AI R&D Spending

Investments in AI R&D are crucial for fostering innovation, industry sophistication, and driving economic transformation. The Philippines must prioritize adequate and sustained financing for AI R&D and innovation to meet UNESCO’s recommended target of spending 1% of GDP on research and development. Currently, the Philippine Gross Expenditure on R&D (GERD) stands at approximately 0.3% of GDP, significantly below both global averages and UNESCO’s benchmark.

Enhancing R&D funding to meet this target will strengthen the country’s industrial capabilities, boost productivity, and develop high-value activities in priority industries, particularly in high-tech sectors such as advanced manufacturing, biotechnology, and information technology. Strategic investments in innovation will not only position the Philippines as a hub for groundbreaking discoveries but also stimulate job creation, attract foreign investments, and catalyze long-term economic growth.