Gov’t ‘least important’ in innovation

Sunday, July 17, 2011

ACCORDING to a survey on innovation, firms that innovate to improve on their business consider government or public research institutes to be the least important institutional sources for innovation.

Results presented by the Philippine Institute of Development Studies (PIDS) reported that out of 474 firms in Quezon City, Metro Cebu, Davao City and Peza-areas of Laguna and Cavite, a number rely on their own experience and knowledge with the help of information provided by clients and suppliers when it comes to introducing innovation.

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The 2009 Innovation Survey was presented to stakeholders at a forum Friday by PIDS supervising research specialist Francis Mark Quimba.

The pilot study picked firms in food processing and manufacturing, electronics and information technology services to determine their innovation activities.

Of all the respondents, 34.5 percent of innovation-active firms had some form of cooperation, most of which were with other establishments within the enterprise at 91.2 percent.

The study also showed that only one out of five firms (20 percent) availed themselves of government support or assistance when it came to innovation activities and they rate highest among the larger firms in food manufacturing.

The small and micro firms considered technical support and trainings to be important forms of innovation while the medium and large firms value training, tax rebates and infrastructure support.

Quimba said the results showed that the effects of innovation were mostly customer-driven while cost factors are the most important barriers to innovation.

The study also showed that government support was found to be limited to medium-sized firms when it came to product innovations.

They also learned that the knowledge networks of the firms were weak.

They learned that the firms do not access their information from the government or research institutions. They also found that cooperation is low between the firms and the academe.

They recommended the need to further strengthen the policy framework for innovation and articulate innovation strategy to firms, as they do not view government and research institutions as partners in their innovative practices.

They cited the need to improve information dissemination on available programs to assist the firms in initiating innovative practices.

They suggested developing and strengthening knowledge and cooperation networks at the local level and to closely monitor innovation.

The study was conducted after a network of private, government and academic institutions raised concerns on the urgency to measure innovation, particularly the innovative performance of economic actors to provide basis for designing innovation policies.

The Department of Science and Technology took up the challenge of the first innovation study in the country.