PRESENTATION ON THE TECHNOLOGY AND HUMAN RESOURCES FOR INDUSTRY PROGRAMME (THRIP) AND THE SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII)

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1 PRESENTATION ON THE TECHNOLOGY AND HUMAN RESOURCES FOR INDUSTRY PROGRAMME (THRIP) AND THE SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) BY DDG: EMPOWERMENT AND ENTERPRISE DEVELOPMENT MR SIPHO ZIKODE

2

3 VISION TO PROMOTE TECHNOLOGY DEVELOPMENT AND COMMERCIALISATION IN SOUTH AFRICA

4 BACKGROUND Promote development of technologically innovative products/processes that are commercially viable & internationally competitive Focuses specifically on the development phase that begins at the conclusion of basic research and ends at the point when a pre-production prototype has been produced. Administered by the Industrial Development Corporation (IDC)

5 SPII SCHEMES Product Process Development Scheme Matching Scheme Partnership Scheme

6 PRODUCT PROCESS DEVELOPMENT SCHEME (PPD) Promote development of new products and/or processes. Non-repayable grant of 50-85% on qualifying costs incurred during development ü ü ü ü <25% black ownership (50% grant) 25-50% black ownership (75% grant) >50%Women ownership (75% grant) >50% black ownership (85% grant) Maximum of R2 million per project.

7 MATCHING SCHEME Provides a non-repayable grant of 50-75% on qualifying cost incurred during development. 50% of qualifying costs <25% BEE 65% of qualifying costs > 25% BEE or > 50 % Women ownership. 75% of qualifying costs >50% BEE ownership Payments are made against predetermined milestones. Maximum grant amounts to R5 million per project.

8 PARTNERSHIP SCHEME For larger scale R&D projects above R5 million. Grant of 50% qualifying cost incurred during development. Incorporates a conditional repayment mechanism in the form of a levy based on sales. Must demonstrate additionality/causality Technology Platforms.

9 CATEGORIES SUPPORTED COSTS ON: Direct labour Direct material Direct Sub-contracting Pro-rata portion of capital Patents

10 SPII STATISTICS Outputs: 2009/ / /12 Approval (R) R109.9m R22.8m R73m No. of Projects / / /15 MTEF R52,7m R54.8m R58.1m Targets: Number of new approved projects 2012/ / /

11 SPATIAL DISTRIBUTION OF SPII PROJECTS (2011/12) Province Number of projects Eastern Cape 6 Gauteng 20 Kwazulu-Natal 6 North-West 1 Western Cape 19

12 SPII PROJECTS BY INDUSTRY SECTORS

13 SPII IMPACT Performance Data 2008/ / /11 Total local sales R133.2m R79.6m R60.0m Total export sales R103.8m R78.3m R133.1m Total sales R237.0m R157.9m R193.2m Taxes paid company tax R35.1m R6.2m R11.1m Shop floor jobs created Research and development as % of sales Number of completed projects surveyed Number of detailed responses received

14 IMPACT CONTINUED As at 16 March 2012 SPII had approved 1511 projects worth 1.94 billion since inception. Generated approximately 6.79 billion in taxes.

15 SUCCESS STORIES 1. Nortech IdentiPark An intelligent parking guidance system solution that alleviates the frustration of searching for a vacant parking space System installed at these three properties in South Africa: Old Mutual Properties Cavendish Square, Cape Town Old Mutual Properties Musgrave Centre, Durban Liberty Properties Nelson Mandela Square, Sandton

16 Nortech IdentiPark Cavendish Square

17 Nortech IdentiPark

18 2. TMI DYNAMATICS INTERACTIVE DRIVER EDUCATION SYSTEM (ides) The Interactive Driver Education System (ides) is an interactive computer-based driver training system. The ides comprises of two main components: an e-learning application and a state-of-the-art driving simulator. The ides caters to both learner drivers and professional driver trainers, such as driving schools and organisations doing driver training internally. ides helps people get their Learner's License and Driver's License for light and heavy motor vehicles.

19 TMI DYNAMATICS - ides

20 TMI DYNAMATICS - ides

21 3. NGUNI JUICE CC UMVIYO JUICE Development of a tonic and energy juice called Umviyo Juice from a vangueria infausta (Umviyo) fruit. Now Limpopo based, Mr Norman Mpedi, an enterprieneur has completed another development for both distilled (Umviyo Liquor) and fermented (Umviyo Cider) beverages

22 NGUNI JUICE CC UMVIYO JUICE

23

24 BACKGROUND Administered by the NRF and guided by an Advisory Board with representatives from industry, government, Higher Education South Africa, Engineering Council South Africa and science councils. On a cost-sharing basis with industry, THRIP supports SET research collaboration focusing on technology needs of participating firms.

25 MISSION OF THRIP Creating knowledge-based internationally competitive South African industries.

26 THRIP PRIORITIES To support an increase in the number of black and female students pursuing technological and engineering careers, To promote technological know-how within the SMME sector, through the deployment of skills vested in HEIs and SETIs, To facilitate and support the enhancement of the competitiveness of BEE s through technology and human resources development, To facilitate and support multi-firm projects in which firms (Incl. BEE enterprises) collaborate/ share in project outcomes

27 THRIP STATISTICS 2009/ / /12 Approval (R) R152.5m R140m R144.5m No. of Projects No. of Students No. of Black Students No. of firms BEE Enterprises No. of SMME s No. of Researcher / / /15 Number of new students Number of Researchers

28 CO-INVESTMENT BY GOVERNMENT AND INDUSTRY (R 000)

29 THRIP PROJECTS BY STANDARD INDUSTRIAL CLASSIFICATION (2010/11)

30 SUCCESS STORIES 1. Project Leader Mr MJD Manamela - University of Limpopo

31 MR MJD MANAMELA UNIVERSITY OF LIMPOPO Project: Speech Recognition and synthesis With a project aimed at providing additional opportunities for disadvantaged communities to participate actively in the new information society using their mother-tongue languages, without the need for any training or additional education. Mr Jonas Manamela and his project team created and improved the performance of the baseline Tshivenda Automatic Speech Recognition (ASR) System and Sesotho sa Leboa ASR and Text-to-Speech Systems. Industry Partners: Telkom Maredi Telecom and Broadcasting

32 2. PROF. TANIA DOUGLAS UNIVERSITY OF CAPE TOWN Project: Low Dose X- Ray for Medical imaging Another breakthrough for SA. Fast low-dose Lodox Statscan Xray Machine that can scan an adult from head to toe in 13 seconds. A collaborative research between Lodox Systems and UCT.

33 PROF. TANIA DOUGLAS UNIVERSITY OF CAPE TOWN

34 3. PROF. ANDREAS ROODT UNIVERSITY OF THE FREE STATE Project: The Development of Novel Nuclear Pharmaceuticals The project leader conducted research into the early detection of cancer and other illnesses, which affords an early appropriate treatment to affected individuals. The outcome of the research from this collaboration has resulted in industry partner PET Labs Pharmaceuticals Ltd exploring extended operations with other role players to become leader in producing effective new radiopharmaceuticals.

35 PROF. ANDREAS ROODT UNIVERSITY OF THE FREE STATE

36

37 Websites

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