Section 3Sec./Art. 3

Definition of Terms. - For the purposes of this Act:

(a) Economic complexity refers to the measure of the productive capabilities and know-how of a specific geographical area, such as a country, region, province, city, or municipality, which is calculated based on the diversity of goods and services produced within and exported from the geographical area, and to the number of other geographical areas that are able to produce them;

(b) Philippine products and services refer to local goods, articles, materials, supplies, services, and intangible products which may be;

(1) Unmanufactured goods, articles, materials or supplies wholly obtained or produced in the Philippines;

(2) Any good, article, material, and supplies produced, manufactured or assembled in the Philippines which has a minimum local content as may be determined by the TP Council;

(3) Services, which refer to the delivery of value or intangible acts or uses through high-level skills, expertise, labor, or some form of knowledge-, technology- or process-intensive activities; or

(4) Intangible products, which refer to properties without physical existence including, but not limited to, computer software and products of the creative industry.

As may be necessary, the TP Council shall issue guidelines on the conditions, standards, and criteria in classifying products or services pursuant to the prevailing Tatak Pinoy Strategy (TPS);

(c) Product space refers to a type of visualization that depicts the connectedness between products based on the similarities of the know-how required to produce them. The product space visualizes the paths that countries can take to diversify the products and services that are able to produce or offer. Products are linked by their proximity to each other, which is determined by factors such as the similarity of production technologies, the use of common resources, and the transferability of skills and knowledge between industries;

(d) Sophisticated refers to the state when a product or service requires a high level of technology, human capital, competencies or know-how, and infrastructure to be produced or offered;

(e) Sophistication refers to the level of technology, human capital, competencies or know-how, and infrastructure required for a product or service to be offered by an economy like that of the Philippines; and

(f) Technology transfer refers to the process by which one party systematically transfers to another party the knowledge and/or technology for the manufacture of a product, the application of a process, or rendering of a service, which may involve the transfer, assignment or licensing of Intellectual Property Rights (IPRs), consistent with the Philippines' obligations under international agreements.