Philippines accelerates shift to innovation-driven economy

By Francis Allan L. Angelo

The Philippines is advancing toward a smart and innovation-driven economy, according to the 2024 Progress Report on the Implementation of the Philippine Innovation Act, released Monday by the Department of Economy, Planning, and Development (DEPDev).

DEPDev, which serves as the Secretariat of the National Innovation Council (NIC), said the report outlines critical progress in innovation governance, grants distribution, and strategic policy reforms.

“The Progress Report shows how our reforms are translating into stronger innovation governance, more responsive programs, and a growing culture of creativity and collaboration,” DEPDev Secretary and NIC Vice Chair Arsenio M. Balisacan said in a statement.

Balisacan emphasized that innovation is a “critical enabler of productivity, competitiveness, and inclusive development,” citing improvements in the country’s innovation performance.

The Philippines rose to 53rd out of 133 economies in the 2024 Global Innovation Index (GII), up three ranks from the previous year and surpassing the national target of 54th under the Philippine Development Plan (PDP) 2023–2028.

This marks the sixth consecutive year the country has been recognized as an Innovation Overperformer, with strong showings in high-technology trade and intellectual property filings.

The 2024 report highlights the launch of the Filipinnovation Awards, a new initiative that honors Filipino enterprises and individuals with market-ready innovations.

Institutionalized through Executive Order No. 99, signed on October 6 by President Ferdinand R. Marcos Jr., the awards aim to elevate local talent and drive inclusive progress.

The awards are open to 100 percent Filipino-owned micro, small, and medium enterprises (MSMEs) and individuals, with five national-level winners to be named Filipinnovator Awardees of the Year.

Alongside this, the NIC introduced the National Innovation Monitoring and Evaluation Matrix (NIMEX), a unified framework to track innovation performance and guide policy and investment decisions.

NIMEX builds on the National Innovation Agenda and Strategy Document (NIASD) 2023–2032 and uses both international benchmarks and locally developed indicators to assess outcomes.

In 2024, the NIC received 376 project proposals under its Innovation Grants program, with a total funding request exceeding PHP 3.52 billion (approximately USD 61.89 million).

Of those, 36 proposals passed technical evaluation, with 20 endorsed for approval and implementation beginning July 2025.

The majority of submissions—209 of 376—came from state universities and colleges (SUCs), showing a 75.6 percent increase from 2023.

DEPDev also launched policy reforms, including sandbox frameworks for regulatory innovation, studies on intellectual property–backed financing, and efforts to ease business registration and exit.

“These structural reforms ensure that our innovation ecosystem remains inclusive, agile, and responsive to national development needs,” Balisacan said.

The NIC Secretariat also expanded its capacity with two new divisions and 36 permanent staff positions to better support innovation planning and coordination.

Celebrations like the 2024 National Innovation Day underscored the cultural dimension of Filipinnovation, with 420 attendees and workshops promoting empathy, creativity, and collaboration.

During the event, President Marcos encouraged a nationwide embrace of innovation, while Balisacan called on all sectors to “nurture, amplify, and celebrate Filipino values” to drive transformation.

The report concludes with a forward-looking agenda for 2025, including the rollout of the NIC Web Portal, continued implementation of innovation grants, and expanded monitoring of innovation results.

Signed into law in 2019, Republic Act No. 11293, or the Philippine Innovation Act, mandates the NIC to lead the country’s innovation strategy and aligns closely with the broader PDP 2023–2028.

The full 2024 Progress Report is available on the DEPDev website: https://depdev.gov.ph/2024-philippine-innovation-act-progress-report