CLARK FREEPORT – Tarlac Rep. Victor Yap has urged the House of Representatives to pass a bill which would promote innovation and knowledge transfer for economic and social development.
“We need to take advantage of the current business situation where start-up companies and MSMEs (micro, small and medium enterprises) have the opportunity to compete with big businesses through technology and innovation. The government should step in and cultivate this environment by providing MSMEs with a platform to flourish,” said Yap.
This, even as the House Committee on Small Business and Entrepreneurship Development approved the substitute bill on the “Philippine Innovation Act,” which provides incentives for ideas that results in the development of new or improved policies, products, processes or services that spread across the market.
Yap, a principal author of House Bill 5618, said that the consolidated version of the “Philippine Innovation Act” will also cut bureaucratic red tape for MSMEs and increase their access to finance, market and technology.
“I have also proposed the inclusion of a requirement for all banks to set aside at least 4 percent of their total loanable funds for innovation development credit,” said the lawmaker.
If enacted, the bill is set to establish the National Innovation Council (NIC), which will be in charge of setting priority areas for innovation and developing the National Innovation Agenda and Strategy Document (NIASD). The NIASD will contain the country’s long-term goals for innovation and a roadmap for improving innovation governance.
The NIC will be responsible for administering the following instruments: a P1-billion Innovation Fund, which will provide capital to enterprises engaged in developing innovative solutions that will primarily benefit the poor; and the Innovation Development Credit and Financing System, which aims to boost the development of new technologies by providing MSMEs with loans and other financing activities.
“The government plays a vital role in providing our people with the right perspective and skills to be competitive. We need strategic planning and a long-term vision to achieve sustainable and inclusive growth,” said Yap.
The proposed Philippine Innovation Act consolidates House Bills No. 5618, 5701, 6227 and 6476, which were filed by Reps. Victor A. Yap, Wes Gatchalian (1st District, Valenzuela City), Luis Raymund Villafuerte Jr. (2nd District, Camarines Sur), and Deputy Speaker Arthur Yap (3rd District, Bohol).
