The Philippines has made significant progress in the field of innovation, climbing up the global rankings in the Global Innovation Index (GII) 2023. According to the World Intellectual Property Organization (WIPO), the Philippines now stands at 56th place out of 132 economies, moving up three spots from its previous ranking in 2022.
The GII measures a country’s innovation capacity based on two sub-indices: innovation input and innovation output. The innovation input sub-index evaluates an economy’s ability to support innovative activities in various areas such as institutions, human capital and research, infrastructure, and market and business sophistication. On the other hand, the innovation output sub-index measures the country’s ability to generate innovative outputs through knowledge and technology, as well as creative outputs.
In this year’s GII, the Philippines achieved a score of 32.2 out of 100, showing improvement from its score of 59 in 2022. The country’s strengths were identified in areas such as business sophistication, knowledge and technology outputs, and market sophistication. However, it also revealed weaknesses in human capital and research, infrastructure, and institutions.
Among lower-middle-income economies, the Philippines ranked fourth out of 37, trailing behind India, Vietnam, and Ukraine. In the Southeast Asia, East Asia, and Oceania region, it secured the 11th position out of 16 economies.
Intellectual Property Office of the Philippines Director General Rowel S. Barba expressed the need for the country to enhance its production of knowledge assets to reverse the decline in innovation outputs. He acknowledged the challenges of innovating amidst high inflation, monetary tightening policies, and geopolitical tensions. While the improved ranking is a positive development, Barba emphasized the importance of continuous innovation and the cultivation of a mindset that challenges the norms.
Economics professor Leonardo A. Lanzona, Jr. attributed the Philippines’ climb in ranking to its exposure to digital technology and the engagement of workers in online labor platforms. However, he highlighted that the engagement does not necessarily mean Filipino workers are better off than their counterparts in other countries. Many engage in lower value-added activities under poor working conditions, leading to high underemployment.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort suggested that the further reopening of the Philippine economy and the resumption of in-person schooling have played a role in the improvement of productivity and innovation. He also emphasized the significance of the country’s business process outsourcing industry in driving innovation, particularly through the adoption of AI-related technologies.
The Philippines’ upward climb in the global innovation rankings reflects the country’s progress and potential in the field of innovation. However, there is still work to be done in strengthening its innovation outputs and addressing existing challenges. With continued efforts and a focus on developing knowledge assets, the Philippines aims to further enhance its position as an innovation-driven economy.
