policies and approaches to promote innovation in smes raul c. sabularse deputy executive director,...
TRANSCRIPT
Policies and Approaches to Promote Innovation in SMEs
Raul C. Sabularse
Deputy Executive Director, PCIERD
Philippines
THE PHILIPPINES
OUTLINE OF PRESENTATION
• About the Philippines
• Philippine SMEs
• SME Development Agenda
• DOST Initiatives
• Conclusion
THE PHILIPPINES
Population (2004)Population (2004)82.7 M82.7 M
Family Inc (US$) (2000)Family Inc (US$) (2000)1,5001,500
GDP Growth (%) GDP Growth (%) 4.44.4
Export (US$) (2003)Export (US$) (2003) 2.952 B2.952 B
Import (US$) (2003) Import (US$) (2003) 3.274 B3.274 B
THE PHILIPPINES
# Firms %
Large 2,958 0.36
Medium 2,923 0.36
Small 61,762 7.61
Micro 743,949 91.67
TOTAL 811,592 100.00
Asset
(Php M)Employment
Large > 100 > 200
Medium > 15 – 100 100 – 199
Small > 3 – 15 10 – 99
Micro Up to 3 1 - 9
1$ = Php 50
Source: SMED
Philippine SMEsPhilippine SMEs
• creates employment• source of investment and revenue• boosts personal wealth and talent
– Outlets for the talents of enterprising people– Catalyze innovations and dynamism– Stimulate personal savings
• promotes community stability– less harm to the environment than large companies– Raise level of people participation in the economy
• vital engine of economy– Earn foreign exchange– Stimulate growth in rural areas– Expand domestic markets/penetrate non-traditional markets
Importance of SMEsImportance of SMEs
Critical NeedsCritical Needs
• Appropriate technologies
• Technical manpower training
• Products standards and testing facilities
• Appropriate packaging and product labeling
• Access to information
• Access to capital
• Financial, personnel & business management
• Access to markets
• Sustainable raw material supply
• Better/more efficient transport facilities
SALES
INVESTMENT
JOBS
SME
Product Devt/ Technology
Marketing
Finance
Training Advocacy
Total & integrated approachTotal & integrated approach
Objective: To increase the contribution of SMEs to the economy
by pushing enterprises to higher levels through a convergence of assistance
- PRODUCT/TECHNOLOGY DEVELOPMENT
- SKILLS TRAINING
- FINANCIAL
- MARKETING
SME DEVELOPMENT AGENDASME DEVELOPMENT AGENDA
• DOST R&D Institutes
• Product Development and Design Center
• Packaging R & D Center
• Packaging Institute of the Philippines
• Technology and Livelihood Development Center
PRODUCT/TECH DEVTPRODUCT/TECH DEVT
• Technical Education and Skills Development Authority
• Cottage Industry Training Center• Phil Trade and Training Center• Dept of Labor and Employment• Fiber Industry Development Authority• Technology and Livelihood Development
Center• Dept of Science and Technology
TRAININGTRAINING
Niching and Clustering Address Pressing National Problems S&T Human Resources Development Support to SMEs Accelerate Technology Transfer and
Utilization Build and upgrade S&T Infrastructure Strengthen Government-Industry-Academe-
Civil Society and International Linkages in S&T
Improve S&T Governance Promote and Popularize S&T
DOST S&T STRATEGIESDOST S&T STRATEGIES
SMALL ENTERPRISE TECHNOLOGY UPGRADING PROGRAM (SETUP)
TECHNOLOGY INCUBATION FOR COMMERCIALIZATION (TECHNICOM)
DOST INITIATIVES for SMEsDOST INITIATIVES for SMEs
Technical assistance package to SMEs• Appropriate technologies• Products standards and testing• Packaging and product labeling• Access to information• Linkaging and networking
SETUPSETUP
• Food processing
• Gifts, toys, house wares, handicrafts, fashion
accessories, natural fibers and dyes
• Horticulture (Cut flowers, fruits and high value crops)
• Marine and aquatic resources
• Metals and Engineering
• Furniture
Priority SectorsPriority Sectors
InterventionsInterventions
Provision of Technology• Technology needs assessment, sourcing
and installation of technology• Seed fund for technology acquisition• Human resource development• Productivity consultancy and technical
advisory services
Product Standards and Testing• Assist BPS develop standards• Product testing• Enhancement of national and
regional DOST testing laboratories
• ISO accreditation of testing laboratories
InterventionsInterventions
Packaging and Labeling• Development of functional package
designs and identification of alternative packaging materials using local resources
• Development of appropriate labels for food products
InterventionsInterventions
Database Management and Information System• List of available technologies• List of S&T experts• Directory of testing laboratories
with testing services offered• Networking with other databases
InterventionsInterventions
INTER-AGENCY DESIGN AND ENGINEERING ASSESMENT (IDEA)
Team
1. Assess equipment requirement of firm 2. Establish efficiency indicators, maintenance and
troubleshooting guidelines for equipment 3. Identify accessories to enhance equipment efficiency4. Train local experts on trouble shooting, material/energy
balance, among others 5. Introduce concepts to ensure quality, uniformity and
efficiency of operations
InterventionsInterventions
Linkaging and Networking• Raw material sourcing• Marketing• Financing• Equipment design and fabrication
InterventionsInterventions
BRIDGING THE GAPBRIDGING THE GAP
Technology Generation Commercialization
Stimulate technological innovation
Strengthen SMEs to adopt results of R&D
Increase private sector investment in R&D
Maximize benefits from R&D investments
TECHNICOMTECHNICOM
To fast track the commercial application of technologies developed by the S & T community
• business plan preparation• IP protection• negotiation and licensing • commercial prototype• pilot scale production• training and consultancy
TECHNICOMTECHNICOM
• SME Database
• Trade Fairs/Exhibitions– Provincial Trade Fair – National Trade Fair – Manila F.A.M.E.
• Buying and selling mission– Domestic Fairs– Int’l Fairs Buyer-supplier matching
• Permanent display showrooms
MARKETINGMARKETING
• Business Counselors (BCs) provide consulting and advisory services to SMEs – How to prepare a business plan
– How to market products better
– What training courses to take
• 60 BCs at SME Centers
• Over 100 Volunteer BCs– FINEX (Financial Executives of the Phil)
– MAP (Management Assoc of the Phil)
– PICPA (Phil Institute of Certified Public Accountants)
Business CounselingBusiness Counseling
• SME Unified Lending Opportunities for National Growth (SULONG)
• Venture Capital• Initial Public Offerings (IPO)
• Bonds
• Advances from clients
FINANCEFINANCE
Qualified Borrowers
• all industries except imported goods, liquor, cigarettes, and extractive industries.
• at least 60% Filipino-owned
• not more than P100 M assets
Requirements
• Debt/Equity Ratio of at most 80:20
• positive income for the preceding year/s
SULONGSULONG