Makati City, Philippines — The Department of Trade and Industry (DTI) continues to spearhead innovation-driven initiatives that strengthen the Philippines’ economic resilience and competitiveness. This effort is reflected in the country’s recent rise to 53rd place in the 2024 Global Innovation Index (GII), as reported by the World Intellectual Property Organization (WIPO).

This progress puts the country as among the world’s emerging economies, along with China, India, Iran, Morocco, and Turkey, that have shown sustained progress over the past decade.

In addition, the country ranks 3^rd among the 38lower-middle-income group economies, behind India and Vietnam, and remains 5^th among ASEAN member states. Substantial improvements were achieved in five out of seven pillars, with significant progress in the Institution Pillar at 65^th, up by 14 notches from 2023.

“This advancement reflects the unified efforts of the Marcos Jr. administration, the private sector, and innovators across the country, highlighting our commitment to create an enabling environment for innovation across various sectors,” expressed Department of Trade and Industry (DTI) Acting Secretary Ma. Cristina Roque.

“We in the DTI have been actively promoting innovation and entrepreneurship through programs aligned with the visions of the Philippine Innovation Act, the Innovative Startup Act, the Philippine Creative Industries Development Act, and recently, the Tatak Pinoy Act” Sec. Roque added.

Despite challenges in certain areas, the GII report highlights the Philippines’ strengths in trade-related indicators, such as high-tech exports (1^st globally), high-tech imports (4^th), creative goods exports (14^th), and information and communications technology (ICT) services exports (19^th). However, areas for improvement were identified in terms of market sophistication as the Philippines declined from 55^th to 77^th.

Moreover, remarkable strides in innovation performance were observed as the Philippines exhibited resiliency in the aftermath of the COVID-19 pandemic due to its strategic long-term focus on innovation.

The DTI leverages these strengths through programs and plans that enhance the country’s innovation infrastructures. Among these initiatives is the Center for Artificial Intelligence Research (CAIR), launched on 03 July 2024, which aims to transform the Philippines into a premier destination for AI-driven innovation and investments.

An Industry 4.0 Pilot Factory (I4PF) is also in the pipeline that is envisioned as a model manufacturing hub, where industry stakeholders can collaborate, research, and gain hands-on experience with Industry 4.0 technologies.

These complementing infrastructures would pave the way for firms and enterprises lacking the resources to learn about or adopt frontier technologies.

“As the Philippine innovation and startup ecosystem value continues to rise, the DTI is focused on creating long-term impacts through these innovation infrastructures that will pioneer and attract investments for high-impact technologies while addressing societal challenges,” said DTI Undersecretary for Competitiveness and Innovation Rafaelita Aldaba.

With the special theme “Unlocking the Promise of Social Entrepreneurship,” this year’s GII edition explored the synergy between innovation and social enterprises and their contribution to the global landscape. As highlighted in the report, the Philippines showcases this dynamic relationship, with over half its social enterprises seeking growth and expansion through innovation.

The GII is an annual ranking of 133 countries based on measures related to innovation capabilities such as institutions, human capital and research, infrastructure, market sophistication, business sophistication, knowledge and technology outputs, and creative outputs.

More information on the Philippines’ performance and insights from other countries are available on the WIPO site. ♦

Date of release: 17 October 2024

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