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Presentation to the Portfolio Committee on Science and Technology National Advisory Council on Innovation Annual Report 2011/12 Dr Steve Lennon Chairperson of Council 17 October 2012

Presentation Outline 1. Introduction 1.1 NACI’s Mandate 1.2 Context of NACI’s Work 2. NACI Council Overview 2.1 Management and Committee Structure 2.2 NACI Key Outputs 2.2.1 Workshops and Events 2.2.2 Research Projects Completed 2.2.3 Publications Finalised 2.2.4 Policy Advice Generated 2.2.5 NACI Highlights 2.3 Commentary on the state of the NSI 3. NACI Resources 3.1 NACI Secretariat 3.2 Financial Report 4. Way Forward

1. INTRODUCTION

Introduction NACI’S Mandate NACI ACT (Act No. 55 of 1997): NACI shall advise the Minister of Science and Technology, and through the Minister the Cabinet, on the role and contribution of science, mathematics, innovation and technology, including indigenous technologies, in promoting and achieving national objectives, namely to; improve and sustain the quality of life of all South Africans, develop human resources for science and technology, build the economy, and strengthen the country’s competitiveness in the international sphere.

2. NACI COUNCIL OVERVIEW

ST Indicators/Policy studies/Policy Development/Admin Support NACI Council Overview 2.1. Management and Committee Structure ST Indicators/Policy studies/Policy Development/Admin Support Secretariat Executive Committee Council Minister National Advisory Committees: - NBAC - SET4W - IRG -INNO4DEV -NACI SKILLS

NACI Council Members

NACI Key Outputs 2.2.1 Overview of NACI Workshops and Events – 2011/12

NACI Key Outputs… (Cont) 2.2.2 Research Projects Completed

NACI Key Outputs (Cont…) 2.2.3 Publications Finalised

NACI Key Outputs (Cont…) 2.2.4 Summary of Policy Advice Generated – 2011/12 Advice Key Elements Human capacity for the National System of Innovation The findings highlight continued problems with sufficiently capacitating the NSI Education and skills challenges can be addressed through strategies to align information availability and dissemination, in addition to addressing the quality of teaching and teaching content, financial support and value chain interventions Genomic Sovereignty It is the capacity of a people, a country or nation to own, to control both access to and use of, samples, data and knowledge concerning or emanating from genomic material. That measures are put into place to regulate and monitor the flow of genetic/genomic material into and out of the country That national legislation be introduced to address the legislative gap with respect to human genetic/genomic material Information letter: The role of biotechnology on food security Sustainable, safe GM technologies hold great potential for South African agriculture and the end consumer, and have already contributed to food security in the sub-continent. DST should play a leading role in establishing such an enabling environment in which the development, utilisation and management of GM technology could be done efficiently Scalable Social innovations to enhance impact Interventions that will promote a countrywide replication of sustainable social innovations to improve the quality of life for all Engage all relevant stakeholders involved in social innovation space to facilitate the establishment of a national innovation database Facilitate the establishment of Social Innovation Fund (SIF) dedicated to expanding roll-out of innovations

NACI Key Outputs (Cont…) Policy Advice Generated – 2011/12 (Cont…) Key Elements Public understanding of biotechnology by the media Biotechnology is generally under-reported in the South African media, particularly the print media. Public awareness of biotechnology and scientifically accurate reporting are important in advancing biotechnology Various activities / initiatives suggested above could improve the quality of the relationship between scientists, journalist, business and government, and it will undoubtedly improve the quality of science coverage in the media Advice on GMO appeal process (GMO Act) The appeal process is taking far too long, leading to the de facto and threatened loss of major funding for the development of new and improved crops. Time frames should be adhered to (decisions should be made in 180 days ) Minister bring this matter to the attention of Minister Tina Joemat-Pettersson Basic research and biotechnology incentives Biotechnology presents an opportunity for a major strategic competitive edge for South Africa, and as such it needs to be funded appropriately. Technological advances in biotechnology have to a large extent come from basic research Entrepreneurial skills are a prerequisite for the development of biotechnologists DST, through TIA, should establish a programme that will bridge the divide between research and commercial exploitation of biotechnology. Addressing barriers for women in science Interventions to respond to barriers that hinder women from participating equitably in science, engineering and technology sector At school level: Emphasis be placed on encouraging school students to choose SET careers through capacitating Life Orientation educators At HE-Level: Access to funding by African women in SET fields needs to be improved

NACI Key Outputs… (Cont) 2.2.5 NACI Highlights Completed the SET Gender Policy Framework Published the South African Science and Technology Indicators 2010 booklet NACI continued focus on NSI performance: NACI’s Response to: National Development Plan DST’s Ministerial Review Report

Higher Education SET enrolments and graduations (2000-2010) Commentary on the state of the NSI (Cont…) Inputs Higher Education SET enrolments and graduations (2000-2010)

R&D Expenditure and R&D as a percentage of GDP (1991-2009) Commentary on the state of the NSI (Cont…) Inputs R&D Expenditure and R&D as a percentage of GDP (1991-2009)

SA publications and world share (1995-2010) Commentary on the state of the NSI (Cont…) Outputs SA publications and world share (1995-2010)

SA patents & world share by USPTO (1995-2010) Commentary on the state of the NSI (Cont…) Outputs SA patents & world share by USPTO (1995-2010)

SA Technology Balance of Payments(2000-2009) Commentary on the state of the NSI (Cont…) Impact SA Technology Balance of Payments(2000-2009)

High tech manufacturing Exports and Imports (2005-2010) Commentary on the state of the NSI (Cont…) Impact High tech manufacturing Exports and Imports (2005-2010)   2005 2006 2007 2008 2009 2010 Exports High-technology manufacturing exports 13,930 16,638 19,985 24,207 15,085 13,468 Total manufacturing exports 212,775 252,601 316,193 417,286 287,373 321,117 Percentage 6.5 6.6 6.3 5.8 5.2 4.2 Imports High-technology manufacturing imports 80,573 95,425 101,357 122,778 100,567 105,380 Total manufacturing imports 295,409 381,822 462,400 561,388 428,418 477,195 27.3 25 21.9 23.5 22.1

Commentary on the state of the NSI (Cont…) Summary Overall, the South African NSI has shown good record on measures of SET enrolments and graduations However some weaknesses in the system persist with regard to: A low and declining R&D intensity (R&D as a percentage of GDP) Declining world share of patents Heavy reliance on imported knowledge and products

Key Issues to Highlight The education value chain needs urgent attention, from basic education, Further Education and Training (FET) colleges and technical high schools, through to higher education and beyond. Better co-ordination across government departments, associated structures and institutions is essential. A single view of the NSI, outlining the current status and future prospects, is essential to optimally position for a globally competitive economy Continued public and private investment in the NSI, from expenditure on R&D, to venture capital allocations and flagship projects, is necessary to build on the well-established base. South Africa’s successful bid to host the Square Kilometre Array (SKA) is an excellent example of how big-science projects can be approached.

3. NACI RESOURCES

NACI Resources 3.1 NACI Secretariat

NACI Resources… (Cont…) 3.2 Financial Report Approved drawings Actual Expenditure Forecast Expenditure

4. WAY FORWARD

Way Forward Recent reviews of NACI (and the NSI) highlighted challenges facing NACI in its structure and mode of operation: NACI’s mandate was hamstrung by the fact that it reported to the DST and thus had no structural location that would afford it the authority needed for effective coordination of a national innovation system,  NACI has been effectively constrained to “advise” only in the limited NSI domains in which the DST can operate.  “In order for NACI to be effective, it needs a strong, efficient and effective Secretariat with substantial professional, technical and analytical capability (beyond mere administrative competence)” (OECD 2007). Secretariat is now a lot stronger and the CEO issue has been addressed in the S&T General Laws Amendment Act 2011 Proposed several new ways in which NACI should be structured and conduct its business Development of a National Innovation Framework Adoption of a Project Team Approach to conduct NACI business Development of professional, technical and analytical skills within the Secretariat Ministerial task team findings All of the above will inform NACI’s future role and NACI is working with the Minister and DST in defining this future

Way Forward Projects to be implemented during 2012/13 financial year: Development of a National Innovation Framework Monitoring, Evaluation and Indicators Strengthening Skills in Mathematics, Science and Technology Infrastructure for Research and Innovation Innovation for Economic Development and Social Upliftment Bioeconomy Policies and Strategies Gender Mainstreaming

THANK YOU Outgoing Minister Naledi Pandor Minister Derek Hanekom S&T Portfolio Committee Department of Science and Technology Director General NACI Councilors NACI Secretariat Krish Bharuth Ram and Kelebogile Dilotsotlhe