Session 1
Inclusive Innovation Industrial Strategy (I3s) Propelling Jobs, Investments, and Shared Prosperity for All
Assistant Secretary Rafaelita M. Aldaba, Department of Trade and Industry
DR. RAFAELITA ALDABA is the Assistant Secretary for the Industry Development and Trade
Policy Group of the Department of Trade and Industry. She has done extensive research in
various development topics like regional economic integration and international trade,
investment, and competition policy, among others. Asst. Secretary Aldaba is also known for
her contribution in crafting the Industry Roadmap Project of DTI. Previously, she worked at
the Philippine Institute for Development Studies and the Asian Development Bank. She has a
doctorate in economics from the University of the Philippines, and completed Advanced
Studies in International Economics Policy Research.
Session 1
Inclusive Innovation Industrial Strategy (I3s) Propelling Jobs, Investments, and Shared Prosperity for All
Summary
The first session discussed the drivers of growth of the Philippine economy during
global economic uncertainty, the challenges of future production, the need to adopt
an industrial policy for the Philippines, and the general features of the government
Inclusive Innovation Industrial Strategy (i3S).
Key Points PH managed to grow during global economic downturn, mainly driven by growth of
the manufacturing industry. Across geographic areas, several regional economies,
except NCR, are still dependent on agriculture, forestry and fishery.
But PH has low level of readiness for future production under Industry 4.0.
According to the World Economic Forum, the Philippines has low level of readiness
for future production considering the disruptions expected from the Industry 4.0
PH has adopted i3S as its industrial strategy. The Inclusive Innovation Industrial
Strategy (i3S) would build innovation and entrepreneurship ecosystem, remove
obstacles of growth, and strengthen domestic supply chains and global/regional
participation through its five major pillars on (1) new industries cluster, (2) human
capital development, (3) innovation and entrepreneurship, (4) MSME start-up
development, and (5) ease of doing business.
Open Forum
How do government agencies ensure that investment agreements from the foreign trips of the President translate into actual investments for the country?
The government conducts follow-up on countries regarding investment agreements. However, there is need to improve Philippine’s investment promotion as some countries are not familiar with the investment opportunities available in the country.
In what industry/sector would i3S have the most significant impact?
The agriculture sector would benefit the most from i3S. There is a need to
improve the productivity of the agriculture sector by addressing its constraints
through the use of more advance technology. Identifying the problems is easy
but the real challenge is in implementing and executing these plans. There
should be stronger collaboration between the government, academe and
industry.
INCLUSIVE INNOVATION INDUSTRIAL STRATEGY (I3S) PROPELLING JOBS, INVESTMENTS, & SHARED
PROSPERIT Y FOR ALL
R A F A E L I T A M . A L D A B AD T I - B O I
N A T I O N A L P R O D U C T I V I T Y C O N F E R E N C E , M A N I L A1 4 S E P T E M B E R 2 0 1 8
• Macro Performance & Economic Structureo Remarkable performance but poverty has remained
• New Industrial Strategy: inclusive, innovation industrial strategy (i3s) o Five Pillars and Strategic Actionso Top 12 Industry Priorities
• Inclusive FiIipinnovation & Entrepreneurship Roadmapo State of innovation: strengths, weaknesseso vision, where do we want to go, how to get there
• Implications for Labor and Productivity & Training Agencies
Presentation Outline
Inclusive & sustainable innovation-led industrial policy for poverty reduction and
economic transformation
3
Source: World Development Indicators, The World Bank
Macro Performance
• Amid economic & global uncertainty, PH grew 6.4% from 2010 to 2017
• 2017: China 6.9%, Vietnam 6.8%, Philippine 6.7%, Malaysia 5.9%, Indonesia 5.1%, Thailand
3.9%
• PH: 2018 Q2 growth: 6%, 2018 H1 growth: 6.3%
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GDP Growth in %
CHN IDN MYS PHL THA VNM
High industry growth driven by manufacturing
4
-15
-10
-5
0
5
10
15
20
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Industry Growth in %
CHN IDN MYS PHL THA VNM
7.0 8.611.9
14.4
0.0
5.0
10.0
15.0
20.0
2016 2017
Manufacturing Growth, Selected Asian Countries (%)
China India Indonesia Malaysia Philippines Singapore South Korea Thailand Vietnam
PH EXPERIENCING A MANUFACTURING RESURGENCE
• rising costs in China; growing domestic market, growing middle class, good macro
performance; young English speaking workforce
• 2018 Q2 growth: 5.6%, 2018 H1 growth: 6.6%
Period Manufacturing Services Agriculture, fishing, forestry
2000-2009 3.2 5.2 3.2
2010-2017 7.6 6.7 1.4
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
2010
Q1
2010
Q2
2010
Q3
2010
Q4
2011
Q1
2011
Q2
2011
Q3
2011
Q4
2012
Q1
2012
Q2
2012
Q3
2012
Q4
2013
Q1
2013
Q2
2013
Q3
2013
Q4
2014
Q1
2014
Q2
2014
Q3
2014
Q4
2015
Q1
2015
Q2
2015
Q3
2015
Q4
2016
Q1
2016
Q2
2016
Q3
2016
Q4
2017
Q1
2017
Q2
2017
Q3
2017
Q4
2018
Q1
2018
Q2
Quarterly Growth in %
AGRICULTURE, HUNTING, FISHERY & FORESTRY SECTOR MANUFACTURING SERVICE SECTOR GROSS DOMESTIC PRODUCT
LEADING SECTORS: FOOD MANUFACTURING, ELECTRONICS, CHEMICALS
• Food manufacturing dominated with a share of 33.5% in 2017
• Growth in 2017: 5%, 8.2% in 2016
Food manufactures
Tobacco manufactures
Textile manufactures
Wearing apparel
Footwear and leather and leather products
Wood, bamboo, cane and rattan articles
Paper and paper products
Publishing and printing
Petroleum and other fuel products
Chemical & chemical products
Rubber and plastic products
Non-metallic mineral products
Basic metal industries
Fabricated metal products
Machinery and equipment except
electrical
Office, accounting and computing machinery
Electrical machinery and apparatus
Radio, television and
communication equipment and
apparatus
Transport equipment
Furniture and fixturesMiscellaneous manufactures
-10
-5
0
5
10
15
20
25
30
35
40
45
-15 -10 -5 0 5 10 15 20 25 30 35
Perc
en
tage S
hare
to
Man
ufa
ctu
rin
g V
A,
2010
-2017 A
vera
ge
(%)
Growth Rate, 2010-2017 Average (%)
Regional economies still dependent on agriculture
• Except for NCR, our regional economies are still dependent on agriculture, forestry, and fishery
• In terms of size, the largest contributors are led by Central Luzon (14.8%) followed by
CALABARZON (10.0%), Western Visayas (8.9%), Northern Mindanao (8.6%), & SOCCSKARGEN
(7.4%)
NCR
CAR
ILOCOS
CAGAYAN VALLEY
CENTRAL LUZON
CALABARZON
MIMAROPA
BICOL
WESTERN VISAYAS
CENTRAL VISAYAS
EASTERN VISAYAS
ZAMBOANGA PENINSULA
NORTHERN MINDANAO
DAVAO REGION
SOCCSKSARGEN
CARAGA
ARMM
(10.0)
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
-6.0 -4.0 -2.0 0.0 2.0 4.0 6.0
AH
FF a
s %
of G
RD
P, 2
010-2
017 A
vera
ge
Average Growth Rate (2011-2017)
Manufacturing is confined in Regions 4A, NCR, & 3
• Manufacturing activities have been largely confined in CALABARZON (41.0%),
followed by NCR (18.5%) and Central Luzon (13.5%)
• Central Visayas (6.6%) and Davao (3.3%) trying to catch-up
NCR
CAR
ILOCOS
CAGAYAN VALLEY
CENTRAL LUZON
CALABARZON
MIMAROPA
BICOL
WESTERN VISAYAS
CENTRAL VISAYAS
EASTERN VISAYAS
ZAMBOANGA PENINSULA
NORTHERN MINDANAODAVAO REGION
SOCCSKSARGEN
CARAGAARMM
(10.0)
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
-2.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0
Man
ufa
cturi
ng
as %
of G
RD
P, 2
010-2
017 A
vera
ge
Average Growth Rate (2011-2017)
Services is concentrated in NCR
• Huge imbalance among the regions in terms of services; services is highly concentrated
in highly urbanized NCR accounting for 51.8% of total
• Outside NCR, services is quite high only in relatively large economic areas led by
CALABARZON (9.9%) followed by Central Luzon (6.6%), & Central Visayas (6.2%)
NCR
CAR
ILOCOSCAGAYAN
VALLEY
CENTRAL LUZON
CALABARZON
MIMAROPA
BICOLWESTERN VISAYAS CENTRAL VISAYAS
EASTERN VISAYAS
ZAMBOANGA PENINSULA
NORTHERN MINDANAO
DAVAO REGION
SOCCSKSARGEN
CARAGA
ARMM
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0
Serv
ices
as %
of G
RD
P, 2
010-2
017 A
vera
ge
Average Growth Rate (2011-2017)
New Industrial Strategy
global & domestic context
-4
1
6
11
16
200020012002200320042005200620072008200920102011201220132014201520162017
GDP Growth: 2000-2017
China Indonesia Malaysia Philippines Vietnam
PH: Asia’s Emerging Economic Tiger
Poverty incidence remains high
ARMM 53.7% N. Mindanao 36.6%
CARAGA 39.1% Bicol 36%
E.Visayas 37.3% Zamboanga 33.9%
New Industrial Strategy
GLOBAL & DOMESTIC CONTEXT
Industry 4.0 disrupting business
models at an accelerated pace, is
PH ready?• PH: low level of readiness for
future production, at risk
• Weak institutional framework, human capital, technology & innovation (WEF 2018)
• Upgrade technology platform, reskill/up- skill workers
• Innovation: animating force behind the future of production
New Industrial Strategy
GLOBAL & DOMESTIC CONTEXT
Overall Goal◆ Build innovation & entrepreneurship
ecosystem
-> upgrade & develop new industries
◆ Remove obstacles to growth
-> attract investments, create jobs
◆ Strengthen domestic supply chains &
participation in global/regional value chains
-> link manufacturing with agriculture &
servicesRole of Government: address coordination & market failures;
create proper environment for private sector growth
New
industr
ies
clu
ste
rs
Hum
an r
esourc
e
develo
pm
ent
Ease o
f doin
g
busin
ess
MS
ME
, sta
rt-u
p
develo
pm
ent
Innovation &
entr
epre
neurs
hip
C O N N E C T E D N E S S
New Industries, clusters:
supply/value chain gaps;
domestic & export market;
trade & investment
promotion; incentives
Human Resource
Development
upgrading education
curricula, skills training
programs, improving digital
skills
Innovation &
Entrepreneurship:
government-
academe-industry
linkage, market-
oriented research;
R&D centers,
innovation incentives;
shared facilities &
support for startups,
regional inclusive
innovation hubs
MSMEs: access to
finance, markets, skilled
labor, technology
7Ms: mindset, mastery,
mentoring, money,
machine, market,
models
Ease of Doing
Business:
simplification of
processes, automation;
power, logistics,
infrastructure
GovernmentAcademe
Industry
Strong government-academe-industry collaboration
i3S Five Major Pillars
1
Opportunities
Challenges
◆ New high level
growth trajectory
◆ Growing market,
middle class
◆ Political stability
◆ Young, English
speaking
workforce
◆ Stable business
confidence
◆ AEC & FTAs
◆ Industry 4.0
◆ Complex
regulations
◆ High cost
of power
◆ Lack of ports,
airports, roads
◆ SME access
to finance
◆ Supply chain
gaps
◆ Industry 4.0
Investment activities that are efficiency-seeking & would
cater to both domestic & export markets
100+ Million
Consumer
Market as
springboard
PH as
regional
hub, linked
with GVCs
Strategic Policies
• T r a d e & I n d u s t r y
• I n f r a s t r u c t u r e
• I n v e s t m e n t P r o m o t i o n
• S k i l l s t r a i n i n g , H R D
• I n n o v a t i o n , R & D
• G r e e n g r o w t h
• M S M E & s t a r t u p
d e v e l o p m e n t
Top 12 Priorities for Both Domestic & Export Markets
Electrical & Electronics
Auto & Auto Parts
Aerospace Parts Chemicals
Shipbuilding, RORO
Furniture, Garments, Creative
Tool & Die, Iron & Steel
Agri-businessIT BPM, E-Commerce
Innovation, R&D
Transport, Logistics,
Construction, Tourism
Climate Change,
Parts & Components
SupplyHi-technology, innovation/R&D, infrastructure, regional imbalance, labor-intensity,
sustainability, spill-over/multiplier effects, value/supply chain linkage
1. coffee, cacao, processed fruits, processed meat, tourism
2. processed fruits, processed meat, coffee, furniture, cacao, agribusiness
3. bamboo, furniture, aerospace, processed meat, shipbuilding, aerospace
4A. auto, electronics, petrochemical, IT-BPM, chemicals, aerospace
4B. seaweed, tablea, rubber, coco coir, tourism
5. metal casting, coco coir, health care, agribusiness
6. processed meat, processed shrimp, tourism
7. seaweed/carrageenan, dried mangoes, furniture, IT-BPM, shipbuilding, tourism
8. processed meat, copper, processed marine, processed fruits, natural health, agribusiness
9. rubber, cacao, processed fruits (mango), coconut, agribusiness10. rubber, bamboo, cacao, coco
coir, coffee, agribusiness, tourism
11. processed meat, seaweed/carrageenan, cacao/tablea, agribusiness, tourism
12. rubber, palm oil, processed fish/aquamarine, tourism, agribusiness
13. processed marine, palm oil, rubber, agribusiness
CAR: coffee, processed vegetables, aerospace, electronics, tourism
ARMM: coffee, rubber, cacao, palm oil, agribusiness
Regional Industry Priorities
ASEAN
5. Singapore
35. Malaysia
45. Viet Nam
44. Thailand
57. India
73. Philippines
85. Indonesia
Global Innovation Index 2018
Innovation is at the front & center of our new industrial policy
Competition
INNOVATION
Entrepreneurship
Productivity
Underlying Framework of PH industrial strategyCOMPETITION- INNOVATION-PRODUCTIVITY NEXUS
STRENGTHS:
graduates in science & engineering (#17)
gross capital formation, % of GDP (#32)
market capitalization, % of GDP (#17)
trade, competition & market scale (#30);
firms offering formal training (#9);
research talent (#7);
high & medium high-tech manufactures (#27)
ICT services exports (#8)
WEAKNESSES:
political stability and safety (#117)
ease of starting a business (#121)
expenditure on education, % of GDP
(#109)
pupil-teacher ratio, secondary (#95)
ease of getting credit (#111)
ease of protecting minority investors (#112)
science & technical articles (#120)
Institutions (#93)
Market sophistication (#100)
Global Innovation Index8
7
33
10
0
48
71 76
97
32
83
55
52
818
8
35
74
52 5
9 66
87
37
73
51
47
60
85
35
73
44 45 5
7
INDONESIA MALAYSIA PHILIPPINES THAILAND VIET NAM INDIA
GII RANKINGS
2014 2015 2016 2017 2018
◆ Creative outputs (#92)
◆ ICT access (#86)
◆ ICT use (#83)
◆ Innovation linkages (#93)
GOVERNMENT RESEARCH BUDGET
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2016 2017 2018
0.39%
0.37%
0.44%M
illio
ns
Total Government Budget Total Budget for Research
DA
19%
(DENR)
1%
(DOLE)
0%
(DOST)
76%
DTI)
0%
ARMM)
0%
GOCCs
4%
DEPED
34%
SUCs
45%
DOLE
0%
DOST
1%
Other
Executive
Offices
20%
◆ Block Grants: P10M up to 2 years
◆ Regular GIA: P500-P10M
◆ Frontiers in research excellence: P1M up to 2 years
◆ Industry 4.0 grants: HEI to partner with industry
◆ International Collaborative Grants
◆ Masters or Doctoral Theses
◆ REALM: capacity building
◆ Community-based
participatory action research
(CPAR)
◆ National Technology
Commercialization Program
(NTCP)
◆ National Commodity
Programs: rice, corn, cassava,
HVCs
◆ National thematic programs:
organic agriculture, climate
change, biotechnology
◆ Fabrication Laboratories, Shared
Services Facilities, Negosyo Centers
◆ Intellectual Property Protection
◆ Slingshot, Funding: SBCorp
◆ RIPPLES
◆ R&D incentives & incentives for new
industries, technologies
◆ Industry development & roadmaps
◆ IPR assistance thru TAPI
◆ Technicom: technology innovation for
commercialization
◆ SETUP
◆ TBI Program: diffusion of technology
◆ S4CP: NICER, R&D Leadership
Program
◆ CRADLE, BIST
Limited coordination among research-granting agencies
with MOU
limited
coordination
DOST
Science &
Technology
DA
Agriculture
DTI
Trade &
Industry
CHED
Higher
Education
Weak linkage between industry & academe
• Low GERD due to limited resources
• 42.9% of surveyed firms are innovation active
• Lack of appropriate incentives to produce
competitive & relevant research at universities
• Widespread mistrust between university &
industry communities, more competition than
collaboration
• Lack of strong culture of research in
universities
• Open innovation exist in the supply chain but not with academe
• Lack of STEM-oriented PhD programs, limited post-doctoral research training
• No critical mass in terms of volume of research
• Difficulties in procurement laws
For comments, suggestions or further inquiries please contact:
Philippine Institute for Development Studies Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas
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constitutes studies that are preliminary and
subject to further revisions. They are being
circulated in a limited number of copies
only for purposes of soliciting comments
and suggestions for further refinements.
The studies under the Series are unedited
and unreviewed.
The views and opinions expressed are
those of the author(s) and do not necessarily
reflect those of the Institute.
Not for quotation without permission
from the author(s) and the Institute.
The Research Information Staf ,
Innovation Activity of Firms
in the Philippines
DISCUSSION PAPER SERIES NO. 2017-44
Francis Mark A. Quimba, Jose Ramon G. Albert,
and Gilberto M. Llanto
December 2017
!!
!
Science, Technology, Research and Innovation for Development (STRIDE) Philippines Innovation Ecosystem Assessment !
!
!
!
!
!
!
!
!November!2014!
◆ Strong collaboration among government, academe, industry connected country
◆ Strong business & policy environment sustainable growth
◆ Creative talent pool: critical mass
poverty
reduction
Source: Startup Commons, From Innovation Ecosystems to Startup Ecosystems, 2017; World Economic Forum 2012
New Funding
Sources
Innovation
EcosystemEntrepreneurship
Ecosystem
Customers
Service
Providers
Big
CompaniesPublic Sector
InnovationFunding
Sources
Support
Orgs
Research
IPR
Regulatory
Framework
& Infrastructure
Culture
Markets
Human
Capital &
Workforce
Availability
Support
Mechanisms
Funding &
Finance
Education &
Training
Bridging the Gaps in Innovation and
Entrepreneurship
PH innovation & entrepreneurship
ecosystem: missing linkages & players,
lack of connectedness
Research,
IPR
Inclusive
Innovation &
Entrepreneurship
Ecosystem
Vision: Inclusive Innovation & Entrepreneurship Ecosystem
• Strong
collaboration:
connected
country
• Strong
business &
policy
environment:
innovation,
jobs,
investment
• Creative
talent pool
• Incubation of
innovation
• Academe industry
partnerships to
conduct basIc,
applied, market
oriented research
• Support by
government &
funders
• Involve
researchers &
experts &
industries across
the country
How do we
create an inclusive
innovation &
entrepreneurship
ecosystem?
hard & soft
infrastructure,
acceleration of
commercialization:
incentives, enabling
environment
entrepreneurial culture,
support for start-ups:
mentors, advisors,
incubators, accelerators,
professional services
How to make SMEs
innovative
relationships,
market driven
research, job-
ready
graduates,
entrepreneur-
specific
trainingsFamily & friends,
private equity, venture
capital, angel
investors, access to
capital
HRD for innovation,
innovation-ready
workforce: technical &
management talent
Position
innovative
industries for
rapid growth
Innovation
Policy &
Commercialization
Skilled
Workforce
Industry
Clusters
Government-
Academe-
Industry
Entrepreneur-
ship, startups
SMEs
Funding &
Finance
1
2
3
4
6
5
To promote collaboration & closer coordination within government
Expand DOST-DTI MOU
DOST
DTI
BOI
IPOPHIL
DICT
DA
DOLE
TESDA
NEDA
DOF
DILG
LGUs
CHED
DEPeD
DOF: Fiscal support for
innovation & R&D, start-up
activities, MSMEs, LEs,
commercialization process
DILG/LGUs: innovation
support
Innovation policy
monitoring/evaluation
of implementation
Market-oriented research
grants
Market-oriented research
grants, commercialization
support
Physical
innovation
infrastructure
Market studies, linking
industries with academe &
other government agencies
Market-oriented research grants,
R&D, commercialization support
HRD & curricular changes
INNOVATION & ENTREPRENEURSHIP ECOSYSTEM
Accelerators/Incubators/
Innovation hubCo-Working
spaces
Support Organizations/
Communities
Events
Meetups
Service
ProvidersUniversities
Large, Small,
Medium
Enterprises,
Start-ups
Government
Funders
Regional Inclusive Innovation Hubs/Centers
• Regional & local inclusive innovation hubs: cornerstone of i3S, lie at the heart of our economic transformation• Bridge gap between industries
& academe• Create regional ecosystem:
virtual & physical made up of universities, R&D labs, S&T parks, incubators, fab labs, co-working spaces, investors, & LGUs, start-ups, SMEs, LEs
• DOST & other agencies, industry, & academe
• Innovation focus on electronics, auto, aerospace, chemicals, IT-BPM, agribusiness
R&D Labs,
S&T Parks
UPGRADING TRA JECTORIES FOR PRIORIT Y INDUSTRIES
Agribusiness
IT-BPM
Aerospace parts
Automotive
Electronics & electrical
R&D, IC design, facilities for advanced products &
technologies, auto electronics, aerospace electronics,
batteries, consumer electronics
Auto electronics, ADAS
components, engineering
services outsourcing, electric
motor powertrains like
battery, EV
Flight control actuation systems,
servo actuators, servo valves,
galley inserts, structures &
equipment, seat parts, lavatories,
interior fit-out, panel assembly,
electronics, airframes & sub-
assemblies; MRO: base & line
maintenance
ESO, data analytics, legal process outsourcing,
health information management (preventive
health, remote), animation & game
development, IT services, global-in-house,
services embedded in manufacturing
mangoes, bananas, nuts, coffee, cacao, coconut, & other
high value crops
UPGRADING TRA JECTORIES FOR PRIORIT Y INDUSTRIES
Chemicals
Parts & Components
Iron & steel
Shipbuilding
Furniture, garments
ConstructionTransport,
Logistics
RORO as well as small- &
medium-sized vessels
Manufacturing &
design
Integrated steel
manufacturing
intermediate parts & components supply
especially those produced by MSMEs
Petrochemicals, oleo chemicals, basic chemicals,
plastics
Mass housing, land, air, &
water transport,
airports & seaports
Industry Upgrading Short to Medium-run
• Close supply/value chain gaps
o Auto: metal casting, forging,
machining
o High value added parts: Auto
electronics, ESO, R&D, sensors,
ADAS
• Accumulation of labor-intensive
industries
• Products with good balance of semi-
automation & labor-intensive work
o Assembly & mid-inspection
require labor-intensive work
FIND THE RIGHT BAL ANCE BETWEEN SKILLS & TECHNOLOGIES
41.3M
Employed
94.6%
7.2M underemployed
17.5%
2.34unemployed
5.4%
43.7
Labor force
61.5%
Skilled workers: 30M, 73% of total
Unskilled: 11M, 27%
22.4
18.956.5
agriculture
fishing forestry
industry
services
323K
Elementary
13.8%
998K
High School
42.6%
161K
Post secondary
6.9%
835K
College
35.7%
Characteristics of the UnemployedStructure of Employment
STEM graduates declined from 235K
(37%) in 2015 to 214K (30%) in 2017
Business Administration & Education &
teacher training graduates increased
from 296K (47%) to 341K (49%)
Labor & Employment Profile
Skilled: Managers 16%, service &
sales 15%, skilled agricultural 13%,
craft & related traders 8%, plant &
machine operators, assemblers 6%
• PH new industrial policy is innovation-focused
o Linking Manufacturing with Agriculture & Services
o inclusive & sustainable growth: industries must be productive
o Innovation is crucial to maintain high productivity level
• Innovation and Entrepreneurship roadmap
o Innovation strategy: creative, connected communities
o Government-academe-industry: basic & applied research providing
solutions to societal issues & industry needs
• Regional inclusive innovation centers
o Bridge gap between innovation & entrepreneurship
o No one size fits all approach: regional/local conditions
o Industry clusters, strong business environment: creation of more & better
jobs, investments, poverty reduction
i3S is vital for sustainable & inclusive developmentinnovation is at the heart of our economic transformation
i3S for sustainable & inclusive development
Propel Jobs, Investments, Shared Prosperity for all • Human capital is crucial for innovation & entrepreneurship
o knowledge production, technology adoption, productivity growth
• Educational system to produce the quality of human capital that can
ignite innovation & entrepreneurship
o Basic, secondary, tertiary: values, skills & competencies to advance
culture of innovation & entrepreneurship
• Government-Industry-Education collaboration to formulate policies
& training programs that are much more responsive to the fast
changing dynamics of industry, avoid mismatch between technology
& skills
• Low-skilled, low-educated & routinized jobs are the most vulnerable
to the adverse effect of technological change
• Provide safety nets through innovation & R&D with education and
training