inclusive innovation industrial strategy (i s) propelling jobs, … · 2018-03-16 · inclusive...
TRANSCRIPT
Inclusive Innovation Industrial Strategy (i3S) Propelling Jobs, Investments, and
Shared Prosperity for All
DR. RAFAELITA M. ALDABAASSISTANT SECRETARY, Department of Trade and Industry (DTI)
29 November 2017, Fairmont Hotel, Makati City
Presentation Outline
AIM: PH strategy for industrial development to create more & better jobs, innovation challenges to industry growth & government academe industry linkages
• Response to Japan’s Inputs to Philippine Industrial Vision
• New Industrial Strategy: inclusive, innovation industrial strategy (i3s)- Framework: competition innovation productivity- Top 12 Industries - Five Pillars and Strategic Actions
• Innovation at the front and center of PH industrial strategy (i3s)- Current state of innovation- Inclusive Innovation & Entrepreneurship Journey: Regional FGDs
Part 1: Response to Japan’s inputsindustrial development vision of no one left poor • Focus on employment generation
• Large scale employment: foreign companies, spill-over to local companies, foreign SMEs, new industries, GVC participation
• High value added employment: promotion of entrepreneurship, startups, innovation, university incubation base
• Employment thru local industry development: agriculture, IT/BPO led by LGUs
• PH: sustainable & inclusive growth, more & better jobs, shared prosperity for all
Part 2: New Industrial StrategyGLOBAL & DOMESTIC ENVIRONMENT
• Philippines as Asia’s emerging economic tiger, manufacturing resurgence, Industry 4.0, GVCs, global slowdown, creeping protectionism, Brexit, Make in India, Made in China, Thailand 4.0, US TPP pull out, bring back jobs to America, RCEP
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200020012002200320042005200620072008200920102011201220132014
PH as Asia’s Emerging Economic Tiger
PH TH INO VN PRC MAL
Industry 4.0: driving force is technology,disrupting business models at an accelerated pace
• Impact on PH industries
• Opportunities & challenges
• Future skills needed: human capital development critical Science, Technology, Engineering Mathematics
• Innovation-led technologies to improve productivity, transform PH economy
Underlying Framework of PH industrial strategyw
COMPETITION- INNOVATION-PRODUCTIVITY
• Innovation is at the heart of the PH Industrial Strategy
- Innovation is an important ingredient for long-run growth
- Globalization, ASEAN integration, Industry 4.0, competition increases, role of innovation is crucial
6
GOVERNMENT POLICIES &PROGRAMS, INSTITUTIONS, INFRASTRUCTURE, MACRO STABILITY, RULE OF LAW,PEACE & ORDER, POLITICAL CLIMATE
GLOBALIZATION, INDUSTRY 4.0, FREE TRADE ARRANGEMENTS, GLOBAL VALUE CHAINS, REGIONAL PRODUCTION NETWORKS
COMPETITIONINNOVATION
EntrepreneurshipPRODUCTIVITY
EXTERNAL FACTORS
INTERNAL FACTORS
INDUSTRIALSECTOR
UNDERLYING FRAMEWOK
agriculture, fishing, forestry
mining construction manufacturing services
Inclusive Innovation Industrial Strategy i3Sw
Integrating PH industries, Closing value/supply chain gaps
Overall Goal: globally competitive & innovative industries
• Growth oriented action to upgrade industries
• Remove obstacles to growth attract investments
• Build inclusive innovation ecosystem
• Strengthen domestic supply chains
• Deepen participation in global value chains
Role of Government: Enabler & facilitator
• Address coordination & market failures -- the most binding constraints preventing industries from growing
• Create proper environment for private sector development
INDUSTRIAL STRATEGY
INNOVATION-LED
SUSTAINABLE INCLUSIVE
• Global Value Chain-focused • INNOVATION &
ENTREPRENEURSHIP-centered • Industry cluster-based
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ipi3S Five Major Pillars
Inclusive Innovation Industrial Strategy Strategic Actionsw
AcademeGovernment
Industry
• Address supply/value chain gaps; Expand domestic market, attain economies of scale, export hubs; investment promotion; incentives; domestic ecozones
Building new industries, clusters agglomeration
• HRD, training programs to improve skills; tie-ups with universities & training institutionsCapacity building, HRD
• Link government, academe, & industry; strengthen collaboration towards market oriented research; R&D incentives; shared facilities
Innovation, Entrepreneurship
• 7Ms: mindset, mastery, mentoring, money, machine, market, models; SSFs; access to finance & technology; linking with large enterprises
MSME Growth & Development
• Address corruption, smuggling, bureaucratic practices, streamlining, automation, single mechanism for coordinating registration, permits
Ease of doing business, investment environment
Five Major Pillars and Strategic Actions
Opportunities
Challenges
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 D E V E L O P M E N T
Electrical & Electronics
Auto & Auto PartsAerospace
Parts
Chemicals ShipbuildingRORO
Furniture,Garments, Creative
Tool & DieIron & Steel Agri-business IT Business Process Management,
E-Commerce
Tourism
Transport & Logistics
Construction
• New high level
growth trajectory
• Growing market,
middle class
• Political stability
• Young, English
speaking
workforce
• Stable business
confidence
• AEC & FTAs
• Complex
regulations
• High cost of
power
• Lack of ports,
airports, roads
• SME access
to finance
• Supply chain
gaps
N E W I N D U S T R I A L P O L I C Y , B O L D E R T R A D E P O L I C Y
I N C R E A S E I N F R A S T R U C T U R E S P E N D I N G ,
I N T E N S E I N V E S T M E N T P R O M O T I O N
PH Inclusive Innovation-led Industrial Strategy: Top 12 Priorities
Connecting IndustriesAUTO: The future prospects of the industry remains bright
• Sales reached 400K units in 2016 (4x the sales a decade ago) and grew by 24%• 3rd wave of motorization already taking place
- PH: high population with low vehicle ownership, motorization rate in PH: 35; VN:20; INDO:73; THA:200; MAL: 395
- Significant market potential as the share of households who can afford to buy vehicles increased from 26% to 36%
• Rising trend is expected to continue as PH high growth trajectory is sustained: 1 M by 2027
-50
-40
-30
-20
-10
0
10
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30
40
50
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
Total
Industry Growth
Vehicle Sales
Electronics: PH largest source of exports
0
10
20
30
40
50
60
70
80
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Electronics Exports vs. Total Exports 1991-2016 • Electronics: 51% of total exports in 2016 ($29B)
• 50% of total exports in the first half of 2017 ($15B)
• Average growth in the 2000s: 2%; 1990s: 37%
• Semiconductor components/devices comprise the bulk of electronics exports
o 2015-2016: 72% share
o Jan-June 2017: 71.53 growth
• Auto electronics, consumer electronics, medical, telecommunications
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
STRUCTURE OF ELECTRONIC COMPONENTS: % Share
AUTOMOTIVE ELECTRONICS
COMMUNICATION RADAR
COMPONENTS/DEVICES (SEMICONDUCTORS)
CONSUMER ELECTRONICS
CONTROL & INSTRUMENTATION
ELECTRONIC DATA PROCESSING
MEDICAL/INDUSTRIAL INSTRUMENTATION
OFFICE EQUIPMENT
TELECOMMUNICATION
IT-Business Process Management: Current State & Key trends
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenue (US$B) 3.4 4.5 6.1 7.1 8.9 11 13.2 16.1 18.9 20.5 22.9
Employment('000) 236 298 371 424 527 640 777 917 1071 1200 1345
0
5
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25
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200
400
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1000
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1600Em
plo
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Revenue & Employment Performance
• In the past 10 years, PH has become a strong participant in the IT-BPM GVC • In voice BPM, PH is #1 destination for voice related services• PH is rapidly growing its capability for non-voice IT-BPM services• Industry revenue forecast for 2022: annual growth of 9.2% & US$38.9B in 2022• Employment: from 1.15M in ‘16 to 1.8M in ‘22 (more technology-enabled high value jobs)
• Slower growth: maturing sector & anticipated impact of technology
0
56
13
11
20
Revenue by Sector: 2016Animation &GameDevelopment
Contact Center &BPO
IT Services
HealthcareInformationManagement
Global In-HouseCenters
IT-BPM Roadmap: Priority Sectors
Contact Center & Business Process Outsourcing • Engineering Services
Outsourcing (ESO)• Data Analytics• Performance Management• Legal Process Outsourcing
(LPO)IT Services• Application Development
Management (ADM)• System Integration• Automation Enablement• IoT-enablement Languages
(Python programming)
Health Information Management• Preventive Health• Remote Healthcare
Management• Provider ServicesAnimation & Game Development• 3D Animation• Augmented & Virtual Reality
(AR/VR)• GamificationGlobal-in-House• Industry specific services for
telecom, healthcare, insurance, pharmaceutical
• PH IT-BPM’s growth will be driven by high-value services (IoT, ESO) in the next 6 years
• Analytics & optimization engines
• Automation enablement• Clinical data analytics• Remote health
management• VR/AR enabled animation• Supply chain optimization
• Medical transcription• Simple contact center
services• Basic 2D animation services• Parts of IT technical support• Transactional mid & back-
office transactions
IMPACT OF AUTOMATION
ESO• Denso PH: meter cluster, air-con,
compressor, smart key, sonar sensor• Denso Techno: software development for
auto products like instrument clusters• PH is one of design centers of Denso
providing global engineering capacity • 2 companies cooperate in designing
electronics products
as we enter the 4th Industrial Revolution, PH industries being positioned by connecting auto, electronics, IT-BPM
ADAS & Electric Powertrains• PH auto/electronics/IT capabilities• systems/components related to ADAS &
electric motor powertrains like battery for E-vehicles, E-jeepneys, E-buses, E-trikes
• Filipino multinational IMI is manufacturing complex safety & control systems (auto camera modules) for ADAS applications
Part 3: Current State of Innovation How does the Philippines fare in terms of innovation efforts?
ASEAN7. Singapore37. Malaysia47. Viet Nam51. Thailand73. Philippines
Top 5: Leaders in Innovation1. Switzerland 2. Sweden3. Netherlands4. US5. UK
PIDS Innovation Survey
o Remove barriers to innovationin regulatory frameworks
o Meaningful support toinnovators especially MSMEs
o Invest in required technology,research infrastructure, R&Dresearchers
o Reforms in education,investment climate & trade
o National InnovationFramework & Plan of Actionto facilitate innovationecosystem
PH innovation ranking has improved, gradually catching up
o STRENGTHS: graduates in science & engineering; market capitalization; trade, competition& market scale; firms offering formal training; knowledge absorption; research talent;knowledge impact, high & medium high-tech manufactures; knowledge diffusion; ICTservices exports
o WEAKNESSES: ease of starting a business; education (#113); expenditure on education(#106); government expenditure/pupil (#99); pupil-teacher ratio (#99); tertiary inboundmobility (#105) global R&D companies; science & technical articles (#120); newbusinesses/’000 population; creative goods & services (#115)
100
83
74 7371
5259
47
0
20
40
60
80
100
120
2014 (143) 2015 (141)
2016 (128) 2017 (127)
PHILIPPINES
VIET NAM (achiever)
THAILAND
INDONESIA
INDIA (achiever)
Global Innovation Index 2017: more needs to be done
0
20
40
60
80
100
Institutions
Human capital& research
Infrastructure
Marketsophistication
Businesssophistication
Knowledge &technology
outputs
Creativeoutputs
Philippines Vietnam Thailand Indonesia
India Malaysia Singapore
PH obtained the lowest scores in
• Creative outputs: intangible assets (trademarks,industrial designs, ICT & business model),creative goods & services (cultural & creativeservices exports), online creativity (video uploadson YouTube)
• Human capital: education, tertiary education(enrolment), R&D expenditure, global R&D)
• Market sophistication: credit (ease of gettingcredit, microfinance loans), investment (ease ofprotecting minority investors, venture capitaldeals)
More needs to be done in ICT infrastructure (access #89, ICT use #88) & Innovation linkages (#95)
Tech In Asia
Mashable Asia
Techcrunch
The Bobbery
E27
Science.ph
Startups.ph
Media
Nix Nolleda
Enrique Gonzales
Benjamin Joffe
Yobie Benjamin
Chris EvdemonRavi Agarwal
Paul Rivera
Angel Investors
CorporatePacific Global
One
Globe PPCI
Microsoft
Voyager Innovation
PLDT
Real EstatePWC
Consultants
IP Lawyers/Agents
Accountants
Banks
CROs (for clinical trial)
Recruiters
NXTLVL AcademyMarketing
DTI and other Regulatory Bodies
Service Providers
Accelerators/Incubators/
Innovation Hubs
Plug & Play
Launch Garage
QBO
Ayala TechnoHub
A Space
Spring Valley
BNEFIT
Acceler8
DOST-TBI Network
Endeavor Philippines
La French Tech PH
UP Innovation Hub
Startup PH
Development/Design
SymphMashupGarage
Events
FFC- Web Design/Development Conference
Geeks on a BeachWebgeek
Conference
AngelHack
Startup Weekend Hackathon
PyCon
DevCon
RubyCon
SoftCon
Echelon Philippines/e27-Pitch Competition
Philippine Startup ChallengeON3 Pitching Contest
UXPH Conference
Startup Grind
Tech Talks
Open TBI
VC’s
WaveMaker Labs
IMJ Investment Partners
Y Combinator ICCP Venture Partners
Ayala TBI
Network
Omidyar Network
Golden Gate Ventures
Blumberg Capital
Learn Capital
Kickstart Ventures
Ideaspace Foundation
UP Enterprise Center500 Startups
Accel Partners
Lumia Capital Ayala TBI Network
Narra Venture Capitals
ENTREPRENEUR
A Space Manila
47 East
O2 Space Solutions
Acceler8
Builtable
vOffice
Penbrothers
A Clean and Well-Lighted Space for Work
Ignition Venture
Bitspace
FIRST Escolta
Arch Offices
ImpactHub
InnoVantage
MAPA Lab
13DTI Fablabs
Brain Sparks
Board Room PH
Racket Room Collective
Co-working Spaces
@Lab
Co.labxchange
Honeycomb Manila
Cuago FoxHole
KMC Solutions
Launchpad
Mozilla Community Space
Palet Express Regus
The Common Space
Virtual Office
Pondr The Office Project
Warehouse 8Workplays
Social Space
Support Organizations/Meetups
/ Communities
Techtonic
Startup Summit
Founder's Institute
Endeavor
US Stride
Microsoft
Bristish Embassy (Newton Fund)
GovernmentPrivate
Design Center of the
Phil
DTI
DICT
DOST
NegosyoCenter
Techtalks.ph MeetupsTech Planter Demo
Slingshot
1000 Angels
Google Philippines
Tech Transfer Day
Philippine Software Industry Association
Game Developers
Association of the Philippines
Philippine Web Designers Organization
SPARK Series at AIM (Monthly)
Smart Devnet
Digital Commerce Group
Ignite
GDAP
IPOPhil
Phackers-Slack Channel
User Experience Philippines
PhilVenCap Forum
Be Fast: Way to Silicon Valley Startup Open Challenge
FUNDERS
GovernmentDTI EMB
SETUP Seed.ph
Venture Financing
Technicom
Startup Research
Grants/Loans
DOST
DOLE
DENR
PCAARRDDA
CHED
Kickstart Ventures
Angel Investors
MFT Group of Companies
1000 AngelsPrivate Individuals
PH Venture Capitals Investment Group (PhilVencap)
Brummer and Partners
IMJ Ventures
VCs
Kickstart Ventures
ICCP Ventures
Narra Ventures
Original Pitch
Private
JP Morgan
PhilDev
Engages Park
Plug &Play
Mabuhay Capital
Manila Angels
Kaizen
UPLB CTTE
UP EnterprisenAIM Dado Banatao
GTBI (WVSU)
Universities
UP Cebu INIT
Animo LabsCDO Bytes (MUST)
Ideya (MSU-IIT)
Batangas State U
DOST iTech(Caraga State U)
PITBI (PSU)
Voices from the Regions
Integration of innovation and entrepreneurship in education curriculum
• Develop education modules to strengthen STEAM programs and align it with Industry 4.0• Intensify faculty training on innovation and entrepreneurship; Provide government subsidy
Legislation and policies to strengthen R&D based on local industry needs
R&D collaboration and partnership between industry and the academe
• Establish research hubs / R&D collaboration centers at select HEIs by geographic location• Test technologies and innovations developed by partner sector
Improved quality and utilization of government’s shared infra i.e., SSFs, FabLabs, FICs, etc.
• Strengthen S&T and innovation skills of personnel running shared infrastructure facilities • Conduct MSME training on the use of the shared infrastructure facilities; access to SSFs
• Support passage of Philippine Innovation Act and the crafting of National Innovation Roadmap• Craft policies enabling regional and cluster innovation, including increased R&D funds for LGUs
Guided by the i3S vision to transform the economy & uplift the lives of Filipinos, the Philippines is focused on creating globally competitive & innovative industries.
With innovation at the core of its new industrial policy, Philippine industries will be in a better position to leapfrog to Industry 4.0.