Reference 1: Highlights of the 2009-2030 Philippine Energy Plan

As the country faces the realities of growing energy demand, tight energy supply, limited foreign investments and critical power development issues, the Department of Energy is set to release the Philippine Energy Plan highlighting the plans and programs of the energy sector to fuel support for the economic growth of the country for the period 2009-2030. Specifically, the Plan will deal with the future of energy development which is very vital to the country’s prosperity. The over-arching theme of PEP 2009-2030 is ensuring the best energy choices for a better quality of life.

Policy Thrusts

The plans and programs of PEP 2009-2030 are crafted to respond to the challenges that are confronting the energy sector at present and usher the change in the landscape of the country’s energy future. In simple terms, the Plan will see to it that public policies on energy are at par with the changing needs of the energy sector.

As an overall guiding principle, the Plan is based on three broad policy thrusts:

• Ensuring energy security
• Pursuing effective implementation of energy sector reforms and,
• Implementing social mobilization and cross-sector monitoring mechanisms.

To realize these policy thrusts, the energy sector will see to it that necessary action plans will be set to motion within the 20-year planning period and these are summarized as follows:

Ensure energy security

• Accelerate the exploration and development of oil, gas and coal resources
• Intensify development and utilization of renewable and environment-friendly alternative energy resources/technologies
• Enhance energy efficiency and conservation
• Attain nationwide electrification
• Put in place long-term reliable power supply
• Improve transmission and distribution systems
• Secure vital energy infrastructure and facilities
• Maintain a competitive energy investment climate

Pursue effective implementation of energy sector reforms

• Monitor the implementation of, and if necessary, recommend amendments to existing energy laws
• Promote an efficient, competitive, transparent and reliable energy sector
• Advocate the passage of new and necessary laws
  

Implement social mobilization and cross-sector monitoring mechanisms

• Expand reach through Information, Education and Communication
• Establish cross-sector monitoring mechanism in cooperation with other national government agencies, academe, local government units, non-government organizations and other local and international organizations
• Promote good governance

ENERGY PLANS AND PROGRAMS

Since the path to energy security cannot rely on one option only, the PEP has laid out essential and urgent steps to support the policy thrusts of the energy sector. Below are the clear, realistic and specific plans for the 20-year planning horizon.

Exploration/Development of Conventional Fuels

The country’s conventional energy fuels – oil, gas and coal - will remain to be indispensable in meeting the country’s energy demand even as the country pursues other alternative energy sources.

Oil and Gas

For fossil fuels like oil and gas, the target production level at the end of the planning horizon is 78.59 million barrels, 2,694 trillion cubic feet of gas and condensate of 87.58 million barrels. Service contracts which to date total to about 34 will increase to 117 by 2030. Assuming the realization of these targets, hydrocarbon resources will increase by 40 percent within the planning period. The country has 16 sedimentary basins and the majority of these are found in Luzon particularly in Palawan.

Among the action plans to realize these targets are the continuing conduct of the Philippine Energy Contracting Round (PECR) and the establishment of a One Stop Shop to streamline government procedures and processing and provide assistance to potential investors in upstream energy projects. PECR is the government mechanism to bid out prospective areas for exploration and development. In the case of natural gas, the continuing inventory of other potential sources will be pursued to explore and develop a natural gas supply base.

Coal

Indigenous coal production will increase to a high 250 percent with the entry of more investors through the PECR or energy contracting round mechanisms and the conversion of existing coal operating contracts from exploration to development stage. Nearly 42 percent of in-situ reserves will come from the Visayas as well as the bulk of production levels that will come from the large coal mines located mostly in Region VI. Luzon, in particular North Luzon will have less than 10 percent contribution and these are mostly found in Region 2.

Currently, the country imports around 75.4 percent of the domestic coal requirements.

Apart from the conduct of PECR, the coal sector will heighten its information dissemination activities in terms of gaining social acceptability of coal projects. The R&D efforts, on other hand, will focus on improving existing technologies for pollution control and policies will be put in place to institutionalize the use of clean coal technologies to address environmental challenges.

GOING FOR CLEAN AND GREEN ENERGY

Renewable Energy
Renewable energy development was given a tremendous boost with the passage of the Renewable Energy Act of 2008. Since its signing, a total of 206 contracts had been signed and counting. The target is to double the RE-based installed capacity for power generation at the end of the planning horizon from its 2008 level of 5,300 MW.

Now on its final phase of deliberation among the various TWGs and Sub-committees of the National Renewable Energy Board are the various policy and regulatory mechanisms to speed-up the implementation of the law. These include the mechanisms on Feed-in-tariff, Renewable Portfolio Standard and Net Metering. FiT refers to the RE policy that offers guaranteed payments on a fixed rate per kwh for RE generation, excluding any generation for own use; RPS is market-based policy that requires electricity suppliers to source an agreed portion of their energy supply from eligible RE resources; Net Metering a system in which a distribution grid user has a two-way connection to the grid and is only charged for his net electricity consumption and is credited for any overall contribution to the grid.

Among the plans and programs which will be done in collaboration with DOE’s state university-based Renewable Energy Centers and other local research institutions is the updating of DOE’s existing RE database as well as the continuing conduct of promotional activities on renewable energy particularly ocean energy projects which could be in the form OTEC, wave, marine and tidal.

In the case of geothermal, a comparatively more advanced RE resource, the targeted installed capacity will increase from 1,972 to over 3,000 MW at the end of the planning horizon to boost the country’s leadership in geothermal energy development worldwide.

Currently, among the major islands, Visayas has the highest installed capacity with 964 MW.

Given the targets of the geothermal sector, there will be a continuing conduct of PECR to secure geothermal investments (there are 21 geothermal prospects under PECR). Existing service contractors will also be encouraged to undertake expansion and optimization projects.

R&D efforts, on the other hand, will be exerted to develop low enthalpy geothermal resources as well as the non-power applications of geothermal.

Alternative Energy

Biodiesel

The country has made significant strides on the use of alternative energy for transport. With a favorable policy environment in place, the Plan targets to increase biodiesel blend from 2 percent to as high as 20 percent at the end of the planning horizon. This would result to significant fuel displacement of 102 million liters in 2009 to 1,885 million liters in 2030.

Bioethanol

For bioethanol, the targeted blend is 20 percent from the existing 5 percent or the accelerated E10 that can be seen in the pumps. This will displace 1,340 million liters in 2030 from the current 169 million liters of fuel displacement.

The realization of the biofuel target blends will consider factors such as supply availability (but not in conflict with food security targets), infrastructures availability and competitiveness and rational pricing. Among the plans and programs of the biofuels sector with the active participation of the inter-agency National Biofuels Board is to partner with the academe and research institutions on the conduct of durability tests for higher biofuel blends for vehicles and viability studies for other potential feedstock. With the use of higher biofuel blends, standards will be formulated to ensure safety-compliant products. Its expanded utilization such as in marine transport will also be pursued.

Compressed Natural Gas

The government’s program on CNG is covered under the Natural Gas for Vehicle Program for Public Transport. Under its pilot phase, the target is to have all of 200 buses commercially operating by end of 2010. There are currently 34 buses running on CNG from Southern Tagalog or Calabarzon area to Manila. By 2030, about 10,000 buses nationwide will be fuelled by natural gas. With the onset of the required policy support in the medium-term and the coming on stream of the critical infrastructure facilities, CNG buses are seen to increase commercial operation in Luzon and Visayas by 2015 and 2020 in Mindanao. Over 7.000 units are projected to run in the entire Luzon within the planning horizon.

Auto-LPG

In terms of the use of Auto-LPG, the DOE will ensure that safety standards are formulated to regulate the use of LPG in other modes of transport such as 2/4 stroke motorcycle engines, motorized bancas and other diesel engines. The DOE will also enhance its policy direction on the use of LPG and intensify its campaign on its safe utilization and codes of practice among others.

Currently, there are 15,000 taxis converted nationwide running on LPG from less than 14,000 only in 2008.

Other Alternative Fuels (Nuclear)

Worldwide, there is a revival of interest in nuclear energy as an alternative energy source. And along this line, the Secretaries of DOE and DOST jointly created an inter-agency Task Force to exactly determine the feasibility of considering nuclear energy as a long term option in the country. As priority activities in the near term, the Task Force is set to validate the results of the BNPP feasibility study which is the major deliverable of an MOU or Memorandum of Understanding between NPC and KEPCO. It will also undertake site safety review of the BNPP. The results of the survey currently being conducted as part of the ongoing nationwide PEP IEC campaign will partly form the basis of a public communication plan that can be used for future IECs. A study on the competitiveness of nuclear power as against other fuel sources will also be conducted and meanwhile, as the country prepares for the possible entry of nuclear power, the DOE is capacitating its manpower through various training programs.

Promoting Responsible Use of Energy

The government is developing opportunities to make realistic changes in the way the country uses its energy resources. Energy conservation programs and technologies will help Filipinos become efficient consumers of energy.

For the energy efficiency program, the Plan aims to achieve 10 percent energy savings on the total annual demand of all economic sectors.

The passage of an Energy Efficiency Bill will be critical in realizing this target apart from the continuing implementation of the National Energy Efficiency and Conservation Program with the goal of instilling energy efficiency as way of life. The Department is currently implementing the Philippine Energy Efficiency Project with assistance from ADB that include among others the implementation of lighting retrofits of selected government buildings, distribution of CFLs to consumers nationwide, the establishment of mercury waste management plant for fluorescent lighting and the establishment of ESCOs as an emerging industry. The DOE will also expand the coverage of standards and labeling program to even include new models of passenger cars and light duty vehicles. Green building technology will also be promoted with our partners in the construction and real estate sectors.

Other programs for implementation are the monitoring of efficiency performance of power generation utilities and electric distribution facilities, promotion of aviation fuel efficiency enhancement, retrofit of commercial and industrial establishments and voluntary agreement program on the rationalization of tricycle operation.

Ensuring Developments in the Power and Electrification Sectors

As early as the 2003 update, the PEP identified 2008 as a possible critical period for both the Visayas and Mindanao. While the DOE campaigned hard for these investment opportunities in the area through local and even foreign investment roadshows, the investment opportunities did not seem that attractive. In the Visayas, a total of about 610 MW have been committed and part of it is now contributing to the grid. As a result, the island for now has enough reserve capacity to meet its requirement. In the case of Mindanao, only 200 MW of the identified additional 500 MW capacity requirement was realized.

The lack of private sector interest to put up the identified additional capacities in Mindanao, due to various reasons including regulatory uncertainties, bureaucratic delays, social acceptability, creditworthiness of offtakers and even peace and order situation in some areas, led to the current crisis being experienced now in the island. This is further compounded by the worst ever episode, in 20 years, of El Niño that hit the country starting last quarter of 2009. As of early March 2010, El Niño rendered the 900 MW of hydro capacities in Mindanao to almost nothing. This being the case, Mindanao has been declared under a state of calamity.

With government being prevented by law to put up new power plants, the private sector in Mindanao has agreed to supply the grid from their imbedded capacities and put up emergency capacities for the grid until the end of El Niño. On the other hand, government continues to advocate for the various programs on demand side management in the island so as to help reduce the peak load and demand for power.

Given the critical periods in the respective major grids of the country, between 2009-2030, the Plan provides a list of projects that will come on stream at various timelines. This will include committed projects as essentially having financial closure already and indicative projects as being in various stages of development, which could be in feasibility study phase for example. A 600 MW coal fired plant is a committed project for Luzon and year of availability is in 2012. While for Visayas, two committed coal power plants for this year will bring in 328 MW of additional capacity. Additionally, four additional power projects will come in by 2011 with an additional capacity of 325 MW. For Mindanao Region, the Sibulan Hydropower plant (42.5 MW) is expected to come onstream this year, the Cabulig Hydropower Project (8 MW) by 2011 and the Mindanao Geothermal Project (50 MW) by 2014.

Rural Electrification

The legacy of the Arroyo administration is to attain 100 percent barangay electrification. This is close to full realization as the country’s barangay electrification level now stands at 99.5 percent. To date, there remains 22 areas yet to be energized which are either in far-flung locations, hard to reach or the last mile areas or there are incidence of peace and order. Majority of these problematic areas are in Mindanao.

Within the planning horizon, the PEP envisions a 90 percent household electrification level through the DOE and the National Electrification Administration-led Expanded Rural Electrification Program which also includes other attached agencies of DOE such as the Philippine National Oil Company, National Power Corporation and industry players.

Pursuing Reforms in the Power and Downstream Oil and Gas Industries

Privatization of Power Sector Assets

The Power Sector Assets and Liabilities Management Corporation with its mandate of undertaking the disposal of NPC’s generation and transmission assets has successfully bid out 24 operating or generating plants and 5 decommissioned plants. Privatization level has reached 81.3 percent. It is now working on the remaining pre-conditions that will lead to the implementation of open access and retail competition which are the privatization of the remaining NPC generation assets and completing the appointment of IPP Administrators from the current 44 percent to the 70 percent level as required by the EPIRA. The remaining sub-transmission assets had to be divested also to qualified distribution utilities. Examples of these assets are the step-down transformers, sub-stations and overhead lines which are the main grid’s link to the distribution facilities.

Downstream Oil Industry

The Department’s role in implementing a deregulated downstream oil industry environment is to strictly ensure that consumers are safe and protected when it comes to the petroleum products that they consume: thus the setting of product and facility standards with relevant government institutions; the collaboration with industry players on mitigating the impact of oil price increase and ensuring a competitive playing field among industry players remain continuing programs of the DOE. The Presidential Task Force on the Security of Energy Facilities and Enforcement of Energy Laws will continue to play important role in safeguarding consumer welfare against various industry malpractices.

Downstream Natural Gas Industry

The DOE will re-file during the next Congress the Natural Gas Industry Bill that will encourage the private sector to participate in the strategic infrastructures build-up that will transport natural gas from its source to the end users. The DOE will also facilitate the inclusion of incentives for natural gas in the Investment Priorities Plan. The Department is also closely monitoring the natural gas supply developments in other economies to learn from their experiences and even explore the possibility of entering into cooperation undertakings.

The way forward program in terms of market development is among others to evaluate the techno-economic aspects of related technologies for fuel shift to natural gas; promotion of on-site or small scale power generation using marginal gas fields and conduct of potential gas market profiling.

Using Energy in an Environmentally Responsible Manner (Climate Change Adaptation Measures)

The country, like the rest of the world, is facing a moment of decision in terms of using energy in a more environment-friendly way. Fully aware on the role and responsibility of the energy sector in helping mitigate the impact of climate change, the Plan is introducing the pursuit of adaptation strategies, among which are as follows: the conduct of impact and vulnerability assessments of energy systems such as power generation, transmission and distribution, fuel production and transport in the immediate term, integration of structural adaptations into the design of energy infrastructures to include modification of engineering design practices and integration of climate change adaptation to energy policies, plans and programs including laws and regulations.

Social Mobilization

The plans and programs to realize the third policy thrust which is to implement social mobilization are already incorporated in all the energy sector plans and programs and these are expanding reach thru IEC, promoting good governance. The DOE however, would need to strengthen its collaboration and linkages with partners at both the national and local levels to help ensure that national plans and programs such as the Philippine Energy Plan will find its way into the regional, provincial and even municipal plans. Only then can national plans like PEP truly make a difference in transforming the lives of the Filipino people.

Reference:

DOE Portal, official website of the Philippine Department of Energy, doe.gov.ph/PEP/default.htm

Philosophy on Technology

Companies nowadays are technologically inclined as it is crucial for its survival. It was properly understood that good innovation almost certainly brings result and that postponing it would reduce the possibilities of innovating in the future, greater priority would be given to innovation and executives would be more disposed to create the circumstances that make it possible.

Karl Marxʼs claim that ʻTechnology discloses manʼs mode of dealing with Nature, the process of production by which he sustains his life, and thereby also lays bare the mode of formation of his social relations, and of the mental conceptions that flow from themʼ1. What drives executives in most companies to innovate? or what do the leaders of highly innovative companies have in common? Not contented with utilitarianism in its approach to technology but also made it attractive and intrinsically beautiful to the users as what Apple does with their iOS devices, most of the top level executives such as the late Steve Jobs are pursuing a vision. That vision is translated to its employees as it is sufficiently attractive and tangible. It can often be a more powerful driver than extrinsic motivations such as pay. And when executives are passionate about innovation and their companyʼs vision, their energy and the clarity of their ideas are contagious2.

There are three paradigms, which today compete for dominance in scientific society - the entrepreneurship paradigm, the technology-economic paradigm, and the strategic innovation paradigm3. These paradigms are the determinant factors that would influence any companyʼs philosophy towards technology. For example, in the 1950s, Masaru Ibuka, one of the founders of Sony, was so determined to create a new form of recording device that he motivated his engineers to work to their utmost. Some time later, this led to successful product launches such as the Walkman. The engineers of Sony had pursued the so-called technology-economic paradigm that its R&D department played the central role in its innovation activities. Looking at the strategic innovation paradigm on the other hand, its crucial element is the ability to see new possibilities in the market, then to induce innovations that can exploit these possibilities by utilizing the firmʼs resources4. Apple, which is currently one of the worldʼs most innovative companies does not do market research. This is straight from Jobsʼ mouth: “We do not do market research”. They scoff at the notion of target markets, and they donʼt conduct focus group. Why? Because everything Apple designs is based on Jobs’ and his team’s perceptions of what they think is cool. He elaborates: “It’s not about pop culture, and it’s not about fooling people, and it’s not about convincing people that they want something they don’t. We figure out what we want. And I think we’re pretty good at having the right discipline to think through whether a lot of other people are going to want it, too. That’s what we get paid to do. So you can’t go out and ask people, you know, what’s the next big thing. There’s a great quote by Henry Ford, right? He said, ‘If I’d have asked my customers what they wanted, they would have told me ‘A faster horse’’5.

Despite of its product successes, the company also has had its share of failures, such as the MobileMe or Apple TV, but, as in any innovative culture, well-intentioned errors are tolerated and later developments show that Apple learned from its mistakes. This is another aspect that leaders of highly innovative companies have in common is that they share values that encourage experimentation and learning. 

Silicon Valley, home to many of the worldʼs largest technology corporations is also the leading hub for high-tech innovation and development. We have witnessed the rise of young technology entrepreneurs, highly determined, encouraged by their companies to innovate. Yes, it is in the most innovative companies that the entrepreneurship paradigm flourished. Their senior executives are not just self-confident but they also have confidence in the entrepreneurial spirit of their employees. For example, for many years at 3M, and more recently at Google, the entrepreneurial spirit has been developed and backed by a principle of freedom, as opposed to just work, in the pursuit of groundbreaking ideas. Researchers are allowed to spend some of their time on projects of their own choosing without interference from above6.

Innovation should be understood as a long journey through growing achievements based on work and diligence. It must have a clear objective, but there must also be freedom to experiment. Joseph Schumpeter presupposes that the entrepreneur is not seeking economic gain. He states three motives that drive such a person: the wish to be independent; the will to conquer; the pleasure of the creative process in itself and of solving problems. These same entrepreneurs have conquered the odds and its innovation leads to a disturbance in the economic system where its production structures with new growth potentials are created and old mature structures are pulled down. It is a process called creative destruction as Schumpeter terms it. It is a chaos that leads the economic system forward7.

Open-mindedness is also a point to be undertaken. Companies are willing to explore proactively different ways of moving forward, the best solution that can improve their processes and services. Starbucks tells its staff that when a client complains, itʼs important that you recognize that this is an opportunity to form a close relationship. Once the employees see that the management cares about the clientʼs opinion, they are more likely to value it as well8.

Crucially, these values, principles and practices are not exclusive to any particular sector or geographical area. Networked enterprise are also emerging to connect the internal efforts of employees and to extend the organizationʼs reach to customers, partners, and suppliers. Based on the McKinsey report, companies embracing Web 2.0 technologies continues to grow as it shows significant increases in the percentage using social networking which is at 40 percent and blogs at 38 percent. Its benefits ranged from greater market share and higher margins to faster access to knowledge9.

When network giant ABS-CBN Corp. launched its Digital TV Service last April, its aim is to eventually replace the current analog signals in the Philippines. The digital box will provide better signals and more viewing options to non-cable TV subscribers for a one-time purchase between PhP1,000 and PhP3,000 without the hustle of monthly subscription fees. The Lopez-led firm will spend an initial PhP1 billion in its DTV offering10 and is ready to start broadcasting digital signals as soon as the implementing rules that will govern DTV transmission has already released by the National Telecommunications Commission (NTC), which is hopefully this year. The NTC officially adopted the ISDB-T or the Integrated Services Digital Broadcasting-Terrestrial last 11th of June 201011. The ISDB-T system from Japan has chosen, mainly because of the low price of the digital box which was quoted at around US$10 to US$15 a box12. 

ABS-CBN's philosophy to technology is to provide the best solution to its consumers without compromising their existing TV sets as well as their wallets, since the Philippine market is not yet ready to receive high-definition broadcast signals where most of the household are still using analog TV. The company has taken into consideration the market demographics as well as government policies which are the crucial steps in determining technology selection and adaptation.

References:

1 Rosenberg, 1981 p.9
2 IESE Insight, "A Culture of Innovation Begins at the Top" by Vila Vilar, Joaquim, 2011, insight.iese.edu/doc.aspx?id=1256&ar=16
3 Three paradigms in innovation theory by John Sundbo, p.399, Science and Public Policy, December 1995

4 Three paradigms in innovation theory by John Sundbo, p.404, Science and Public Policy, December 1995

5 You canʼt innovate like Apple by Alain Breillatt

6 Eric Schmidt on business culture, technology, and social issues, McKinsey Quarterly, May 2011

7 Three paradigms in innovation theory by John Sundbo, p.401, Science and Public Policy,

December 1995

8 Starbucksʼ quest for healthy growth: An interview with Howard Schultz, McKinsey Quarterly, March

2011

9 The rise of the networked enterprise: Web 2.0 finds its payday, McKinsey Quarterly, December 2010

10 The Philippine Star, “ABS-CBN allots P1B for shift to digital TV” by Mary Ann Ll. Reyes, 05 April

2011

11 Wikipedia, Digital Television, ISDB-T adoption

12 Philippine Daily Inquirer, “ABS-CBN to launch digital TV service for non-cable customers” by Paolo

G. Montecillo, Business section, page B1, 05 April 2011

Looking at DOST's Iron-Fortified Rice

Checking at the DOST's website, there are quite a fair number of priority projects that are being pushed by Secretary Mario Montejo. Examples of these are the mosquito Ovicidal/Larvicidal Trap that would address the dengue problem by effectively curbing the Aedes mosquito population and the PINOY or Package for the Improvement Nutrition of Young Children that would address malnutrition problem. The same importance were given to the promotion of local technologies, such as the hazard warning system, mass transit system, courseware for PC Tablets for school children, lengthening of brown rice shelf life,  and the development of iron-fortified rice (IFR), among others1.

DOST Building in Bicutan, Taguig City

With these priority projects, I decided to check on the iron-fortified rice that DOST is pursuing. According to DOST, the said rice has more nutritional value because of the added iron. It is made from a blend polished rice grains which slightly turns grayish when cooked because of the added fortificant or iron rice premix. According to the news2, the rice is also part of the Food for School Program (FFSP), which is an accelerated hunger-mitigation program of the government. The IFR is being distributed in schools under the FFSP because of its nutritional benefit. Regular intake of IFR, which contains iron prevents anemia, improves mental and physical development, maintains alertness and endurance, increases productivity and resistance to infection, among others. The FFSP is being implemented by the Department of Education (DepEd) and the Department of Social Welfare and Development (DSWD), while NFA provides the supply of IFR. According to Jessup Navarro, National Food Authority (NFA) administrator, it has distributed more than 6.7 million bags of IFR under the Food for School Program since it was implemented in 2004.

To create futures for the IFR, the two Foresight Techniques that I used are the Trend Analysis and the Forecasting by Analogy. Both of these foresight techniques are very much straightforward and its applications are an effective tool to predict future events.

TREND ANALYSIS

The selection of the Trend Analysis method is one of the most straightforward and intuitive first steps in assessing whether the program of iron-fortified rice as part of the Food for School Program is worth pursuing. The trend would analyze the health outcomes among the public school children which can be fully understood if their frequency and distribution are examined in terms of per grade level, per school, and time. Trend analysis is standard for public health surveillance and monitoring particularly if there is a program being introduced that needs further evaluation. A study of time trends may focus on one or more of the following3:

The overall pattern of change in an indicator over time. The most general goal of trend analysis for public health surveillance is to discern whether the level of a health status, service, or systems indicator has increased or decreased over time, and if it has, how quickly or slowly the increase or decrease has occurred. In terms of the FFSP Program, the level of health status among the public school children is the primary objective. A presentation of an improved health among these students within the short period of time is an indicator whether the iron-fortified rice is a success or not. 

Comparing one time period to another time period. This form of trend analysis is carried out in order to assess the level of an indicator before and after an event. Evaluating the impact of programs, policy shifts, or medical and other technical advances may call for what is sometimes called interrupted time series analysis. This is again to address the nutritional value of the IFR, and result of the studies should also indicate the health status of the beneficiary before it is included into the said program.  

Comparing one geographic area to another. When comparing the level of an indicator across geographic areas, only looking at one point in time can be misleading. For instance, one area may have a higher value on an indicator in one year, but a lower value in the next - analyzing the trend over several years can give a more precise comparison of the two areas. Here, comparison may be conducted in three areas - Luzon, Visayas, and Mindanao schools recipient of the said program.

Making future projections. Projecting rates into the future is a means of monitoring progress toward a national or local objective or simply providing an estimate of the rate of future occurrence. Projecting the potential number of future cases can aid in the planning of needed health and other related services and in defining corresponding resource requirements. Result of the studies may indicate whether the accepted projection rate, i.e. the health of the recipients of the IFR based on the gathered data may highlight useful information that may support decision making regarding the future success of the program.

Thus, not only the Department of Education (DepEd), the Department of Social Welfare and Development (DSWD), and the National Food Authority (NFA), but also the Department of Health in cooperation with the Local Government Units (LGUs) should also be involved in order to determine the effectivity of IFR among recipients of the said program.

FORECASTING BY ANALOGY

Forecasting by analogy on the other hand, is also very straightforward as there is a similar program during Marcos’ term in the early seventies which is the Vitamin-Laced Bread (Nutriban) and the Textured-Vegetable Protein (TVP) to supplement nutrition that may also be compared to the IFR/FFSP Program.

Due to the limitation of material on TVP, I just focused on the Nutrition Bun or Nutriban that I got from another website4. According to the write-up, the bread was introduced in the Philippines during the early seventies at public schools to supplement nutrition. It was a donation mainly from the United States with some coming from Australia, Canada, France and the United Kingdom. That was during the heightened food and gas crisis that occurred in the early 70’s in the Philippines. Nutriban is similar to the local “monay bread” but bigger, most likely as twice or thrice to its present size and has a real solid make, unlike the pan de sal and other local breads full of air inside. Made up of ingredients such as wheat, baking powder, corn starch, flour and milk. The nutritional bun tastes good with any fillings but most prefer with margarine, peanut butter or coconut jam.

It was originally delivered to the Philippines as a food aide to help with nutrition, with hundred thousands of metric tons stored all over government storage facilities, later sent to public schools for free consumption at first. To generate funds for local public school activities, it was later sold at 5 centimo when the price of pan-de-sal was 15 centimo per piece. Not a bad price at all considering its enormous size 4 times compared with pan-de-sal, with its nutritional ingredients. As the supply of Nutriban slowly depleted in 1976, only a few public schools in Metro Manila and in the rural areas continued to serve the bread and in 1977, it totally lost its supplies.

No one in the bread making business dared to copy its ingredient for mass consumption since most of its contents are expensive and selling it to the public at a price lower than the popular breads is losing money. Thus Nutriban became extinct but people still remember it as one of the best cheap bread served in the country.

The present P-Noy administration would actually learn a lot from this “Nutriban” scenario. Given the facts, they would be able to properly analyze on how they could sustain the IFR/FFSP Program in the future. Different products yet the same offerings, forecasting by analogy between IFR and Nutribun, would be able to analyze past event that may be an effective and helpful tool for future applications.

In relation to the concept presented by W. Brian Arthur in “The Second Economy”, that according to him, “Digitization is creating a second economy that’s vast, automatic, and invisible - thereby bringing the biggest change since the Industrial Revolution”5. Since his article is all things about digital that would replace the physical economy, the underlying notion is still about CHANGE. How people would interact, work, etc., in the middle of these advanced digital economy, could be perceived as people benefitting from it. What we perceive now as what Arthur implies are drastic change but as we go along or nearing towards that perceived economy, we may realize that it is not that “perceived drastic” after all because people are being introduced to these changes layer by layer. 

The same notion with the project of the DOST on the iron-fortified rice. Introduction into the market may not be very well adapted at first but little by little, with the ongoing acceptance rate on IFR starting from the grade school level, people would eventually accept the product that would become part of their system. 

Currently, the acceptance studies of IFR conducted by the National Food Authority (NFA) - Food Development Center among respondents in three elementary schools in Luzon, the Visayas and Mindanao from August to November 2009 among household family members of 301 Grade 1 pupils with 1,258 respondents in Camarin Elementary School in Caloocan City, North City Elementary School in Dumaguete City, Negros Oriental and Libertad Central Elementary School in Butuan City, Agusan del Norte. Using the home-use test, results of the studies conducted in these areas indicated a high level of acceptability of IFR among the respondents, with a total of 90 percent willing to buy IFR.

The surveys also registered a mean rating of 7.5 for overall liking which corresponds to a descriptor of “likes moderately” in a nine-point Hedonic Scale. Based also on these three studies, an average of 62.3 percent of the respondents were willing to buy IFR at a price range of PhP18.00-PhP18.95/kg while 15 were willing to buy IFR even at a higher price. Based on the survey, the respondents generally liked the odor and flavor of IFR when they were given samples for tasting even if its color has changed into grayish because of the added fortificant or iron rice premix.

Of the 301 participating-families in the survey conducted, only 103 Grade 1 pupils at the Camarin Elementary School in Caloocan City, with 451 respondents, were recipients of the IFR under the Food for School Program (FFSP). As beneficiaries of the FFSP, pupils received a kilogram of IFR for a specific number of school days in exchange for their attendance in school. The rest of the respondents from Dumaguete and Butuan City were not direct participants to the FFSP.

Studies showed that respondents who were not beneficiaries of FFSP in Dumaguete City and Butuan City expressed their willingness to buy IFR even at a price of more than PhP21/kg.

These acceptance studies showing favorable responses of the IFR are an indication of the success penetration rate among the beneficiaries already. Though, policies need to be there in order to fully maximize IFR, that would benefit the school children and our country in the long-term.

The school administrators may have to play an important role for the success of the program like for example, serving a cup of IFR in the school cafeterias or canteen for free. This way, they would be able to encourage these school children to eat not only IFR but nutritious food in general. In the long-run, these future generations may be used to eating IFR which may eventually be part of their system just like eating white rice. Demand may grow for IFR which may also be exported to other countries where nutrition and hunger-mitigation are a challenge. Export of IFR may be expanded through the partnership with the United Nations World Food Programme (UN-WFP).

References:

1 DOST website, region5.dost.gov.ph/index.php option=com_content&view=article&id=62&Itemid=21

2 Manila Bulletin Publishing Corporation, "Study: More Pinoys liked iron-fortified rice", 21 May 2010, mb.com.ph/articles/258330/study-more-pinoys-ironfortified-rice

3 Trend Analysis and Interpretation, “Key Concepts and Methods for Maternal and Child Health Professionals” 

4 Paraiso Philippines, "Nutriban", 15 April 2008, paraisophilippines.com/2008/04/15/nutriban/

5 The Second Economy by W. Brian Arthur, McKinsey Quarterly, October 2011

World's Highest Webcam

The world's highest webcam has been installed atop Mount Everest last September from the Everest expedition SHARE (Stations at High Altitude for Research on the Environment)1. The webcam that changes at an average interval of 4 minutes and active only during daylight hours (6:00 AM to 6:00 PM Nepalese time, which corresponds to 8:15 AM to 8:15 PM Manila time), was installed at the Kala Patthar summit, 18,000 feet (5,600 meters) above sea level to monitor climate change in the Himalayan region that will collect data on the temperature, humidity, and precipitation on the mountaintop. The summit of Everest is at 29,035 feet (8,850 meters) above sea level.

Image courtesy of Mobotix

Screen shot from the evk2cnr.org website

The German-made camera, an M12-type Mobotix is powered by a solar energy and can withstand temperatures as low as minus 22 degrees Fahrenheit (minus 30 degrees celsius)2. The webcam is a project run by the Italian Scientific Committee, EVK2CNR (evk2cnr.org) in collaboration with Nepal Academy of Science and Technology (NAST) and the Department of Hydrology Nepal. It is supported by the Italian Ministry of Education, University and Research (MIUR) and the Italian National Research Council. Real-time image can be viewed at Everest Webcam (refresh your browser once linked).

References:

1 Our Amazing Planet, "World's Highest Webcam Installed Atop Mount Everest", http://www.ouramazingplanet.com/highest-webcam-mount-everest-2101/
2 Mobotix, "Mount Everest in Focus", 08 September 2011, http://www.mobotix.com/eng_US/Company/News/News-2011/Mount-Everest-in-Focus

The true visionary and a great leader! You will be missed! And one more thing... thank you!

Philippines “All Set for Record RE Growth”

“The Philippines is all set for record renewable energy growth,” Greenpeace* said today at the launch of their new energy report which forecasts how RE can power more than 50% of the country’s energy needs as early as 2020. The “Philippine Energy [R]evolution Roadmap to 2020” outlines how, with intelligent planning, the current administration can steer the country towards development powered by sustainable energy.

“Greenpeace is presenting a practical blueprint on how the Philippines can dramatically increase current RE growth while providing a secure and affordable energy supply and stimulating economic development. The Philippines is a leader in RE development, and has a solid RE Law. This roadmap shows that increasing RE generation share to at least 50% by 2020 is entirely achievable – there is no reason for the government to fall short of this target, and they can even, if willing, aim higher,” said Amalie Obusan, Climate and Energy Campaigner, Greenpeace Southeast Asia.

“To make this happen the government must put their words into action. President Benigno Aquino III should immediately clear the remaining barriers that constrain maximum RE deployment and secure and maintain optimal conditions for RE development starting now,” she added.

Greenpeace is advocating an Energy Revolution, a change in the way that energy is produced, distributed and used, so that countries can respond to the most pressing energy challenges, such as climate change and energy security, which the world currently faces. The Energy Revolution involves the massive uptake of RE, the comprehensive use of Energy Efficiency (EE) measures in household and industry, and the transformation of the energy grid to allow for more flexible distribution of energy.

Essential reforms are necessary in the Philippine energy sector to make this change possible. Greenpeace is calling on the Philippine government to:

· Prioritize comprehensive mapping of the country’s vast renewable energy resources;

· Scrap all new proposals for coal-fired and nuclear power plants and shift those investments to the development of the renewable energy sector and energy efficiency measures;

· Prioritize grid infrastructure development and reinforcement to ensure the massive uptake of renewable energy technologies;

· Set stringent efficiency and emissions standards for appliances, buildings, power plants and vehicles;

· Review and assess economic growth projections to determine realistic power demand and supply requirements from a local level; and

· Increase investments for additional technology, research and development of forecasting capability specifically for variable sources of power like solar and wind.

The Greenpeace Roadmap, developed with the University of the Philippines College of Engineering – Electrical and Electronics Engineering Institute, is a compact document that highlights the benefits of, and the steps needed in, dramatically boosting RE development in the country.

It identifies key milestones from 2011 until 2020 of what policies and support must be in place to ensure that renewable energy development is on track to achieve the minimum 50% target; and goes as far as showing pending and proposed projects per region that should be in place in the next several years. It further aims to guide government units and RE stakeholders in looking at RE opportunities in the archipelago, so that government and investors “think RE first” and drop plans for harmful and unnecessary power sources such as coal and nuclear.

“Renewable energy is the energy that will power the future—it has a central role to play in achieving sustainable development. The Greenpeace Roadmap shows that renewable energy is not a dream for the future—it is real and can be achieved now. We’ve outlined the steps to show how we can reach this vision. The government holds the next move,” said Obusan.

The Philippine Energy [R]evolution Roadmap to 2020 is available for download at www.greenpeace.org.ph/2020roadmap.

*Greenpeace is an independent global campaigning organisation that acts to change attitudes and behaviour, to protect and conserve the environment and to promote peace.

A Call to Abandon Nukes on Chernobyl Anniversary

Greenpeace* today marked the 25th anniversary of the Chernobyl nuclear disaster with a call to governments of Southeast Asia to abandon all plans of developing nuclear power plants in the region to ensure the safety of its citizens. Greenpeace is calling on Philippine President Noynoy Aquino to invest heavily in energy efficiency and harness clean, safe renewable energies to meet the country’s energy requirements instead of dirty coal and dangerous nuclear energy.

“Chernobyl is to date the world’s worst civilian nuclear accident, but the unfolding disaster in Fukushima, Japan, demonstrates that no amount of technological sophistication or safety culture can prepare any country or its people for the inherent dangers of nuclear energy. Like in Chernobyl, the Fukushima incident has shown that we cannot control or manage nuclear energy and its fallout,” said Amalie Obusan, Greenpeace Southeast Asia Climate and Energy Campaigner.

A quarter of a century after Chernobyl, the situation in the area surrounding the Chernobyl reactor shows few signs of improvement. Widespread contamination, constant resettlements and long-term health impacts still pose threats to communities. And, despite ‘modernizations’, the root causes of nuclear technology’s vulnerability to accidents remain the same: unexpected technological failures, operator errors, poor safety standards due to political and economic pressures, lack of transparency in the industry as a whole, and natural disasters. 

However, the Philippine Energy Plan for 2009-2030 still contains options for the adoption of nuclear power in the country. Under the Energy Reform Agenda of the current administration, part of the DOE’s thrusts for 2013-2016 is to strengthen policy researches and studies in aid of executive and legislative action that will facilitate the operation of a 2,000-megawatt nuclear power plant in 2025.

Strong public resistance in 2008 derailed plans to revive the mothballed Bataan Nuclear Power Plant.  But the Philippines, as with rest of the ASEAN countries, despite their vulnerability to natural disasters in the Pacific “ring of fire” and their general lack of disaster preparedness, have not yet ruled out nuclear power and the great costs and risks it entails.

Costs to manage the Chernobyl disaster which up to now continues to drain Ukraine and Europe millions of Euro annually, is estimated to cost more than 13 times the Philippine government’s budget for 2011. The disaster also severely contaminated between 125,000 and 150,000 square kilometres (equivalent to around half the Philippines’ total land area) in Belarus, Russia and the Ukraine. A Greenpeace-commissioned study based on Belarus national cancer statistics estimated that approximately 270,000 cancers and 93,000 fatal cancer cases will be caused by Chernobyl.

Greenpeace believes that to secure a safe and better future, countries must choose renewable energy over nuclear power. Greenpeace has long argued that renewable energy has the potential to meet a substantial share of our future energy demand. The Energy [R]evolution scenario details how – combined with energy efficiency and a transformed electricity grid – renewable energy could produce 95% of electricity worldwide by 2050. Other studies have made predictions for different time frames or regions. PricewaterhouseCoopers, for example, predicts that Europe and North Africa could run on 100% renewable energy by 2050.

*Greenpeace is an independent global campaigning organization that acts to change attitudes and behavior to protect and conserve the environment and to promote peace.

Case Study: Advanced Science and Technology Institute (Part 3)

INSIGHTS AND ANALYSIS

This section presents the insights, analysis, and recommendations of the group based on the data gathered about ASTI focused into a number of key focal points.

ASTI as a Technology Integrator

The Advanced Science and Technology Institute is currently tasked with a mandate to conduct scientific research and development in the advanced fields of information and communications technology and microelectronics. In terms of ICT, ASTI has evolved into a technology integrator that brings together different applications to address particular needs of partner organizations. In this regard, the actual research and development work, if any, is limited to the customization of existing ICT software such as open source platforms and applications to perform specific tasks. This becomes a challenge for the organization because creating new technologies that can be considered true research and development, particularly in the open-source software industry, is a highly competitive environment with its own set of difficulties in creating patentable or proprietary technologies. In other words, by utilizing vast amounts of resources in this field of endeavor, what competitive advantage does ASTI bring that is not already offered by other competing private software companies?

A Shift in Focal Technologies

Currently, majority of ASTI’s efforts focus on information and communications technologies and microelectronics as specified by its current mandate. These focus technologies have been in place for the most part of ASTI’s operations. Both technologies, particularly microelectronics, are technologies that have had sufficient time to mature thus allowing many major players to create highly advanced and specialized technologies. Today, the world’s largest computer chip manufacturers Intel and AMD have accumulated vast amounts of resources and have progressed in their research and development to the point that local technological catch-up by ASTI may not be as feasible, much less competitive unless massive amounts of resources are poured into it without even any guarantees of success and, more importantly, to what end?

At this point, ASTI is already heavily invested in these technologies, but the speed at which the rest of the world is moving forward with these technologies relative to them is rapidly making these investments obsolete. Tough questions may sooner or later begin to surface on whether or not to continue despite little chance for creating new breakthroughs, or starting over with something new.

Given this situation, where moving forward with pushing for further research and development by ASTI in microelectronics as well as for the majority of ICT seems redundant, there may be a need for the organization to reevaluate the current technologies that it is focusing on, even to the point of examining the entire system for focal technology selection and its lifecycle. This calls for an examination of the existing technology management system and infrastructure which can potentially make the organization more flexible going forward. New major investments will have to be made but first, the technology and project selection criteria will have to consider the risks involved in exploring new ventures.

One-Sided International Collaboration

As a developing nation, one-sided international collaboration in terms of technology transfer and acquisition is something to be expected, particularly in the early stages of the research and development of a specific technology. As previously mentioned, ICT and microelectronics are technologies that are generally considered mature technologies in their present state. The private sector is the primary driver for technological growth in these industries, each group developing within its own area of expertise and from their contributing to the general body of knowledge through commercial activities. Along the way, various forms of intellectual property have been created and established in these industries and have strengthened the leadership positions of the innovators.

The challenge here, and this is not a problem unique to ASTI, is that as technological followers, there is not much room for large contributions to the industry in the first place since these have already been established by the leaders. There is room to contribute in narrowed specific niche focal areas of these technologies but since the industry leaders are not only technological leaders but also commercial ones, it is more often than not, their projects and areas of expertise that generate market impact and appeal. Other fields which may still be left unexplored may not be as economically rewarding if one does not have adequate resources for investment not only in research and development, but also in product sales and marketing. In this regard, ASTI faces a massive challenge if it wishes to pursue new frontiers within ICT and microelectronics. The economic and intellectual resources requirements to create breakthroughs in the industry that might be considered worthwhile for two-way international collaboration may not be within its capabilities.

Open Innovation and Intellectual Property Pooling

Open-source software is an area well-positioned for growth for years to come should ASTI decide to pursue incremental innovations either related to or built on top of existing established platforms. Software development is a potentially huge market which is generally not as resource intensive as other R&D areas. Open-source software is currently expanding outside personal computing and moving into the space of mobile computing and communications and even general consumer electronics. These are areas of high interest for many private sector firms and there are relatively little barriers for entry.

As a technology integrator, ASTI has already begun to immerse itself in these open technologies and all that may be needed to push for a more focused approach towards research and development in this field might come in the form of specialized custom projects that take advantage of resources that are already available. This industry however, is a highly commercial one. In order to keep pace with competition from both the private and public sector, locally and internationally, commercialization will potentially play an important role in determining whether or not ASTI will succeed or not should it decide to pursue a focal project in open-source software.

Work and investments in these open-source technologies can also lead to increased international participation and general intellectual property pooling. These steps can pave the way for future local contributions to the general knowledge pool and potentially an increase in locally contributed patents related to them.

Long Term Project Issues

Leadership continues to play a particularly important role in the potential selection long-term projects that ASTI may consider pursuing. Based on past results, a vast majority of completed projects have been short-term ones based on the prevailing technologies during the past eras at which they were conceptualized. Though there is always an external influence from the current administration and the leadership at the Department of Science and Technology towards the types of projects pursued by ASTI the burden of actual research and development and project selection ultimately falls on the organization and whether or not it decides to pursue short-term or long-term projects is subject to many different factors such as social and financial ones.

The challenge for long-term projects is that although they hold a faint promise of developing technological breakthroughs, committing financial and human resources without any immediate potential returns is always a tough sell for any organization. In this case, it is a particularly tougher one for a government organization whose results are broken down into which administration was present during the time of the success.

In terms of the current focal technologies of ICT and microelectronics, the questions related to the maturity of the technology and the overall competitiveness of the industry becomes a critical issue that must be addressed when considering any long term approach to development. Is there a future for long term research projects to still be conducted in ICT or microelectronics given the current state of the industry and ASTI’s own limitations? Should new long term plans be made in consideration of new and emerging technologies?

A Triple-Helix Approach

As a sub-organization within the Department of Science and Technology, ASTI functions as a specialized government unit for research and development currently for information and communications technologies and for microelectronics. It’s proximity to the University of the Philippines as well as its ties with various key figures in the private sector positions it well as an organization that can leverage both private and educational resources to bolster its own efforts.

Past efforts such as the production and sale of an ultra-low cost digital multimeter in partnership with Alexan, a private sector electronics components seller, and the ASTI-PREGINET project, an education based service that allows state universities and colleges, government organizations, and research institutions to collaborate over a dedicated network illustrate, at least in concept, the potential for growth in research and development through various partnerships.

Case Study: Advanced Science and Technology Institute (Part 2)

R&D MANAGEMENT

ASTI’s R&D management is driven by and aligned with the national R&D policies as set by the DOST and the Medium-Term Philippine Development Plan (MTPDP Chapter 19). Through the direction of the Secretary of DOST, the ASTI Director aligns ASTI projects per DOST priorities. DOST allocates the budget and specifies the general focal area for R&D.

R&D PROJECT SELECTION, EXECUTION AND EVALUATION

R&D project selection is dependent on the priority projects of DOST Secretary and influenced by the various councils within the Department. The Technical Core Group, headed by the Director, analyses these science and technology (S&T) priorities and proposes projects that support the current national S&T initiatives. ASTI goes through 20 concurrent projects on the average annually.

ASTI projects go through a standard process in terms of R&D execution. ASTI processes are documented and enjoy a quality management certification (ISO9001:2000) from Certification International Philippines. The agency successfully passed its last surveillance audit conducted last February 2010.

ASTI projects are applied technology projects – no new knowledge or technology is discovered or formulated; rather, the agency integrates systems and tools for various applications. This “mash up” development approach lends ASTI a system integrator character.

Project status is reported during regular Technology Core Group meetings. Ongoing projects, e.g., Preginet, Bayanihan, are evaluated and audited at regular intervals for go/no-go decisions. Projects are considered complete once they are ready to be deployed to ASTI customer/stakeholder.

RESOURCE ALLOCATION

The 2011 national budget of the Philippines, also known as the General Appropriations Act of 2011 was signed into law by President Benigno Aquino III last 28th of December 2010. The said national budget is 6.8 percent higher than the 2010 budget of PhP1.540 trillion (See Figure 1). It represents 18.2 percent of the projected Gross Domestic Product (GDP) this year. The approved budget assumes revenues of PhP1.41 trillion, or 15.6 percent of GDP in 2011, and disbursements of PhP1.70 trillion, or 18.8 percent of GDP, lower than the 19.5 percent last year3.

This year, the Department of Science and Technology were allocated at PhP2.264 billion (See Figure 2). The budget is a 54 percent decrease from the 2010 budget of PhP4.86 billion during the Arroyo Administration. From the current DOST budget, 2.4 percent of it was allocated to the Advanced Science and Technology Institute (ASTI) whose main thrust is in the Information and Communication Technology (ICT), one of DOST’s priority fields for research aside from biotechnology, agriculture, alternative energy, and health.

Figure 1. National Budget of the Philippines

Figure 2. DOST Budget of the Philippines

According to DOST, its budget has its four major thrusts: diffusion of knowledge and technologies, generation of new knowledge and technologies, development of human resources for the scientific and technological (S&T) sector, and provision of quality S&T services.

The Executive Order 128 mandates the DOST “to provide central direction, leadership and coordination of scientific and technological efforts, and ensure that the results therefrom are geared and utilized in areas of maximum economic and social benefits for the people4.”

At least 76 percent or PhP41 million of ASTI budget of PhP54 million, is allocated for their R&D operations annually. Currently, ASTI has 65 personnel dedicated to Research and Development or 70 percent of the institute’s total manpower.

ASTI’s management group is divided into two: the Planning and the Technical Core Group. Since 2005, the institute is headed by ASTI Director, Engr. Denis Villorente, an Electronics and Communications Engineer Board Exam top-notcher and a UP scholar.

ISSUES AND CONCERNS

Based from the group's interview, ASTI is becoming an internal Information Technology of the DOST instead of working on Research and Development projects that the institution is tasked to do. There is also discontinuity of its programs and projects whenever a new DOST Secretary comes in. This is evident on the new DOST chief Mario Montejo, which its current priority project is in the monorail that definitely would affect ASTI’s current projects.

Currently, ASTI’s only 65 R&D personnel are stretched and needs additional training and workforce support. The said number is an obvious reflection of the Philippines’ current stand on R&D personnel per million Filipinos which is at mere 165 per million Filipinos, a way below the UNESCO recommendation of 380 needed for economic development. These highly trained personnel specifically the researchers and scientists, leave the country due to the continuous decline in the quality of scientific research institutions, company spending in R&D, and the procurement of the government in advance technology products. Since 2009, the rankings out of 139 economies in the latest World Economic Forum Report (See Figure 3) have been reduced to -6, -24, and -10 places respectively5. The consequences are serious as these personnel continue to seek for higher wages and better working conditions abroad.

Figure 3. Technological Readiness and Innovation
summary of the Philippines

Another stumbling block for ASTI, based on the group’s assessment, is the lack of marketing effort for their products and services as well as its weak link to industry. The institution’s lack of market push with their products and services becomes a challenge. Alex Sy of Alexan, producer of electronic products is the sole private entity linked with ASTI for its Digital MultiMeter product. It would definitely be an advantage for both the institution and industry if partnership would be fully utilized due to the private company’s own funding that does not rely on government resources.

The group has also observed that the institution has no actual homegrown research as well as dedicated time for the personal projects of its personnel which ideally duplicating best practices of 3M and Google.

Lastly, the institution also has projects that are already commercially available or has been done by other countries. This is evident in their flood control project. Other projects of ASTI are basically outdated.

References:
3 General Appropriations Act 2011, The 2011 Budget at a Glance, Department of Budget and Management Publication, The President’s Budget Message, Benigno S. Aquino III, President of the Philippines, 24 August 2010
4 PSciJourn, The official site of the Philippine Science Journalists Association Inc., pscijourn.wordpress.com
5 Global Competitiveness Report 2010-2011, developed for the World Economic Forum (WEF), WEF’s partner institute is the Makati Business Club (MBC) in association with the Management Association of the Philippines (MAP)

Case Study: Advanced Science and Technology Institute (Part 1)

The Advanced Science and Technology Institute (ASTI), one of the primary Research and Development centers of the Philippines was presented in this case study1 where its fundamental objective is to analyze the management of ASTI’s R&D component. The report was presented last 12 March 2011 before the TM204 or Management of Research and Development class under Dr. Rolando P. Dayco at the University of the Philippines Technology Management Center (UP-TMC).

ABOUT ASTI

The Advanced Science and Technology Institute (ASTI) was created by virtue of Executive Order No. 128 on 30 January 1987, as one of the seven research and development institutes of the Department of Science and Technology (DOST) tasked in conducting scientific research and development in the advanced fields of Information and Communications Technology and Microelectronics.

The following is ASTI’s mandate, vision, and mission as published2:

Our Mandate

Conduct scientific research and development in the advanced fields of Information and Communications Technology and Microelectronics.

Our Vision

"The Advanced Science and Technology Institute shall be among the leading Research and Development Centers in Information and Communications Technology (ICT) and Electronics within the Southeast Asian region."

Our Mission

"The Advanced Science and Technology Institute is committed to the development of the Filipino society and the Philippines as a nation. We shall contribute to the attainment of national development priorities and the growth of Philippine enterprises by providing innovative solutions using ICT and electronics technology."

ASTI is committed towards contributing to the attainment of the following major final outputs:

1. Diffusion of knowledge and technologies

2. Generation of new knowledge and technologies

3. Development of human resources for the science and technology sector

4. Provision of quality science and technology services

In line with the national technology development efforts spearheaded by the national government through the Department of Science and Technology, ASTI is currently undertaking research and development projects under three (3) program thrusts:

INFORMATION AND COMMUNICATIONS TECHNOLOGIES PROGRAM
This program aims to adopt, adapt, and/or develop strategic and research and development activities in the areas of information and communication technologies.

Components:

• Advanced Networking Research
• Wireless Technologies
• Network Applications and Software

Microelectronics Program

This program seeks to develop a state-of-the-art microelectronics design facility where one can do quality R&D work and cultivate a skilled workforce adept in Integrated Circuit (IC) Design through training and exposure to actual design work.

Components:

• Digital, RF, Analog and Mixed-Signal Microelectronics R&D
• Printed Circuit Board Laboratory
• ASTI-Virtual Center for Technological Innovation in Microelectronics Open Laboratory

Technology Transfer Program

ASTI pursues dynamic assimilation of research results by industry, academe, non-government organizations, and government institutions. It aims to transfer research and development outputs and advanced know-how through:

• Technology diffusion and commercialization
• Collaborative research and development
• Conduct of trainings and seminars
• Industry studies

EXISTING PRODUCTS, SOLUTIONS, AND SERVICES AT ASTI
Below is a basic summary of the major product releases completed by ASTI:

GSM Data Terminal - This product enables computers to send and receive text messages, just like an ordinary cellular phone. It uses any mobile phone SIM card, and there is no need for Internet connection.

Wireless Telemetry and Remote Monitoring Platform - Customizable and flexible platform for data logging applications through wireless network based on Global Systems for Mobile Communication or GSM. Provides a complete data acquisition solution when paired with the GSM data terminal for real-time data monitoring and graphical analysis of measurement readings from different types of sensors (e.g. temperature, pressure, humidity etc.)

PICMe - Microcontroller Starter Kit - A low-cost pocket size microcontroller learning board to jumpstart your project development with MCUs.

Digital Wood Moisture Meter - The Digital Wood Moisture Meter (WMM) is a handy tool used to determine the moisture content of selected local hardwoods. The WMM is indispensable for the local woodworking/furniture industry and is designed to be a fully-functional, low-cost alternative.

Digital MultiMeter - An ultra low cost digital multimeter built with state of the art DMM processor. The first ever produced multimeter product designed by Filipinos to reach the market. This portable test instrument is capable of handling various electrical measurements such as AC/DC voltage, current and resistance measurement and other special features.

Pasteurizer - The Human Breast Milk Pasteurizer is a device that kills harmful bacteria present in milk due to its mishandling and unsafe storage.

Digital Library System - ASTI offers a digital library platform for use by PREGINET partner institutions. The digital content system is capable of handling digitized documents. Documents that can be easily uploaded and stored include conference proceedings, journals, theses, dissertations, and other publications, even audio and video files of trainings, seminars, and workshops.

Digital Content System - A free online library which directs users to exemplary resources for science, technology, engineering, and mathematics (STEM) education and research. This integrated library system, or ILS, is an enterprise resource planning system for a library. This library management system is designed to coordinate and automate such library functions as the online catalogue, the circulation system, and the acquisitions system.

Virtual Classroom - ASTI offers classroom-like courses over IP. Courses are offered on-line and modules are uploaded and made accessible to intended internet portals. This learning platform has now been adopted by many as a form of distance learning. This kind of system offers a great advantage in terms of availability of school at all times.

Web Hosting - This allows individuals and organizations to host their own website, and users with online systems for storing information, images, video, or other content accessible via the World Wide Web. ASTI-PREGINET provides this service to State Universities and Colleges, Government organizations, and Research Institutions.

Domain Delegation of .gov.ph - ASTI is in charge of delegating .gov.ph domains to various government units.

References:
1 Case study on “Research and Development Management at the Advanced Science and Technology Institute” by Joselito Barquez, Rafael Concepcion and Ronald Gonzales, last 12 March 2011 at TM204 Management of Research and Development class under Dr. Rolando P. Dayco, University of the Philippines Technology Management Center (UP-TMC)
2 Advanced Science and Technology Institute (ASTI), asti.dost.gov.ph