1. Establishing conceptual clarity for Innovation for Inclusive Development Nonhlanhla Mkhize IID Policy Seminar 25 March 2015

2. Overview of Presentation 2 Policy context Trends Concepts Conclusion

3. 3 Pre-1994: Exclusive NSI 1994: Reconstruction and Development* 1996: Constitution (Bill of Rights ) 1996 White Paper on S&T (social innovation reference) 2000: MDGs 2002 National R&D Strategy - Poverty Reduction Mission 2003 Black Economic Empowerment Act 2008 Ten Year Innovation Plan 2008: War on Poverty 2009: New Growth Path 2012 National Development Plan 2012: Ministerial Review of the NSI 2014 STI Strategy for Africa 2014 SDGs Thriving for inclusive development…

4. STI in development 4 Impacts – wealth creation and quality of life Priorities - ‘meeting basic needs at community level’, ‘reducing the total costs of infrastructure provision’ and ‘environmental sustainability’ ‘urban and rural communities need to be assisted and encouraged to adopt social and technological innovations to assist them in decision-making and to enhance their ability to make informed choices’ Strong focus on the social dynamics of innovation Inclusion of a Poverty Reduction mission - ‘demonstration and diffusion of technologies to impact quality of life and enhanced service delivery’

5. Ministerial review findings.. role of social innovation in the NSI is under- conceptualised and under-developed - Innovation for development: pre-eminent priorities from poverty and unemployment state’s investment on innovation has been biased towards “big science” Supply-side thinking prevalent poor responses to market and social demand Inadequate institutionalization of science, technology and innovation measurement capacity Social innovation strategy 5

6. Innovation that contributes to …. access to basic services reduces drudgery indigenous knowledge based solutions economic inclusion  unlock new opportunities  enhance existing opportunities Skills: new and existing  informal economy considerations Knowledge generation New technologies 6

7. Innovation and inclusive development Innovation New or modified  products  services  processes Inclusive development Development process inclusive of all (ito participation) Development benefits enjoyed by all (access + quality) Development that reduces exclusion, poverty and inequality SA context  Gini coefficient  poverty, unemployment  informality in economy  youth factor different types of exclusion 7

8. Why IID? innovation in support of inclusion of marginalized or excluded groups and the utilization of their capacity and capabilities  participants in process  beneficiaries  creators and co-creators resource based to knowledge based economy 8

9. Trends in innovation for inclusive development? Africa; *Asia; *Latin America; OECD Research eg. Globelics, UNIID-SEA, IDRC, WB, etc. Poor and informal economy as co- innovators Impact assessment* Enabling IID environment 9 Presentation

10. Concepts… Social innovation Frugal innovation Pro-poor innovation Inclusive innovation for inclusive development Inclusive innovation Grassroots innovation Base/bottom of the pyramid innovation Participatory innovation development Ghandian innovation 10 Inclusion a global priority  access and quality eg. basic services and STI activities  engagement (demand vs. supply driven  economic participation  recognition of capacity Informal economy Innovation requires appropriate capacities

11. Examples of social innovation definitions No universally agreed definition -Social innovations are new strategies, concepts, ideas and organizations that meet social needs of all kinds — from working conditions and education to community development and health — that extend and strengthen civil society.strategiesconceptsideas organizationssocialworking conditionseducationcommunity developmenthealthcivil society -A novel solution to a social problem that is more effective, efficient, sustainable, or just than present solutions and for which the value created accrues primarily to society as a whole rather than private individuals - Examples of social innovations include micro-finance; distance learning; etc. 11

12. Examples of inclusive innovation definitions No uniform definition -Any innovation that leads to affordable access of quality goods and services creating livelihood opportunities for the excluded population, primarily at the base of the pyramid, and on a long term sustainable basis with a significant outreach; -Knowledge creation, acquisition, absorption and distribution efforts targeted directly at meeting the needs of the low-income; -Refers to innovation processes that specifically address the needs of the BoP and involve the BoP not only as consumer, but also as producer, employee, and entrepreneur; -Global collaboration focused on feeding the world, reducing dependence on fossil fuels, and protecting what matters most. -Active inclusion of those who are excluded from the mainstream of development. 12

13. Innovation for inclusive development* 13 Innovation for Inclusive Development Frugal innovation Inclusive innovation* Participatory innovation Pro-poor innovation Social innovation Grassroots innovation* Base of pyramid innovation IKSNon-IKS

14. 14 Grassroots innovation Frugal innovati on

15. 1996 White Paper on S&T Establishing an efficient, well ‐ coordinated and integrated system of technological and social innovation; Encouraging creative and collaborative partnerships for individual and national benefit; Advancing knowledge as an important aspect in national development; Improving support to all types of innovation fundamental to sustainable economic growth, employment creation, equity through redress and social development; Inclusion of formerly marginalised stakeholders in science and technology policy ‐ making and resource ‐ allocation activities; and Problem solving involving the multidisciplinary use of engineering, the natural, health, environmental and human and social sciences 15

16. IID is “disruptive”…. Innovation and inclusiveness Enabling environment R&D and Capacity building Knowledge generation Formal and informal sectors Skills development Formal and informal sectors M&ECooperation Domestic, Regional, Continental, global Knowledge management ILEDService delivery 16

17. 17

18. Siyabonga Dankie Enkosi Ha khensa Re a leboga Ro livhuwa Siyathokoza Thank you 18 Presentation www.dst.gov.za