PASAY – Department of Trade and Industry (DTI) Secretary Ramon Lopez underscored the agency’s commitment in pursuing inclusive innovation in various industries through greater collaboration among other government agencies and the private sector as the world enters the Fourth Industrial Revolution (Industry 4.0).

In line with President Rodrigo Duterte’s vision of a future where all Filipinos have a better life, we are determined to create an inclusive as well as innovative culture and environment where everyone can advance even at different paces to ensure that no Filipino shall be left behind in Industry 4.0,” said Sec. Lopez.

During the 2019 Inclusive Innovation Conference on 23 September, Sec. Lopez shared collaborative efforts of government and private sector in improving the country’s technology, human capital, as well as institutional framework in preparation for Industry 4.0.
“DTI has been working with the Department of Science and Technology (DOST), Department of Information and Communications Technology (DICT), as well as the National Economic Development Authority (NEDA) to drive this endeavor. We are committed to provide support to those who need assistance in adopting advanced technologies and adapting to new realities while ensuring that the positive impact and benefits of Industry 4.0 innovations are felt by all of us in our country, regardless of geography or generation,” DTI chief said.

Innovation is the best way for the Philippines to prepare for future production. In the advent of Industry 4.0, DTI recognized the need to update roadmaps and incorporate innovation as a key element. We have also included measures that will enable our MSMEs and industries to upgrade and sustain their competitiveness,” he added.

DTI and the Board of Investments (BOI) have included the use of new technologies as well as the shift to Industry 4.0 technologies in the Investment Priorities Plan and also among the criteria recommended in selecting industries and activities to be included under the Strategic Investment Priority Plan (SIPP), which will be entitled to new incentives under the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA).

According to Sec. Lopez, these new technologies include use of AI, as well as investments to upgrade and introduce new processes, products, services, or business models. Among the priority sectors identified under the SIPP are innovation, R&D activities, and startups.

DTI and BOI are also prioritizing the development of electric vehicle (EV) industry in the country, through the proposed EV Incentive Strategy program. It will provide comprehensive fiscal and non-fiscal support to enable the traditional motor vehicle industry to shift to EV and begin its development.

NEDA Secretary Ernesto Pernia shared that the new globalization is characterized by volatility, uncertainty, complexity, and ambiguity. He added that to address these challenges, the Philippines needs “voice, unity, consultation, and agreement”.

While Industry 4.0 technologies will drive the Philippine industries forward, any significant digital transformation will require new business models and workforce reskilling. It is therefore critical for the country to be proactive in dealing with these challenges,” said Sec. Pernia.

Meanwhile, DTI Undersecretary for Competitiveness and Innovation Rafaelita Aldaba called on companies to begin their respective digital transformation as soon as possible, citing the importance of Industry 4.0 in manufacturing performance and future production. “With Industry 4.0, manufacturing can be more efficient and scalable,” she said.

Usec. Aldaba likewise highlighted the need to sustain, institutionalize, and expand the Regional Inclusive Innovation Centers (RIICs) that will help in commercializing market-oriented research to encourage competitiveness in the regions. The RIICs are built in partnership with DOST and other agencies, with the aim to generate better employment opportunities, more entrepreneurial activities, and sustainable economy.

DOST Secretary Fortunato Dela Peña shared the importance of science and technology in innovation and encouraged inventions as well as researches to be commercialized. He cited inventions and studies of innovators from different provinces, which were supported by the government and are now helping communities and are being commercialized that will benefit more people while driving profit to the developers.

Various stakeholders from the private sector-partners also shared vital information on Industry 4.0 and encouraging startups to pursue their ideas.

Also present during the conference were DOST Undersecretary Rowena Guevara, DICT Assistant Secretary Alan Silor, IPOPHIL Director General Josephine Santiago, and government and private sector-partners for innovation.♦

Date of Release: 24 September 2019