1. by DR EUGENE LOTTERING Executive Director September 2004 THE

2. Population:43 million GDP:~ $130 Billion (US) Origins of GDP : oAgriculture~ 4% oIndustry of which~ 32% Manufacturing~ 20% oServices~ 64% Unemployment:~ 30% PROFILE OF SOUTH AFRICA

3. ECONOMIC PERFORMANCE INDICATORS KEY INDICATOR : - 1.Standard of Living Growth in Productivity Income distribution Unemployment rate

4. ECONOMIC PERFORMANCE INDICATORS PRODUCTIVITY GROWTH Investment in Capital formation ( + Infrastructure ) Investment in People (Education & Training) Investment in Technology Advancement “New Growth Theory” Physical capital + Human Capital =

5. New Economic Growth Theory : Physical Capital + Human Capital Technical change – scientific discoveries – academic research Technology advancement – new products; new productivity processes + spillover Knowledge as a public good & economic good SHORTCOMINGS OF NEW ECONOMIC GROWTH THEORY Identifying new scientific / technology attractive profit prospects Best institutional mechanisms that facilitate new tech promotion / adoption Attendant Risk Appropriability problem Government contribution ECONOMIC GROWTH

6. INNOVATION FUND TRUST Created on 3 March 2000 Objectives oTo promote technological innovation within the research community oTo promote the key issues of competitiveness, quality of live, environmental sustainability and harnessing of information technology oTo promote multidisciplinary and cross-sectoral collaborative research and development programmes within South Africa’s national system of innovation oTo own the assets and run the affairs of the Innovation Fund oTo attain the objectives of the Innovation Fund as set out in Section 3

7. BENEFICIARIES OF THE TRUST Involved in R&D aimed at the promotion of technological innovation BusinessAcademics Science Council Researchers Parastatals

8. EVALUATION CRITERIA i.Innovation ii.Technical Details iii.Potential for utilisation of results / commercialisation iv.Capacity v.National Benefit NATIONAL BENEFIT EXAMPLES oIntroduction to SA of new technologies oImprovement in the efficiency, productivity and competitiveness oDiffusion of technologies or value add operation to industry oIncreased employment oNew capital investment oExports oImport replacement i.Innovation ii.Technical Details iii.Potential for utilisation of results / commercialisation iv.Capacity v.National Benefit

9. FROM RESEARCH CONCEPT TO MARKET Basic Research Publications, HR Development etc. Applied Research Publications, HR Development, Patents Financial Losses; Inventory, etc. Start-Up Company Expansion Revenues; Profits MARKET PLACE Patents, Proof of concept, Prototype, Products etc. R&D Development

10. SALES Marketing Phase Product Testing Phase Design Phase PROOF OF CONCEPT FUNDING RESEARCH Conceptual Phase Opportunity RISK LowHigh CREATION OF A NEW VENTURE Wealthy Individuals / Angel investors 3F’s [Friends, Family & Fools] Venture Capitalist (private Equity)  Entrepreneurs  Market Reports  Business Strategy  Negotiation Skills  Patent Analysis  Networks oSeed oStart-up / early stage oDevelopment & Expansion oBuy-out DEVELOPMENTMANUFACTURE CREATION OF NEW VENTURE

11. DISCLOSURE TECHNOLOGY TRANSFER PROCESS RESEARCH INTELLECTUAL PROPERTY EVALUATION COMMERCIALISATIO N R & DPROTECTION Document Date & Sign Witness Invention / Device Process / Method Innovation Document Manager Confidentiality & Non-Disclosures New Useful Non-Obvious Commercial Potential Competition Start-up License Royalty Equity Management Team / Entrepreneur Business Partnership Due Diligence Negotiate Research Agreements Project Monitoring Milestone Driven Patent Copyright Trade Mark “Know-How”

12. Project Portfolio

13. Summary of IF Investment portfolio Round Pre-Proposal applications received Grants awardedCommitments (R) 1 Applications received by DST 1996,989,000 2 Applications received by DST 22127,261,000 3 Applications received by DST 16104,364,411 412618104,167,214 52091194,082,517 612712101,681,542 2002/2003 MiTech150621,840,000 2002/2003 TAPIncluded in MiTech call214,263,000 TOTAL612106664,648,684 NB. The 612 pre-proposals is limited to the total applications received under the new IF business process.

14. Increase in DST allocation to the Innovation Fund (1998-2004)

15. Total IF investments per sector

16. Investments in the Health Sector

17. Investments in Agriculture

18. Investments in the Manufacturing Sector

19. Investments in Mining and Minerals

20. Investments in the Environment Sector

21. Analysis of the ICT Sector

22. Total awarded per institution

23. Awarded per Science Council

24. Awarded per HEI

25. Profile of Project Leaders

26. IF ORGANOGRAM CEO MD BEEFUNDING MKTG & COMM LEGALIFCO Snr. Commercialisation Manager Richard Doyle Snr. Patent Attorney McLean Sibanda MiTech & TAP Manager Lara Sukhdeo Commercialisation Manager Calvin Fambisayi Commercialisation Manager Commercialisation Officer Financial Controller Marius Strydom PO ICT Themba Maseko PO Biological Sciences Mbali Mtshali Tech. Promotions Officer Linda van Staden Secretary Christelle Bonthuyzen PA Denise Ristow EXECUTIVE DIRECTOR Eugene Lottering Manager (Vacant) Econ. Growth Manager (Vacant) Manager BEE & Corp. Development (Vacant) SEED Manager (Vacant) PO New Materials (Vacant) Contract Lawyer (Vacant)