Business Potential for Agricultural Biotechnology - Asian Productivity ...

Business Potential for Agricultural Biotechnology Products in the Philippines
total of USD2.31 million was spent on biotechnology, 61% of which came directly from DOST
and 33% from PCARRD. Similarly, biotechnology became a major component of the Agriculture
and Fisheries Modernization Act (R.A. 8435 AFMA, 22 December 1997). From the total
appropriation of USD370 million for the first year of implementation, the law stipulated the
allocation of 10% for research and development, 4% of which was to be used to support the biotechnology
program. In 2001, the administration of President Gloria Macapagal-Arroyo explicitly
recognized the safe and responsible use of modern biotechnology as a means to achieve food
security and a sustainable environment. In addition, in a cabinet meeting held in February 2005,
President Arroyo approved the formation of a biotechnology industry cluster proposed by former
DOST Secretary and DTI-BOI Governor Ceferino Follosco, now active in the private sector. In
March 2005, DA Secretary Arthur Yap agreed to lead the agri-biotechnology industry cluster.
Public-Private Sector Collaboration/Partnership
The Philippines is in a learning mode with regard to public-private sector partnership in
agricultural biotechnology. The following initiatives have rallied private sector participation in
biotechnology R&D and commercialization:
Establishment of the 22-hectare UPLB Science and Technology Park (UPLB–STP) in 1993
to commercialize UPLB-generated superior biotechnologies.
Creation of the Biotechnology Association of the Philippines, Inc. in 1996 to unify the
private sector’s dispersed efforts on health, environment, and industrial biotechnology in coordination
with the Department of Trade and Industry.
Linkage with the International Service for the Acquisition of Agri-biotech Applications
(ISAAA) to provide proprietary “goodwill” technologies of regional importance through a networking
mode (i.e., PRSV and SPFMV resistance for papaya in 1997 and sweet potato in 2003,
respectively).
Establishment of the Biotechnology Coalition of the Philippines (BCP) in 2001 to advocate
for the safe and responsible use and advancement of modern biotechnology, as well as an expansion
of its membership to include the agricultural biotechnology sector.
Conducting two workshops at the Department of Science and Technology in 2002 to initiate
the formation of biotechnology industry clusters.
Packaging of PAFBA II with involvement from the private sector in brainstorming, determining
core competence, framework formulation, and research prioritization.
Meetings held in 2005 by PCARRD, PCASTRD, and BCP to facilitate the creation of bioindustries
by acting as a buffer for scientists, entrepreneurs, and investors.
With the current R&D budget constraints faced by the NARS worldwide and the CGIAR
Centers and the challenge of making an impact on the livelihood of the rural poor and the sustainability
of the environment, public-private partnership is no longer an option but a necessity.
R&D investment has been 0.30% of GVA, far below the 1% recommended by the World Bank
for developing countries and one of the lowest in the Asian region. Partnerships with the private
sector on research areas with market potential could swing the balance from primarily public
sector investment to one that will increase private sector investment from 5% to 15% (DOST-
GAINEX, 1995). Such partnerships, though, must be guided by a strong IPR policy and require
special skills in IP management that have yet to be acquired and applied by most scientists and
research managers in Philippine NARS.
COMPETITIVENESS OF AGRI-BIOTECH PRODUCTS
While the Philippines is the first country in Asia to commercialize a biotechnology product
of a multinational company, Monsanto’s Bt corn, its experience is still limited. Studies on social,
economic, and other related issues have been done by Gonzales (2004), Yorobe et al. (2004),
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