Briefing of the Parliamentary Portfolio Committee on S&T NACI Annual Report 2005/06 Briefing of the Parliamentary Portfolio Committee on S&T 24 October 2006

NACI delegation Prof Calie Pistorius (NACI Chair) Prof Tshilidzi Marwala (NACI Councillor) Dr Sagren Moodley (NACI Secretariat) Mr Tjaart van der Walt (DST)

Overview NACI Act Meetings and management Annual Report 2005/06 Objectives and functions Composition and structure Meetings and management Annual Report 2005/06 Advice to the Minister Extending NACI’s reach Research projects in progress Financial report Way forward (NACI in context – providing science advice to government)

National Advisory Council on Innovation Act, No 55 of 1997 NACI Act

NACI’s objectives NACI Act Shall advise the Minister and through the Minister, the Ministers Committee and the Cabinet, on: The role and contribution of science, mathematics, innovation and technology (including indigenous technologies) Promoting and achieving national objectives, namely Improve and sustain the quality of life of all South Africans Develop human resources for S&T Build the economy Strengthen the country’s competitiveness in the international sphere

NACI’s functions NACI Act May or shall on request of the Minister, advise on: Coordination and stimulation of the National System of Innovation (NSI) Promotion of co-operation within the NSI Development and maintenance of human resources for innovation through selective support for education, training and R&D in the HE sector and at science councils, science and technology institutions (SETIs) and private institutions

NACI’s functions NACI Act Strategies for the promotion of technology innovation, development, acquisition, transfer and implementation in all sectors International liaison and co-operation in the fields of science, technology and innovation Co-ordination of S&T policy and strategies with policies and strategies within policies and strategies in other environments Structuring, governance and co-ordination of the S&T system Identification of R&D priorities in consultation with provincial departments and interested parties, and their incorporation in the process of government funding of R&D

NACI’s functions NACI Act Funding of the science and technology system in respect of its contributions to innovation, including: Framework for national and government expenditure on R&D Building and maintenance of S&T capacity by way of selective funding of training and R&D Distribution of funds allocated to science councils Funding of R&D in all sectors Funding of national facilities utilised for research

NACI’s functions NACI Act Establishment, phasing out, rationalizing and management of: Science councils National facilities utilised for research National R&D programmes conducted by science councils SETIs within the NSI Promotion of mathematics, the natural sciences and technology in the education sector in consultation with the Minister of Education and the Minister of Labour

NACI’s functions NACI Act Strategies for Promotion of the dissemination and accessibility of scientific knowledge and technology Promotion of the public understanding of S&T and their understanding and their supportive role in innovation for development and progress Establishment and maintenance of IT systems to support Monitoring and evaluation of the overall management and functioning of the S&T system and the NSI Continuous revision of S&T policy to address changing and new circumstances

NACI’s functions NACI Act Developments in the fields of science technology and innovation which may require new legislation Any other matter relating to science, mathematics, innovation and technology including indigenous technologies, which the Minister may refer to NACI

Structure of NACI NACI Plenary Council SET4W subcommittee Exco Working groups SET4W subcommittee Previously SARG Biotechnology subcommittee Indicators group Link to DST CEO of NACI is the DG of DST Secretariat appointed in DST

Structure of NACI NACI is currently organized internally in 5 working groups (strategic thrusts) Infrastructure for innovation promotion Human capital and knowledge base Science, technology and innovation for competitiveness Social dimensions of innovation Position and role of NACI in the NSI New strategic plan for next phase

Composition of NACI Chairperson appointed by the Minister NACI Act Chairperson appointed by the Minister 16 to 20 members appointed by the Minister (after consultation with the Minister’s Committee and submission to the Cabinet for notification) CEO of NACI (DG of DST) Officer from DTI (appointed by Minister with the concurrence of the Minister of Trade & Industry)

Composition of NACI Chair: Prof Calie Pistorius (VC, UP) ExCo: Prof Pistorius, Ms Abrahams, Dr Mjwara, Dr Potgieter, Dr Tsengwa Composition of Council Sector Business: 8; Higher Education: 7; Science Councils: 4; Government: 3 Black: 13 White: 9; Female: 6 Male: 16 Resources (staff and finances) are provided and administered within the DST system

What NACI is and is not NACI is not: NACI is a statutory advice body Science council (such as the CSIR, HSRC or the NRF), Think tank or R&D organisation, university NGOs or a public forum (NSTF) Learned body or society (such as ASSAf, RSSA or SAAE) Government department (particularly DST, DTI, DoL, DoE) NACI is a statutory advice body Advice to the Minister (Minister’s Council and Cabinet, as opposed to the Head of State, Parliament, Government) Minister also has other options for advice, such as personal advisor(s), DG and Department and others Comparison to the Council of Higher Education

Meetings and management Council: four times p.a. ExCo:10 times p.a. Sub-committees: As needed National: SET4W (4x); Biotech (2x); Indicators Reference Group (2x) Annual Corporate Business Plan as framework Finances, procurement and human resources within DST administrative and control systems

Annual Report 2005-2006 This Annual Report covers 2nd year of the present Council’s term of office (2004-2007) Year ending 31 March 2006 Implementation of planning done in August 2004 Activities during the year 2005/06 Task group approach Establishment of advice framework and priorities Evidence-based advice: Research projects, leading to advice in next year (…way forward) A number of advices rendered to Minister Extending NACI’s reach

Advice to Minister Improving the utilisation of research findings: increasing the return on R&D investment Shortage of technical skills: the potential impact of skills shortages on large engineering construction projects Mobility of research workers: to minimise negative effects and optimise positive effects

Extending NACI’s reach Parliamentary Portfolio Committee briefing ASSAf, NSTF International liaison OECD, peer advisory bodies, GLOBELICS National advisory committees SET4W ASGISA and JIPSA Contributions to international conferences

Evidence-based advice: Research projects Tracking of R&D expenditure (suite of 8 projects) Required physical infrastructure for NSI Mapping the knowledge base of South Africa Competitiveness in large, medium, small and micro enterprises Gender equity policy Dynamic modelling of human resources Best practices in STI policy and governance OECD report

Project approvals Identification of priority Scoping exercise –objectives, existing information, feasibility: Secretariat Provisional approval as priority: Subcommittee Draft ToR – objectives, design and methodology, expected outcomes, estimated budget: Secretariat Approval of ToR by ExCo / Council Call for proposals – Media call, liaison with Supply Chain management (DST): Secretariat Evaluation of proposals according to the rules of the Public Finance Management Act: Secretariat rules: Secretariat Subcommittee considers proposals and evaluation reports ExCo / Council approves service provider and gives final approval: ExCo Contract drafted: Secretariat Approval of contract by Legal Services (DST): Secretariat Contract to service provider for signature: Secretariat Service provider initiates and undertakes project Contract signed by NACI or delegated DST official: Secretariat

Financial report

Expenditure 2005 - 2006 Item R’000 % Advice development 5,134 66.6 Institutional cost 2,326 30.2 Other (incl equipment) 242 3.2 Notes Resources are allocated by DST as a sub-programme Processing and control is done by DST The allocation NACI currently receives from DST forms part of the MTEF allocation and over the short term there is very little scope for changes in this regard. However, at the same time it should be noted that we have set ourselves on a course of efficiency and effectiveness first and not one of financial growth. NACI is deliberately managed in a way that restricts the administrative support and institutional costs as can be seen in the fact that that cost is restricted to 32% of total budget. We are currently negotiating with DST for additional, albeit ring-fenced, funds. (The budget of CHE is, by comparison, R24,6 million.)

The way forward…. Advice already handed to the Minister this year (2006/07) OECD report Three advisory notes (August 2006) Research outputs (ASSAf) Proposed IPR legislation Tax incentives for R&D

The way forward… Advice/briefings scheduled for presentation to Minister in November 2006: Gender policy Best practices in the NSI Required infrastructure for the NSI Tracking of R&D expenditure Innovation and competitiveness Dynamic modelling of human resources Optimising NACI’s advisory role: Providing science advice to government

The way forward…. Strategic planning session Setting the agenda for the next phase NACI’s format and operation Optimising NACI’s role within a system of providing science advice to government