Going Forward - How will we improve our Global Competitiveness in S&T ?

1. Going Forward - How will we improve our Global Competitiveness in S&T ? Dr. Greg Tangonan Executive Director Congressional Committee on Science, Technology and Engineering

2. Going Forward - How will we improve our Global Competitiveness in S&T ? Address the lack of technology transfer to industry from the Universities and Government Labs. Industry involved from Day 1 in the Research Process. The new Technology Transfer Bill has erased any reason for not doing this. ‘Zero based budgeting’ of R&D Investment and Improved Program Management of R&D Make IRDI and RERDI a reality for the Philippines Promote Multi-year National Strategic S&T Initiatives that are coupled with Economic Development Plan. Collaborate Locally and Internationally under Strategic Alliances to leverage their R&D budgets (>100x) into our S&T Plans. Disaster Science / Disaster Preparedness Health and Wellness Care Systems for Remote Areas Biotechnology for Food Security and Health ICT for Agriculture, Education, Health and Governance World Class University and Internationally Certified Polytechnic Training Leverage Corporate Investment (Domestic and Foreign Investment) into our domestic S&T Initiative (1000x) Australia Mining Investment in Mindanao Playing the Nuclear Card Renewable Energy Projects - Ethanol, Geothermal Change the way we Innovate in the Philippines. Do it with a sense of Urgency. Solar Systems Green Transport Behave like a start-up and become entrepreneurial Lab on a Chip Nuclear Power Genetic Engineering Leverage Other Peoples’ Money

3. Applied Research Basic Research Development Commercialization 1. We’re Stuck with a Linear Model of Innovation UNIVERSITIES: “I do basic research, that means no applications in sight. Industry is too short sighted and will steal our ideas.” “Be patient, we need to build our new science complex first. “ “We are in the “We need the building construction first, then this research process will work.” “We do academic research, we do NOT create new jobs or new Industries.” GOVERNMENT: DOST, DAR, DoE, DoH portfolio process funds ‘research’ projects with low technical merit as capacity building. No strategic portfolio of national priority S&T projects with actual Deliverables / Milestones. DOST ‘barred’ from helping Industry directly (the COA trap). No strategy that links S&T Innovation to the economy - Food Security, Improved Health Delivery, and Energy Independence. INDUSTRY / INVESTORS: The academe is no help at all in our efforts to compete with China. No government stimulus for Industry to Innovate, left to partner with Foreign entities to get technology. Virtually no internal corporate R&D / Advanced Engineering done by low cost manufacturers.

4. Quest for Basic Knowledge Applied Research Basic Research Development Commercialization Potential Applications Product/Market Development Feedback: Search for New ideas and Solutions for Long Term Problems Feedback: Design of New products Feedback: Market Signals/Technical Gaps Adopt a Nonlinear Model of Innovation with PPP is Key to Competitiveness If we want to compete globally, need to Innovate like the best. Stanford CalTech NUS MIT Berkeley UNIVERSITIES: Acquisitive Research - Innovation comes from Everywhere Faulty members are Entrepreneurs. Industry-Government-Academe Linked in Creating Innovation GOVERNMENT: National Strategy for Innovation in Critical Development Areas Foster Institutions like ITRI-Taiwan in the Philippines (IRDI and RERDI) Government is an Alliance Builder not a ‘Research’ Organization INDUSTRY / INVESTORS: Industry participation early in the S&T process Leverage new technologies and investment (100x) from our foreign partners into Local R&D Institutions. Japan Korea Singapore Finland USA Biofuels Solar energy Genomics ICT Systems Remote Sensing for Agri Disaster Science

5. COMSTE A T I F X 1987 E S A P G I S E R E L A T V A Congressional Commission on Science & Technology and Engineering Industrial Research & Development Institute • In conjunction with ITRI of Taiwan led to the establishment of IRDI. • This PPP enables small businesses and academe to to to develop new hardware and software to create new companies in high value added service. • Software as a Service, Cloud Computing, Chip Design, Embedded Systems and Biomedical Electronics. • This will ensure that our new companies are working on State-of-the-Art programs and projects and that we can offer our services worldwide.

6. Renewable Energy Research & Development Institute • This institute will help develop new technology that will aid in the development of renewable energy resources and become a training center on Renewable Energy.

7. Strategic S&T Initiatives mapped to Gut Issues

10. Brazil Japan Taiwan USA Collaboration is the Key to Competing Globally International Collaboration means > 100x Leverage of our S&T BudgetsCurrently <0.2 % of GDP vs. 10 % of GDP of USNational Priority Projects with S&T Alliance Ethanol Economy ‘Going Nuclear‘ Electric Vehicles Algae for Oil Portfolio of Strategic National S&T Investments Disaster Management / Science Remote Sensing for Agriculture Broadband Information Systems for e-Governance Personalized Medicine, Telemedicine, Regenerative Medicine Renewable Energy, Green Transport, Going ‘Nuclear’ in a Smart Way

11. Accelerate Solar Deployment Cepalco Solar Over-reliance on hydroelectricity may be problematic in Mindanao Manila Observatory Ethanol Plants into Bukidnon, Regional RE Power producers

12. Waste to Energy Systems for E-Vehicles Mayor Hagedorn of Puerto Princesa driving an e-Jeepney to bio-digester site. Winner: Transport Category Discovery Channel’s Ecopolis “The best new transport technology with the greatest opportunity for carbon savings.” - Dr. Daniel Kamman Nobel PeaceLaureate, IPCC

13. Engineering Resilience in Green Transport Create as a Public– Private Partnership the Filipino E-Vehicle Company as a National Program that will produce E-Vehicles for the Asean Market in the Philippines. Invest in this Smart Transport System for Tourism and local governments to jump-start a Sustainable local demand. Local Production of e-Jeepney for LGUs and Green Tourism

14. Tampakan Project in Mindanao estimated to be $ 5B FDI Sagittarius Mines, Incorporated (SMI) is the Philippine-based affiliate that operates the Tampakan Project whose 40% controlling equity is a joint venture among Xstrata Copper (62.5%), Indophil Resources NL (34.2%) and the Alsons Corporation (3.3%). The 60% non-controlling equity shareholders of SMI are the Tampakan Mining Corporation and Southcot Mining Corporation (known as the Tampakan Group of Companies). The Tampakan Project is located on the southern Philippine island of Mindanao, approximately 65 kilometers north of General Santos City. The project is situated on the boundaries of four provinces: South Cotabato, Sultan Kudarat, Davao del Sur, and Sarangani and represents one of the largest undeveloped copper-gold deposits in the South East Asia-Western Pacific region. The new Measured, Indicated and Inferred Resource estimate totals 2.4 billion metric tons at a grade of 0.6% coper and 0.2 grams per ton gold and contains 13.5 million metric tons of copper and 15.8 million ounces of gold, using a 0.3% copper cut-off grade. The Mineral Resource also contains estimated average grades for molybdenum of 70 parts per million. What is the Philippine S&T plan for this FDI? Are they capable of meeting their sustainability goals? Will there be technology transfer ? Technician training? What is the Plan? How will local suppliers of materials / engineering participate in project? Will new laboratories be need to assess the sustainability ? MSU, ADD, Xavier Univ? Tampakan project could be single largest investment for Mindanao by MindaNews Thursday, 30 April 2009 09:00 MAKATI CITY  (MindaNews/29 April) -- - Construction of the Tampakan project in South Cotabato may yet be the single largest investment ever for Mindanao, Richard Laufmann, Indophil Resources NL chief executive officer, said. Last week, Sagittarius Mines, Inc. (SMI) announced the construction of the Tampakan project would cost $5.2 billion, including provision for associated infrastructure like power plant and ports. The Tampakan project is being pursued by SMI in the towns of Tampakan in South Cotabato, Columbio in Sultan Kudarat and Kiblawan in Davao del Sur. The project has estimated deposits of 12.8 million metric tons of copper and 15.2 million ounces of gold.

15. Going Forward ===> How will we improve our Global Competitiveness in S&T ? Address the lack of technology transfer to industry from the Universities and Government Labs. Industry involved from Day 1 in the Research Process. The new Technology Transfer Bill no reason not to collaborate with Industry on R&D. ‘Zero based budgeting’ of R&D Investment and Improved Program Management of R&D Make IRDI and RERDI a reality for the Philippines Promote Multi-year National Strategic S&T Initiatives that are coupled with Economic Development Plan. Collaborate Locally and Internationally under Strategic Alliances to leverage their R&D budgets (>100x) into our S&T Plans. Disaster Science / Disaster Preparedness Health and Wellness Care Systems for Remote Areas Biotechnology for Food Security and Health ICT for Agriculture, Education, Health and Governance World Class University and Internationally Certified Polytechnic Training Leverage Corporate Investment (Domestic and Foreign Investment) into our domestic S&T Initiative (1000x) Australia Mining Investment in Mindanao Playing the Nuclear Card Renewable Energy Projects - Ethanol, Geothermal Adopt nonlinear model of Innovation for the Philippines. Behave like a start-up and become entrepreneurial Leverage Other Peoples’ Money

16. Broad-based National Projects in S&T- Industry, Government, Academe, Consumers • Scientists, Engineers, Policy makers, Investment community, social scientists need to understand and work together on these major thrusts. • Broad based engagement is required because the socioeconomic implications are enormous. Example: Ethanol plants require 11 months of cane rather than 6-7 months for sugar. Big change for farmers, workers, plant operators, transport sector, and economic planners. • Different stakeholders need holist understanding and synergistic view of these major initiatives. Example: food security, Health, Education and Energy are Hot Issues for national and local politicians. Job creation is ‘gut’ issue for S&T sector not publications. • International Investment programs present opportunities for leap-frog by technology transfer. We need to ensure that new technologies get transfered to local companies and Universities. • New Academe-Industry-Government partnerships can have regional appeal when addressing larger issues like deployment of renewable over the Asean region. • region.

17. Competing Globally In S&T - What ails us and what is the get well plan ? • Stuck in a Linear model of Innovation ==> mediocre R&D results, little technology transfer • Nonlinear Innovation model executed in highly innovative countries (Stanford <==> Google) • Collaboration => Leveraging S&T Investments of Partner R&D Budgets (>100x) • Focused National S&T Programs coupled to Foreign Direct Investment (Geothermal, Ethanol) • New Institutions where Industry led Public Private Partnership (IRDI and RERDI)

18. Thank you for you attention.