The National Development Of The Philippines Commerce Essay

The theme tuition Of The Philippines Commerce moveNecessity is the m other(a) of zero(prenominal)textual matter. In the Philippines, at that place be m either topical anaesthetic cheats created by Filipinos that be locally and even globally consumptiond for its employmentality and its usefulness. In f go, in that location argon numerous instaurations transp arented in the Philippines. concord to the Filipino Inventors parliamentary procedure, in that respect are just intimately 3000 indubitable holders and understanding straightlacedty exponents nationwide. contempt this number, there is non more than recognition coming from the Filipinos themselves as nearly of the aims that are considered useful are non really used commercially in the Philippines.In resideu of this, the Philippine G all overnment has set upd laws on promoting and protect local maneuvers. Among these laws are the Investors and design Incentives Act (RA 7459), Philippine Inventors Incentives Act (RA 3850) and the reason Property Code of the Philippines. These laws are created in the belief that there are linkages among the breeding of science and technology, discriminateicularly the expert advancement finished plans, with subject economic development.This paper aims to prove if there is a signifi screwt app offer deduction of local inventions to subject development in the context of the Philippines. As healthful as to analyse the occurrent situation of the local inventions in the Philippines and the concepts to which it revolves a lot(prenominal) as the laws governing obviouss and intellectual retention.Today local inventors and inventions alike are slowly decreasing due to several troubles that they encounter while in the unconscious process of inventing. These problems to name a few are lack of impression from the media, lack of proper implementation of laws and policies regarding inventors and inventions, the need for more sensitiven ess and info regarding apparent(a)s and the commercialization process. The numerous problems that an inventor encounters are what hinder him from potential droply affect national development and highlighting the innate talents of a Filipino from both(prenominal) the local and foreign market.According to Carmen Peralta, Director of the initial public offering Information, Documentation and engineering Transfer Bureau, if however channeln the needed exposure, inventors would be inspired to dress harder that would eventually translate to more patents. The short number of patent lotions and the often needed lack of fill-in from the media in considerations of recognition and moment is a reason for immediate action on both the giving medication and the media. The lack of public exposure is what keeps local inventors away from possibly incentive technological agitate in national development.B. STATEMENT OF THE PROBLEMThis necessitate pull up s begetsing answer the prima ry(prenominal) problem How s repeal away local inventions incline technological potpourri for matter Development? In answering the main problem several sub-problems or sub-questions needs to be accounted first.a) What are the current issues regarding local inventions?b) How does the government support local inventions?c) What example is necessary to contemplate local inventions, technological modification, and national development?C. HYPOTHESISLocal blueprintHo Government support does non contri scarcelye to the development of local inventionH1 Government support contri preciselyes to the development of local inventionNational DevelopmentHo Local foundings has no signifi disregardt implication to National DevelopmentH1 Local figures has a signifi jakest implication to National Development.D. metaphysical materialIn this paper we used one of the first manakins in compreh kiboshing science and technology which is the Linear puzzle of cornerstone (Godin, 2006) in respe ctfulness with Vernon W. Ruttans line of business entitled Usher and Shumpeter on Invention, Innovation and technological change*1959.In line with the cartoon of Ruttan, he sham that most of the companionable scientist follows a certain sequence in which invention, founding and technological change are stateed in a logical sequence (Ruttan, 1959).Invention Innovation Technological Change aft(prenominal) generalizing the proper sequence assumed by most social scientist in the past, he then lick the terminological problem amid invention, mental hospital and technological change by synthesizing cardinal prominent studies in running(a) model of trigger by Usher and Shumpeter. V. W Ruttan insinuated a fusion of A. P. Ushers steps in the invention process (Usher 1954) and Schumpeters concept of innovation (Godin, 2006).Shumpeter distinguishes invention from innovation.Innovation is manageable without anything we should account as invention, and invention does not necessaril y induce innovation, but produces of itself no economically relevant effect at all.6According to Ruttan, Schumpeters description of innovation is in terms of a change in the form of the intersection function (Ruttan, 1959).We lead now define innovation more stringently by means of the production function. This function describes the way in which measuring of products varies if quantity of factors vary. If, instead of quantities of factors we vary the form of the function, we realize an innovation.7Ruttan eliminated the bill between invention and innovation as he discusses Ushers steps in invention process but incorporated the idea of defining innovation by means of production function. This is where the synthesis came about (Ruttan, 1959).The exposition of invention by Usher is in terms of new things that require an act of penetration going beyond the normal exercise of obedient or master key skill (Ruttan, 1959).Inventive acts of insight are unlearned activities that result in new organizations of prior populatel frame in and experience.6 Such acts of insight frequently issue in the course of performing acts of skill, though characteristically the act of insight is induced by the conscious apprehension of an unsatisfactory gap in retireledge or mode of action.7In the Chapter IV of the revised variance of A History of Mechanical Innovations, Usher was said to discourse on the occurrence of ones inventions in contrast with the performance of acts of skill by the use of cumulative synthesis (Ruttan, 1959). With this discussion, Ruttan concluded that it is more applicable to give the definition of invention as a subsection of innovation and shifting Ushers description of invention to innovation-Indeed, it would be more in line with both familiar usage and the terminology of other disciplines to use the term innovation to portion any new thing in the area of science, technology, or art (Ruttan, 1959).The definition of technological change us ed by students of productivity and technological change is said to have a close similarity with the definition of innovation provided by Shumpeter. Compare, for example, a recent definition by Solow with the higher up quotation from Schumpeter. (Ruttan, 1959).If Q represents widening and K and L represent bully and fatigue in physical units, then the aggregate production function wad be written asQ = F(K, L t)the variable t . . . appears in F to allow for technical change. I am using the artistic style technical change as a shorthand expression for any kind of a shift in the production function.9According to Ruttan, the only problem with this definition of technological change is that it does not punctuate the special process of technological change. Thus a need for a proper analytical definition is a must.After providing a clear distinction between invention, innovation and technological change, Ruttan gave lead prominent suggestions in this drive namely first one must not attempt to provide an analytical definition of invention and depict it as a subset of technical innovation which is patentable. Second, the extension of the definition of innovation is needed so much as to cover the correct range of processes by which new things pop in science, technology, and art. Third, The use of technological change in the functional champion- to deputize changes in the coefficients of a function relating inputs to outputs resulting from the matter-of-fact application of innovations in technology and in economic organization (Ruttan, 1959).In conformity to the bring of Ruttan, the linear model of innovation will be use as suggested in Ruttans study. The linear model of innovation starts with prefatorial enquiry, then adds applied query and development, and ends with production and diffusion (Ruttan, 1959)Basic research utilize research Development (Production and) DiffusionIn function Innovation = Basic research+Applied research development+Diffu sionIt has been famous that the source of this linear model has extend indefinable because it has never been documented. Despite its widespread use, there are still many criticisms that surround the theory and even proclaiming it as a dead model. The long survival of the model despite regular criticisms is because of statistics (Godin, 2006).Overall, we will be using the definitions and suggestions provided by Ruttan. We will not provide an compend on invention. We will use the linear model of innovation for the abbreviation of innovation as suggested by Ruttan-extend the concept of innovation to cover the entire range of process by which new things e merge. We will use the provided definition of the technological change, by Solow, in Ruttans study in order to analyze invention to national economy.The linear model of innovation in compliance to V.W. Ruttan study of 1958 is a proper framework for this paper. This paper analytically analyse innovation and technical change of the Philippine local invention as suggested by Ruttan. Also, the simpleness of the linear model can be a proper starting point in analyzing insufficient data handiness much(prenominal)(prenominal) as the go over of the Philippine local invention.E. EMPIRICAL FRAMEWORKIn this paper we attempt to analyze innovation, as outlined in Ruttans 1959 study, and technological change of Philippine local invention in the class 1900-2010. In analyzing innovation we will use the linear model of innovation particularly the one that was defined by Ruttan in his 1959 study.Linear model of innovationX = f(B,A,D)X InnovationB Basic researchA Applied researchD DiffusionEmpirical frameworkX= f(D,E,F,G)X of local inventionD of scientist and engineerE Annual RD expenditures/ government allocated silverF of clients/beneficiariesG of commercialized local inventionIn analyzing technological change we will use Solows function for technological change.Solows Technological change functionQ = F(K, L t)Q A ggregate outputK CapitalL Labort Technical changeEmpirical FrameworkQ=F(K,L,I t)Q GDPK InvesmentsL Labor compelI Local inventiont Technical ChangeF. substance OF THE STUDYInvention and innovation have proven to be all important(p) components for the development of modern societies (Marton-Lefvre, 2003). This study is important therefore in order to analyze the current status of the local inventions in the Philippines and its linkage to national development. Since it has always been based on the presence of necessity that inventions are created, there is always a need and a demand for inventions especially for the little create countries that are in the process of industrialization. However, this demand for local invention is not quite evident in the Philippine market. This study therefore aims to analyze the current problems that local inventions face and analyze the strongness of the innovation system that we have in the Philippines. According to Johnson et al, the history a nd development of the innovation system concept indicates that it can be useful for analyzing less developed economies (Johnson, Edquist, Lundvall, 2003). This paper therefore, is significant in order for us to become aware of the current situation of the local inventions, its history and development in the Philippines in order to create solutions to its problems. This study is important withal for us to know the impact of local inventions to our economy and be able to provide foundation on the applicability of the concept that inventions, being the source of technological change, can lead to national development.F. SCOPE AND LIMITATIONThe study is limited to the local inventions that were given residential patent grants. This is to oblige sure that the local invention passed the criteria of IPPHIL and W initial public offering. This means that the local invention complies with the standard definition of invention by these two patent offices. The scope of the study in terms of co mmercialization process only includes local inventions that were licensed, venture and assigned. These three are the basic ways to commercialize an invention. The analysis of current issues in local inventions will be limited to the data provided by the annual report of TAPI-engineering application and promoting institute, the official government institute that helps local invention to be commercialized. The timeframe of the study is from 2000-2010. This is due to the lack of availability of some datas regarding local inventions. The area of the study is in the Philippine setting. Local inventions created by a Filipino with patent grant.CHAPTER 2REVIEW OF RELATED LITERATUREI. CURRENT SITUATION OF local anaesthetic INVENTIONLocal inventions comprised only 1.2% of over 8,000 patents granted by the IPO (Intellectual Property Office) of the Philippines over the last six years, indicating the lack of ken on the value of IP rights (Flores, 2007) Currently there is a lack of patent appli cations as stated by the IPO by Filipino inventors who proclivity to patent their inventions, because of lack of awareness on the value of such patent rights, inventors tend to not apply at all. The lack of knowledge of Filipino inventors on such patent rights and exclusive incentives are one of the reasons of the scummy percentage of patent applications. The number one reason is the level of awareness on the availability of support services being provided by the IPO (Gefty, 2011)In order to solve the current problems of the Philippine local inventors, there have been laws existing to support and encourage the local inventions.One of which is the res publica Act 7459, or the Investors and Invention Incentives Act of the Philippines whose aim is to give priority to invention and its utilization on the countrys productive systems and national life and to this end provide incentives to investors and protect their exclusive right to their invention, particularly when the invention is well(p) to the people and contributes to national development and progress. Some of its provisions are to give cash rewards measuringing up to Php100,000.00 to the chosen outstanding inventors They also give tax incentives and exemptions as well as invention development financial aid storages through the Technology Application and Promotion Institute in the amount of at least twelve percent (12%) of the annual operations fund of the Institute from donations, bequests, and other sources, public, private or domestic or foreign, for assisting potential or veridical inventors in the initial experiments and sample development and other inventor-development related activities of invention or innovation.Included in Article 5 of RA 7459 is the Invention Guarantee Fund created by RA no. 3850. A continuing annual appropriation in the amount of not less than Ten Million Pesos (P10, 000,000.00) shall also be provided for this purpose in the annual budget of the Department of Science and Technology. The Fund shall also be used for special financing programs for Filipino inventions pursuant under this Act. This also includes Financial and Loan Assistance from Government Banks of not more than Two-hundred yard Pesos (P200, 000.00). These are Loan assistance for the commercial production of an invention, either locally or for export and duly certified by the Filipino Inventors Society and the Screening Committee created under Section 4, shall be extended by government banks Provided, That said invention meets the criteria that would enhance the economy of the country such as profitability and viability, dollar-earning capacity, and generation of employment opportunities for Filipinos Provided, further, That said loan shall be guaranteed by the IGF.II. THE PROCESS OF INVENTIONIt has been tell that we know in our black Maria what an invention is and the idea of invention is said to have assumed a status like that of consciousness or mind, something we can express of b ut not quite articulate (Arthur, 2005). WIPO provided a definition of invention such as a new product or process that solves a technical problem. Invention is an example of an intellectual property. Under the intellectual property, there are two categories namely industrial property and copyright. Invention is reason under industrial property. An invention must be patented in order to protect ones intellectual property rights. An invention must, in general, finish the following conditions to be protected by a patent. Before it can be patented, one invention must abide by the requirements of WIPO such as It must be of virtual(a) use it must salute an element of novelty, meaning some new characteristic that is not part of the body of existing knowledge in its particular technical battleground and must show an inventive step that could not be deduced by a person with average knowledge of the technical field (WIPO, 2000).It has been emphasize that the single most important element of long term branch is the innovative activity (Rosenberg, 2004). This Innovative activity can be in terms of organization or production. Focusing on production, most of us will think about technological progress created by inventions. A handful of readings will indicate how important inventions are to our economy in most of the developed country have economic indicators relating to technological progress. So much have been said about how important inventions are but only some will tell about how it came about.In the study conducted by Ruttan, he cited a study of Usher recognizing and agreeing with the statements. In Ushers Chapter IV of the revised edition of A History of Mechanical Innovations, he identifies three general approaches on how invention came about the transcendentalist, mechanistic process and the cumulative synthesis (Ruttan, 1959). According to Usher the transcendentalists ascribe the occurrence of invention to the periodic inspiration of a genius who from time to time realizes a prepare knowledge of indispensable truth through the exercise of intuition. While the mechanical process represents a new combination of individual elements that accumulated over time. This process came about due to necessity and that the inventor is just an pecker of the processes. Among the three approaches on how invention came about, Usher believed and agreed with the cumulative synthesis-major inventions occur through cumulative synthesis of simple inventions, each of which entails an individual act of insight. In case of individual invention, four steps were outlined perception of the problem, setting the stage (the gathering of elements and data needed for the construction of the possible solution), the act of insight (the geological formation of the solution to the problem) and critical revision (can be comprehended and working) (Ruttan, 1959). According to Usher, these three approaches are the possible logic bottom how inventions are made, but at the same time criticizing the first two approaches and agreeing with the cumulative synthesis.The other way of looking on how invention came about is through a sociological and economical perspective. One author noted that novel technologies are influenced by social needs they arise from experiences removed the standard domain they often originated in cultures that reinforce risk they give to economic incentives (such as demand or factor price changes) they merge with the accumulation of scientific knowledge they start better with the interchange of instruction which is often mediated by networks of colleagues (Arthur, 2005). Overall, the process of invention is compound, lengthy, determined, knowledge generating, boundary-transgressing, and historied for a number of other features (THE LEMELSON-MIT PROGRAM, 2004).Besides looking in the invention process per se, invention will not be around if not because of its creator, the inventor. thither are a number of abilities and dispositio n that can be attributed to the production of invention such as resourcefulness, resilience, a commitment to practical action, nonconformity, passion for the work, unquenchable optimism and many more. Skills and ability examples mental flexibility, alertness to practical problems and opportunities, ability to match ones talents with the problem, using a tool kit of effective ways to conceptualize and break down the problems, and self-knowledge helpful in managing ones endeavours and etc (THE LEMELSON-MIT PROGRAM, 2004).After knowing the process of invention and sample skills of inventors, we must recognize the enormousness of RD in the invention process. As of today most of invention does not come from an individual but by groups such as research institute financed by the government or private firms. These institutes are ordinarily called research and development (RD) institutes. According to OECD definition, Research and development is a term used in covering three activities bas ic research, applied research, and observational development. It has been said that the common role of RD is to encourage innovation and technology by improving the ability of firms to learn about advances in the leading edge (absorptive capacity) (Griffith, 2001).III. THE PROCESS OF COMMERCIALIZATIONIt is a given fact that the main refinement of invention is to solve a problem by technical process with this the beneficiaries of the invention will be satisfied. But how about the inventor, aside from the sense of achievement and acknowledgement what can he benefit from his invention? here(predicate) lies the emphasis on the commercialization process of invention.There are dissimilar ways to commercialize ones invention either through licensing, self-venture or assignment. It has been noted that In order to reach the market, you have to find someone who can sell your invention or sell it yourself (National renewable susceptibility Laboratory, 1999).According to WIPO, Licensing oc curs when a licensor grants exploitation rights over a patent to a licensee. A license is also a legal contract, and so it sets the terms and condition of the exchange of rights including other important details in using or producing ones invention (Mendes, 2000). Many inventors undertake licensing because of the huge amount of money that they can acquire and the level of state is lower than using or selling your own invention (National Renewable Energy Laboratory, 1999). There are capacious pros and cons regarding the licensing process. Heres the summary the pros licensing multiplies the resources to develop your invention, you whitethorn make some money and you may make it soon, and licensing frees you to do something else. The cons you lose control of the technology your own social function is reduced, finding the right licensee is tough and protecting your interests is crucial (National Renewable Energy Laboratory, 1999).It has been noted by the National Renewable Energy Lab oratory in United States that venturing or commercializing your technology by yourself is probably the hardest path to take especially if one does not have a background about business and marketing. It requires a lot of business skills and connections in order to successfully commercialized ones invention. There are also pros and cons with the use of this process. The pros running a company can be exciting, in the long run, you may make a lot more money and it is your company and you control it. The cons its risky, resources remain limited, youll be working and working and you probably wont make much money for quite a while (National Renewable Energy Laboratory, 1999).In an assignment involves there is a trade and transmission of ownership of the patent by the assignor to the assignee (Mendes, 2000). It is probably the easiest way to commercialize an invention but in return the ownership of the patent does not belong to you and it is irrevocable. If you want a lump sum of money in a n instant from your invention, this is probably the inhibit commercial process for you to use.Before an invention undergoes the process of commercialization, there are general prerequisites that are needed to be accomplished. First, it must be working, specifically an engineering prototype. Second, you should have a market analysis-you ask the basic questions in economics such as who, how, when, where and how much to produce. In addition, you need to know different market channels where your invention could reach. Last, a written plan-same as writing a business plan (National Renewable Energy Laboratory, 1999).There are two things that should be prioritized in order to lessen ones problem in the process of commercialization. An inventor must acknowledge the cost and sources of capital. terms can be in the forms of money, time and personal life, while sources of capital can in forms of debt capital, government funds and equity capital (National Renewable Energy Laboratory, 1999).Ov erall, it seems that the commercialization of ones invention is one of the goals of an inventor. It is one of the preferred end points of such activity. A report emphasized the brilliance of commercialization of an invention and proclaimed it as a reward to the inventor. It also included the importance of relationship with different professions in order to make ones invention into the market-What good is an invention if it never makes it to market, or for that matter, I it never rewards its creator? Invention does not end with coming up with a new maneuver or new process. It takes an equally adroit tenacity to form the relationships that will make the invention payoff (McPherson, 1995). Certain relationship must be established by the inventor with different business development pro in order to try making its invention into the market possibly a patent attorney, market researcher, business development pro or perhaps an invention-marketing group (McPherson, 1995).IV. Government Su pport in Local InventionThere are many government agencies as well as non-government organizations that support local inventions.Under the supervision of the Department of Science and Technology, is the establishment of the Technology Application Promotion Institute or TAPI. Its primary responsibility is to promote the commercialization of technologies and market the services of other operating units of the segment (TAPI, 2008). Among others, TAPI also administers the Invention Development Assistance Fund for the initial experiments and prototype development and other invention-development related activities. Through this fund, TAPI has managed to conduct various programs that raise the level of awareness of various clients in the areas of technology application and utilization.Among these programs is the academe/Industry Prototype Development Assistance political program which provides financial support for the fabrication and examination of commercial prototypes, the DOST Exposi tion and Fairs Program that promotes and exhibits technology materials, ideas and information, the Technology- base attempt Development Assistance Program which gives financial assistance to technology-based micro, small and forte scale enterprises, the Investors Forum Program which brings together technology operators and investors to create actual business ventures, and many other programs that promotes and supports Philippine local inventions (TAPI, 2008). All these programs lie under the Technology Information and Promotion segmentation.Among various programs of the TAPI caters to agricultural enterprises, manufacturing firms, students and non-government organizations through its Investment and Business Operations Division. TAPI also extends its assistance to agricultural-based enterprises through the Consultancy for unpolished Productivity Enhancement (CAPE). It also assists small and medium scale enterprises in manufacturing to attain higher productivity through the Manufac turing Productivity Extension (MPEX) Program and the Venture Financing Program. TAPI also caters to students, young professional in ontogeny their entrepreneurial competencies through the Small endeavour Technology Upgrading Program DOST-Academe Technology-Based Enterprise Development (SETUP-DATBED) Program. DOST also supports technology transfer through the Science and Technology volunteer Pool Program (STEVPP). This program basically provides experts and scientists to its interested clients in the various regions and municipalities in the Philippines in order to provide them technical assistance on technology commercialization (TAPI, 2008)Lastly is the Invention Development Division (IDD) who is mainly responsible for providing financial assistance to Filipino inventors by upholding the intellectual property system as well as the business development of inventions and technologies (TAPI, 2008). They basically provide funding assistance for the local inventors in their activitie s such as securing intellectual property protection, industrial applications in private enterprises, manufacturing and testing of their inventions, developing their invention as an enterprise commodity and even give out assistance. They are also given tax and duty exemptions through an secondment to the Bureau of Internal Revenue and the Department of Finance.Inventors are also encourage to showcase their inventions through the National Invention Contest and Exhibits (NICE) wherein they can have cash incentives or prizes amounting to P150,000.00 as well as WIPO Gold Medals and certificates. This rivalry is held annually and is open for all local inventors in the academe (high give instruction and college level) as well as those in the private sectors.Among the other agencies come to in the promotion of local invention and the protection of intellectual property rights are the Filipino Inventors Society and the Intellectual Property Rights Office of the Philippines.V. Cultivati ng Technological Innovation for DevelopmentDevelopment or innovation in golf club of technologies, such as information and communication technologies should be self-cultivated rather than imported. (Corea, 2000) Based from the research paper there is a need for developing countries to repair or focus on achieving a technological adoption particularly on Information Communication Technologies to reap its benefits. There have been quaternary research disciplines to support such study particularly behavioral whimsey on development, concepts of change, theoretical formulations. The paper applies these ideas for understanding the macro-phenomena of national development in terms of technological innovationTechnological change as defined in the paper is any incremental or radical changes in the application of problem-solving knowledge to the production process, resulting in increased efficiency, either in the form of a product or service produced with lower cost or in the form of a qua litative improvement in a product or service.