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Republic of the Philippines


City of San Fernando 2500, La Union
Telefax (072) 607-5798
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PROFESSOR : Ramon T. Peralta, CESE, MM-PM
S.Y. : 1st Semester, 2018-2019

Legislative Agenda: Legislative Agenda to Ensure Rapid Adoption and Promotion of

New Technologies in Region 1 (2017-2022)

I. Proposed Policy Title: Innovation Capacities Improved

II. Proposed Policy Description
“Science, Technology and Innovation (STI) play a critical role in achieving a robust
economic growth. In Region 1, there is a need to intensify the adoption of low-cost but
sustainable technologies including mechanization, and technologies that are adaptive to
the adverse effects of climate change and other catastrophic events. Higher production
and productivity, and significant reduction in labor costs will be realized by the
Agriculture, Forestry and Fisheries (AFF), Industry and Services sectors through rapid
adoption and promotion of technologies in the region.”

Over time, economic growth and the associated progress in living standards
reflect a number of determinants, including increases in workers’ skills, rates of
saving and capital accumulation, and institutional factors ranging from the
flexibility of markets to the quality of the legal and regulatory frameworks.
However, innovation and technological change are unquestionably vital to the
growth process, especially in an economy. Economic policy affects innovation and
in the long-run, economic growth in many ways. A stable macroeconomic
environment; sound public finances; and well-functioning financial, labor, and
product markets all support innovation, entrepreneurship, and growth, as do
effective tax, trade, and regulatory policies.

Governments in many countries directly support scientific and technical

research; for example, through grant-providing agencies (example the National
Science Foundation in the United States) or through tax incentives (like the R&D
tax credit). In addition, the governments, such as of the United States and many
other countries, run their own research facilities, including facilities focused on
nonmilitary applications, such as health, and others. The primary economic
rationale for a government role in R&D is that, without such intervention, the
private market would not adequately supply certain types of research.

Innovation has not only led to the introduction of new products and more-
efficient production methods and ideas, but has also induced dramatic changes
on how businesses and organizations are systematized and managed.

In the Philippine setting, reports show that technologies are not commonly-used
among farmers and fisherfolks, as well as to MSMEs, due to lack of available resources
to avail or create modern technologies and lack of awareness on the available
technologies, particularly those that are intended to improve their production and
productivity, and enhance the quality of their products.

For the farmers and fisherfolks, some of the strategies brought upon is to come up
with a vibrant agribusiness and expand the trade, industry and services sector including
the promotion and adoption of modern and ecological agriculture and fishery facilities
and technologies, and enhancement of the access of Micro, Small and Medium
Enterprises (MSMEs) to technology in the region.

In order to boost the adoption of new technologies among farmers and fisherfolks in
the region, there is a need to strengthen the linkage among cooperatives and business
enterprises. The government coursed through the cooperatives the provision of
technologies to farmers and fisherfolks that are necessary to improve their production
and productivity. As a result, the increase in volume in their production and
improvement in the quality of their produce will attract business enterprises to buy their
products through cooperatives.

“Increasing agribased enterprises was partly attained in the previous plan. In 2015,
agri-fishery production losses and damages peaked in the region, from P1.53 billion in
2014 to P2.49 billion in 2015 excluding damage to agri-infrastructure at P1.28 billion,
due to the adverse effects of weather and climate related disasters that hit the region on
the said year. Taking into account the vulnerability of the AFF sector to natural disasters
and climate change, there is a need to further intensify the advocacy or promotion of
technologies in the region due to weak or slow adoption among farmers and fisherfolks.
They have to be encouraged to adopt appropriate production inputs, farming systems
and technologies that are adaptive to the negative effects of agri-related disasters.”

In relation to the government’s advocacy and promotion of new technologies to

MSMEs in the region, the Department of Science and Technology (DOST)1
implemented programs and projects with the vision to transform more MSMEs into
competitive enterprises capable of employing more individuals. Among its programs and
projects is the Small Enterprise Technology Upgrading Program (SETUP) under its
Technology Transfer and Commercialization Program. Two food innovation centers
were also established in 2015 at Mariano Marcos State University (MMSU), Batac City
and at the Pangasinan State University (PSU), Bayambang, Pangasinan. The
Community Empowerment through Science and Technology Program (CEST)
conducted mobilization activities which resulted to the development of four livelihood
projects in identified poor communities in La Union and Pangasinan.

Despite the accomplishments of the DOST, there is still a need to further strengthen
the government’s efforts to support and promote new technologies to MSMEs. MSMEs
may avail the Shared Service Facilty implemented by Department of Trade and Industry.
“The SSF Project is being implemented nationwide with project partners termed as
Cooperators, which may be any juridical entity such as but not limited to non-
government organizations, people’s organizations, cooperatives,
industry/trade/business associations, local government units (LGUs), state
universities/colleges technical vocational schools and other similar government and
training institutions. Beneficiaries of the project are the actual and potential users of the
SSF which should be predominantly cooperatives, associations or groups of MSMEs
including MSMEs or individual entrepreneurs who may not be members of cooperatives,
associations, corporations or organizations.”

III. Objectives
1. To expand economic opportunities and increase the potential growth in the
region by ensuring rapid adoption and promotion of new technologies in the
2. To improve innovation capacities in the Region specifically for the use of farmers,
fisherfolks and MSMEs
3. To drive inclusive development, promote the growth and competitiveness of

IV. Expected Beneficiaries/Results

Farmers and fisherfolks, including MSMEs, will be the beneficiaries for this proposed
V. Benefits of Shared Service Facilities



1DOST Annual Report, CY 2015