MANILA, Philippines--Senator Edgardo Angara said the plan to establish a local research and development institute similar to Taiwan’s Industrial Technology Research Institute (ITRI) is now in motion.

Angara who heads the Congressional Commission on Science and Technology and Engineering (COMSTE), said the proposed local research and development institute has an allocation of P100 million in the 2009 National Budget.

A local delegation from COMSTE headed by executive director Gregory Tangonan is set to sign a memorandum of understanding in Taiwan with the ITRI and the Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI).

This agreement will pave the way for cooperation between the ITRI and the country in the setting up of the local R&D institute.

The local R&D institute will be a “semi-public, semi-private” entity, COMSTE deputy executive director Dennis Posadas said.

It also aims to forge an "exchange [of] technical information and expertise in the R&D of industrial technology" and "facilitate technical upgrading of scientists and engineers through exchanges of personnel on a mutually beneficial basis," Posadas said.

Angara said in a statement that the institute is also meant to address the problems of technology transfer in the country.

He suggested that the Philippines should create a policy environment that could attract support from both public and private sectors.

"Now that we have the budget, we can jumpstart innovation in the country," said Angara in a phone interview.

ITRI is Taiwan's national research organization that leads research and development activities in information and communications, electronics and optoelectronics, nanotechnology, energy and environment, advanced manufacturing and systems and biomedical technology.

Angara expects the local R&D firm to become operational within two years.

Based on the 2006-2007 Global Competitiveness Report, the Philippines is ranked 71st out of 125 countries in terms of “technological readiness” or the ability to adopt technologies to enhance productivity of industries.