By Edwin P. Galvez
Government programs extending financial, technical and other forms of assistance for the country’s innovative ecosystem are already in place, and all that innovators must do is submit a proposal to avail of between P50,000 and P12.5 million as grant or loan.
“There is value to every invention based on the program to which it qualifies,” said Director Edgar I. Garcia of the Technology Application and Promotion Institute of the Department of Science and Technology (DOST-TAPI). Garcia discussed funding and other forms of assistance for innovators in the weekly “DOST Report” webinar aired recently on DOSTv.
Innovators include inventors, researchers, scientists, industrial designers, entrepreneurs, faculty and even students.
“We encourage our inventors to commercialize their inventions so these can help our economy,” Garcia said.
The DOST-TAPI also gives cash awards of up to P25,000 and P300,000 to regional and national invention contests’ winners, respectively, as outstanding innovations and researches are recognized at the biennial National Invention Contest and Exhibits (NICE).
Garcia said that TAPI, a service institute responsible for commercializing technologies developed by the DOST and the institutions it has helped, is mandated to implement programs that “maximize the capability and productivity of inventors through incentives and other forms of assistance and support” under Republic Act 7459, or the Inventors and Invention Incentives Act of the Philippines.
“The law has many programs to help our inventors, but each program has its limit of financial assistance depending on the need of inventors,” he said.
The funds given to inventors may cover the cost of filing intellectual property (IP) rights application, prototype production, fabrication or purchase of major equipment needed by micro, small and medium enterprises (MSMEs), pilot production and commercialization of products, among other innovation-related activities.
The DOST-TAPI, which also markets the services of other science agencies, spends about one-third of its annual budget to assist local inventors. This is on top of the financial support it receives from the DOST central office through other programs.
Garcia said at least P10 million is allocated to various programs to fund researches and inventions that provide solutions to some of the country’s pressing needs and consequently spur the growth of the economy by their commercialization.
The DOST-TAPI’s continuous funding and other forms of assistance—from the research and development phase to pre-commercialization and commercialization stages—have proven to be crucial, particularly during this time of pandemic
Such was the case with Manila HealthTek Inc., or MTek Inc., which developed the only Philippne-made rapid test kit, the GenAmplify Coronavirus 2019 real-time reverse transcription polymerase chain reaction (RT PCR) Detection Kit with the help of DOST.
Venture financing
Under its Venture Financing Program (VFP), TAPI helps MSMEs adopt or acquire new and emerging technologies developed by the science and technology community to accelerate their initial commercialization and productivity, or improve overall operations and for inventors to commercialize their inventions.
TAPI offers between P2 million and P5 million in financial assistance, covering mainly the cost of acquisition or fabrication of critical production equipment.
In supporting MTek, DOST-Philippine Council for Health Research and Development (DOST-PCHRD) helped develop the technology for the Biotek-M Dengue Aqua Kit developed by Dr. Raul Destura, while funds from DOST’s Technology Innovation for Commercialization (Technicom) fast-tracked its commercialization by ramping up the production of its vials and acquiring a robot for its liquid dispensing machine.
This technology was the precursor of the technology that was innovated and used for the Covid-19 test kit by the team led by Destura.
TAPI also issued international certifications for MTek as a developer and manufacturer of molecular biology products for it to qualify in the foreign market.
Concept prototyping
TAPI supports inventors by funding the development of a working prototype of their inventions with their “application and adaption to existing industry practices.”
Garcia said the inventions should have gone through studies by experts and have existing IP protection
Inventors may receive a grant of up to P200,000 for raw materials and up to P1 million for fabrication.
Garcia cited the funding for the fabrication of the prototype of “Stove Using Agricultural Waste” by the Tarlac Agricultural University, which benefitted from the Industry-Based Invention Development (IBID) program for prototype development.
The IBID program provides technical and financial assistance, including a grant of up to P350,000 for the fabrication of the commercial prototype model of the invention. Projects requiring more than P350,000 will be subject to repayment in three years with no interest.
Commercializing patented inventions
TAPI supports inventors who need funding to commercialize their patented invention products, or raise capital to meet a growing market demand for their products through the Invention and Innovation Technology (I-TECH)-lending program.
In partnership with the Land Bank of the Philippines (LandBank), TAPI facilitates loan assistance of up to P12.5 million.
This is broken down into: TAPI’s interest-free 40-percent share (maximum of P5 million) through its Invention Guarantee Fund; 45 percent (maximum of P5.625 million) from LandBank; and 15 percent (maximum of P1.375 million) for the borrower’s equity or share of the inventor.
Inventor Lyle Christian R. Herbosa of MYKL Trading Inc. received P10.625 million for the “upscale commercialization” of his mosquito larvicide called MYKL Kiti-kitiX, making it directly available to consumers.
Garcia reminded inventors that only owners may commercialize their inventions under RA 7459 and avail themselves of I-TECH loan by submitting an application letter, valid IP certificates, among other documents.
Securing IP protection
Under the IP Rights Assistance program, TAPI helps secure the IP of an invention by paying for the cost of filing claims through patent agents with the Intellectual Property Office of the Philippines.
TAPI may cover registration expenses of up to P50,000, depending on the contracted amount awarded to patent agents.
Garcia said that all TAPI’s commercialization programs require inventions to have IP certificates, but the agency can also give financial support to anyone who wishes to apply for IP rights assistance, including students and faculty.
Building a business enterprise
Garcia said there are two stages or components to TAPI’s Invention-Based Enterprise Development (IBED) program supporting inventors who want to develop or grow their technology-based business enterprises.
The first component provides funds for the pilot production and market testing of inventions, making them available to consumers.
The second component covers the production cost of an invention in a commercial scale to “satisfy an unmet market demand.”
TAPI gives a grant of up to P350,000 for the first component and extends loan assistance of up to P1 million for the second component.
Under IBED-I, MYKL Kiti-kitiX received funding for the “acquisition of packaging and raw materials for the production of 175 bags” in 2017.
Among the inventors TAPI assisted for IBED-II were Roberto D. Osido’s Herbal Massage Oil, which “soothes, relaxes and moisturizes the skin.” The same with Benjamin F. Mendoza’s Mosquito Trap, a chemical-free container that attracts, traps and kills egg-laying adult mosquitoes.
Promoting technologies and inventions
Showcasing the Filipino’s “innovative creativity,” TAPI holds the National Invention Contest and Exhibits to recognize outstanding inventions (Tuklas award), utility models, industrial designs and creative research (Likha award for professionals and Sibol award for college and high-school students).
This year, outstanding inventions won P100,000, P200,000 and P300,000 for third, second and first prizes, respectively.
Outstanding utility models and industrial designs received P50,000, P100,000 and P200,000 for third, second and first prizes, respectively.
Outstanding creative researches in both professional and student categories took P30,000, P50,000 and P100,000 for third, second and first prize, respectively.
Laboratory testing and analysis
Garcia said they also accommodate requests for laboratory testing of products before they are allowed in places like supermarkets.
Under the Laboratory Testing and Analyses Assistance program, technologists, inventors and researchers can avail themselves of up to P100,000 to cover the cost of using laboratories and facilities of DOST’s Research and Development Institutes (RDI) to “test, verify and evaluate the overall functionality” of their inventions.
RDI laboratory services include failure analysis, materials characterization, proficiency testing, nutrigenomics, wood and wood products test, calibration and metrology and metallurgical analysis, among others.
Tax exemptions and other forms of support
Garcia also said that under RA 7459 inventors may avail of tax and customs duty exemptions for inventions that are “new, original and produced on a commercial scale.”
“DOST evaluates their applications and issues them clearance from the screening committee, a certificate required by the Bureau of Internal Revenue and Department of Finance, to prove the commercialization of their inventions,” said Garcia.
As the government promotes a culture of innovation, Science Secretary Fortunato T. de la Peña, in his closing message during the broadcast, encouraged parents to “support and nurture the creativity and inventiveness” of their children, requested teachers to “create exercises and activities” that promote the value of being matuklasin (discoverer or creative), and exhorted local government units to support their resident inventors.
Image credits: Edwin P. Galvez
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