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Transforming SAs NSI for Accelerated and Shared Growth and Development Rasigan Maharajh Institute for Economic Research on Innovation National Innovation.

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Presentation on theme: "Transforming SAs NSI for Accelerated and Shared Growth and Development Rasigan Maharajh Institute for Economic Research on Innovation National Innovation."— Presentation transcript:

1 Transforming SAs NSI for Accelerated and Shared Growth and Development Rasigan Maharajh Institute for Economic Research on Innovation National Innovation Panel Seminar 29 January 2010

2 Outline Institute for Economic Research on Innovation 1.Introduction 2.Geo-political, Social, Political, Economic, Cultural & Local Context 3.Production & Innovation 4.Capacity Building, Research & Technical Services 5.Policies, Representation & Financing 6.Innovation Demand 7.Conclusions

3 INTRODUCTION Institute for Economic Research on Innovation Global Change –Financial Crisis –Environmental Calamity –Energy Matters –Food and Nutrition Domestic Transition –Executive Reorganisation –Resurgence of Progressive Left NLM (SD)+ CP + TU –Reconnecting with Africa –Institutional Transformation versus Structural re- Adjustment

4 Context Institute for Economic Research on Innovation GEO-POLITICAL CONTEXT SOCIAL, POLITICAL AND ECONOMIC CONTEXT CULTURAL CONTEXT REGIONAL AND LOCAL CHARACTERISTICS

5 Context Institute for Economic Research on Innovation GEO-POLITICAL CONTEXT –National Liberation resulting from simultaneous: Domestic –Un-governability –Military Over-extension –Crisis of Accumulation International –Overt American & Soviet Withdrawal –Financial Sanctions –Global Solidarity

6 Context Institute for Economic Research on Innovation SOCIAL, POLITICAL AND ECONOMIC CONTEXT –Segregation –Alienation –Disempowerment –Dispossession –Cheap Labour –Racial Capitalism –Dualities

7 Context Institute for Economic Research on Innovation CULTURAL CONTEXT –Racism Ethnic Nationalism Fascism Violence Poverty –Between –Within –Alternative Culture –Commercial Media Cinematography Music Art

8 Context Institute for Economic Research on Innovation REGIONAL AND LOCAL CHARACTERISTICS

9 PRODUCTION & INNOVATION Institute for Economic Research on Innovation STRUCTURE OF ECONOMIC ACTIVITIES –Labour Productivity –Unit Labour Costs –Knowledge and Technology Intensity of Manufactured Goods –Contribution to the Manufacturing Trade Balance –Gross Fixed Capital Investment –Stock of Inward Foreign Direct Investment –Foreign Direct Investment Networks SECTORAL DISTRIBUTION –Sectoral shares of Value-added –Manufacturing Shares of Value-added SPATIAL DISTRIBUTION EMPLOYMENT –Employment Participation Rate –Unemployment Rate –Employment Composition –Employment of Tertiary-Level Graduates SIZE OF PRODUCTION SYSTEM –Value of Production to Population Ratio –Traded Share of Economy THE INFORMAL ECONOMY INNOVATIVE EFFORT –Innovation Expenditures OCCURRENCE OF INNOVATIONS IMPACT OF INNOVATIONS

10 PRODUCTION & INNOVATION Institute for Economic Research on Innovation STRUCTURE OF ECONOMIC ACTIVITIES –Labour Productivity

11 PRODUCTION & INNOVATION Institute for Economic Research on Innovation STRUCTURE OF ECONOMIC ACTIVITIES –Unit Labour Costs

12 PRODUCTION & INNOVATION Institute for Economic Research on Innovation STRUCTURE OF ECONOMIC ACTIVITIES –Knowledge and Technology Intensity of Manufactured Goods (Export Values )

13 PRODUCTION & INNOVATION Institute for Economic Research on Innovation STRUCTURE OF ECONOMIC ACTIVITIES –Contribution to the Manufacturing Trade Balance

14 PRODUCTION & INNOVATION Institute for Economic Research on Innovation STRUCTURE OF ECONOMIC ACTIVITIES –Gross Fixed Capital Investment

15 PRODUCTION & INNOVATION Institute for Economic Research on Innovation STRUCTURE OF ECONOMIC ACTIVITIES –Stock of Inward Foreign Direct Investment (% GDP)

16 PRODUCTION & INNOVATION Institute for Economic Research on Innovation STRUCTURE OF ECONOMIC ACTIVITIES –Foreign Direct Investment Networks South Africas Stock of FDI Assets by Region

17 PRODUCTION & INNOVATION Institute for Economic Research on Innovation SECTORAL DISTRIBUTION –Sectoral shares of Value-added

18 PRODUCTION & INNOVATION Institute for Economic Research on Innovation SECTORAL DISTRIBUTION –Manufacturing Shares of Value-added

19 PRODUCTION & INNOVATION Institute for Economic Research on Innovation Spatial Distribution

20 PRODUCTION & INNOVATION Institute for Economic Research on Innovation EMPLOYMENT –Employment Participation Rate

21 PRODUCTION & INNOVATION Institute for Economic Research on Innovation EMPLOYMENT –Unemployment Rate

22 PRODUCTION & INNOVATION Institute for Economic Research on Innovation EMPLOYMENT –Employment Composition

23 PRODUCTION & INNOVATION Institute for Economic Research on Innovation EMPLOYMENT –Employment of Tertiary-Level Graduates

24 PRODUCTION & INNOVATION Institute for Economic Research on Innovation SIZE OF PRODUCTION SYSTEM –GDP/Capita Growth

25 PRODUCTION & INNOVATION Institute for Economic Research on Innovation SIZE OF PRODUCTION SYSTEM –Traded Share of Economy

26 PRODUCTION & INNOVATION Institute for Economic Research on Innovation THE INFORMAL ECONOMY

27 PRODUCTION & INNOVATION Institute for Economic Research on Innovation INNOVATIVE EFFORT –Composition of Private Innovation Expenditures (2004)

28 PRODUCTION & INNOVATION Institute for Economic Research on Innovation OCCURRENCE OF INNOVATIONS

29 PRODUCTION & INNOVATION Institute for Economic Research on Innovation IMPACT OF INNOVATIONS

30 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation BASIC AND TECHNICAL EDUCATION SYSTEM –Human Resources in Society –Education System Inputs –Education System Outputs –Education Resources HIGHER EDUCATION SYSTEM –Higher Education System Inputs –Higher Education System Output –Foreign Student Population in Higher Education RESEARCH AND DEVELOPMENT SYSTEM –Trends in Domestic R&D Expenditure –R&D Financing and Performance –R&D by type of Expenditure –Public R&D Expenditures –Business R&D Expenditures –Trends in R&D Personnel –Trends in Researchers TRAINING AND CAPACITY BUILDING SYSTEM –Participation in Lifelong Learning METROLOGY INTELLECTUAL PROPERTY –Patents

31 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation BASIC AND TECHNICAL EDUCATION SYSTEM –Human Resources in Society

32 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation BASIC AND TECHNICAL EDUCATION SYSTEM –Education System Inputs (School Learner Enrolments)

33 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation BASIC AND TECHNICAL EDUCATION SYSTEM –Education System Outputs

34 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation BASIC AND TECHNICAL EDUCATION SYSTEM –Education Resources (School Learners to Teachers)

35 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation HIGHER EDUCATION SYSTEM –Higher Education System Inputs (HEI Enrolments)

36 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation HIGHER EDUCATION SYSTEM –Higher Education System Output

37 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation HIGHER EDUCATION SYSTEM –Foreign Student Population in Higher Education

38 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation RESEARCH AND DEVELOPMENT SYSTEM –Trends in Domestic R&D Expenditure

39 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation RESEARCH AND DEVELOPMENT SYSTEM –R&D Financing and Performance (Share by Source of Finance)

40 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation RESEARCH AND DEVELOPMENT SYSTEM –R&D by Type of Expenditure

41 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation RESEARCH AND DEVELOPMENT SYSTEM –Public R&D Expenditures

42 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation RESEARCH AND DEVELOPMENT SYSTEM –Business R&D Expenditures

43 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation RESEARCH AND DEVELOPMENT SYSTEM –Trends in R&D Personnel

44 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation RESEARCH AND DEVELOPMENT SYSTEM –Trends in Researchers

45 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation TRAINING AND CAPACITY BUILDING SYSTEM –Participation in Lifelong Learning

46 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation METROLOGY –National Metrology Institute of South Africa maintenance, traceability and dissemination of national standards. –South African Bureau of Standards Promotion and maintenance of standardization and quality in connection with commodities and the rendering of services Publishes national standards that it prepares through a consensus process in technical committees provides information on national standards of all countries as well as international standards Tests and certifies products and services to standards Develops technical regulations (compulsory specifications) based on national standards, monitors and enforces compliance with such technical regulations Monitors and enforces legal metrology legislation Promotes design excellence and Provides training on aspects of standardisation

47 CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES Institute for Economic Research on Innovation INTELLECTUAL PROPERTY –Patents

48 POLICIES, REPRESENTATION & FINANCING Institute for Economic Research on Innovation EXPLICIT INNOVATION POLICIES IMPLICIT INNOVATION POLICIES INNOVATION REGULATION INNOVATION PROMOTION INNOVATION FINANCING

49 POLICIES, REPRESENTATION & FINANCING Institute for Economic Research on Innovation EXPLICIT INNOVATION POLICIES

50 POLICIES, REPRESENTATION & FINANCING Institute for Economic Research on Innovation IMPLICIT INNOVATION POLICIES st democratic elections for a united, non-racial & non-sexist South Africa, Reconstruction & Development Programme Macroeconomic Stability Microeconomic Reform 2005presentAccelerated & Shared Growth Initiative and Joint Initiative on Priority Skills

51 POLICIES, REPRESENTATION & FINANCING Institute for Economic Research on Innovation INNOVATION REGULATION

52 POLICIES, REPRESENTATION & FINANCING Institute for Economic Research on Innovation INNOVATION PROMOTION –The Innovation Agency –South African Agency for Science and Technology Advancement Advance public awareness, appreciation and engagement of science, engineering and technology Building the quantity and quality of mathematics and science outputs at school level (developing SET human capital) Raising the general interest in, engagement and appreciation of the public (and especially poorer communities) for the benefit of science (strengthening the SET culture) Communicating science to the South African citizenry (bringing science and scientists closer to civil society)

53 POLICIES, REPRESENTATION & FINANCING Institute for Economic Research on Innovation INNOVATION FINANCING

54 INNOVATION DEMAND Institute for Economic Research on Innovation INCOME DISTRIBUTION –Income Inequality STRUCTURE OF CONSUMPTION –Natural Resource Endowments –Information and Communication Technologies Availability SOCIAL ORGANISATION –Age Distribution of the Population –Social Cohesion –Entrepreneurship –Innovation networks –International flows of human resources SOCIAL DEMAND –Poverty and Inequality in Household Characteristics

55 INNOVATION DEMAND Institute for Economic Research on Innovation INCOME DISTRIBUTION –Income Inequality Gini coefficient

56 INNOVATION DEMAND Institute for Economic Research on Innovation STRUCTURE OF CONSUMPTION –Natural Resource Endowments Reserves as at 2003 CommodityUnitReserves%World ranking Alumino-silicatesMt5137,41 AntimonyKt2506,44 Chrome oreMt ,41 CoalMt ,77 CopperMt132,014 FluorsparMt8016,42 Goldt ,71 Iron oreMt1 5000,911 LeadKt3 0002,17 Manganese oreMt ,01 Phosphate rockMt2 5005,04 Platinum-group metalst ,82 SilverKt10-- Titanium mineralsMt24427,82 UraniumKt2981,64 VanadiumKt ,01 VermiculiteMt1040,02 ZincMt153,3 Zirconium mineralsMt1417,42 Source: Minerals Bureau

57 INNOVATION DEMAND Institute for Economic Research on Innovation STRUCTURE OF CONSUMPTION –Information and Communication Technologies Availability Telephony (Mobile + Fixed-lines)

58 INNOVATION DEMAND Institute for Economic Research on Innovation SOCIAL ORGANISATION –Population Structure

59 INNOVATION DEMAND Institute for Economic Research on Innovation SOCIAL ORGANISATION –Social Cohesion –Voluntary Unpaid Work versus Voter Participation Rate

60 INNOVATION DEMAND Institute for Economic Research on Innovation SOCIAL ORGANISATION –Entrepreneurship

61 INNOVATION DEMAND Institute for Economic Research on Innovation SOCIAL ORGANISATION –Innovation Networks (Collaborative Partners)

62 INNOVATION DEMAND Institute for Economic Research on Innovation SOCIAL ORGANISATION –International flows of human resources (HEI Enrolments) Asia0.27%0.24%0.23%0.28%0.34% 0.32% Australia &Oceania0.03%0.02% Europe0.54%0.50%0.48% 0.49% 0.48% North America0.13% 0.15%0.19% 0.20% South America0.03% 0.02% South Africa94.58%94.27%93.45%93.00%93.13%93.17%92.95% Non-SADC Africa0.74%0.76%0.94%0.93% 0.98%1.16% SADC (Excl. SA)3.69%4.05%4.70%5.08%4.89%4.78%4.85% Angola0.06%0.07%0.10%0.11%0.13%0.14% Botswana0.16%0.73%0.89%0.99%1.05%0.94%0.79% Dem. Rep. of Congo0.03% 0.04%0.05%0.06%0.09%0.12% Lesotho0.25%0.27%0.50%0.62%0.55%0.52%0.49% Malawi0.04% 0.05%0.06%0.07%0.08% Mauritius0.15%0.18%0.24% 0.23%0.21%0.19% Mozambique0.07% 0.09%0.11%0.12% 0.13% Namibia1.06%0.86%0.80%0.92%0.99%0.83%0.96% Swaziland0.15%0.19%0.24%0.26%0.29%0.33%0.37% Tanzania0.02% 0.03%0.04%0.05% 0.08% Zambia0.57%0.43%0.36%0.19%0.17%0.18%0.20% Zimbabwe1.14% 1.35%1.48%1.19%1.30%

63 INNOVATION DEMAND Institute for Economic Research on Innovation SOCIAL DEMAND –Poverty and Inequality in Household Characteristics Households Water in house or on site Access to Electricity Toilet in Dwelling Childhood Malnutrition Medical Insurance White African Coloured Asian

64 Conclusions Institute for Economic Research on Innovation

65 Conclusions Institute for Economic Research on Innovation Current context a product of global & local contestation Institutional Co-evolution Post-apartheid –Class resurgence as Race recedes –Gender unexplored Innovation System fit for Production, Distribution & Consumption System –Concentration, Monopolies & Cartels Partial Transformation –National Democracy & Socialism Transition continues: Struggle Continues …

66 Thank you all Institute for Economic Research on Innovation and References: Abrahams, L. & Thomas Pogue (2009) Innovation Systems and Inequality: The Experience of South Africa, BRICS Working Paper, IDRC & Redesist, Tshwane. Kahn, M.J. (2009) Innovation, Finance and Funding in the National System of Innovation : The South African Experience, BRICS Working Paper, IDRC & Redesist, Tshwane. Ndabeni, L. (2009) Small, Medium and Micro Enterprises in South Africas National System of Innovation, BRICS Working Paper, IDRC & Redesist, Tshwane. Pogue, T. & Rasigan Maharajh (2008) Transforming South Africas National System of Innovation for Accelerated and Shared Growth and Development, BRICS Working Paper, IDRC & Redesist, Tshwane. Robbins, G. (2009) Transnational Corporations and National Systems of Innovation: The Case of South Africa, BRICS Working Paper, IDRC & Redesist, Tshwane. Scerri, M. (2009) The Role of the State in the South African System of Innovation, BRICS Working Paper, IDRC & Redesist, Tshwane.


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