The research and development incentives under the Corporate Recovery and Tax Incentives for Enterprises Act, now awaiting President Rodrigo Duterte’s approval, will boost the country’s global innovation performance and regain its ranking in the Global Innovation Index.
House Ways and Means Committee chairman Joey Sarte Salceda, representing the 2nd District of Albay who authored the measure, gave the assurance in reaction to the March 3 report by the GII advisory firm Tholons, which showed the Philippines and Manila dipped dramatically in their competitiveness as a preferred site for business process outsourcing locators.
The Tholons Global Innovation Index 2021 report showed that the Philippines plunged from its 5th rank in 2020 to 18th spot this year in the “Top 50 Digital Nations” category. Manila also tumbled to 8th spot from its lofty 2nd place position in the 2020 “Top 100 Super Cities” category.
Salceda said while this was not yet a “cause for alarm,” the country’s declining innovation ranking, if left unattended, may impede the further growth of the BPO sector. “BPOs are still growing dramatically in the Philippines,” he said.
