Gov’t commercialization programs provide financing support to biz

Micro, small and medium enterprises (MSMEs), startups, and beneficiaries of a government technology upgrading program can avail of funding assistance under various commercialization programs to expand their business operations.

Emil Palileo, science research analyst at Department of Science and Technology’s Technology Application and Promotion Institute (DOST-TAPI), said maximum funding of P1 million to P5 million which can be provided by the institute shall be refunded at zero interest and zero collateral.

The DOST-TAPI will shoulder up to 70 percent of the total project cost, while the proponent takes on a minimum of 30 percent, he said.

Palileo said the venture financing for the commercialization of DOST-generated technologies (Adoption of DOST Techs) provides maximum assistance of P5 million.

“The program Adoption of DOST Techs aims to give incentives to those adopting technologies being developed by the DOST RDIs (research and development institutes). This provides capital in the purchase or fabrication of equipment. The program can shoulder what we call local or international standards certification for the commercialization of adopted DOST techs,” he said in mixed English and Filipino during the virtual TechnoBYAHE session.

Palileo said those applying for international standards certificate should provide proof of international market potential, such as freedom-to-operate analysis or search in target countries, patent cooperation treaty application if applicable, international sales contract if available, and letters of intent, among others.

He added a major requirement for MSMEs intending to apply for this program is the valid technology licensing agreement with the DOST RDI.

Palileo said another commercialization program of DOST-TAPI is the purchase order (PO) financing program that covers raw materials costs to produce products or goods to facilitate the POs of qualified MSMEs.

PO financing program’s cycle 1 provides a maximum of P1 million assistance, while cycle 2 a maximum of P2.5 million.

“Cycle 2 can be accessed directly without availing Cycle 1. However, availing Cycle 2 disqualifies availing Cycle 1,” he said.

Palileo said the venture financing for environmentally-sound technologies (VFEST), on the other hand, supports MSMEs that adopt locally developed environment-friendly technologies.

He said these include technologies or equipment that help these firms comply with environmental regulations or standards, reduce electricity cost or cut waste pollution or other types of pollution.

“Part of what we call social responsibility is to protect our environment and help to have environmentally sound energy sources,” he added.

Meanwhile, Palileo said the venture financing program for start-up and technology-based projects (startup and tech-based projects) accelerates the commercialization of innovative technologies by providing funding to intellectual property (IP) rights owner or assignee or technology-based startup projects.

“The benefits you can get under the startup and tech-based project –you have the potential to expand your business, improve the services, and importantly, increase your earnings,” he said.

Palileo said the DOST-TAPI also gives financial assistance to MSMEs providing support for the fight against the coronavirus disease 2019 (Covid-19) pandemic.

The Ligtas Covid-19 program covers the cost of raw materials to deliver unserved POs, he added.

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