Local companies consider the high cost of equipment and technology and the lack of skilled manpower as major obstacles to investments into research and development (R&D), a government think-tank said.
The Philippine Institute of Development Studies (PIDS), in a policy paper, said major constraints for home-grown companies and multinational corporations (MNCs) are "high tariffs" and the "lack of tax breaks," as well as the absence of technical manpower especially in the fields of engineering and science and technology.
The findings came from two surveys conducted last year -- the first among 15 companies in Metro Manila and Southern Tagalog, and the second among 203 firms.
"The Philippines’ R&D standing is below the average performance for developing countries ... The average spending for R&D should be equal to 1 percent of the country’s gross domestic product (GDP) ... Currently the Philippines is spending an average of 0.12% of GDP," the paper said.
The paper said the government should "supplement its R&D efforts by inviting R&D firms to locate in the country or encourage local firms and multinational corporations operating in the country to conduct R&D activities."
It also said the number of scientists and engineers per million of the population should be 380, but the country only has 125 engineers for every million.
The dwindling number of science and technology (S&T) workers can be attributed to increasing deployment of skilled workers abroad. Initial results of a study by the Department of Science and Technology obtained by BusinessWorld showed that the number of deployed S&T workers -- including engineers, IT professionals and scientists -- increased by 148.07% in the 10-year period ending 2009.
University of Asia and the Pacific economist Cid L. Terosa said in a mobile phone text message: "The lack of skilled manpower is a long-term problem that can be solved through human capital development formation. The market for R&D related equipment must be made more open by lowering or removing tariffs. Tax breaks for those engaged in R&D will help," he added.
But University of the Philippines economist Raul V. Fabella said the government should focus on removing bottlenecks on investments in general, not just R&D investments.
Source: http://www.abs-cbnnews.com
The Philippine Institute of Development Studies (PIDS), in a policy paper, said major constraints for home-grown companies and multinational corporations (MNCs) are "high tariffs" and the "lack of tax breaks," as well as the absence of technical manpower especially in the fields of engineering and science and technology.
The findings came from two surveys conducted last year -- the first among 15 companies in Metro Manila and Southern Tagalog, and the second among 203 firms.
"The Philippines’ R&D standing is below the average performance for developing countries ... The average spending for R&D should be equal to 1 percent of the country’s gross domestic product (GDP) ... Currently the Philippines is spending an average of 0.12% of GDP," the paper said.
The paper said the government should "supplement its R&D efforts by inviting R&D firms to locate in the country or encourage local firms and multinational corporations operating in the country to conduct R&D activities."
It also said the number of scientists and engineers per million of the population should be 380, but the country only has 125 engineers for every million.
The dwindling number of science and technology (S&T) workers can be attributed to increasing deployment of skilled workers abroad. Initial results of a study by the Department of Science and Technology obtained by BusinessWorld showed that the number of deployed S&T workers -- including engineers, IT professionals and scientists -- increased by 148.07% in the 10-year period ending 2009.
University of Asia and the Pacific economist Cid L. Terosa said in a mobile phone text message: "The lack of skilled manpower is a long-term problem that can be solved through human capital development formation. The market for R&D related equipment must be made more open by lowering or removing tariffs. Tax breaks for those engaged in R&D will help," he added.
But University of the Philippines economist Raul V. Fabella said the government should focus on removing bottlenecks on investments in general, not just R&D investments.
Source: http://www.abs-cbnnews.com
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