S e c t o r I n n o v a t i o n P a r t n e r s h i p s Industry meets Science Workshop 26 November 2014

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1 S e c t o r I n n o v a t i o n P a r t n e r s h i p s Industry meets Science Workshop 26 November 2014 Sunita Kalan Department of Science & Technology Director: Sector & Local Innovation Sunita.Kalan@dst.gov.za

2 Why invest in R&D funding for industry? Develop and capacitate a knowledge economy R&D / Technology / new knowledge: direct impact on competitiveness & innovation? NDP & NGP: role of RDI in economic growth IPAP: invest in innovation & technology to ramp up competitiveness in production & services sectors of the economy 2

3 DST Interventions Technology Localisation Programme (TLP): Leverage public procurement opportunities Improve the technological capability of local firms leading to Increased competitiveness (quality, cost, customisation) Expanded capability (new products, services) Expanded market (local and global) DST tax incentive programme Industry Innovation Programme Sector Innovation Funds 3

4 Motivation for IIP DST allocated R500 million over 2013/14 MTEF to develop and implement the Industry Innovation Partnership (IIP) Programme Key goals: Leverage industry investment in RDI by stimulating increased RDI cofunding & participation by industry players in projects to maintain and increase their export market share Mitigate against under-investment in technology & innovation in identified niche and strategic sectors of SA economy so as to improve their competitiveness Key long-term outcomes measure will be increased sector contribution to GDP through stronger RDI-based industrial development

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6 IIP Initiatives Titanium Development (existing CoC) Satellite Development & Manufacturing CSIR (Bio-manufacturing, Photonics and Biorefinery) ICT Industry Partnerships (CSIR Meraka) Nanotechnology Innovation Centre Sector Innovation Fund (SIF)

7 Key performance indicators Key performance indicators Number of students supported involved in targeted research areas Number of new enterprises/businesses created or sustained together with associated jobs or job opportunities Amount of co-funding secured from private sector and other participants Number of spill-over businesses and new markets created

8 Sector Innovation Funds DST intervention to enhance economic competitiveness of participating sectors Encourages private sector to co-invest with government in RDI activities that address competitiveness and sustainability of participating sectors Managed by Industry associations or bodies Formal entities representing interest of members Industry identifies challenges & determines own RDI agenda

9 Key Performance Indicators Measured at impact, outcomes and output levels Some key performance indicators: RDI outputs (HCD, knowledge products, scientific publications) Knowledge/technology transfer Jobs created or sustained New enterprises created or supported Amount of funding contribution by sector Increase/sustaining of market share, including exports Increased contribution to GDP (long term)

10 Complexities and considerations Must use the process to better understand and appreciate the complexities of R&D funding in the private sector Signaled that performance measure is not simply matching funding for the SIF but increases in the level of R&D within the sector (even in-house funding) SIF is a crucial initiative under the proposed 1.5% by 2019 action plan DST aim to secure continued public funding beyond the ECSP and at significantly higher levels

11 Activities Milestones Call for partnership proposals Workshop with Industry Associations Proposals evaluation Contracting phase Monitoring & evaluation Published on national Sunday paper & DST website Template application form available on DST web PHI and SAMMRI presentation Refinement of application form Agreement on key indicators Programme 5 facilitates evaluation of proposals Expert Review Panel consisting of DST, the dti, EDD, DAFF and TIA Recommended programmes to DST EXCO for final approval Finalisation of contracts with industry partner formations Ongoing Implementation monitoring and evaluation by DST Presentation 11

12 2014/15 9 SIFs established IF APPLICANTS by end 2014/15 Industry Association Proposed Initiative Sectors supported South African Minerals to Metals Research Institute Citrus Research International Marine Finfish Farmers Association of South Africa Paper Manufacturing Association of South Africa Forestry South Africa Mineral Processing Research for Citrus Export South African Marine Aquaculture Research Centre Paper Manufacturing Future Plantation Forests for the South African Bio economy Sugar Milling Research Institute Fresh Produce Exporters Forum Marine Industry Association of South Africa Wine Industry Network of Expertise and Technology Sugarcane Bio-refinery Research Programme Post Harvest Innovation Programme Marine Manufacturing innovation Wine Industry Innovation

13 Sectors contribution to GDP PAMSA (0.6%) FSA (1.2%) SMRI (0.7%) MFFASA (0.026%) FPEF (1%) CRI (0.16%) MIASA SAMMRI (8.8%) SA s GDP WINETECH (2.2%)

14 Dankie Enkosi Ha khensa Re a leboga Ro livhuwa Siyabonga Siyathokoza Thank you