DACST/NSTF Review of the National System of Innovation - key findings DACST/NSTF Review of the...

DACST/NSTF Review of the National DACST/NSTF Review of the National System of Innovation - key findingsSystem of Innovation - key findings

Key Findings and RecommendationsKey Findings and Recommendations

NSTF/NACI Study on Growth & InnovationNSTF/NACI Study on Growth & Innovation in the South African Economyin the South African Economy

Overview ofOverview ofthe NSTFthe NSTF

HOME SLIDEHOME SLIDE

Growth and Innovation in South Africa.Growth and Innovation in South Africa.The relationship between economic growth, The relationship between economic growth,

employment, human development and employment, human development and science and technologyscience and technology

Scope of the StudyScope of the Study Examine the impact of science & technology on Examine the impact of science & technology on

economic development in a variety of countrieseconomic development in a variety of countries– Examination of international evidenceExamination of international evidence– Examination of South African evidenceExamination of South African evidence

Identification of key science and technology Identification of key science and technology drivers for the South African economydrivers for the South African economy

Identification of policy options for South AfricaIdentification of policy options for South Africa

Undertaken by:-Undertaken by:-Prof JW FedderkeProf JW FedderkeEconometric ResearchEconometric ResearchSouthern Africa (ERSA)Southern Africa (ERSA)Wits UniversityWits University

Reviewed by:-Reviewed by:-M MolewaM MolewaIkemeleng MolewaIkemeleng MolewaConsolidated Consolidated Investments (Pty) LtdInvestments (Pty) Ltd

Why does South Africa need growth?Why does South Africa need growth?

Growth, Employment and Redistribution (GEAR) Growth, Employment and Redistribution (GEAR) Macroeconomic strategy mandates growth for Macroeconomic strategy mandates growth for developmentdevelopment Competitive, fast growing economy which creates jobsCompetitive, fast growing economy which creates jobs

Redistribution of income and opportunitiesRedistribution of income and opportunities

Sound health, education and other services for allSound health, education and other services for all

Secure homes and places of work Secure homes and places of work





Secure homes and places of work Secure homes and places of work African RenaissanceAfrican Renaissance

THE AFRICAN RENAISSANCETHE AFRICAN RENAISSANCE

Rediscovery and new understanding of our pre-colonial, Rediscovery and new understanding of our pre-colonial, colonial and postcolonial heritage and an appreciation colonial and postcolonial heritage and an appreciation of the value of age-old indigenous knowledgeof the value of age-old indigenous knowledge

The exercising of the right to define what it means to be The exercising of the right to define what it means to be African, and to find unique African solutions for African African, and to find unique African solutions for African problems, whilst developing a pride of all things Africanproblems, whilst developing a pride of all things African

For Africa to realise this For Africa to realise this potential and take our rightful potential and take our rightful role in the world economy, we role in the world economy, we must grow our economies and must grow our economies and

develop our societiesdevelop our societies





Secure homes and places of work Secure homes and places of work African RenaissanceAfrican Renaissance There exists a long term structural decline in South There exists a long term structural decline in South

Africa’s growth performanceAfrica’s growth performance

SA Growth HistorySA Growth History






Africa’s growth performanceAfrica’s growth performance There exists a long term structural decline in South There exists a long term structural decline in South

Africa’s employment creating potentialAfrica’s employment creating potential

Total Formal Sector Employment

6000000

6500000

7000000

7500000

8000000

8500000

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

Year

Em

plo

ymen

t






Africa’s growth performanceAfrica’s growth performance There exists a long term structural decline in South There exists a long term structural decline in South

Africa’s employment creating potentialAfrica’s employment creating potential We have insufficient capacity to improve quality of life in We have insufficient capacity to improve quality of life in

South AfricaSouth Africa

Quality of LifeQuality of LifeChild Mortality below 5, per 1000 population: South Africa and related

countries1980 1997

South Africa 91 65

Morocco 152 67

Turkey 133 50

Peru 126 52

Indonesia 125 60

El Salvador 120 39

Honduras 103 48

Ecuador 101 39

Philippines 81 41

Mexico 74 38

Dominican Republic 92 47

Paraguay 61 28

Colombia 58 30

Thailand 58 38

Sri Lanka 48 19

Malaysia 42 14

Uruguay 42 20

Venezuela 42 25

Jamaica 39 14

Argentina 38 24

Panama 36 26

Romania 36 26

Chile 35 13

Source: World Development Report 2000

RSARSA

The Intimate Link between Real per Capita GDP & Quality of LifeThe Intimate Link between Real per Capita GDP & Quality of Life

Growth in Real GDP is a precondition of improved quality of life

RSARSA

The Intimate Link between Real per Capita GDP & Quality of LifeThe Intimate Link between Real per Capita GDP & Quality of Life

Globally, economic growth is Globally, economic growth is essentially due to three distinct essentially due to three distinct sources: -sources: -– Growth in physical capital inputs into Growth in physical capital inputs into

production - investment, whether local production - investment, whether local or foreign.or foreign.

– Growth in labour inputs to production - Growth in labour inputs to production - more workers producing more.more workers producing more.

– Improvements in technology - improved Improvements in technology - improved efficiency and new products into new efficiency and new products into new markets - innovationmarkets - innovation

South Africa needs to grow : how do South Africa needs to grow : how do we achieve this?we achieve this?

Has Technology Played a Role in the Has Technology Played a Role in the Economic Development of OECD Nations?Economic Development of OECD Nations?

Contribution by:Growth inReal Per

Capita GDPLabour Capital Technology

Japan 6.45 0.77 1.17 4.57Italy 5.36 0.54 0.57 4.29Germany 5.15 -0.12 0.93 4.43France 4.80 0.37 0.76 3.67Netherlands 3.65 0.09 0.78 2.79Norway 3.27 0.02 0.85 2.41Belgium 2.64 0.36 0.28 2.02Denmark 2.56 -0.11 0.77 1.94United States 2.15 0.22 0.60 1.36United Kingdom 1.63 0.10 0.37 1.18Source: Fagerberg (1994)

-20%

0%

20%

40%

60%

80%

100%A

fric

a

E A

sia

S A

me

rica

S A

sia

Fra

nce

Ge

rma

ny

Ja

pa

n

UK

US

A

Technology

Labour

Capital

Relative contributions - developed Relative contributions - developed countries versus developing countriescountries versus developing countries

-40%

-20%

0%

20%

40%

60%

80%

100%

19

70

's

19

80

's

19

90

's

Technology

Labour

Capital

The South African SituationThe South African Situation

Some conclusions on growthSome conclusions on growth

Technological innovation is key to Technological innovation is key to the achievement of economic the achievement of economic growth - in South Africa and globallygrowth - in South Africa and globally

In line with global developmental In line with global developmental paths, South Africa has had an paths, South Africa has had an increasing proportion of growth increasing proportion of growth explained by technological progressexplained by technological progress

South Africa is moving from an South Africa is moving from an extraordinary to a standard pattern extraordinary to a standard pattern of developmentof development

The question is, “how does one The question is, “how does one leverage innovation so as to leverage innovation so as to

achieve this growth?”achieve this growth?”

The Relationship Between Innovation The Relationship Between Innovation and Economic Growthand Economic Growth

Direct influence through new businessDirect influence through new business Knowledge spill-overs - technology Knowledge spill-overs - technology

transfertransfer Intentional R & D investment Intentional R & D investment Creation of an enabling environmentCreation of an enabling environment Development of the right sort of human Development of the right sort of human

capitalcapital

Three Key Ingredients for leveraging Three Key Ingredients for leveraging Science, Engineering and Technology Science, Engineering and Technology

to Achieve Economic Growthto Achieve Economic Growth

1. R&D Investment1. R&D Investment

Evidence that R&D contributes to Evidence that R&D contributes to economic growtheconomic growth

Internationally well established that technology’s Internationally well established that technology’s contribution to economic growth is strongly reliant contribution to economic growth is strongly reliant on the extent and scope of national R&D on the extent and scope of national R&D programmesprogrammes

Internationally there is a direct and positive Internationally there is a direct and positive correlation between R&D and output growthcorrelation between R&D and output growth

Spill over effects can be even more than the growth Spill over effects can be even more than the growth benefits (social returns exceed private rates of benefits (social returns exceed private rates of return)return)

The USA case studyThe USA case study Mirrored in SAMirrored in SA

– Eskom results average 5:1 returnsEskom results average 5:1 returns– Agricultural research results >1.2:1 returnsAgricultural research results >1.2:1 returns

Case Study - Case Study - Why the USA succeededWhy the USA succeeded

Technological innovation through massive R&D investmentTechnological innovation through massive R&D investment Natural resource base, and the scale of its markets Natural resource base, and the scale of its markets Encouraging immigration from technologically more advanced countries Encouraging immigration from technologically more advanced countries Implementing a system of training institutions with a wide diversity of Implementing a system of training institutions with a wide diversity of

focus areas early on in its process of industrialisation focus areas early on in its process of industrialisation The development of a national technology ethic & national leadership in The development of a national technology ethic & national leadership in

science-based fieldsscience-based fields Technology is advanced through community, rather than individual Technology is advanced through community, rather than individual

isolated effort. isolated effort. Developed the necessary R&D infrastructure:- Developed the necessary R&D infrastructure:-

– absorption of a vast stock of technology into existing production facilities absorption of a vast stock of technology into existing production facilities able to take advantage of economies of scaleable to take advantage of economies of scale

– by the end of the 19th century the USA had a nation-wide university system, by the end of the 19th century the USA had a nation-wide university system,

– US industry has set up independent research centresUS industry has set up independent research centres

Gross Expenditure on R&D/GDP Gross Expenditure on R&D/GDP

0

0.5

1

1.5

2

2.5

3

Ho

ng

Ko

ng

Ta

iwa

n

Ma

lay

sia

Sin

ga

po

re

Ind

ia

So

uth

Afr

ica

UK

US

A

Ge

rma

ny

SA’s Research & Technology SA’s Research & Technology CompetitivenessCompetitiveness

Factor of Research & Technology out of 46 countries

27293133353739

1994 1995 1996 1997 1998

2. Investment in 2. Investment in Human CapitalHuman Capital

Average Growth Rate in Real Per Capita GDP Average Growth Rate in Real Per Capita GDP vs Primary School Enrolment Ratevs Primary School Enrolment Rate

Output vs Mathematics, Engineering and Output vs Mathematics, Engineering and Science degrees - SA DataScience degrees - SA Data

Proportion of SA degrees in Proportion of SA degrees in Mathematics and Natural SciencesMathematics and Natural Sciences

Proportion of Matriculants with Proportion of Matriculants with MathematicsMathematics

The Answer is not money;The Answer is not money;but efficiencybut efficiency

Public Expenditure on Education: % of GNP1997

Argentina 3.5Botswana 8.6Brazil 5.1Chile 3.6Hong Kong 2.9India 3.2Korea 3.7Malaysia 4.9Mexico 4.9Singapore 3.0South Africa 7.9Thailand 4.8Turkey 2.2Uruguay 3.3

Opportunities for SA to catch upOpportunities for SA to catch up Declining transport costs and falling trade barriers - increased flow Declining transport costs and falling trade barriers - increased flow

of world trade, therefore domestic markets are less importantof world trade, therefore domestic markets are less important Technology has become increasingly accessible to those with the Technology has become increasingly accessible to those with the

correct skills and training correct skills and training Development of multinational firms - production tends to be globally Development of multinational firms - production tends to be globally

rather than nationally locatedrather than nationally located Technologies have begun to resemble pure science - increased Technologies have begun to resemble pure science - increased

citation of scientific literature in patents, especially in chemical citation of scientific literature in patents, especially in chemical products, electronics, and bio technology. products, electronics, and bio technology. Anybody with the skills to Anybody with the skills to interpret the scientific literature, is in a position to gain access to the interpret the scientific literature, is in a position to gain access to the technology.technology.

Proven impact of a workforce trained in science and engineeringProven impact of a workforce trained in science and engineering, , and an increased proportion of GDP allocated to R&D, and an increased proportion of GDP allocated to R&D,

Proven impact of governments support for technological innovationProven impact of governments support for technological innovation

““a well-educated labour force, with a strong cadre of university a well-educated labour force, with a strong cadre of university trained engineers and scientists at the top, is now a requirement trained engineers and scientists at the top, is now a requirement

for membership in the “convergence club”. This is not to for membership in the “convergence club”. This is not to denigrate the continued importance of hands-on learning by denigrate the continued importance of hands-on learning by

doing and using, but in modern technologies this is not doing and using, but in modern technologies this is not sufficient. It is no accident that countries like Korea and sufficient. It is no accident that countries like Korea and Taiwan, which have been gaining so rapidly on the world Taiwan, which have been gaining so rapidly on the world

leaders, now have populations where secondary education is leaders, now have populations where secondary education is close to universal for new entrants to the work force, and where close to universal for new entrants to the work force, and where a significant fraction of the secondary school graduates go on to a significant fraction of the secondary school graduates go on to

university training” (Nelson and Wright).university training” (Nelson and Wright).

2. Investment in 2. Investment in Physical Capital StockPhysical Capital Stock

Investment in Physical Capital Stock is Investment in Physical Capital Stock is still important...still important...

Investment in physical capital stock - whether Investment in physical capital stock - whether from local or foreign sources, is essential to from local or foreign sources, is essential to ensure the transformation of innovative R&D ensure the transformation of innovative R&D outputs into final products as well as to provide outputs into final products as well as to provide the opportunities for human capital to deliverthe opportunities for human capital to deliver

This requires a well defined and stable policy This requires a well defined and stable policy environment and should focus in efficient and environment and should focus in efficient and innovative production technologiesinnovative production technologies

The Role of Small Business The Role of Small Business in this equationin this equation

The International PictureThe International Picture

Contribution to:Country GDP (%) Employment (%) Source

S.A. [Informal Sector] Unknown 26.0% Ntsika (2000) S.A. [Small Business] 34.8% 55.0% Ntsika (2000)Netherlands [Small Business] 60.0% 50.0% EIM (1996)Europe-19 (EEA) [SmallBusiness]

47.0% 66.5% EIM (1996)

Japan Regional [Small Business] 25.0% proxy 83.2% JSBRI (1998)Japan Metro [Small Business] 25.0% proxy 75.6% JSBRI (1998)

Average Employment Growth Rates in S.A. overthe Past 20 years

Micro Small Medium Large Average

Agriculture -3.42% -2.28% 5.25% 5.32% 2.97%

Mining 0.14% 2.70% 1.02% -1.04% 0.91%

Manufacturing 3.83% 2.35% 1.05% 1.47% 0.99%

Construction 1.47% -0.56% -0.78% -3.88% -2.38%

Trade 4.28% 1.65% 0.56% 6.00% 3.40%

Transport -4.62% -1.19% -0.51% 3.11% -0.19%

Business Services 4.46% 11.24% 22.97% 5.70% 6.75%

Other Services 12.91% 19.97% -21.82% N/A 2.33%Average Growth 3.42% 1.22% 0.96% 0.93% 1.33%

Source: Ntsika (2000)

Employment CreationEmployment Creation

Income ImprovementIncome ImprovementAverage Salary Growth Rates in S.A. over the

Past 20 yearsMicro Small Medium Large Average

Agriculture 1.28% -0.58% 9.39% 7.73% 6.89%

Mining 3.78% 2.66% 2.95% 2.05% 2.51%

Manufacturing 3.42% 2.97% 2.48% 2.50% 4.26%

Construction 0.64% -0.56% -1.00% -2.69% -2.39%

Trade 9.07% 4 .45% 5.43% 3.97% 6 .99%

Transport -1.40% 0.49% 1.23% 3.65% 2.24%Average Growth 6.14% 2.94% 3.60% 2.35% 3.90%

Source: Ntsika (2000)

Key conclusionsKey conclusions South Africa’s economy needs an injection of innovationSouth Africa’s economy needs an injection of innovation Technology plays a substantial role in successful Technology plays a substantial role in successful

economieseconomies Technology has come to underpin growth in South AfricaTechnology has come to underpin growth in South Africa Investment in R&D boosts economic growthInvestment in R&D boosts economic growth Investment in human capital boosts economic growthInvestment in human capital boosts economic growth Investment in physical capital stock is still essentialInvestment in physical capital stock is still essential Small business can be a key enabler in maximising the Small business can be a key enabler in maximising the

contribution of SET to the South African economycontribution of SET to the South African economy

Key Findings and Key Findings and RecommendationsRecommendations

Key Issues for technological advancement in SAKey Issues for technological advancement in SA

1. Technology and innovation matter for long-term growth 1. Technology and innovation matter for long-term growth internationally and have become increasingly important for the internationally and have become increasingly important for the SA economySA economy

2. Technological advancement and innovation depend on the 2. Technological advancement and innovation depend on the existence of appropriate enabling environments and policiesexistence of appropriate enabling environments and policies

3. The appropriate enabling environment for technological 3. The appropriate enabling environment for technological advancement and innovation depends on sufficient resources advancement and innovation depends on sufficient resources being devoted to R&Dbeing devoted to R&D

4. A crucial resource for research and development is human 4. A crucial resource for research and development is human capital capital

5. Maths and science are core to developing human capital for 5. Maths and science are core to developing human capital for technological innovation and economic growthtechnological innovation and economic growth

6. Given the declining trends in both school and university training in 6. Given the declining trends in both school and university training in maths and science in South Africa, identifying the means of maths and science in South Africa, identifying the means of attracting and retaining good teachers to these subjects is vital. attracting and retaining good teachers to these subjects is vital. Attracting good students to them follows as a close second. Attracting good students to them follows as a close second.

7. The answers do not lie with more expenditure on education - but 7. The answers do not lie with more expenditure on education - but with better allocation of expenditure on education. with better allocation of expenditure on education.

8. Public-private partnerships should be explored as a means of 8. Public-private partnerships should be explored as a means of generating the sort of investment in innovation and human capital generating the sort of investment in innovation and human capital that South Africa needs. that South Africa needs.

9. Mechanisms to promote increased levels of investment in 9. Mechanisms to promote increased levels of investment in innovation, human capital and physical capital stock are essential innovation, human capital and physical capital stock are essential for economic growth in South Africa - especially those mechanisms for economic growth in South Africa - especially those mechanisms involving SMMEs. (See NSTF/DACST review of the NSI)involving SMMEs. (See NSTF/DACST review of the NSI)

Key Issues for technological advancement in SAKey Issues for technological advancement in SA

NSTF/DACST Review of the NSTF/DACST Review of the National System of National System of

Innovation (NSI)Innovation (NSI)

DACST/NSTF Review of the NSIDACST/NSTF Review of the NSI White Paper was a major step forwardWhite Paper was a major step forward Major progress in implementation - PUSET, Foresight, Major progress in implementation - PUSET, Foresight,

Audit, Public Science System reviews, Innovation fundAudit, Public Science System reviews, Innovation fund NSTF discussion with Minister of Arts, Culture, Science NSTF discussion with Minister of Arts, Culture, Science

and Technology - mid 2000and Technology - mid 2000 “ “We have achieved enormous progress in delivering on the White We have achieved enormous progress in delivering on the White

Paper, but what do we need to do now to move intoPaper, but what do we need to do now to move into a new era of a new era of innovation for South Africa”innovation for South Africa”

NSTF Plenary - Sept 2000NSTF Plenary - Sept 2000– Input from various Government DepartmentsInput from various Government Departments– Caucus discussionsCaucus discussions– Plenary debate - major actions identifiedPlenary debate - major actions identified

Synthesis document compiled and submitted to DACSTSynthesis document compiled and submitted to DACST Debated and actions developed with DACSTDebated and actions developed with DACST

Actions to Progress the Actions to Progress the National System of InnovationNational System of Innovation

PUSH FOR THE NSI AS A NATIONAL IMPERATIVEPUSH FOR THE NSI AS A NATIONAL IMPERATIVE– Develop a strategy to ensure adoption of the NSI as a key national Develop a strategy to ensure adoption of the NSI as a key national

imperative in all sectorsimperative in all sectors– Ensure all relevant government departments are involvedEnsure all relevant government departments are involved– Establish government body to co-ordinate and rationaliseEstablish government body to co-ordinate and rationalise– Consider establishing a cabinet committee to enhance the profile of Consider establishing a cabinet committee to enhance the profile of

SET at the highest levels (A Cabinet memo should be submitted in this SET at the highest levels (A Cabinet memo should be submitted in this regard)regard)

– Use of relevant web sites to facilitate awarenessUse of relevant web sites to facilitate awareness– Establish consolidated picture of the total SET investment in order to Establish consolidated picture of the total SET investment in order to

focus attention on the issue and to optimise expenditure and returnsfocus attention on the issue and to optimise expenditure and returns– Use NSTF/NACI study on Growth and Innovation(amongst others) to Use NSTF/NACI study on Growth and Innovation(amongst others) to

sell the concept to key government and business stakeholderssell the concept to key government and business stakeholders– Showcase South African Technology at the World Summit on Showcase South African Technology at the World Summit on

Sustainable Development (WSSD) scheduled for September 2002Sustainable Development (WSSD) scheduled for September 2002


PUSH FOR THE NSI AS A NATIONAL IMPERATIVEPUSH FOR THE NSI AS A NATIONAL IMPERATIVE– Improve information availability and flow across sectorsImprove information availability and flow across sectors– Enhance SET related communications through the use of the Enhance SET related communications through the use of the

programme for Public Understanding of Science Engineering programme for Public Understanding of Science Engineering and Technology (PUSET) plus the DACST project to develop and Technology (PUSET) plus the DACST project to develop science journalistsscience journalists

– Establish a low number of specific Key Performance Indicators Establish a low number of specific Key Performance Indicators for the South African NSI to set targets and monitor for the South African NSI to set targets and monitor performance (NSTF study currently underway to define performance (NSTF study currently underway to define indicators)indicators)

– Review the effectiveness of the NSI annually against these Review the effectiveness of the NSI annually against these defined Key Performance Indicators (KPIs)defined Key Performance Indicators (KPIs)

– Declared the statistical data required to develop and monitor Declared the statistical data required to develop and monitor these indicators to be official data to be accessed via Statistics these indicators to be official data to be accessed via Statistics SASA

SKILLSSKILLS– Quantify the extent and impact of the “brain drain”Quantify the extent and impact of the “brain drain”– More flexibility wrt, and look after existing skills baseMore flexibility wrt, and look after existing skills base– Introduce flexibility wrt imported skills and change current policyIntroduce flexibility wrt imported skills and change current policy– Target key industries to input external skills and link these to a national Target key industries to input external skills and link these to a national

Human Resource Development programme for development and Human Resource Development programme for development and sustainability of local capacitysustainability of local capacity

– Implement differentiated pay packages for specialist educators and Implement differentiated pay packages for specialist educators and researchersresearchers

– Include a skills measure in the KPIs for the NSIInclude a skills measure in the KPIs for the NSI– More emphasis on primary school teachers by prioritising the STEAME More emphasis on primary school teachers by prioritising the STEAME

recommendationsrecommendations– More researchers required - HES, public and private sectorMore researchers required - HES, public and private sector– Increase numbers of black South African postgraduatesIncrease numbers of black South African postgraduates

• Reverse “brain drain” and retain existing critical skillsReverse “brain drain” and retain existing critical skills• Improve staffing ratios at universitiesImprove staffing ratios at universities• Encourage post doctoral researchers Encourage post doctoral researchers


RESEARCH FUNDING IN THE HESRESEARCH FUNDING IN THE HES– Develop innovative funding formula to encourage innovation and Develop innovative funding formula to encourage innovation and

more students in the HESmore students in the HES– Develop the infrastructure in the HES - especially technikonsDevelop the infrastructure in the HES - especially technikons– Focus and balance the allocation of funds - advised by focused Focus and balance the allocation of funds - advised by focused

technology roadmaps and generic priorities for other S&T areastechnology roadmaps and generic priorities for other S&T areas– Post doc programmes must be put in place to a much greater extentPost doc programmes must be put in place to a much greater extent– More support for research staff More support for research staff – Incentive structures should be reviewed to align with national and Incentive structures should be reviewed to align with national and

industrial prioritiesindustrial priorities– HES to commercialise IPR which is developed with government fundsHES to commercialise IPR which is developed with government funds– Expand the role of NACI to advise DoE on R&D in the HES - inform Expand the role of NACI to advise DoE on R&D in the HES - inform

via technology roadmapsvia technology roadmaps– NSTF and NACI develop a strategy to assist DoE in resource NSTF and NACI develop a strategy to assist DoE in resource

allocation allocation – Enable HES to do more contract researchEnable HES to do more contract research


SET FUNDING LEVELSSET FUNDING LEVELS– Regularly quantify full extent of SET spend in South Africa - (Historical Regularly quantify full extent of SET spend in South Africa - (Historical

studies indicate level of national funding is too low)studies indicate level of national funding is too low)– Look at a fully consolidated science vote with macro allocation via the Look at a fully consolidated science vote with macro allocation via the

recommended Cabinet committeerecommended Cabinet committee– Establish government R&D and technology (innovation) funding Establish government R&D and technology (innovation) funding

mechanisms/taxation regime to encourage greater levels of private sector mechanisms/taxation regime to encourage greater levels of private sector fundingfunding

• Taxation benefits (preferred by industry)Taxation benefits (preferred by industry)• Direct funding from the fiscusDirect funding from the fiscus

– Partnerships - look at more use of Innovation Fund for access by Science Partnerships - look at more use of Innovation Fund for access by Science Councils for partnerships in foresight aligned areasCouncils for partnerships in foresight aligned areas

– Develop strategies to avoid negative impacts of restructuring of state assets Develop strategies to avoid negative impacts of restructuring of state assets on R&D levels and skillson R&D levels and skills

– Resolve contract/state funding confusion in science councilsResolve contract/state funding confusion in science councils– Innovation fund Innovation fund

• align to national policiesalign to national policies• Report on added value and efficacyReport on added value and efficacy

– Provide guidelines on IPR related mattersProvide guidelines on IPR related matters– Benchmark funding as part of SET KPIsBenchmark funding as part of SET KPIs


FORESIGHTFORESIGHT– Roll out NSTF action plan to define prioritiesRoll out NSTF action plan to define priorities

• BiotechnologyBiotechnology• Digital economyDigital economy• Advanced materialsAdvanced materials

– DACST roadshows to look at cross pollination DACST roadshows to look at cross pollination across sectorsacross sectors

– Innovation strategy - concept to commercial product Innovation strategy - concept to commercial product with mentorship to develop capacitywith mentorship to develop capacity

– Incentives for beneficiation of raw materials and Incentives for beneficiation of raw materials and mineralsminerals

– Edited version to be promoted in the public domainEdited version to be promoted in the public domain


CONCLUSIONCONCLUSION

Where to now??Where to now??– Use this information to promote support Use this information to promote support

for SET in South Africafor SET in South Africa• Policy makersPolicy makers• BusinessBusiness• etcetc

– Work with Minister Ngubane and DACST Work with Minister Ngubane and DACST in implementing review recommendationsin implementing review recommendations

– Implementation of STEAME strategy with Implementation of STEAME strategy with DoEDoE

– Continue activities of NSTFContinue activities of NSTF

THANK YOUTHANK YOU

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