The Philippines has sharply expanded its startup incubation network under the 2019 Innovative Startup Act, but officials warned that limited funding, overlapping mandates and staffing constraints are holding back the sector’s potential.
At the Geeks On A Beach (GOAB 2025) technology conference in Cebu at Jpark Island Resort and Waterpark in Mactan, representatives from the Department of Science and Technology (DOST), Department of Information and Communications Technology (DICT) and Department of Trade and Industry (DTI) said the law provided a framework to nurture entrepreneurs but lacked the resources to match its ambition.
From just 12 incubators before the law’s passage, the country now counts 81, mostly embedded in universities and regional hubs, according to DOST Chief Technology Transfer Officer Russell Pili.
These facilities have backed 103 startups with a combined P398 million ($6.8 million) in funding, mainly for prototype development. Regional clusters have also been formed to encourage pitching and investment outside Metro Manila.
‘That’s a good development, but the level of funding remains a challenge,’ Pili said.
‘When the law was passed, no dedicated budget line came with it. We end up carving out resources from research projects and justifying them with the jobs created,’ Pili added.
The DICT in 2024 launched its own grant fund to support early-stage ventures at the prototype stage.
Two cohorts covering 19 startups have been rolled out, said assistant division chief Jeehad Januar Tanggol, but the program has been slowed by delays in regulatory approval and remains modest in scale.
Beyond financing, officials acknowledged coordination gaps.
DOST senior researcher Edward Paul Apigo said overlapping mandates and the absence of dedicated personnel have created confusion for founders. ‘Startups sometimes don’t know which agency to approach, because programs are scattered,’ he said.
While the incubator network has opened opportunities in regional centers, officials warned the momentum will be difficult to sustain without more cohesive support and reliable funding streams.
‘We want to attract people to look at startups in their own regions,’ Pili said.
‘Not all founders have the luxury of travelling to Manila to pitch. But to make that vision work, we need more resources,’ he added.