To remain competitive as technological advancements accelerate due to the coronavirus pandemic, private firms in the country should invest more in digitalization and innovation, according to Finance Secretary Carlos G. Dominguez III.
“As our country recovers from the pandemic and industries get back on their feet, businesses will require heftier investments in innovation and technology in order to stay competitive,” Mr. Dominguez told participants in an event hosted by the Department of Science and Technology (DOST).
The DoST launched its Advanced Manufacturing Center (AMCen) in Taguig City on Monday. AMCen is a technological hub and research center for additive manufacturing, which also houses the country’s first 3D printing research and development (R&D).
“Technological innovations will build new industries and create many employment and investment opportunities. These will allow us to bounce back stronger from the pandemic and help ensure the long-term recovery of our economy,” he added.
Mr. Dominguez said he expects the center to play a major role in the country’s shift to technology and serve as a starting point to upskill workers on advanced manufacturing activities.
Aside from actual infrastructure, current tax policies will further support R&D since the newly enacted Corporate Recovery and Tax Incentives for Enterprises (CREATE) law reduced the corporate income tax rate and offered special tax perks to the sector.
Based on the latest Tholons Global Innovation Index released in March, the Philippines dropped out of the top 10 list of countries deemed as attractive destinations for technology, digital and innovation in 2020. The country is now at 18th in the Top 50 Digital Nations.
Meanwhile, the country reached its highest rank so far in the Global Innovation Index 2020 after ranking 50th out of 131 economies studied.