Research and development (R&D) serves as the backbone of national progress: driving innovation, building economic resilience, and crafting solutions to pressing issues. Yet, this critical engine is sputtering in the Philippines. Despite ambitious plans from the Department of Science and Technology (DOST), severe budget cuts could jeopardize projects essential for disaster resilience, technological advancement, and inclusive growth.
Short end of the carrot stick
The numbers paint a grim picture. DOST initially proposed a P49-billion budget for 2025, a figure aligned with its “eight big-ticket R&D programs” in biotechnology, smart manufacturing and agriculture, and geospatial analytics. These projects alone were supposed to receive 2.5 billion pesos. However, the approved National Expenditure Program slashed the allocation to just 28.772 billion pesos—a decisive shackle on the nation’s capacity to translate scientific ambition into real-world progress.
Among the most affected initiatives include the Smart Manufacturing Hub. Envisioned as a central node for technology transfer and workforce upskilling in advanced manufacturing, it may now face delays in establishment.
Similarly, the Smart Tech for Agriculture and Sustainable Development program aims to deploy digital solutions in farming and resource management. Efforts to expand precision agriculture, climate-resilient practices, and smart supply chains—all crucial for food security—will slow significantly without adequate funding. There is also the Cuatro Program for Industry 4.0, which intends to support businesses in adopting technologies like Internet of Things, robotics, and big data, but it must also reduce its scope and serve fewer enterprises.
The consequences of these constraints are not abstract. They manifest as missed opportunities for job creation, reduced competitiveness in global value chains, and a slower progress in addressing urgent challenges like climate adaptation and industrial resilience. The inability to fully implement these projects means the Philippines risks lagging behind regional peers who are rapidly investing in digital and industrial transformation.
Detached from the rest
Apart from delaying individual projects, the budgetary shortfall also exposes the long-standing structural weaknesses in the Philippine R&D ecosystem. The country’s gross expenditure on R&D (GERD) weakens at just 0.32 percent of gross domestic product (GDP), far below the global average of 2.04 percent and the UNESCO-recommended minimum of 1 percent. This chronic underinvestment creates a vicious cycle: limited resources force agencies to prioritize short-term or low-risk projects that crowd out the exceptional research needed for transformative change.
Low GERD also undermines the development of robust university-industry linkages, which are essential for translating research into market-ready innovations. The Philippines ranks poorly in such collaborations, with academic research often disconnected from industry needs and commercialization pathways.
This problem forms a ripple effect on the scientific community. First, it limits the ability to attract and retain top-tier talent, as researchers seek opportunities in better-funded ecosystems abroad. Second, it restricts access to cutting-edge equipment and facilities, which are pre-requisites for quality research. Third, it erodes the country’s capacity to participate in international collaborations, further isolating Philippine science from global advances.
Science beneath the shadows
Moving beyond this deadlock requires more than incremental adjustments; it demands a recalibration of national priorities. Raising GERD to at least 1 percent of GDP is a practical necessity for unlocking the potential of aforementioned programs like the Smart Manufacturing Hub, Smart Tech for Agriculture, and the Cuatro Program. Without this level of investment, the Philippines will continue to struggle with fragmented, underserved initiatives that fail to achieve scale or impact.
Policies like Republic Act 11293, or the Philippine Innovation Act, must be matched by sustained, predictable funding streams that shield R&D from the complications of annual budget negotiations. Public-private partnerships should be incentivized, not only to leverage additional resources but to ensure that our local research addresses real-world challenges and market opportunities.
More than a mere setback, the budgetary restriction for 2025 is a warning signal for the nation’s scientific future. Unless GERD is raised and systemic weaknesses are addressed, the Philippines risks remaining on the periphery of the global knowledge economy, unable to harness the full promise of innovation for national development.
This article was published in The LaSallian‘s Vanguard Special 2025. To read more, visit bit.ly/TLSVanguardSpecial2025.
