PRESIDENT Duterte has finally signed the Philippine Innovation Act, which sets up at least P1 billion in a revolving Innovation Fund to strengthen entrepreneurship and enterprises engaged in developing innovative solutions to benefit the poorest of the poor.
The new law also mandates the establishment of a National Innovation Council (NIC) chaired by the President to develop the country’s innovation goals, priorities and long-term national strategy.
The NIC shall also develop strategies to promote the creation of new ideas that will be developed into new and quality products, processes and services aimed at improving the welfare of low-income and marginalized groups.
The NIC, in coordination with concerned agencies, is also tasked to “explore the possibility of accessing a growing range of bilateral and multilateral funds” as assistance to the funding of research, development and extension and other innovation efforts, according to Republic Act 11293 signed by the President last April 17, a copy of which was only released to reporters on Tuesday. Public-private partnership shall also be encouraged in the development and implementation of innovation initiatives.
All banking institutions, whether government or private, shall also set aside at least 4 percent of their total loanable funds for innovation development credit.
However, these loanable funds shall refer to the funds generated from the date of effectivity of this Act.
Moreover, these innovation development loans benefiting agricultural sector workers and businesses shall also be considered as part of the compliance with the credit quota requirement of the Agri-Agra Reform Credit Act of 2009.
It is also within the mandate of NIC to conduct an annual assessment on the compliance of these banking institutions with applicable regulations on credit quotas for innovation development, and submit its recommendations to the Bangko Sentral ng Pilipinas (BSP).
The BSP shall impose administrative sanctions and other penalties on the lending institutions if they are found to be noncomplying with the provisions of the law.
Penalties on noncompliance or undercompliance shall be computed at one-half of 1 percent of the amount of noncompliance and shall be directed toward innovation development. Ninety-percent of the penalties collected shall go to the Innovation Fund and the remaining 10 percent shall be given to the BSP to cover administrative expenses.
Moreover, the NIC and its member agencies shall also eliminate regulatory barriers to innovation and cut red tape to boost innovation efforts.
The National Economic and Development Authority (Neda), in coordination with Departments of Science and Technology (DOST) and Trade and Industry (DTI), shall also promulgate the implementing rules and regulations within 60 days from the effectivity of the law.
The Act shall take effect 15 days after its publication in the Official Gazette or in a newspaper of a general circulation.
1 comment
Malaking tulong para sa mga small scale business.