2.6 Direct Cost-refers to expenses incurred by the implementing agency in the execution of program/project considered indispensable to its operations.

2.7 Funding Agency-refers to DOST and all its grant-giving units where funds/grants come from.

2.8 Grants-In-Aid (GIA)-refers to funds allocated to programs/ projects by the DOST and all its grant-giving units, including its Regional Offices and Sectoral Councils.

2.9 Implementing Agency-refers to the primary agency involved in the execution of program/project. The Implementing Agency shall exert all necessary efforts to attain the objectives specified in the approved project proposal.

2.10 Income from GIA projects supported by DOST and all grantgiving units, may include but shall not be limited to:

a. Royalty payments and other intellectual property rights remuneration received from results/products, processes, and technology systems arising from a program/ project;

b. Rental fees, management fees, and related types of remuneration received from the use of equipment/facilities funded by GIA Program;

C. Sale of produce and other products, services, and publications developed from project activities; and

d. Training fees (net of expenses) collected from training packages developed from the program/project activities.

2.11 Indirect Cost-refers to overhead

expenses incurred by the implementing or monitoring agency in managing, evaluation, and monitoring of the program/ project. The administrative and project management costs shall be under this classification.

2.12 Interest-refers to interests of deposits of the grant in a bank account whether in a separate project account or in a general account. This shall be reported as earnings in the project's financial report.

2.13 Line-Item Budget (LIB)-refers to detailed breakdown of financial assistance requested and reflects counterpart of Implementing Agency and other agencies cooperating in the project.

2.14 Multi-Year Program/Projectrefers to a program/project exceeding one (1) year project duration.

2.15 Program-refers to a group of interrelated or complementing S&T projects that require an interdisciplinary or multidisciplinary approach to meet established goal(s) within a specific time frame.

2.16 Program Leader-refers to the person who plans, organizes and supervises the overall activities of a program and is directly responsible for the implementation of at least one (1) of the projects under a program. He/she shall coordinate with the project leaders to ensure that the goals of the projects and program are attained. He/she shall also consolidate the projects' output, which shall be packaged as a program output.

2.17 Project-refers to the basic unit in the investigation of

specific S&T problem/s with predetermined objective(s) to be accomplished within a specific time frame.

2.18 Project Duration-refers to the grant period or timeframe that covers the approved start and completion dates of the project.

2.19 Project Leader-refers to a project's principal researcher/ implementer.

2.20 Project Proposal-refers to the plan and description of S&T project developed by a proponent in accordance with specific requirements or specifications set by DOST and/or its grant-giving unit, and submitted to the latter for financial and/or technical assistance.

2.21 Proponent-refers to person, private entity or agency that prepares and submits project proposals for DOST approval and assistance.

An important source of new knowledge and technologies is research and development (R&D). Research and development is defined as comprising creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications through the conduct of the following activities: 3.1.1

3.1.2

3.1.3

Fundamental/Basic Research-refers to experimental or theoretical work undertaken primarily to acquire new knowledge on underlying phenomena and observable facts. This can either be (a) (a) without immediate or specific application (fundamental research) or (b) geared to come up with basic information toward the solution of a specific problem that has not been solved before (oriented basic research). This category includes natural and social sciences among other areas.

Applied Research-refers to investigation undertaken in order to utilize data/ information gathered from fundamental/basic researches or to acquire new knowledge directed primarily towards a specific practical aim or objective with direct benefit to society.

Experimental Development-refers to systematic work that draws from existing knowledge gained from research and/or practical experience that is directed to produce new materials,

3.1.4

products and devices, install new processes, systems and services, and substantially improve those already produced or installed.

Pilot Testing-refers to innovative scaled-up (greater than laboratory or bench " scale) activity aimed at gaining experience that may lead to further technical improvement of product or production process, and setting the parameters before the commercialization of the process/product and design of equipment.

3.2. DIFFUSION OF KNOWLEDGE AND TECHNOLOGIES

Technology diffusion is defined as the widespread adoption of technologies by users other than the original innovators. Technology diffusion is recognized world-wide as necessary for generating economy-wide benefits from innovation in terms of productivity gains and job creation. Knowledge and technologies are diffused through various channels and involve a broad range of private and public institutions that, taken as a whole, make up the national innovation system through the following:

3.2.1 Technology Transfer-are

those activities that are basically designed to support, promote, facilitate or fast-track the transfer of technologies developed by DOST institutions and/or by DOST-funded/assisted R&D programs.

3.2.2 Technology Receptor Capacity Building-are those activities that are essen

tially designed to enhance the capacity of firms, particularly the SMEs, to identify their specific technology needs, to solve their technical problems and overcome their obstacles to the successful adoption and use of technologies arising from deficiencies in labor, management and organizational change. These include the provision of consultancy services and of access to information on technology

sources.

3.2.3 Innovation Capacity-Building-are those activities that are designed to promote greater awareness of the value of innovation among firm managers and owners particularly of SMES, and stimulate demand for technological and organizational change. within firms, essentially through greater collaboration, partnerships, clustering and networking among firms and with knowledge providers. These include collaborative and systematic planning for future strategic technology investments for a particular sector/cluster as well as the sharing of diagnostic tools, best practices, and knowledge among firms and academic/government institutions.

This category includes but is not limited to the following activities:

a. Technology needs assessment and technology sourcing-assis

tence may apply for GIA support of DOST and its grantgiving units, provided that projects are for the benefit of Filipinos.

4.1.2 The eligibility of project

proponents shall be determined by the DOST agency concerned based on his/her readiness in terms of technical, managerial, financial and marketing capabilities (if necessary). As such the proponent shall submit documents/proof of the following: credentials/ proof of capability, track record, and endorsement of his/her institution. R&D program/project leader shall possess, at least, a Masters degree in a relevant field.

4.1.3 Preference shall be given to DOST-accredited science foundations and members of the DOST network and its agencies

4.1.4 Proponents with no previous accountabilities with DOST.