class scienceand technology enterprise. But there are still many concerns that need to beaddressed.

First and foremost is the continuing assault from within government to

dismember DOST. The Agricultural Modernization Bill and the Fisheries CodeBill attempted to transfer PCARRD and PCAMRD to the Department ofAgriculture. Furthermore, overtures were made during budget hearings totransfer the PSHS to the DECS. The discussions on the reorganization of thebureaucracy also proposed for the downsizing of DOST through the transfer ofits existing agencies to other departments. These assaults continue to makeDOST personnel insecure and have affected their work performance.Furthermore, the very simplistic approaches and reasons to dismember DOSTare out of step with the present realities in the local and international scientificenterprises.

Secondly, there is still a considerable lack of convergence amonggovernment programs across departments. High schools which were assisted

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by ESEP with new laboratory buildings and equipment and teacher training,were not selected as the Regional Science High Schools by DECS. Schoolcomputerization programs financed by CHED, DECS, and DOST are notsynchronized and well planned. Special policies to improve the environmentfor doing science are negated by one size fits all pronouncements made by

the fiscal authorities. The catching-up process is blocked by auditorsfollowing outdated rules and regulations. This lack of convergence poses as aserious roadblock for our country to accelerate development. The desire tohave 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 inthe country. The number and quality of those who are active in research anddevelopment are hardly enough to propel a modest industrialization program.Interesting problems have come by our way, but there was no one aroundqualified to provide solutions. This limitation in human capability is a serioushandicap 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 useadvanced techniques in their experiments. Some of the agencies under DOSTwill have to be reengineered and their missions updated to optimize the use ofpublic funds.

The indicators used to monitor progress in the development of scienceand technology must continuously be updated. The latest data covers only upto the year 1992. Furthermore, other indicators must be developed so that anaccurate picture of what is happening at ground level can be obtained. Forexample, the number of high school students able to avail of S&T scholarshipsmust be regularly monitored. The technology content of new foreign directinvestments in the country must be assessed so that we can have a sense ofthe balance of installed capabilities crucial for our national security.

The management of science and technology require special skills and aspecial environment. The Magna Carta for S&T Workers in Government is agood start, but more interventions will have to be introduced to enhance theenvironment for doing science.

Towards a Strong National System of Innovation

As earlier discussed, there are strengths and weaknesses, the positivesand the negatives that we have to contend with. To sustain growth, we mustinstitute measures that will enable us to become globally competitive byimproving our capability to produce elaborately transformed manufacturedgoods THROUGH A STRONG AND DYNAMIC NATIONAL SYSTEM OFINNOVATION.. For as long as our educated manpower continues to berecognized as very capable and ingenious, our bid to be globally competitivecan be seriously pursued. For this we shall need political will and massiveinfusion of resources. Therefore, we must now move boldly and resolutely,focused towards enhancing our capability to produce elaborately transformed

manufactured products.

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Suggested future / Continuing interventions

Given the trend towards the dominance of knowledge-intensiveindustries in world trade and recognizing the strong link between R&Dexpenditures and innovation, the following suggestions are offered:

1. Strengthen the human resource program through appropriateincentives:

Provide for automatic promotion for those who obtain advanceddegrees 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 forgovernment researchers (amendment to Ethics Law); and increase royaltyshare of researchers in publicly funded research.

Provide continuous upgrading scheme through scholarships andsecondment programs between the government and the private sectors.

Provide resources for extensive and rapid teacher education andtraining program in science and technology.

2. Re-engineer the science and technology establishment to allow forflexibility and responsiveness:

Revise position titles and new salary scales for scientists,engineers and technicians.

Authorize the Secretary of DOST to redeploy personnel basedon certain guidelines.

3. Exempt government institutions engaged in R&D from the AtritionLaw.

4. Expand fiscal incentives for R&D allow for a 150-200% deductionfrom taxes of R&D expenditures.

5. Encourage the establishment of venture capital firms (local andforeign) a mechanism for financing the technology upgrading of small andmedium enterprises.

6. Provide corporate powers to DOST as proposed in the RapidTechnology Transfer Act.

7. Improve the intellectual property rights protection in the Philippinesto encourage entry of more technology-based investments.

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

9. Formulate an Industrial Policy based on selective targeting ofproduct niches in the global market.

Our ability to add further value to our commodities is still minimal as welack the capital, and to some extent the confidence as a nation to positionourselves to become an end productsprocessor or manufacturer or betteryet as a producer of next generation products.

We have presented in this report the highlights of the initiatives takenduring the Ramos administration to prepare the ground for sustaineddevelopment in science and technology. We hope that in our own humble waywe have contributed to the creation of conditions to generate internalmomentum 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 quickand easy solutions toward the attainment of world-class competence inscience and technology especially in an environment as technologicallytrisected as the Philippines.

We look forward with eagerness to the realization, in the near future, ofa strong and dynamic national system of innovation for the Philippines.

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4.7.D-preparing the Ground for Sustainable Development in Sc