Philippines Implements Incentives for Tech Start-Ups in Universities to Boost Robotics, Big Data, and AI

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Philippines Introduces Incentives for Tech Start-Ups in Universities to Boost Robotics, Big Data, and AI

The Department of Science and Technology (DOST) and the Philippine Economic Zone Authority (Peza) have joined forces to establish special economic zones (SEZs) within universities and colleges in the Philippines. Aimed at fostering research and technological development in cutting-edge fields such as robotics, big data, and artificial intelligence (AI), these zones, known as knowledge, innovation, science, and technology (KIST) parks, are set to incentivize tech start-ups in higher education institutions (HEIs).

The newly formed partnership between DOST and Peza aims to address the lack of research and development (R&D) driven innovations in the country. By creating KIST parks, the government hopes to generate more job opportunities and commercialize homegrown innovations, according to Sancho Maborang, Undersecretary for Regional Operations at the Science and Technology department.

To encourage the growth of tech start-ups, KIST parks will enjoy various perks, including income-tax holidays, a preferential 5% tax rate on gross income, zero value-added tax (VAT) rating, as well as tax and duty-free importation of capital equipment, raw materials, and supplies. By utilizing these benefits, start-ups can collaborate with the faculty and students of the partnered universities or leverage the facilities within the KIST ecozones to develop their products.

Currently, one KIST park has already been declared at Batangas State University (BatStateU). Positioned to lead green industrial townships and smart city networks in southern Tagalog, BatStateU’s KIST park will house vital facilities such as a technology hub, a design innovation building, and a data center. Notably, the Science, Technology, Engineering, and Environment Research (STEER) Hub at BatStateU will accommodate the university’s Center for Technopreneurship and Innovation, manufacturing research center Likha FabLab, and offer spaces for lease to tech entrepreneurs.

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Aside from Batangas State University, three other universities are awaiting declaration as KIST parks by President Marcos. These include De La Salle’s Innovation Hub in Laguna, University of Perpetual Help’s AltaHub in Cavite, and Lyceum of the Philippines’ KIST Park in Laguna.

To be eligible for a KIST park, higher education institutions within metropolitan areas should have a contiguous land area of 5,000 square meters. For institutions located outside the metro, the minimum requirement is a land area of at least 10,000 square meters. The Department of Science and Technology will endorse proposed KIST parks that focus on priority areas outlined in their joint memorandum circular (JMC), including biotechnology, food and nutrition, agriculture, engineering, electronics, renewable energy, and transport solutions.

By establishing KIST parks, the Philippine government hopes to inspire more students to pursue careers in science and R&D. The economic benefits, job creation, and productivity associated with these fields are expected to drive interest among aspiring researchers and innovators. With the support of DOST and Peza, the country aims to position itself as a hub for robotics, big data, and AI innovation, contributing to its economic growth and technological advancement.

Frequently Asked Questions (FAQs) Related to the Above News

What are KIST parks?

KIST parks are special economic zones established within universities and colleges in the Philippines. They aim to foster research and technological development in cutting-edge fields such as robotics, big data, and artificial intelligence (AI).

What is the purpose of creating KIST parks?

The creation of KIST parks is intended to address the lack of research and development (R&D) driven innovations in the country. The government hopes to generate more job opportunities and commercialize homegrown innovations through these parks.

What incentives do tech start-ups in KIST parks receive?

Tech start-ups in KIST parks enjoy various perks, including income-tax holidays, a preferential 5% tax rate on gross income, zero value-added tax (VAT) rating, and tax and duty-free importation of capital equipment, raw materials, and supplies.

How can start-ups collaborate with universities in KIST parks?

Start-ups can collaborate with the faculty and students of the partnered universities within KIST parks. They can also leverage the facilities within the KIST ecozones to develop their products.

Which universities have been declared as KIST parks?

Currently, Batangas State University (BatStateU) has been declared as a KIST park. Three other universities, including De La Salle's Innovation Hub in Laguna, University of Perpetual Help's AltaHub in Cavite, and Lyceum of the Philippines' KIST Park in Laguna, are awaiting declaration.

What are the eligibility requirements for a higher education institution to be declared as a KIST park?

Higher education institutions within metropolitan areas should have a contiguous land area of 5,000 square meters to be eligible as a KIST park. Institutions located outside the metro should have a minimum land area of at least 10,000 square meters.

What priority areas are outlined in the joint memorandum circular (JMC) for proposed KIST parks?

The priority areas outlined in the JMC include biotechnology, food and nutrition, agriculture, engineering, electronics, renewable energy, and transport solutions.

What is the aim of establishing KIST parks?

By establishing KIST parks, the Philippine government aims to inspire more students to pursue careers in science and R&D. They expect the economic benefits, job creation, and productivity associated with these fields to drive interest among aspiring researchers and innovators.

How do the DOST and Peza support the establishment of KIST parks?

The Department of Science and Technology (DOST) and the Philippine Economic Zone Authority (Peza) have joined forces to establish KIST parks. They provide various incentives and support to universities and tech start-ups to promote research and technological development in the country.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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