Page 7 - EXHIBIT 12 RESEARCH MANUAL
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FOREWORD    i
                    FOREWORD



                    This Manual of Operation for Research and Development of ISU is
                    based on the ISU Research & Development, Extension & Training
                    (RDET) MANUAL approved by the University Board of Regents
                    (BOR) on June 14, 2010 through Resolution No. 10, s. 2010.
                    However, changes were made on the structure and contents of
                    the document.


                    The first modification is the separation of Research and
                    Development  (R&D)  and  Extension  and  Training  (E&T)  which
                    are combined in the RDET Manual. These two are treated as one
                    integrated RDET continuum in the BOR-approved Manual.  The
                    separation is, on the one hand, in compliance with the requirements
                    of ISO certification, for the reason that, indeed, R&D and E&T are
                    distinct separate functions of ISU and have their respective independent systems of operation. On
                    the other hand, there is an increasing acceptance in ISU on the realization that R&D and E&T are
                    playing separate significant roles in meeting and complying with national standards expected or
                    required of ISU, as a Higher Education Institution (HEI), much more as a State University.

                    In the SUC-leveling mechanism implemented by Commission on Higher Education (CHED) for State
                    Universities and Colleges (SUCs), R&D and E&T are separate independent criteria in the evaluation
                    of SUCs on what level it will be categorized. The category or level determines the SUC budget, the
                    privileges it is entitled to, and the benefits it can derive from CHED and the Department of Budget
                    and Management (DBM). R&D and E&T contributed significantly to the present level of ISU as Level
                    IV SUC.

                    Likewise, R&D and E&T are separate and independent criteria of evaluation in the Performance
                    Based Bonus (PBB) implemented by the DBM for all government agencies. Moreover, they (R&D and
                    E&T) are distinct and autonomous bases in the Normative Funding/Financing scheme followed by
                    the DBM and CHED for the allocation of budget for SUCs in the annual General Appropriations Act
                    (GAA).


                    For this Manual of Operations, aspects of the RDET Manual pertaining to R&D were culled out, edited
                    and composed into one document. However, some aspects were modified and new ones were
                    included because of new developments in RDET since 2012, under the new University leadership.

                    The University President issued a Special Order (SO) in November 2012 creating seven R&D Clusters
                    along Priority Thematic Thrusts and identified Professor-Scientists to lead in R&D undertakings along
                    these thrusts. Likewise, a Strategic Plan for R&D was crafted, finalized and packaged as an output of
                    a 14-day three-part (3-months) series of seminar-workshop participated by the Vice President for
                    RDET and the University Director for KTM. This was conducted for all SUCs nationwide by CHED and
                    the Development Academy of the Philippines (DAP). These ushered in revisions in the R&D vision,
                    mission, goals, strategies, and research agenda of the University. Also, the ISU Board of Regents
                    (BOR) recently (September 2014) approved a new set of institutional and financial incentives for
                    University researchers who have published research outputs in recognized publications/have



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