Department of Economy, Planning, and Development (DepDev) Secretary Arsenio M. Balisacan called on the country’s State Universities and Colleges (SUCs) to lead the nation’s transition toward an innovation-driven economy. Speaking at the 2026 Annual Convention and General Assembly of the Philippine Association of State Universities and Colleges (PASUC), Secretary Balisacan emphasized that sustained economic growth relies heavily on institutional collaboration, human capital development, and research translation.
Addressing university leaders gathered for PASUC’s 59th Founding Anniversary, Balisacan underscored that higher education institutions are no longer merely centers of learning, but pivotal engines of national development and technological adaptation.
“In a rapidly changing world, universities are not simply expected to adapt to change; they are called upon to help lead it,” said Balisacan. “Sustained development requires us to pursue two objectives at the same time: we must improve today’s economy while building tomorrow’s economy.”
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Milestone Progress vs. Persistent Gaps: Balisacan acknowledged the Philippines’ achievement in attaining upper middle-income status—with Gross National Income (GNI) per capita reaching US$4,850 in 2025—and its rise in the Global Innovation Index to 50th place out of 139 economies. However, he cautioned that income reclassification does not automatically eliminate poverty or resolve labor market mismatches.
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Closing the Skills Gap: Highlighting the challenge of high underemployment alongside emerging technologies like Artificial Intelligence (AI) and big data, Balisacan urged SUCs to collaborate closely with industry to evolve curricula continuously, ensuring graduates acquire lifelong learning competencies and digital fluency.
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Commercialization of Research: The DepDev Chief urged universities to move research beyond academic publication toward practical application, directly benefiting farmers, micro, small, and medium enterprises (MSMEs), public health systems, and disaster mitigation efforts.
To maximize the impact of SUCs on the long-term national vision (AmBisyon Natin 2040), Secretary Balisacan outlined three core policy imperatives:
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Sustaining Innovation Capacity: Prioritizing investments in research and development (R&D), digital infrastructure, and scientific talent—even within fiscal constraints—to ensure long-term global competitiveness.
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Aligning Innovation with Local Needs: Directing technological advancements to address urgent national challenges, including food security, climate resilience, and public administration.
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Deepening Triple-Helix Partnerships: Strengthening formal linkages among government, academia, and private industry to streamline the movement of ideas from laboratories to the market.
Balisacan reaffirmed DepDev’s commitment to collaborating with state universities, noting that their regional presence offers a distinct advantage in tailoring development solutions to local realities while supporting the Philippine Development Plan 2023–2028.
