1. 1 National Advisory Council on Innovation Corporate Business Plan 2006 - 2007 Presentation to the Parliamentary Portfolio Committee for Science and Technology 24 March 2006 Tshilidzi Marwala Bok Marais Charles Mokonoto

2. 2 Outline of Presentation Statutory mandate, mission, vision and functions Intersecting domains and advise space Changing STI policy environment Approach Functional structure Strategic thrusts, priorities and targets for 2006 – 2007 Financial overview Challenges Conclusions

3. 3 Statutory Mandate [Act 55 of 1997] “NACI shall advise the Minister, and through the Minister, (…) and the Cabinet, on the role and contribution of science, mathematics, innovation and technology, including indigenous technologies, in promoting and achieving national objectives” e.g. Improve the quality of life of all South Africans Develop human resources for STI Build the economy Strengthen competitiveness

4. 4 Statutory Functions [Section 4] Advise the Minister on, among others, Coordination & stimulation of the NSI Development of HR for innovation Coordination between policies and strategies International liaison Structure, governance & funding of the S&T system Research prioritisation PUSET Information systems for evaluation of the system New legislation

5. 5 Mission To be a relevant, prominent, credible, proactive and responsive advisory body to the Minister of S&T on national matters concerning innovation (incl. S&T), thereby contributing to the achievement of the national objectives of our country by utilising Accountable scientific approaches and The best available resources

6. 6 Vision and Values S&T should serve as at least a significant, if not the primary, driver behind South Africa’s economic and social development South Africa first Fast delivery of advice and related services Relevance, high quality and integrity of information Credibility of NACI Financial accountability

7. 7 Innovation as Intersecting Domain [Macro] S&T Innovation Science & Technology Trade & Industry Education Labour Defence Agriculture Other P a r l i a m e n t and its c o m m i t t e e s

8. 8 (Partial) STI Policy Advice Space NACI CHE Program specific N Skills Auth ASSAf NSTF ASSAf Advice: Dedicated function Advice: Secondary function S&T Innovation Labour Trade & Industry Education Science & Technology

9. 9 STI Policy Environment 2006 + Nature of STI –Relevance & problem orientation –Sophistication of methods, techniques & equipment –Teams and groups rather than individuals Internationalisation of STI –Emerging national systems, e.g. China and India –Mobility of workers – brain drain and gain –ICT Government –National imperatives –Public awareness of STI –Accountability for public expenditure –Oversight function – national priorities, etc. Ministry & department –Relationship with Minister –New executive management of DST

10. 10 NACI Approach Short to medium time frame –Mean span: 10 months since commissioning Evidence-based advice –Quality control and validation Mix of in-house and service providers –Best available service providers; active networks Cost-effective infrastructure Explicit decision audit traces Annual performance assessment

11. 11 Evidence-based Advice Policy/strategy/etc. Contextualisation Affordability Policy alignment Implementability Advice Problem Information Existing In-house New Commission

12. 12 Functional Structure Minister Council 12 Secretariat Executive committee National advisory committees: Biotechnology SET4W Indicators Advisory initiatives (incl. studies 5 Strategic sub- committees Advisory initiatives (incl. studies Indicators / Policy studies/ Policy Development Admin Support

13. 13 Strategic Thrust [SC 1] Infrastructure for innovation promotion Conditions for a productive NSI & reality Developed economies Configurations of policies conducive to innovation across sectors, access to optimal physical infrastructure and high if not growing levels of expenditure on STI. Developing economies Acceptable policies on STI, but inadequate and/or aging infra- structure and declining and/or low expenditure on STI. Advice on necessary dimensions and conditions defining an environment that would promote innovation

14. 14 Strategic Thrust [SC 2] Human capital and the national knowledge base Key elements of any System of Innovation: Human resources and knowledge. Neither can be strategically changed over the short term, but both are very sensitive to the dynamics and consequences of globalisation, e.g. in the form of a net outflow of scientists and various aspects of IPR Parameters of an optimal human capital and knowledge base, incl. the optimal use of both

15. 15 Strategic Thrust [SC 3] STI for competitiveness Improved growth in South African industry requires greater innovation (incl. tech transfer) and compet- itiveness, but imported technology plays a significant role in innovation in SA - a large portion of the growth con- sequently does not create the desired number of new jobs. The dynamics of innovation and competitiveness in large, medium, small and emerging industrial undertakings in South Africa, to identify how to enhance it.

16. 16 Strategic Thrust [SC 4] Social dimensions of innovation The situation Social processes underlying innovation and competi- tiveness and the social consequences thereof are not well understood and not sufficiently accounted for. These can facilitate and inhibit the adoption of inno- vation in the second economy, on the one hand, and facilitate innovation generation in the first economy, on the other – they represent the focus of this thrust. A strategic priority The role of innovation and technology (e.g. digital divide) in development and bridging the gap between the two economies

17. 17 Strategic Thrust [SC 5] Position and role of NACI in the NSI The strategic challenge Ensuring that NACI delivers on its mission in the best possible way, namely to advise the Minister of S&T The situation The concept of NSI has become common property in SA and indeed evolved significantly since 1997 Policy advisory functions, processes and structures are in a continuous state of development across the world Forces listed in # 3, create a dynamic environment which NACI has to account for

18. 18 EB Policy Priorities and Targets 2006 – 2007 [1] How?Why?When? Appropriate HR for a productive NSI Dynamic modellingFacilitate HR planningAug 2006 Gender equity policy for STI Five empirical studies Promotion of gender and race equity in the NSI May 2006 OECD peer evaluation of SA NSI OECD evaluation framework International benchmarking & ten year review of NSI Nov 2006

19. 19 Dynamic modelling of HR The model covers: –The entire university process from matriculation –Qualification types –Resources and will Identify policy choices Their effects Costs

20. 20

21. 21 OECD peer review of NSI The review surveys and assesses the following: All policies, strategies & processes All combinations of linkages (e.g. HE- industry) Human, financial and physical resources Outputs & outcomes

22. 22 EB Policy Priorities and Targets 2006 – 2007 [2] How?Why?When? Cabinet requested tracking of R&D expenditure Suite of 8 studies on impact of R&D exp. Impact assessment of public investment in R&D Aug 2006 Optimal infrastructure for a productive NSI Six empirical studies National prioritisation of infrastructural needs Dec 2006 Digital divide and its effects on economic growth OECD evaluation framework International benchmarking & ten year review of NSI Feb 2007

23. 23 Cabinet requested tracking of R&D expenditure Optimising return on public R&D investment? Innovative firms Individuals EU benchmarking Publications Inventorship National policies Innovations Relative achieve- ments, best practices

24. 24 Optimal infrastructure for a productive NSI Conditions for the optimal functioning of the NSI as listed in policies and strategies Equipment Human resources Knowledge base Regional spread Best practices

25. 25 Outline of Budget 2006 - 2007 ItemR’000% Advice development4,292 49 National Advisory Committees’ initiatives 1,223 15 Council385 4 Institutional2,800 32 Notes 1.Allocated by DST as a sub-programme 2.Processing and control by DST 3.Additional ring-fenced funding being negotiated with DST

26. 26 Immediate Challenges Contribute to other government initiatives and needs –ASGI-SA and JIPSA –PPC Optimise and capitalise on synergy and diversity in advisory space –Cooperation and avoidance of duplication –NACI’s niche Promote capacity building for policy expertise Reduce turn-around time of advise development by NACI

27. 27 End Thank you!