Science, tech, innovation to spur next economic growth – Balisacan

MANILA, Philippines — It is science, technology and innovation that will spur the next wave of economic growth in the Philippines, the country’s chief economic planner said Wednesday, urging academicians to move their research beyond the classroom and into communities where it will be more impactful. Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan said that while the country is currently driven by sustained growth, as evidenced by its transition to upper-middle income status, its next chapter will come from innovative minds. “As countries develop, they can no longer rely primarily on labor accumulation or factor accumulation – that is, simply adding more labor or more capital,” Balisacan said in his keynote address at the 48th Annual Scientific Meeting of the National Academy of Science and Technology, the highest scientific advisory body of the country. “Long-term growth increasingly depends on raising productivity, and productivity is driven by knowledge. This is precisely where science, technology, and innovation become indispensable,” Balisacan said. Investing in science, technology and innovation means harnessing the country’s capacity to address complex challenges, Balisacan emphasized. Living standards will also rise if innovation, as a means of expanding the economy’s productive capacity, goes hand in hand with efficiency improvements. “Efficiency enables us to do better with what we already have. Innovation enables us to create possibilities that did not previously exist. For a country aspiring to sustain rapid development over the coming decades, we need both,” Balisacan said. The DEPDev secretary is encouraged by the latest results from the Global Innovation Index, in which the Philippines ranked No. 50 in 2025, citing its strong high-tech exports and imports, a budding creative sector, the integration of advanced technologies and digital services and the embedding of innovation across multiple industries. But for Balisacan, the true essence of innovation does not lie in rankings or the number of patents and publications. “It is ultimately measured by its impact on society,” he said. Innovations like Project NOAH, waste-to-energy facilities and the Philippine Identification System should address different national priorities such as improving health, food security, climate resilience, digital governance and productivity. “Our challenge, therefore, is not simply to generate more scientific knowledge. It is to create the conditions that allow innovation to flourish and to ensure that its benefits are translated into higher productivity, better public services, more resilient communities and improved lives for every Filipino,” Balisacan said. According to the Philippine Development Plan 2023-2028, spending on research and development stands at about 0.32 percent, well below the one percent target set by the United Nations Educational, Scientific and Cultural Organization and the global average of 2.04 percent. The country’s innovative ecosystem faces multiple roadblocks, the document stated, including underdeveloped linkages between universities and stakeholders, a lack of information about market-system requirements and a weak intellectual property culture.