DTI Policy Brief 2017-05 – Philippine Inclusive Innovation Industrial Strategy


  •  Inclusive Innovation Industrial Strategy (i3S) aims at growing innovative and globally competitive manufacturing, agriculture, and services while strengthening their linkages into domestic and global value chains with innovation at the core of the country’s strategic policies and programs.
  • Underpinning the i3S strategy is the competition-innovation-productivity relationship where a highly liberalized market environment leads to more competition which spurs innovation and productivity growth.
  • Innovation is crucial in addressing the challenges not only from globalization and rising regional economic integration but also from automation, robotics, artificial intelligence and other new technologies.
  • While the private sector is seen as the major driver of growth for i3S strategy, the government plays an important role in terms of coordinating policies and necessary support measures that will address the obstacles to the entry and growth of domestic firms.
  • The i3S prioritizes the growth and development of 12 major industries covering automotive, electronics and electrical, aerospace parts, chemicals, iron and steel and tool and die, garments, textiles, and furniture, shipbuilding, tourism, IT-business process management particularly knowledge process outsourcing and E-commerce, agribusiness, construction, and infrastructure and logistics.
  • To complement innovation and entrepreneurship, the other major pillars of the i3S consist of building new industries, clusters, and agglomeration; capacity building and human resource development; MSME growth and development; and ease of doing business and investment environment.
  • With the creation of the proper environment and implementation of innovation-centered programs through the Philippine i3S, domestic firms and industries can unleash their full potentials to take advantage of market opportunities, overcome challenges, and act as an engine for sustained, inclusive growth, job creation, and poverty reduction.