Industry Innovation
Partnerships
Innovation for Sustainable Industry
Development
22 July 2015
Isaac Maredi
Presentation Outline
System Wide Challenges
 Technology Balance of Payments
 Manufacturing Trade Deficit
Private Sector R&D Investment
 Rationale for Funding Industry R&D
 GERD Trends
DST Interventions
 Industry Innovation Partnerships Programme
 Environmental Innovation Programme
2
SA Technology Balance of Payments
Figure 2(a)
Payments and receipts
2,500.0
2,000.0
1,500.0
1,000.0
500.0
Payments
•
•
•
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
-
Receipts
SA is a net importer of technology
The gap between imports and exports has
been increasing
Points to increasing local demand for
technology
www.dst.gov.za
3
Manufacturing Trade Deficit
SA’s current account deficit
•
•
Manufactured goods made up 52% of merchandise
exported in 2012, up from 41% in 1994
SA’s growing trade deficit in the manufacturing sector is
a structural concern for the economy
www.dst.gov.za
4
Rational for industry R&D funding
TYIP : 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
5
15%
43%
39%
Investors and Flows, 2011/12 R&D survey
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 Partnerships Programme
• Sector Innovation Funds
8
Industry Innovation
Partnerships
Sector Innovation Fund
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
co-funding & 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
IIP Initiatives
Titanium Development (existing CoC)
Satellite Development & Manufacturing
CSIR
(Bio-manufacturing, Nano-upscaling, Bio-refinery & Photonics)
ICT Industry Partnerships (CSIR Meraka)
Nanotechnology Innovation Centre
Sector Innovation Fund (SIF)
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
Key Performance Indicators
Measured at impact, outcomes and output levels
Some key performance indicators:
 RDI outputs (HCD, knowledge
products, scientific publications)
 Absorption capacity and/or rate iro
HCD
 Knowledge/technology transfer
 No. of knowledge products
transferred
 To whom (big companies/SMMEs;
previously disadvantaged players;
etc)
 Jobs created or sustained
 New enterprises created or
supported
 Amount of funding contributed by
sector
 Increase/sustaining of market share,
including exports
 Increased contribution to GDP
term)
(long
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 MTSF target
1.5% GERD by 2019
 DST aims to secure continued public funding beyond the
ECSP and at significantly higher levels
Sectors Supported
2014/15 IF APPLICANTS
9 SIFs established by end 2014/15
Industry Association
Initiative/Programme
South African Minerals to Metals
Research Institute
Mineral Processing
Citrus Research International
Research for Citrus Export
Marine Finfish Farmers’ Association of
South Africa
South African Marine Aquaculture Research Centre
Paper Manufacturing Association of
South Africa
Paper Manufacturing
Forestry South Africa
Future Plantation Forests for the South African Bio economy
Sugar Milling Research Institute
Sugarcane Bio-refinery Research Programme
Fresh Produce Exporters’ Forum
Post Harvest Innovation Programme
Marine Industry Association of South
Africa
Marine Manufacturing innovation
Wine Industry Network of Expertise and
Technology
Wine Industry Innovation
Sectors’ Contribution to GDP
PAMSA
(0.6%)
FSA
(1.2%)
MFFASA
(0.026%)
FPEF
(1%)
CRI
(0.16%)
SAMMRI
(8.8%)
SMRI
(0.7%)
MIASA
SA’s GDP
WINETECH
(2.2%)
Future plans
 Permanent budget line item - MTEF
 Industry innovation partnerships with direct (mandatory) industry
participation
 Sector Innovation Fund aimed at transformation in key sector(s):
 Existing SIF objectives
 Localisation of
 RDI capacity and services
 Technology driven industry development and competitiveness
 Transformation within the NSI
 Institutions, researchers, etc
 Contribute to other industry and economic development imperatives
 E.g., Black Industrialists Programme
Overview of Environmental
Innovation at DST
Environmental Services &
Technologies
Water RDI Roadmap
Waste RDI Roadmap
Environmental Services
WADER
Waste RDI
Implementation Unit
Ecological Infrastructure
Biomimicry Platform
Water RDI Roadmap
Problem
Means
How
Opportunities
Opportunities:
Problem
Statement:
• 98% of all
water
resources
already
allocated
• Non-revenue
water is 36%
on average
~R7 billion /
yr
• By 2030
demand will
outstrip
supply by 17%
Human Capital
Development
(HCD)
Use of sources
Increase ability to make use of more sources of
water, including alternatives.
(Skills)
Govern, plan &
manage
Improve governance, planning and management of
supply and delivery.
Research and
Development
(R&D)
(Evidence)
Supply
infrastructure
Improve adequacy of performance of supply
infrastructure.
Operational
performance
Run water as a financially sustainable business by
improving operational performance.
Govern, plan &
manage
Innovation
(technological
and nontechnological)
(Technology)
Efficiency
Monitoring and
collection
Improve governance, planning and management of
demand and use.
Reduce losses and increase efficiency of
productive use.
Improve performance of pricing, monitoring,
metering, billing and collection.
Better coordination
and improved
decision making
supported by the
translation of
research into
practise
More products and
services to reach the
market through a
better coordinated
water innovation
pipeline
National savings
through targeted
RDI investments
(e.g. By reducing
water losses to 15%,
through innovation
interventions, an
approximate R3.5 bil
would become
available for
investment in other
needs/areas)
Environmental Innovation
Programme
Water Technology Demonstration Programme
Pull together the research and
commercialisation stages of the water
innovation continuum.
• Demonstrate water technologies in
operational environments (piloted at
scale).
• Assess the performance, validity,
impact (social, environmental, etc.)
and suitability of the technology.
• Build multi-sectoral and crossdisciplinary partnerships in support
of technology demonstrators.
• Disseminate information widely to
promote technology adoption,
investment, and user-confidence as
well as communicate gaps in
research, etc.
• Promote and support water
entrepreneurship and relevant skills
development in the water
technologies space.
Taking technologies out of the
laboratory and proving them in realworld test situations
Image: Adapted from SDTC, 2014
Waste RDI Roadmap
Problem
Means
Problem
Statement:
• 90% of South
Africa’s waste
goes to landfill
Human Capital
Development
(HCD)
• Resulting in
loss of
resources to
the economy
(Skills)
• Resulting in
social (human
health) and
environmental
impacts
• Municipalities
face
challenges in
delivering
services and
diverting
waste from
landfill
• Alternative
waste
treatment
typically more
expensive
than landfilling
Research and
Development
(R&D)
(Evidence)
Innovation
(technological
and nontechnological)
(Technology)
Opportunities
How
Strategic
Planning
Strengthen skills and generate evidence to inform
decision-making, planning and policy development by
government and industry
Modelling
and
Analytics
Strengthen skills in methods, tools, models and
techniques and apply these to generate evidence to
inform the management of waste
Technology
Solutions
Develop, evaluate, demonstrate, localise and deploy
technologies to support municipalities and industry in
diverting waste away from landfill towards value-add
Waste
Logistics
Performance
Strengthen skills and generate evidence to optimise
decision-making around the movement of waste across
the country (logistics, assets, resources)
Waste and
Environme
nt
Strengthen skills, generate evidence, deploy
technologies to reduce the impacts of waste on
receiving environments
Waste and
Society
Deepen understanding of the socio-economic
opportunities provided by waste, but also the threats
that waste poses to human health
Opportunities:
• Preventing waste
creates
opportunities for
industry to
increase valueaddition and
competitivenes
s
• Diverting waste
from landfill
creates
opportunities for
new direct and
indirect jobs and
enterprises
• Improved
management of
waste reduces
risks to human
health and
environment
Environmental Services
Environment &
Society
• Citizen Science
– MiniSASS app
• SARVA
Ecological
Infrastructure
• Evaluation of
NRM funding
window of the
Green Fund
• Developing a
data and
institution
management
portal for the
Ntabalenga
Catchment DEA
Biomimicry
Platform
• Being
developed with
WRC – creating
a community of
practice on
Biomimicry
Siyabonga
isaac.maredi@dst.gov.za
+27 12 843 8761