CAMPUS SPACES FOR TECH START-UPS | Science and Technology Secretary Renato Solidum Jr. and Philippine Economic Zone Authority Director General Tereso Panga (left photo) sign on Aug. 3, 2023, a joint memorandum circular drawing up guidelines for the registration of knowledge, innovation, and science and technology (KIST) parks. The country’s first KIST is rising at Batangas State University (right), and three more locations are awaiting approval. (Photos from KRIXIA SUBINGSUBING and Contributor)
MANILA, Philippines — The country’s universities and colleges may soon be home to tech start-ups focusing on robotics, big data, and artificial intelligence now that the Department of Science and Technology (DOST) and the Philippine Economic Zone Authority (Peza) have signed an agreement to establish special economic zones (SEZs) in the land of the academe.
Science and Technology Secretary Renato Solidum Jr. and Peza Director General Tereso Panga signed a joint memorandum circular (JMC) on Aug. 3 to establish “knowledge, innovation, science and technology” (KIST) parks in higher education institutions (HEIs) that will incentivize research and tech development in specific fields.
These priority areas include research and development in biotechnology, food and nutrition, agriculture, engineering, electronics, robotics, renewable energy, transport solutions, data analytics, and artificial intelligence.
KIST parks are among the new types of ecozones that Peza is promoting — like aerotropolises, agro-forestry economic zones, aquamarine parks, and biotech centers. If set up and managed properly, Panga said these hubs would help spur economic growth across the country.
Panga welcomed the focus of specialized KIST parks on R&D-driven innovations as the Philippines sorely lacks these, even though studies show that economies that venture into R&D are the ones that are the most successful.
Jobs, innovations
Hopefully, the DOST and Peza partnership in these KIST parks that come with incentives would create more jobs and commercialize more homegrown innovations, said Science and Technology Undersecretary for Regional Operations Sancho Maborang.
Peza zones are usually export-oriented but these KIST parks will enjoy the same perks, which include income-tax holidays, a preferential 5-percent tax rate on gross income, zero value-added tax (VAT) rating, as well as tax and duty-free importation of capital equipment, raw materials and supplies.
Thus, a start-up that may want to take advantage of tax breaks provided by these KIST parks could tap the university’s faculty and students or use the facilities inside the KIST ecozone to create their products, explained Science and Technology Assistant Secretary Napoleon Juanillo. Products from KIST parks can vary from chemical formulations and scientific studies to prototypes and patents for robotics and others, Panga said.
Solidum said there were some 44 universities and colleges that have signified interest to have KIST parks, the theme of which will depend on the strength of the state university.
Batangas pilot site
So far, there is already one officially proclaimed KIST park and it sits in Batangas State University (BatStateU) that hopes to lead green industrial townships and smart city networks in southern Tagalog, leveraging on its strength in the engineering field. BatStateU’s park in Batangas City will host facilities, such as a technology hub, a design innovation building, and a data center.
First to be opened is its Science, Technology, Engineering and Environment Research (STEER) Hub which will be home to BatStateU’s Center for Technopreneurship and Innovation, Likha FabLab, the university’s manufacturing research center.
It will have spaces for lease to tech entrepreneurs.
Three more — De La Salle’s Innovation Hub in Laguna, University of Perpetual Help’s AltaHub in Cavite, and Lyceum of the Philippines’ KIST Park in Laguna — are just waiting to be declared special ecozones by President Marcos.
Minimum requirements
There are, however, minimum requirements before an HEI can apply to have a KIST park.
For example, a KIST ecozone within Metro Manila and other metropolitan areas in the country should be built on a contiguous land area of 5,000 square meters, while those outside the metro should have at least 10,000 sq m.
The DOST is also in charge of endorsing proposed KIST parks that focus on the priority areas outlined in the JMC.
Solidum hopes that having these KIST parks would “encourage students to pursue careers in science and R&D, especially if they see that these fields are creating more jobs and are productive.”
Last May, Peza broke ground on the first KIST park in the Bicol region at the Catanduanes State University (CatSU).
The KIST park and agro-industrial processing zone were deemed milestones as these model economic zones conform to green, inclusive and sustainable development.
Using idle lands
Through these projects, Peza said that CatSU will be able to mobilize and foster cooperation among farmers, nongovernment organizations and business chambers, scientists and researchers, and key players in the IT (information technology) and agro-sector supply chains.
Panga said the conversion of idle lands of CatSU into a prime KIST and Agro-Industrial Economic Zone “will potentially change the future of the whole province of Catanduanes and benefit its 263,000 residents.”
“It is worth mentioning that the CatSU KIST and Agro-Industrial Economic Zone will bring in a total of P1.55-billion investments in the province,” he added.
Panga also cited other benefits he would like to see with these projects, which include having foreign companies located in the two CatSU economic zones, job opportunities opening for CatSU graduates, as well as a better economic environment for the people of Catanduanes.