This paper assesses the state of the Philippines National Innovation System (NIS) and analyzes the plans in place to reform and strengthen the system. The NIS is defined as a conglomeration of high-quality academic and research institutions and their linkages with private industries. The paper finds the NIS to be underdeveloped, with respect to both world-class research institutes and research outputs, measured in terms of doctorates, publications, scientists produced and technology development and transfer. The paper implicates the failure to develop a strong NIS on the populist education policy, adopted at the turn of the 20th Century by the American colonial regime and sustained by successive post-independent administrations. Poor infrastructure along with a lack of stable and rational macro policies, rule of law and good government have all contributed to the neglect of the NIS. The government has authorized the use of unprecedented sums, by historical standards, to enhance research, scholarship and infrastructure development of S&T units of the University of the Philippines and a consortium of six other engineering schools. The paper suggests, among other things, that the Department of Science and Technology, the newly created Commission on Science and Technology and the university consortium draw up an operational plan for accelerating and sustaining the development of the NIS and the role of higher education within it.
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