is the philippines really moving up in competitiveness and innovation by dr fabian dayrit

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    DR. FABIANM. DAYRITDirector, Ateneo Innovation Center

    Sept 9, 2013

    Is the Philippines Really

    Moving Up in

    Competitiveness and

    Innovation?

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    Philippine Competitiveness and Innovation (Dayrit) 2

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    Philippine Competitiveness and Innovation (Dayrit) 3

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    Philippine Competitiveness and Innovation (Dayrit) 4

    ASEAN 2015: How do we compete?

    How do we cooperate?

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    Philippine Competitiveness and Innovation (Dayrit) 5

    Outline

    1. 2.

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    Philippine Competitiveness and Innovation (Dayrit) 6

    1. Twelve Pillars of Competitiveness

    The Framework

    Countries at stages of development

    The Global Competitiveness Rankings

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    Philippine Competitiveness and Innovation (Dayrit) 7

    Twelve pillars of competitiveness

    1. Institutions: legal and

    administrative framework;public and private

    2. Infrastructure: transportand communications

    3. Macroeconomic

    environment

    4. Health and primaryeducation

    F

    actor-

    driven

    8. Financial market development:

    entrepreneurial, business investments

    9. Technological readiness, ICT accessand usage

    10. Market size, exports, commonmarket

    Efficiency-

    driven

    5. Higher education and

    training

    6. Goods market efficiency

    7. Labor market efficiencyEfficiency-d

    riven

    11. Business sophistication: quality ofa countrys overall business networksand of individual firms operations andstrategies

    12. Innovation: investment in R&D, esp.by the private sector; high-qualityscientific research institutions;extensive collaboration in researchbetween universities and industry;

    protection of IP

    Innovat

    ion-

    driven

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    Philippine Competitiveness and Innovation (Dayrit) 8

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    Philippine Competitiveness and Innovation (Dayrit) 9

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    Philippine Competitiveness and Innovation (Dayrit) 11

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    Philippine Competitiveness and Innovation (Dayrit) 12

    Global Competitiveness Index of the Philippines

    Ranked 65th, the

    Philippines is one of thecountries showing the

    most improvement in this

    years edition. Indeed, it

    has advanced 22 places

    since reaching its lowest

    mark in 2009. The

    Philippines makes

    important strides this year

    in improvingcompetitiveness albeit

    often from a very low base

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    Philippine Competitiveness and Innovation (Dayrit) 13

    2. The GII Framework

    Ecosystem for Innovation

    The Global Innovation Rankings

    The Philippine Scorecard

    GII and GDP

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    Philippine Competitiveness and Innovation (Dayrit) 14

    Philippine Rank: 108 Philippine Rank: 77

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    Philippine Competitiveness and Innovation (Dayrit) 15

    Importance of Innovation Hubs: IndustryAcademe linkage;democratization and collaboration

    Government role:policies that attract enterprise champions, directinvestment, streamline business and logistical processes, and ensure

    availability of talent.

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    Philippine Competitiveness and Innovation (Dayrit) 16

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    Philippine Competitiveness and Innovation (Dayrit) 19

    PH

    VNIN

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    Philippine Competitiveness and Innovation (Dayrit) 20

    *

    * 3M's Seven Pillars of Innovation: http://www.businessweek.com/stories/2006-

    05-09/3ms-seven-pillars-of-innovation

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    Poverty Incidenceamong Families (%)

    2006 2009 2012

    PHILIPPINES 23.4 22.9 22.3

    NCR 2.8 3.7 3.8

    CAR 25.6 22.7 22.6

    Region I 23.3 18.5 16.7

    Region II 22.0 22.3 19.8

    Region III 13.0 12.5 12.2

    Region IV-A 10.1 10.8 11.2

    Region IV-B 34.1 30.6 28.4

    Region V 36.2 36.5 34.1

    Region VI 27.5 26.7 24.7

    Region VII 35.0 31.6 28.8

    Region VIII 33.3 36.2 37.2

    Region IX 41.0 41.5 36.9

    Region X 35.1 35.4 35.6

    Region XI 26.9 27.3 28.6

    Region XII 34.7 31.1 37.5

    Caraga 43.3 43.3 34.1

    ARMM 43.0 42.0 46.9

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    The main reason behind the

    Philippines lagging growth

    performanceand developmentoutcomes in the regional

    context lies in a sluggish

    transformation of the economy

    in particular stagnantindustrializationin the past

    decades.. To achieve

    inclusive growth, thePhilippines needs to develop a

    stronger industrial sectortocreate productive job

    opportunities for the growing

    labor force.Philippine Competitiveness and Innovation (Dayrit) 22

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    Absolute change -37.0% -10.3% -10.4% -32.5% -47.7%% Change -42% -84% -19% -74% -56%

    Philippine Competitiveness and Innovation (Dayrit) 23

    (U

    sui,2012)

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    Philippine Competitiveness and Innovation (Dayrit) 25

    Distribution of

    the world's

    patents granted

    in 2006.(www.worldmapper.org )

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    Philippine Competitiveness and Innovation (Dayrit) 26

    (source: National Statistics

    Coordinating Board, 2010)

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    Comparison of RSE's per 10,000 population

    0 10 20 30 40 50 60

    Philippines

    Singapore

    Korea

    Japan

    Malaysia

    Thailand

    Indonesia

    China

    UNESCO Benchmark: 3.8

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    28

    0

    1000

    2000

    3000

    4000

    50006000

    7000

    8000

    9000

    10000

    0 100 200 300 400 500

    GNPpercap

    ita,

    $

    Number of Researchers / Million population

    Bangladesh

    Indonesia

    Philippines

    Malaysia

    Thailand

    Sri Lanka

    Nepal

    Pakistan

    0

    5000

    10000

    15000

    20000

    25000

    30000

    0 1000 2000 3000 4000 5000

    GNPpercapita,

    $

    Number of Researchers / Million population

    SingaporeSingapore

    Challenges of Science PhD Programs (Dayrit)

    Hi h Ed ti

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    Philippine Competitiveness and Innovation (Dayrit) 29

    Higher Education

    Enrollment by

    Discipline (2005-2011)(source: CHED)

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    Philippine Competitiveness and Innovation (Dayrit) 30

    Philippines, 2011(source: CHED)

    Vietnam, 2005(source: Vietnam Ministry of

    Education and Training)

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    Philippine Competitiveness and Innovation (Dayrit) 31

    Philippines, 2011(source: CHED)

    Vietnam, 2005(source: Vietnam Ministry of

    Education and Training)

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    Philippine Competitiveness and Innovation (Dayrit) 32

    QS University Rankings: Asia 2013

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    Challenges of Science PhD Programs (Dayrit) 33

    Number of S&TPersonnel

    Year

    UNESCO benchmark: 3.8/10,000

    When will we make the

    UNESCO benchmark?

    S&T Manpower

    Development Program

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    Philippine Competitiveness and Innovation (Dayrit) 34

    Rank Storm Date Cost (PhP B) GDP (PhP B)%GDP

    Lost

    1 Pablo 2012 December 42.2 10,568.4 0.40

    2 Pepeng 2009 October 27.3 8,026.1 0.34

    3 Pedring 2011 September 15.0 9,734.8 0.15

    4 Frank 2008 June 13.5 7,720.9 0.17

    5 Ondoy 2009 September 11.0 8,026.1 0.14

    6 Ruping 1990 November 10.8 1,190.5 0.91

    7 Rosing 1995 October 10.8 2,111.7 0.51

    8 Kadiang 1993 October 8.75 1,633.6 0.54

    9 Juan 2010 October 8.32 9,003.5 0.09

    10 Loleng 1998 October 6.79 2,952.8 0.23

    Economic Cost of Typhoons and Climate Change

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    Philippine Competitiveness and Innovation (Dayrit) 35

    Rank Storm Date Cost (PhP B) GDP (PhP B)%GDP

    Lost

    1 Pablo 2012 December 42.2 10,568.4 0.40

    2 Pepeng 2009 October 27.3 8,026.1 0.34

    3 Pedring 2011 September 15.0 9,734.8 0.15

    4 Frank 2008 June 13.5 7,720.9 0.17

    5 Ondoy 2009 September 11.0 8,026.1 0.14

    6 Ruping 1990 November 10.8 1,190.5 0.91

    7 Rosing 1995 October 10.8 2,111.7 0.51

    8 Kadiang 1993 October 8.75 1,633.6 0.54

    9 Juan 2010 October 8.32 9,003.5 0.09

    10 Loleng 1998 October 6.79 2,952.8 0.23

    Economic Cost of Typhoons and Climate Change

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    Philippine Competitiveness and Innovation (Dayrit) 36

    How can the Philippines Sustain Competitiveness and Innovation?

    1. 2.

    1. Continued improvements in Governanceand Public

    Institutions, and eradication of Corruption: +10.

    2. Improvements in Innovation, R&Dand Higher

    Education: +10.

    3. Inclusive growth, especially in Agriculture and

    Industry: +15.

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    Philippine Competitiveness and Innovation (Dayrit) 37

    ?

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    Thank You

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