Making connections:
Strategies for public-private partnerships in innovation
Tracy Bromfield
Sasol Technology R&D
A common problem….
How do you move
?
More roads?
New concepts in transportation?
Perhaps the solution is within reach…
Or perhaps it’s way out there …
What a great idea!
Time
Risk management
Resources
Skills
Appetite
Knowledge
Purpose
Why innovate?
Create competitive
advantage
Build barriers to entry
Freedom to operate
Commercial value
Create new
knowledge
Build capability
Freedom to
disseminate
Reputation value
Innovation Ecosystems
Model economic
dynamics between
actors and entities
involved in innovation
Value extraction
Networks and
tensions
Scale
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Research
Economy
Commercial
Economy
Flows within innovation systems
Jackson, D, What is an Innovation Ecosystem?, URENIO Research Unit 2011
Jackson, D, What is an Innovation Ecosystem?, URENIO Research Unit 2011
Innovation: a business imperative
South African business executives have identified the energy and
healthcare sectors as sectors that can benefit the most from
innovation, but would like to see more government support for
research and development.
86% of South African business leaders, in line with the global
average, believe that innovation "is the best way to create jobs".
2nd GE Innovation Barometer 2012
The value of collaboration
Risk mitigation
Access to skills,
resources, capital
Diversification
Unique value
proposition
A case study:
Sasol’s University Collaboration Initiative
coal mining
synthetic
gas E&P
fuels & chemicals
oil refining &
fuel marketing
chemicals
oil E&P
Co-products
Fischer-Tropsch Conversion
Chemical products
Markets
Sasol markets products
directly to the consumer, as
well as to commercial and
industrial markets, integrating
its upstream and downstream
activities.
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Sasol’s local innovation network
Research Councils (CSIR)
Universities
Analytical Laboratories
DST (Tax incentive)
NRF (research chairs, postgraduate bursary schemes)
A Strategic Intent
Ensure long-term sustainability of scientific and engineering
capability for Sasol and South Africa
Secure access to:
Skills
Resources
Research capability
Actively promote transformation within the chemical industry
Effectively manage IP to ensure protection of competitive
advantage
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A hub and spoke approach
R250m commitment over ten
years
Develop and retain talented
academics
Build capacity in research and
teaching in fields of chemistry
and chemical engineering
Upgrade research and
teaching facilities
Create opportunities for young
researchers and promote
diversity within the chemical
industry
NWU
UFS
UJ
UKZN
UWC
UCT
SU
RU
"This is a proactive step to help our universities meet critical research
and development skills essential to the future growth and prosperity of
our industry and our nation,"
Sasol CE Pat Davies 2008
Overview of funds allocated since 2006
Funding element
R (millions)
Investment in infrastructure (large equipment)
54
Postgraduate student support (research grants)
34
* Non-binding grants
3
Academic faculty salary subvention
9
Young academic support
6
Rotation of Sasol personnel to universities
7
TOTAL to date
113
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Developing young researchers
Secondees
Non-binding grants (focus on diversity)
Research grants
Young academic support
Salary subventions
copyright reserved 2012, Research and Development, Sasol Technology
Investing in state-of-the-art facilities
copyright reserved 2012, Research and Development, Sasol Technology
Novel capability development
copyright reserved 2012, Research and Development, Sasol Technology
Key learnings
Must be good alignment between
spokes and focus of hub
Look for opportunities to collaborate
Critically important to take a
strategic view of capital equipment
Expert operators
Young academics need mentoring
and support to become effective
Great need for funding towards
running costs for postgraduate
research
Laboratory safety awareness could
be improved
copyright reserved 2012, Research and Development, Sasol Technology
Challenging times
IPR act can deter companies from partnering with universities
Full cost – is it value for money?
Universities lack the resources to commercialise/monetise
technology
Industry is impatient and demanding
Responding to market demands
Needs options
Pool of skilled resources is small, mobile and in demand
Need to identify key strengths and focus on developing them
National and corporate level
A thriving innovation ecosystem
Academia
Skills
transfer
Industry
Research
Councils
Society
Government