Palace commends Philippines' improved ranking in Global Innovation Index

MANILA, Philippines — Malacañang is optimistic that the Philippines' ranking in the Global Innovation Index (GII) will improve further following the enactment of laws that seek to provide incentives to innovative businesses.

The Philippines' ranking in the index, which measured the innovation performance and progress of 129 countries, rose to 54th this year from 73rd last year. 

Among its Southeast Asian peers, the Philippines did better than Brunei (71st), Indonesia (85th), and Cambodia (98th) but lagged behind Singapore (8th), Malaysia (35th), Vietnam (42nd) and Thailand (43rd). 

The Philippines was cited as among those who outperformed in innovation relative to their gross domestic product and who caught up with innovation leaders more quickly than their peers. It was also among the countries with "notable" moves in GII rankings along with the United Arab Emirates (36th), Vietnam (42nd), Thailand (43rd), India (52nd) and Iran (61st).

"We foresee that the Philippines will further improve its rankings with higher scores in all of the aspects for innovation following President Rodrigo Roa Duterte’s signing of the Philippine Innovation Act and the Innovative Startup Act into laws," presidential spokesman Salvador Panelo said in a statement. 

"We commend those departments and agencies responsible for the improvement of our country relative to its economy’s innovation development," he added. 

The Philippine Innovation Act and the Innovative Startup Act were signed into law last April. 

The Philippine Innovation Act aims to use innovation to help the poor and to make micro, small and medium enterprises competitive. It also creates a P1 billion innovation fund to boost entrepreneurship engaged in developing innovative solutions benefiting the poor. The Innovative Startup Act, meanwhile, establishes a program that would provide benefits and incentives for startups or startup enablers. A startup is a person or registered entity in the Philippines that aims to develop an innovative product, process or business model. 

"May this good news further motivate them in creating an environment that nurtures innovation and creates business opportunities as we become one of the fastest growing economies in the globe," Panelo said. 

Citing the trade department, Panelo said the Philippines' scores significantly increased in five of the GII’s eight pillars, namely institutions, infrastructure, business sophistication, knowledge and technology outputs and creative outputs. 

Switzerland was the most innovative country in this year's GII followed by Sweden, the United States, Netherlands and United Kingdom. The GII report was released jointly by the World Intellectual Property Organization, Cornell University, INSEAD and their partners.