Section 2Sec./Art. 2

Declaration of Policy. - It is declared the policy of the State to encourage, support, and promote the production and offering of Philippine products and services of increasing diversity, sophistication, and quality by domestic enterprises that are globally competitive. Pursuant to Article XII, Section 1 of the Constitution emphasizing the promotion of industrialization and full employment through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets, the State hereby adopts the following policies:

(a) In collaboration with the private sector, the State shall continuously support domestic enterprises in producing and offering products and services of increasing sophistication, generating safe and decent employment, crating sound supply-chain management systems, and adopting green technologies in production practices and in the formulation of a long-term sustainability criteria;

(b) The State shall encourage the continuous improvement, expansion, and diversification of the productive capabilities of domestic enterprises and their linkages with local, regional, and global value chains;

(c) The State shall ensure that its initiatives to support domestic enterprises are market-driven or are in anticipation of future market demand;

(d) The State shall identify business models, business sectors, market segments, and product opportunities for domestic enterprises to target and gain comparative or competitive advantage in. Towards this end, the State shall employ complementary strategies, including, but not limited to, targeted sectoral and firm-level support programs, with economic and evidence-based methods including, but not limited to, analysis of the country's product space, and of rankings in economic complexity indices;

(e) To elicit pride for Philippine products and services, and to ensure adequate and steady supply of highly skilled and adaptive workforce, the State shall develop and promote the knowledge, skill, ingenuity, creativity, and innovativeness of Filipino workers, craftsmen, laborers, entrepreneurs, and professionals;

(f) The State shall promote and safeguard the quality of Philippine products and services in both the domestic and global market, as means for encouraging economic growth and consumer and business confidence in Philippine industries;

(g) The State shall give preference and priority in the procurement of Philippine products and services in accordance with applicable laws on government procurement. Towards this end, the Tatak Pinoy Council, hereinafter referred to as the "TP Council", shall formulate metrics on how government agencies and instrumentalities can give preference and priority to Philippine products and services;

(h) The State recognizes the complementary rules of the public and private sector, including the academe, domestic industries, and civil society, in generating high-paying jobs; pursuing economic development; and co-creating solutions to the country's biggest challenges. As such, the State shall actively seek out close partnerships with the private sector and endeavor to jointly develop, finance, implement, and continuously improve a nationwide strategy for supporting domestic enterprises;

(i) The State recognizes the crucial role that scientific and technological innovation as well as human capital development play in economic growth and development. As such, the State shall implement plans, programs, and projects that continuously improve the country's education and training system; ensure better technology transfer among enterprises, the academe, and govenrment institutions; encourage the generation and sharing of new scientific and technological knowledge through research and development (R&D); facilitate the commercialization of R&D outputs; and bridge the gap between innovation and market-ready solutions; and

(j) In pursuit of inclusive economic growth and development, the State shall ensure that public expenditures to support domestic enterprises are equitably spread across the country, including those in the fourth, fifth, and sixth class provinces and municipalities, and elevate and develop the skills and provide opportunities for disadvantaged sectors and vulnerable and marginalized groups such as, but not limited to, the urban poor, subsistence farmers and fisherfolk, indigenous communities, persons with disabilities (PWDs), women, and micro and small enterprises, enabling them to engage in more complex economic activities.