The Department of Trade and Industry (DTI), in partnership with the National Development Company (NDC), is set to launch the iHub-MESH (Marikina Scale-Up Hub) on April 25, 2025. This groundbreaking platform will serve as a dynamic innovation facility, designed to foster the growth of startups, Micro, Small, and Medium Enterprises (MSMEs), and specifically, the footwear sector and other creative industries. The iHub-MESH will occupy 20,000 square meters across five floors, each strategically designed to support specific industries and foster technological advancement, with a particular focus on the creative industries and the footwear sector.
The foundation for this initiative is built on two key pieces of legislation: The Innovative Startup Act (RA No. 11337) of 2019, which led to the creation of the Startup Venture Fund (SVF), and The Philippine Creative Industries Act (RA No. 11904) of 2022. The SVF, jointly administered by the DTI and the NDC, allows the Philippine government to invest in the local startup ecosystem.
The facility aims to provide comprehensive support for a diverse range of startups and MSMEs, from culinary and fashion ventures to those specializing in cutting-edge technologies like artificial intelligence and blockchain. Notably, the NDC has been tasked with creating and implementing incubation and acceleration programs within the hub, ensuring startups and MSMEs receive tailored support and essential resources for growth.
The ground floor will feature an open kitchen and fashion showroom, offering a practical space for entrepreneurs to test and refine their products, with a focus on the footwear and fashion industries. The second floor will consolidate government services, streamlining regulatory compliance and offering valuable retail testing opportunities.
The third floor will cater to the burgeoning creative industries, equipped with advanced software and hardware to support gaming, animation, and multimedia development. The fourth floor will serve as a dedicated tech hub, providing essential workspace and infrastructure, including potential access to a supercomputer, for fintech, AI, and blockchain startups. The fifth floor will be dedicated to facilitating connections between startups and investors through venture capitalist engagements and pitching events.
The iHub-MESH addresses the challenge of limited support within the country’s startup and MSME ecosystem by offering a comprehensive platform that nurtures innovation, accelerates growth, and empowers entrepreneurs. The hub aims to bridge gaps in funding, technology, and market access, enabling Filipino startups and MSMEs to thrive locally and globally.
The iHub-MESH’s strategic focus includes leveraging emerging technologies to revolutionize sectors critical to the nation’s future, such as biotech, cybersecurity, and healthcare, while also nurturing the growth of the footwear and creative industries. The initiative aims to nurture the development of industrial-scale corporations capable of competing on a global stage, thereby contributing significantly to the nation’s economic growth.
The hub will offer a range of services, including a sandbox for startups and MSMEs, incubation and acceleration programs, co-working spaces, Industry Lab 4.0, 3D printing services, and data center services. Upcoming events include design thinking workshops, game development exhibits, innovation challenges, and demo days. The hub aims to establish itself as an Eco Trade Zone, build a strong community, seed at least 100 companies, connect 20 partners to regional and global VCs and accelerators, and bring several companies to Series A and B funding, with the long-term goal of producing unicorn startups.
While acknowledging potential challenges, including infrastructure development and public acceptance of new technologies, the hub remains optimistic about its transformative impact. The project aims to drive sustainable economic growth, particularly through sectors like STEM, advanced manufacturing, the footwear industry, and creative industries, and elevate the Philippines’ position in global supply chains.
The launch of this iHub-MESH, with the crucial support of the NDC’s incubation and acceleration programs, is anticipated to be a catalyst for collaboration and economic transformation, providing a fertile ground for entrepreneurs and tech enthusiasts alike. This initiative reflects the nation’s commitment to fostering technological advancement and entrepreneurial growth, positioning the Philippines as a key player in the Southeast Asian startup and MSME ecosystem.
The Independent Investor spoke with Jerahmeel Chen, Corporate Executive Officer of the Philippine Innovation Hub, to learn more about the initiative.
Q. In selecting and prioritizing startups for the Marikina innovation hub, what specific criteria will be used, particularly for those aiming for large-scale industrial impact? How will alignment with the Philippines’ economic and environmental needs be ensured?
There are no general criteria as we represent the government and should be agnostic about it. Our preferences will be based on the Philippines’ midterm development plan and the direction from the board of NDC as well as DTI where we will prioritize.
As of now 2 themes come to mind which we have dedicated the 2 floors. The 3rd floor is dedicated to the creatives industry. And the 4th floor is dedicated to tech and stem related startups.
Q. Given the challenges associated with the adoption of emerging technologies like blockchain, what educational or public awareness initiatives will the hub undertake to accelerate its acceptance within the Philippine business community?
We are currently looking for champions. An example would be our knowledge partner Twala who uses blockchain as part of their core product development. These champions would be examples and case studies of what can be unleashed with those new technologies.
Q. Beyond the number of startups incubated or funded, how will the hub measure its long-term success and economic impact on the Marikina region and the Philippines as a whole? What key performance indicators will be tracked?
Currently our priority is to grow the number of startups to increase the deal flow of the Startup Venture Fund. We hope that with an increase in volume of fundable and commerciable startups, we can increase the interest of VC, private equity, and family offices to put more risk capital into the ecosystem.
Q. For the advanced technological infrastructure, such as the planned integration of a supercomputer, what partnerships are being explored to ensure effective utilization and maintenance? How will access to these resources be made available to eligible startups?
We are looking for a partner that can operate the equipment into which we are looking. We plan to create a shared service facility that churns out startups with ai products, service the universities that need supercomputing, and testing for algorithms that ensures lower cost capital expenditures for our ai startups.
Q. Considering the focus on sustainable manufacturing, what measures will be implemented to ensure that supported startups adhere to environmentally responsible practices, particularly in sectors like biotech and materials processing? Will there be specific guidelines or certification programs?
We adhere to the standards set by Philippines treaties and agreements for ESG and through partners that can help us establish a framework we can implement as a policy for the hub.
Q. What are the long-term aspirations for the innovation hub beyond its initial launch? Are there plans for expanding its model to other regions of the Philippines, or for creating a broader network of innovation centers?
Currently our focus is awareness. We want founders, students, professors and professionals to know that there is a physical platform they can utilize to bring down cost of entry for the development of their products or services. We will be bidding out incubation and acceleration programs for the ecosystem as well as launch a residency program that is targeted to founders who can be trained for a specific number of days to be better at operating their team and companies. We also will be inviting our knowledge partners to launch their programs tailored fit for the hub.
Lastly, we are reaching out to international organizations like Singapore Management University to collaborate and build with us a framework that can see the potential of cross border collaboration between students, startups and venture funds to open an opportunity for our ecosystem to scale up.