DOST unveils 3-pronged economic strategy

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December 31, 2025 | 12:00am

MANILA, Philippines — In a bid to prop up the country’s slowing economy, the Department of Science and Technology (DOST) has launched a three-pronged economic strategy for the next three years, anchored on scientific developments and technological innovations.

Called Horizons, the strategy centers on modernizing micro, small and medium enterprises (MSMEs), commercializing research and development (R&D) outputs, and building advanced industries such as the agriculture and defense sectors.

“What we want to do in Horizons is really more engagement with the business side, while disaster resilience and R&D would continue,” DOST Secretary Renato Solidum Jr. told The STAR.

“These three Horizons are all interrelated to what we’re doing, so there’s nothing new, but there’s more effort and focus on certain programs, while other groups are doing their traditional programs and projects.”

Horizons offers a mix of fully operational programs and projects that are still under development, but Solidum said these are all funded already.

Under the first Horizon strategy, DOST aims to transform 10,000 MSMEs into tech-enabled businesses, which, if fully realized, will increase productivity by 30 percent and create 200,000 new jobs.

To achieve this, DOST will support more innovations under the Small Enterprises Technology Upgrading Program, with the agency leveraging its recent partnership with e-commerce platform Lazada to boost MSMEs’ reach.

MSMEs can also coordinate with DOST to utilize an artificial intelligence storehouse called the Decentralized Intelligent Machine Exchange Repository (DIMER)—the equivalent of an app store for large language models (LLMs) or the architecture for AI-enabled applications like chatbots.

“The AI service will look for the nearest LLM close to an enterprise’s operation,” Solidum explained, adding, “We can focus on logistics, agriculture, manufacturing, quality control, retail analytics, even disaster risk reduction.”

From science to business

The second Horizon looks into bolstering the commercialization of R&D outputs to convince business players that these investments are “worth the risk,” as Solidum puts it.

DOST has partnered with the Commission on Higher Education to conduct PHI-TEST, or the Philippine Higher Education Validation and Innovation Testbed, in universities across the country.

Through this initiative, innovators can request certification to test their products if they are aligned with global benchmarks.

The agency is also pushing for the passage of the National Measurement Infrastructure System Act. The proposal will strengthen the law on national quality infrastructure and ensure that Philippine products meet global standards to be export-ready.

DOST and the Philippine Economic Zone Authority are also aiming to declare seven more knowledge, innovation, science and technology (KIST) ecozones, converting idle lands owned by higher education institutions into a facility where start-up firms can establish operations, employ university students and benefit from government tax incentives.

So far, there are two operational KIST ecozones: the Batangas State University and the De La Salle University – Biñan. Over 30 HEIs, mostly in Luzon, are currently applying.

DOST is pushing to support 500 science and technology enterprises and attract up to P80 billion in investments. One hurdle, though, is lower-than-recommended spending for R&D, which accounts for just 0.32 percent of the country’s gross domestic product (GDP).

Empowering industries

The third Horizon builds on advancing industries with the use of AI, robotics and smart technologies – part of the eight big-ticket programs under the banner “Elev8 Philippines” that the DOST launched in February 2025 to support national development.

“We will have industry integration of AI; geospatial analytics and technology solutions; quantum computing for cybersecurity, optimization and new computing power; biologics and pharmaceuticals; robotics for advanced manufacturing; circular economy, green minerals, and renewable energy; and the sovereign capability framework for critical technologies for national resilience and defense,” Solidum said.

The success of these big-ticket programs, according to Solidum, will deliver an additional 100,000 high-skilled jobs and up to P300 billion in private investment, increasing the GDP by two to three percent.

“DOST is now putting some economic metrics in our effort for the first time,” the science chief said.

This particular Horizon is just on its first phase, according to Solidum, with the DOST already engaging with other agencies such as the Department of Trade and Industry, Technical Education and Skills Development Authority and CHED, as well as development partners, to secure funding and make these initiatives a reality.

The DOST’s economic strategy comes as third-quarter GDP growth came in at four percent, the slowest since 2021 and primarily a direct result of lower government spending due to the corruption scandal.