Innovations don’t grow in a vacuum. Like any living thing, their growth is dependent on what the ecosystem can support. To fully capitalize on the opportunities for growth in the Philippines, we have to deepen existing partnerships both within the country and abroad. Many technologies are simply born in the wrong place — and many Filipino startups do not have the resources to scale and benefit others. The Philippines is the 10th fastest growing economy in the world and was the best country for global investment in 2018 according to a recent study by Wharton. Yet the same study ranked our entrepreneurship 51st out of 80 countries, and we have plateaued in the 70s in the Global Innovation Index. The Philippine growth story is neither inclusive nor powered by innovations.

I’ve conducted research on the national innovation system for the last 6 years, and the roles and friction points can be summarized as follows:

It is “ less bureaucratically fun in the Philippines ”, which is why there aren’t more funds in the Philippines. The national government has made a concerted effort over the last decade towards this end.

The bill harmonizes the efforts of different government agencies and introduces vital changes for Philippine startups. Benefits and exemptions include fast-track business registration, intellectual property registration assistance, investment incentives, and travel subsidies. These are to be extended to entrepreneurs as well as mentors, investors, and business incubators. Through its visa provisions, the bill seeks to enable the free flow of talent and capital into the country that will enhance not only the quantity but also the quality of businesses that succeed. Current rules on visa and foreign ownership of Filipino companies restrict foreign collaboration , which curtails their potential for learning and success. The bill also creates the Startup Grant Fund which will be provided to and administered by DOST, DICT, and DTI to provide initial and supplemental grants-in-aid for startups and ecosystem-enablers, as well as a Startup Venture Fund under DTI which will be used to match private capital. These funding mechanisms will provide start-ups with a relatively risk-free runway to develop their products and services and make their business more attractive to downstream investors here and abroad.

Jump-starting our ecosystem will require multi-stakeholder alignment, persistence, and political will. I’m not saying it will be easy, but I do promise it will be worth it. There are many deeply undervalued assets in the Philippines, most notably in sustainably developing our natural resources outside Metro Manila.

2019 is a banner year for gaining traction and building critical mass in the Filipino innovation community.

I recently participated in a discussion on potential areas for partnerships for growth in terms of innovation and entrepreneurship at the US-Philippine Bilateral Relationship conference organized by the Asia Foundation and the Ateneo School of Government. This panel included Christina Laskowski (President of the Science & Technology Advisory Council — Silicon Valley ), Katrina Chan (Executive Director of the QBO Innovation Hub ), and Dado Banatao who developed semiconductor technologies that are used in 30% of every computer and is Chairman of the Philippine Development Foundation. It was a high-powered discussion backed by a combined 40 years of experience which separated the ecosystem by innovation supply and demand.

Banatao and Laskowski led the topic of fixing the supply of Filipino technologies by advocating more investment both in the R&D budget for academia and in capacity building. Development can be more inclusive by shifting from an emigration-based strategy that emphasizes training workers for export to one that rigorously educates high-level innovators. Both Filipino-Americans also emphasized the need for Filipino entrepreneurs to have bigger visions and the grit to accomplish them. Chan focused on the need for hustle and a bias for action that is necessary for a startup’s survival. Highlighted examples of bilateral initiatives that have succeeded are US AID STRIDE which supports many supply-side efforts in academia, and DOST has a current partnership with the IC2 Institute (University of Texas). We also went into tougher issues such as why most Filipinos don’t invest in the country.

Many of these international reports are based on hard data but they are also culled from the perception of key opinion leaders. Banatao pointed out that given the substandard rankings, it’s perfectly logical for most investors to be risk-averse. Chan and I proposed that a way forward for US-PH partnerships for innovative growth would be to have investors from hubs like Boston, Research Triangle Park, and Silicon Valley share best practices with local angel investors. This would enable us to learn how to better manage and mitigate risks related to investing in early-stage firms. Laskowski also proposed that both countries should start more programs to harness the Filipino diaspora effectively.

Key industries for the Philippines to focus on would be its top exports IT and electronics, but also deeper tech such as the internet of things (IoT) and artificial intelligence (AI). Laskowski is still bullish about the potential for health biotech and agritech that will harness our natural competitive advantage and promote sustainable development. AI and robotics can modernize agriculture, as well as help us leapfrog in upcoming fields like Ocean tech — which encompasses aquaculture and marine biological engineering. This strategic focus by all players in the ecosystem will increase our value in the global economy and build a better future for all Filipinos.

Maoi Arroyo is a multi-awarded serial entrepreneur, impact investor, and educator. She was selected as a Young Global Leader of the World Economic Forum in 2015. She is the principal of the Ignite Impact Fund , the first Philippine -focused impact investment fund. For more information on Ignite visit us at igniteimpact.fund and follow Maoi on twitter at @maoiarroyo.

A version of this article was published on 22 February 2019 in the Manila Bulletin.