1. 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

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

3. 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)

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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)

15. 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

16. 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

17. 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

18. Annual Report
This Annual Report covers 2nd year of the present Council’s term of office ( )
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

19. 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

20. 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

21. 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

22. 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

24. Financial report

25. Expenditure
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.)

26. 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

27. 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

28. 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