NIC approves reforms to boost startups and AI

The National Innovation Council (NIC) has approved key reforms aimed at removing bureaucratic bottlenecks, modernizing procurement, and supporting startups and innovation-driven enterprises, according to the Department of Economy, Planning, and Development (DEPDev).

The reforms were approved during the Council’s ninth meeting on Nov. 20, 2025, presided over by President Ferdinand R. Marcos Jr., reflecting the NIC’s commitment to building a dynamic and inclusive innovation ecosystem in the Philippines.

A central component of the new measures is the endorsement of the Supplemental Guidelines for the Direct Procurement for Science, Technology, and Innovation issued under Section 37 of the implementing rules of the New Government Procurement Act (Republic Act 12009).

The guidelines aim to streamline government procurement processes for research, development, science, and technology programs.

The policy seeks to reduce bureaucratic delays, broaden startup participation in public-sector projects, and permit the procurement of pre-commercial goods to support early market entry and innovation.

The guidelines will be submitted to the Government Procurement Policy Board for final approval and issuance.

“To keep pace with global technological developments and foster a dynamic innovation ecosystem, government procurement must be fast, flexible, and open to new ideas,” DEPDev Secretary Arsenio M. Balisacan said.

He said the new modality under the New Government Procurement Act accelerates research, encourages early commercialization of innovations, and gives startups and technology suppliers more opportunities to compete.

The NIC also reviewed a DEPDev-led policy reform study titled “Streamlining Business Registration, Renewal, and Exit Processes,” which addresses administrative hurdles affecting micro, small, and medium enterprises and startups.

The study focuses on simplifying regulatory procedures to help businesses start, sustain, and exit more efficiently.

This initiative supports the NIC’s mandate to improve the ease of doing business by cutting red tape and modernizing permitting systems, especially for innovation-oriented firms.

The Council also approved the implementing guidelines of Executive Order 99, Series of 2025, which govern the Presidential Filipinnovation Awards.

The updated rules revise eligibility criteria, evaluation standards, and procedures to encourage broader and more inclusive participation in the annual awards.

During the meeting, the Department of Science and Technology reported progress on the National Artificial Intelligence (AI) Strategy for the Philippines following Marcos’ directive to establish a national AI think tank and governance framework.

“AI’s transformative power demands a unified national strategy to align efforts, reduce inefficiencies, and unlock its full potential across government and the economy,” Balisacan said.

The NIC’s actions reinforce the country’s push for a future-ready economy through innovation-friendly regulations, inclusive digital transformation, and stronger public-private collaboration.