National innovation system is anchored on the theory that industrial development requires technological capability in industry, and that exploitation of technology is most critical at the firm level. This paper describes the structure and characteristics of the Philippine innovation system and compares it with those of the United States, Japan and Germany. It concludes that the Philippine innovation system must gear up to the requirements of a catch-up system to fit its institutions to its economic structure. This requires all the elements of the system to address the technological capability, adaptation, assimilation and modification needs of a catch-up economy.