Research and Development (R&D) spending plays an important role in knowledge accumulation and technological innovation that can increase productivity and foster economic growth. However, the country also lags behind most of its ASEAN counterparts in R&D spending and is at par with Indonesia and Cambodia. This paper probes not only the level of R&D spending by government, but also the types of R&D programs being funded and prioritized. Given the gaps in Philippine R&D performance, limited funds, and the dearth of studies on Philippine R&D budgetary spending, the expenditure review seeks to examine the levels of allocation, distribution, and utilization of R&D funds. Further, it traces the funding mechanisms and the fund flows for different sectoral priorities/areas and R&D programs. A key recommendation is to increase overall levels of public R&D spending which must be made responsive to industry needs and inducive to private sector R&D investment.