2023-06-08-亚开行-菲律宾的科技创业生态系统（英）_62页_1mb

Summary of the Philippines' Ecosystem for Technology Startups

Core Content

This report provides an in-depth analysis of the Philippines' technology startup ecosystem, focusing on four key sectors: agritech, edtech, cleantech, and healthtech. It outlines the current state of the ecosystem, the challenges faced by startups, and a set of recommendations aimed at strengthening it for sustainable growth and innovation.

The report is prepared by Think Tank, Inc. (TTI) and the Asian Development Bank (ADB) and is part of a series of country reports on startup ecosystems in Asia and the Pacific. It is intended to inform policymakers and stakeholders in the Philippines and other Southeast Asian countries on how to better support the startup community.

Main Points

1. Definition of a Startup

A startup is a young company that innovates technologies or applies existing technologies in innovative ways to provide new products or services. They often operate with minimal or no revenue stream during early stages and are characterized by a focus on innovation, scalability, and disruptive potential.

2. Ecosystem Components

The startup ecosystem in the Philippines consists of:

• Government programs and policies
• Financing and investment mechanisms
• Incubators and accelerators
• Human capital (talent and mentors)
• Digital infrastructure
• Suppliers, customers, and cultural factors

3. Growth of the Startup Sector

• The number of active startups in the Philippines increased from 100 in 2015 to around 700 in 2021.
• Startups are predominantly active in fintech, media and entertainment, and e-commerce.
• Emerging sectors include agritech, cleantech, edtech, and healthtech, which have significant potential for socioeconomic impact.

4. Government Support

• The Philippine Innovation Act (PIA) and Innovative Startup Act (ISA), both enacted in 2019, have played a crucial role in shaping the ecosystem.
• The PIA created the National Innovation Council (NIC) and the Innovation Fund to support innovation in 10 priority sectors.
• The Department of Science and Technology (DOST), Department of Trade and Industry (DTI), and Department of Information and Communications Technology (DICT) are key government agencies driving startup support.

5. Financing and Investment

• Startups prefer venture capital (VC) over bank loans due to its understanding of the startup model and ability to provide mentorship and funding.
• The Startup Grant Fund (SGF) and Startup Venture Fund (SVF) are government initiatives that support startups.
• There is a need to attract more investors to agritech, cleantech, edtech, and healthtech to ensure balanced growth across all sectors.

6. Incubators and Accelerators

• The Philippines has a growing number of incubators and accelerators, with many supported by the government, universities, and private entities.
• Incubators and accelerators help startups by providing mentorship, funding access, and market opportunities.
• There is a lack of mature accelerators in the Philippines that offer customized support for advanced-stage startups.

7. Human Capital

• The Philippines has about 708 research scientists and engineers (RSEs) per million population, exceeding the UNESCO benchmark.
• However, there is a shortage of local tech talent and mentors, especially in emerging sectors like agritech and cleantech.
• The Balik Scientist Program encourages returning Filipino scientists and technologists to contribute to the ecosystem.

8. Digital Infrastructure

• Digital infrastructure is a key enabler for startups, but challenges such as high costs and limited access persist.
• Rural connectivity and digital literacy among farmers are critical barriers for agritech startups.
• The government is working to digitalize its services, which can help startups access permits and support more efficiently.

Key Recommendations

Conclusion

The Philippines' startup ecosystem has shown significant growth, particularly in the wake of the pandemic, which accelerated digital transformation. While the government and private sector have made strides in supporting startups, challenges such as limited funding, lack of local talent, and insufficient digital infrastructure remain. Strengthening the ecosystem through targeted policies, better financing options, improved incubator and accelerator programs, and enhanced digital literacy and infrastructure is essential to foster innovation and drive sustainable economic growth.