Bill creating innovation council hurdles House on 2nd reading

THE House of Representatives approved on second reading the bill proposing to incorporate innovation in the development policy of Micro, Small, and Medium Enterprises (MSMEs).

House Bill No. 8715, or the Philippine Innovation Act, will establish the National Innovation Council (NIC), tasked to develop the National Innovation Agenda and Strategy Document (NIASD).

The NIASD will elaborate the country’s vision and long-term goals, centered on innovation, which the bill defined as the “creation of new ideas that result in the development of new or improved policies, products, processes, or services which are then spread or transferred across the market.”

The NIC is also mandated to develop a comprehensive support program to promote MSME internationalization and participation in the local and global value chains.

These programs include “coaching and mentoring in the areas of design; technology extension services; standard business practices… quality control; and standard-setting,” among others.

Further, the Innovation Fund will be established to aid entrepreneurs and enterprises which intend to develop innovative solutions for the “poor members of our society.” The bill also provided that in the initial year of implementation, a revolving fund amounting to P1 billion will be allocated.

An Innovation Development Credit and Financing System will also be put in place to fund development of new technologies, products innovation, process innovation and marketing innovation.

All banks will be required to set aside 2% of their loanable funds for innovation development.

Its counterpart measure, Senate Bill 1355, was approved on third reading in May 2017 and has since been transmitted to the House of Representatives. —