WORKING DOCUMENT 8.31.

2020

SETUP 4.0
Small Enterprise Technology
Upgrading Program 4.0
Harnessing Technology and Innovation to Ensure
the Productivity and Resilience of Philippine SMEs

FORTUNATO T. DE LA PENA
Secretary
Department of Science and Technology
 Continuously Moving Up the SMEs SURGE-UP
Towards Industry 4.0 Readiness Assistance

SCALE-UP
Assistance

STEP-UP
Assistance

START-UP Expanding
Assistance and Innovating
Enterprise
Growing
Enterprise
Developing
Start-up Enterprise
Enterprise
 WORKING DOCUMENT 8.31.2020

Small Enterprise Technology

Upgrading Program 2.0 (SETUP 2.0)
2018-2020
S&T assistance to further boost
enterprise and industry
Small Enterprise Technology productivity
Upgrading Program (SETUP)
2002-2017
Firm-level assistance to
upgrade existing
technologies and products
of SMEs
 Challenges and Urgent Concerns for SMEs
o Emergence of Industry 4.0 has considerably accelerated in
recent years.
o The COVID-19 pandemic has radically changed business
and industry in many ways.
o President PRRD instructed DOST during his 2020 State of
the Nation Address (SONA) to ensure that trainings and
other technical services be provided to MSMEs online or in
a contactless mode.
o Sustainable development, climate change, globalization,
migration, urbanization as well as changing demographics
are challenges that continue to impact on society in
general and the business and industry sector in particular.
 Moving Up to a Higher Level: SETUP 4.0
2021 -2030
o SETUP 4.0 is the next phase of implementation of the Small
Enterprise Technology Upgrading Program.
o Considers the rapid emergence of Industry 4.0, the debilitating
effects of the COVID-19 pandemic and other forces that are creating
deep transformations in the local and global markets.
o DOST response to PRRD instruction for contactless/online delivery of
services to MSMEs.
o Supports the vision of an “Innovative, Resilient, Sustainable and
Globally-Competitive SME Sector” that will nurture a sustainable
economy and society for Filipinos in support of Ambisyon Natin
2040.
o Categorizes SMEs in terms of level of development and delivers the
appropriate S&T assistance to them. Likewise provides industry-level
assistance.
 Priority Industries
Agriculture,
Forestry,
Livestock Food Agrimachinery/Farm
Processing Implements/Food
Processing
Equipment
Tool and
Die

Marine and
Aquaculture
Electronics,
ICT, and ICT
Services
Marine Health and Wellness
Transport (Biomedical Devices,
Furniture, Jewelry,
Pharmaceuticals, and
GHD and Creatives
Food Supplements)
 SMARTER Strategic Themes

S M A R T E R
Sustainable Market Able Human Responsive S&T Technology Enterprise Resiliency
Economy Competence Capital Support and Support and
Infrastructure Innovation Continuity

Strengthen Provide Deliver Ensure

Pivot SMEs Upskill Provide Needed
Market Access to New Technical, Enterprise
Towards Competency Innovation
Competence and Technologies Digital and Resiliency
Supporting of Human Infrastructure to
Participation in and Other Critical and
Sustainable Capital Foster Industry
Supply Innovations Support Continuity
Economy Development
Chains

Industry-Level Strategies Enterprise-Level Strategies

 SMARTER Industry-Level Strategies:
Building Blocks for a Strong SME Innovation Ecosystem

Support sustainable
practices among
Sustainable
Economy SMEs

Establish and/or Develop and promote

improve local supply digital marketing and
Market
chains. e-commerce
Competence

Strengthen DOST-MIRDC
Enhance capabilities
knowledge AMERIAL
Able Human of human capital.
management.
Capital

Provide linkage to Develop mechanisms

Improve alignment
research centers and for optimal delivery
Responsive S&T to industry
other innovation of industry
Support development plans.
stakeholders. assistance.
Infrastructure
 SMARTER Enterprise-Level Strategies:
Setting Up the SMEs for Industry 4.0

Transfer and
Provide funding support to
commercialize new
foster innovation adoption
technologies and
Technology by qualified SMEs.
innovations.
and Innovation

Provide technical and

Improve SME access to and
consultancy services to
Enterprise use of digital infrastructure.
SMEs.
Support

Provide enterprise
resiliency and continuity
Resiliency and assistance
Continuity
 Assessment and Categorization of SMEs

SME Category Characteristics

A newly-created enterprise which aims to develop an innovative
Start-Up Enterprise product, process or business model. The enterprise is at the very
early stages of its development.

A microenterprise with very basic operations and facilities. The

Stage 1: Developing
products and processes need to be improved in order to meet
Enterprise
minimum regulatory and market requirements.

A small or medium enterprise with a stable and/or growing market.

Stage 2:
Production and related operations are in place but need to be
Growing Enterprise
upgraded in order to further improve productivity.

A small or medium enterprise with an expanding market.

Stage 3: The production and related operations are relatively well-developed.
Expanding and There is emerging use of mechanical-digital systems and there is
Innovating Enterprise potential adoption of advanced Industry 3.0 and some 4.0
technologies.
 SME Category and Enterprise-Level Assistance
SME Category Enterprise-Level Assistance

Start-Up START-UP Assistance

Enterprise o Commercialization of innovative technologies
o Acquisition of appropriate production facilities
o Basic digitization
o Initial compliance to basic quality assurance and market requirements

Stage 1: STEP-UP Assistance

Developing Enterprise o Commercialization of established technologies
o Improvement of tools and equipment and/or basic process
mechanization
o Basic digitization
o Initial compliance to basic quality assurance and market requirements
 SME Category and Enterprise-Level Assistance
SME Category Enterprise-Level Assistance

SCALE-UP Assistance
Stage 2: o Commercialization of R&D outputs, i.e. new products and processes
Growing Enterprise or scaling-up of existing production
o Higher-level mechanization/productivity improvement
o Advanced ICT systems and tools
o Full compliance to government regulations and mandated
quality assurance system
o Participation in national supply chains
o Business resiliency

SURGE-UP Assistance
Stage 3: o Commercialization of R&D outputs, i.e. new products and processes
Expanding and or scaling-up of existing production
Innovating Enterprise o Industry 3.0 and 4.0 technologies (advanced mechanization, AI,
automation, IoT, biotechnology, nanotechnology, others)
o Assistance for higher level quality management systems
(ISO 22000, ISO 9000, ISO 14000)
o Participation in national, ASEAN and global supply chains
o Business resiliency
 Continuously Moving Up the SMEs SURGE-UP
Towards Industry 4.0 Readiness Assistance

SCALE-UP
Assistance

STEP-UP
Assistance

START-UP Expanding
Assistance and Innovating
Enterprise
Growing
Enterprise
Developing
Start-up Enterprise
Enterprise
Thank you.