1. Portfolio Committee Briefing Centres of Competence (CoC) Programme Presenter: Mr Steven Ratsatsi Chief Director: Innovation Planning & Instruments 15 September 2010

2. Overview  Background  Conceptualisation  CoE vs. CoC  Characteristics of a CoC  Features  Models and;  Benefits (industry and Academia)  Current Status  Highlights and Challenges  Case Study – Titanium CoC  Questions

3. Conceptualisation What is a CoC? –Collaborative partnership for technology development. –Involves government, industry, HEIs and research institutions. –Higher risk, longer term research to increase global competitiveness. –Aimed at technology commercialisation.

4. Conceptualisation CoC versus CoE –CoCs: industry lead focus on development of near market technologies with the explicit objective for technology commericialisation. –CoEs: University lead focus on fundamental research with the explicit objective to produce new knowledge discovery.

5. Characteristics of a CoC Features –Pooling of existing research capabilities. –Pooling of funding resources. –Platform for new contractual and institutional relationships. –Infrastructure and human capital development. –Long terms partnerships leading to R&D licensing and commercialisation.

6. Fundamental CoC Philosophy

7. Various approaches to CoC formation Approaches: 1. Deliberate top down processes –Based on national priorities 2. Open competitive processes –Linked to national requirements and consortium strength 3. Bottom up initiatives –Based on strength of strength of research consortium

8. CoC – Outcome known Competence Capabilities (in various partners) Technology Platforms Potential Products/Service Production methods & Integration

9. CoC – Unknown Outcome Competence Capabilities (in partners) Technology Platforms Potential Products/ Services Capability gap Enabling platform Unknown Outcome (To be defined)

10. CoC Capability Gaps & RTD Competence Existing Capabilities (in partners) Technology Platforms Potential Products/ Services Capability gaps Production methods & Integration

11. Figure 4: Outcome is a platform that leads to further products Competence Capabilities (in partners) Technology Platforms from each partner platform Spin off Potential Products/ Services Capability gap Enabling platform as stepping stone Production methods & Integration

12. Characteristics of a CoC Benefits –Benefits to industry Opportunity to engage in higher risk, longer term development of products and services. Direct input into strategic direction of CoC. Access to IP and influence on its exploitation. Networking with opportunities for involvement in other R&D initiatives. Appropriate fit with a commercialisation culture.

13. Characteristics of a CoC Benefits (continued) –Benefits to universities and research institutions Dynamic interaction with industry to ensure R&D will deliver economic benefits. Longer term funding mechanism, allowing time to bring R&D to fruition. Possibility to spin out new commercial entities and exploit IP. Access to larger streams of funding.

14. CoC positioning in the NSI Basic AppliedTech Develop Transfer and Production DHE/ DST / NRF DST/ NRF DST/ TIA / VC / SPIIDTI/ IDC/ VC&PE COE CoC Publications / new knowledge Patents / new knowledge / products Universities Research Councils Industry Commercialised Products/services RTDI (Research Technology Development and Innovation) performance and institutional intervention landscape. NIPMO(IP managementcapability)

15. CoC Physical or virtual platform Establishes collaborative environment –Government, industry, higher education and science councils Provides secure – even contractual – basis of relating between parties Aim is technology commercialisation

16. Some key considerations:

17. Challenges Some challenges facing CoC Programme: –Lack of suitable intellectual property and capabilities –Difficult to get industry interested (Universities are seemingly easy) –CoCs are naturally positioned in a high risk space that not many parties risk investing, which leads to funding gap (now TIA is in place and forming appropriate partnership with other funding agencies)

18. Challenges (cont) Some challenges facing CoC Programme: –Unclear commercialisation strategies may discourage industry interest (especially if time to market is unknown) –Establishment process (from concept formation to feasibility studies, business planning and establishment) may be too long –Quantum of funds required to leap from knowledge to prototypes, testing and pilot production often huge and not many players in this space in SA, an area of concern

19. Current State (cont) Space –All CoC at concept stage –Not yet funded Hydrogen and Fuel Cells –Operational –Funded Advanced Manufacturing –Natural Fibre Reinforced BioComposites – operational and funded –Two more at concept stage – Micro-sensors and Unmanned Arial Vehicle Titanium Industry (case study included) –Operating as network of partners –Business plan approved –MOA signed for implementing the CoC

20. Current State (cont) Human Health and Biotechnology –Structural Biology, Tuberculosis and Malaria – Research Platforms –A number under consideration – BioPharming, Bioprospecting, Eucalyptus, Sugar beneficiation, Pre- Clinical Drug Development, Chronic Disease Medical Device – operational and funded Nuclear Technologies for Medical and Biosciences Initiative (NTeMBI) – operational and funded SA HIV/Aids Research and Innovation Platform (SHARP) – operational and funded

21. Current State (cont) Nanotechnology –Minerals Beneficiation and Advanced Materials under consideration Fluorochemicals –Operational –Funded ICT –Business case being developed and refined –Funding allocated

22. Successes and Challenges Successes –Hydrogen and Fuel Cells – a number of products –MDCoC – product got CE marking Challenges –Issues relating to IP –Funding streams – no diversification –Industry partnership take up

23. Hydrogen Powered Bicycle

24. Case Study South Africa and a new Titanium Industry

25. South African Innovation Opportunity Raw Material Processes & Technologies Market Significant Ti Ore Reserves Existing Markets: Aerospace Automotive Medical Recreational Industrial (e.g. Power Plants) Chemical Primary Metal and Mill Product Technologies Component Manufacturing Technologies Establish a Titanium Centre of Competence to Integrate and Coordinate R&D and the Approach Across the Supply Chain

26. 20 000 tpa, CP-Grade Ti Powder, R3.3 bn pa by 2020

27. Titanium Centre of Competence Developing and Commercialising the Technology Building Blocks of the South African Titanium Industry SA Ti Industry Supplier Development Market Development Industrialisation & Commercialisation Primary Titanium Metal Production CSIR Mintek UP, Necsa Thermtron Investment Casting of Titanium CSIR UCT US Boeing R&D Platforms Joining of Titanium NMMU NLC CPUT Powder Based Processing of Titanium CSIR NIMS (Japan) ULIM, WITS, SU Mintek, CUT, NLC Technology Development Machining of Titanium US UJ UCT CSIR Forming of Titanium (Later) Simulation and Modelling: ULim(Ab Initio), CSIR(FEM, ProCast, Ab Initio), UCT(FEM, Proc. Mod.), CPUT(Weld Sim), UKZN Laboratories & R&D Facilities: CSIR, UCT, UP, US, NMMU, CUT, Mintek, Necsa, NLC Physical Metallurgy of Titanium: UP, UCT, UKZN Additive Manufacturing of Titanium CUT NLC Aerosud

28. THANK YOU