Duterte signs law aimed at enhancing competitiveness of MSMEs

President Rodrigo Duterte has signed a law that aims to enhance the domestic and global competitiveness of micro, small, and medium enterprises.

Republic Act 11293 or the Philippine Innovation Act was signed by the President on April 17.

The law mandates the creation of a National Innovation Council (NIC), chaired by the President, to develop the country's innovation goals, priorities, and long-term national strategy.

It is co-chaired by the National Economic and Development Authority Director-General with several Cabinet members including the secretaries of science and technology, trade and industry, agriculture, environment, health, transportation, energy, national defense and foreign affairs as members. 

The NIC is mandated to formulate a National Innovation Agenda and Strategy Document (NIASD), which will establish a minimum 10-year plan detailing the country's vision and long-term goals for innovation and provide a strategic roadmap for improving innovation governance through clear-cut delineation and synergies of innovation efforts across agencies.

The law also provides for the establishment of an initial P1-billion Innovation Fund to strengthen entrepreneurship and enterprises engaged in developing innovative solutions benefiting the poorest of the poor.

All banking institutions, whether government or private, must set aside at least 4 percent of their total loanable funds for innovation development credit.

The measure also orders the NIC and its member agencies to eliminate regulatory barriers to innovation and cut bureaucratic red tape to boost innovation efforts. —Virgil Lopez/RSJ, GMA News