Last modified on June 27, 2022

UPDATE: Deadline extended to July 15, 2022.

BACKGROUND

Republic Act No. 11293, otherwise known as the Philippine Innovation Act, declares the policy of the State to foster innovation as a vital component of national development and sustainable economic growth. Innovation, as defined in the Act, refers to the creation of new ideas that result in the development of new or improved policies, products, processes and services which are then spread or transferred across the market.

Under a special provision of Republic Act No. 11518 or FY 2021 General Appropriations Act (GAA), the National Economic and Development Authority (NEDA) was authorized to issue innovation grants, subject to the guidelines by NEDA and the Department of Budget and Management (DBM). For this particular round of grants, the guidelines cover eligible entities from the public sector.

With this, NEDA is opening the Call for Proposals for FY 2022 Innovation Grants until 30 June 2022.

For detailed information, scroll through the details below. You may also access a copy of the complete guidelines, through this link: NEDA-DBM Joint Memorandum Circular No. 2022-01.

For inquiries, you may reach the Innovation Fund Management Division through email at innovationfund@neda.gov.ph or contact number 8-631-0960 loc. 21615. You may also visit the National Innovation Council (NIC) website at nic.neda.gov.ph/ to check updates and other related news.

ELIGIBLE APPLICANTS

Entities eligible for the submission of proposals are the following:

1. National Government Agencies (NGAs), including their attached agencies, regional offices, and operating units;
2. Local Government Units (LGUs);
3. State Universities and Colleges (SUCs); and
4. Government-Owned and -Controlled Corporations (GOCCs).

Attached agencies, regional offices, and operating units may submit proposals through their respective central offices or parent agencies.

ELIGIBLE PROGRAMS/ACTIVITIES/PROJECTS

Funding support can be provided to new or existing programs, activities, or projects implemented by NGAs, LGUs, SUCs, and GOCCs that include, but are not limited to the following:

1. Specific agency PAPs for the implementation of:
   1. MSME innovation program;
   2. Regional innovation and cluster policy;
   3. Strategic research, development, and extension;
   4. Innovation instruments;
   5. Diaspora for innovation and development;
   6. Advocacy and community education; and
   7. Other related innovation development activities
2. Support to strengthen the innovation ecosystem through establishment of innovation centers and business incubators under Section 13 of the Philippine Innovation Act, and employment of innovation instruments under Section 16 of the same law.

The following clusters of activities may qualify for the innovation grants. Applicants may choose to combine elements from the clusters as they deem relevant.

1. 1. Development and Implementation of Innovative Projects – refers to the pre-commercialization and commercialization activities of publicly-funded R&D outputs; it includes activities beyond the R&D phase, namely prototyping, pilot testing, production, and promotion activities.It also pertains to public sector innovations, inclusive or grassroots innovation, and social innovation that an implementing entity may undertake which aim to introduce new product innovation or improved services and processes.
   2. Enhancement of Innovation Facilities and Services – refers to the establishment and upgrades of existing government-owned or government-leased properties to strengthen the innovation ecosystem, including operating expenses for co-working spaces, incubation support, and shared business services.
   3. Support to Innovation Policy Research – refers to activities necessary to carry out research studies pertaining to the introduction of new or significantly different solutions to policy problems and improving innovation governance.
   4. Building Capacities and Expanding Opportunities for Innovation – refers to activities which foster a culture of innovation and strengthen innovation alliances such as capacity-building activities, trade exhibits, expositions and missions, and other platforms for collaboration.

FUNDING THRESHOLD

The funding support threshold for the implementation of new or existing innovation-related programs, activities, or projects by government entities shall be:

1. 1. 1. Grant should not exceed PHP30 million if the scope of implementation is national.
      2. Grant should not exceed PHP15 million if the scope of implementation is regional or inter-regional.
      3. Grant should not exceed PHP7.5 million if the scope of implementation is local, or through LGUs or SUCs.

Project proponents shall also ensure that the proposed program, activity, or project has not received any other type of funding support from the FY 2022 GAA as this would constitute double funding. Further, application for the grant should also consider the agency’s absorptive capacity, and must not be in conflict with other related laws, rules, and regulations.

APPLICATION PROCESS

• 1. General Criteria:
     1. Project/Program proposals must be aligned with sections or themes in the Philippine Innovation Act, such as MSME innovation, regional innovation and cluster policy, strategic RD&E, innovation centers and business incubators, innovation instruments, diaspora for innovation, advocacy and community education, and with the priority areas identified under the Philippine Innovation Act.
     2. The proposal must exhibit novelty in implementation or replaces or improves an existing product, service, or process, with potential to solve the right problem with a clear value proposition that resonates with the intended constituency’s relevant needs. The proposal must also be viable and sustainable and expected outcomes must result in positive changes for the target beneficiaries.
     3. Implementing entities are assessed based on their competence exhibited through experience, capability, compliance, and character (good governance conditions).
     4. Project/Program proposals must be gender-responsive, gender-sensitive, or with promising GAD components.
     5. The Project Leader should be part of the staff/personnel of the applying NGA/LGU/SUC/GOCC, regardless of status.
     6. Endorsement should be secured from the Head of Agency.
• Proposal submission, evaluation and approval:

1. All application forms and required documents shall be duly signed by authorized personnel.
2. Both signed and an online copy of forms shall be accomplished and submitted by the proponent. Submit the following documents (in signed PDF and editable format) to innovationfund@neda.gov.ph:
   1. Endorsement Letter from the Head of Agency/LGU
   2. Accomplished Form 1 – Grant Application Form
   3. Accomplished Form 2 – Summary of Previous Innovation-related PAPs
   4. Accomplished Form 3A – Work and Financial Plan
   5. Accomplished Form 3B – Line-Item Budget
   6. Most recent Agency Scorecard (or any proof of compliance to performance and reporting standards, such as Transparency Seal, ISO Quality Management System, FOI, Citizen’s Charter, etc.)
   7. Project Proposal (if done in a separate document)
   8. Other supporting documents, as deemed necessary.
3. Proposals shall be screened and evaluated based on set criteria identified in Section 9 of the NEDA-DBM JMC.
4. The proposed project or program components must be completed on or before December 2022.

Frequently Asked Questions (FAQs) on FY 2022 Innovation Grants

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