1. Gallagher Estate, Midrand
Leveraging Public-Private-Partnerships (PPP) for Increased Investment in ICT R&D – the DST Experience
GPG ICT 2012 Summit
14 June 2012
Gallagher Estate, Midrand

2. South African R&D Investment
Indicator
2007/08
2008/09
Gross domestic expenditure on R&D (GERD) – R’ Millions
18 624
21 041
GERD as a percentage of GDP
0.93
0.92
ICT expenditure on R&D as a percentage of GERD
14.0
13.1
ICT GERD as percentage of GDP
0.12
0.13
Source: DST/HSRC – National Survey of Research and Experimental Development (2008/2009 Fiscal Year

3. ICT R&D Investment:

4. Transition to knowledge- based Economy
RESOURCE-BASED ECONOMY

5. Global Knowledge Economy Indices (KEI)
C:\Documents and Settings\velaphim\Desktop\Desktop\Innovation\LitReview\Knowledge based economy
Source: World Bank Institute (2004)

6. The Four Pillars of the Knowledge- Based Economy
Innovation
Information Infrastructure
Education
Economic and Institutional Regime
Interconnected
Interdependent

7. DST Programme in ICT R&D and Innovation
Strategic Objectives
Advanced Human Resource Capacity Development
Develop Focused World-Class Research at HEIs and R&D institutions
Stimulate and Build Strong and Robust Innovation Chain
ICT R&D and Innovation Outcomes
Increased ICT Access
Modernised Government
Modernised Economy
Developed Local ICT Industry
Enhanced e-Science
Enhanced Green Economy

8. Key RDI Initiatives & Flagships
Cyber-Infrastructure (SANReN and CHPC)
Increasing ICT access and enabling inclusive use of ICTs
Rural connectivity – Wireless Mesh Networks Project
Human Language Technologies
The Digital Doorway – increasing access to computing infrastructure and information resources
Supporting national priorities
Education & Health: Mobile apps and services
Monitoring: Earth observation and sensing
Strategic Independence: Information security

9. Leveraging Funding through Partnerships with Multinational ICT Companies

10. Why ICT MNC Investment in SA (1)
Factors attributable to MNCs’ decision to invest
Exploiting domestic markets
Managerial and technological knowledge
Lower factors of production and competitive labour costs
Purchasing power of the local market and proximity to other viable markets
Compliance with existing regulatory and legal regime, e.g. NIPP, BBEEE Act, BEE Equity Equivalents etc.

11. Why ICT MNC Investment in SA (2)
DST’s Foreign Direct Investment requirements
Human Capital Development
Innovation and Technology-based SME development
World-class research infrastructure, e.g. R&D laboratories and innovation centres
Technology transfer – adoption of practices that will foster transfer and diffusion of technology within the existing IRP regime

12. Existing and Planned DST Partnerships with MNCs
Microsoft SA
Human Capital Development (MSc & PhDs)
Enterprise development
Application of High Performance Computing in Climate Change
SAP
Advanced Human Capacity Development (MSc & PhD)
Research Capacity Building Programme
Software Development Capacity Programme
Nokia Corporation
Mobile Applications Laboratory
Support to the African SKA
Educational Support programmes
Research Ambassador Program
Access to Broadband Network for communities
Planned partnership with IBM => HCD, Enterprise
Development and Establishment of a Research Facility

13. Existing DST Partnerships with MNCs
The SAP Example
HCD Programme supported about 21 post graduate students (5 PhDs and 16 Masters) over the past 4 years
Research led to innovation projects in mobile applications to support Very Small Enterprises to:
Support supply chain activities for Spaza shops
Currently conceptualising an mobile application for the taxi commuter

14. Existing DST Partnerships with MNCs (2)
The Nokia Example – The mLab Initiative
Mobile Application Lab Southern Africa (mLab) – managed by a consortium that include CSIR Meraka Institute , The Innovation Hub, Ungana Africa and the Coach Lab
Funded through a partnership between DST, Nokia Corporation, World Bank InfoDev and Finnish Ministry of Foreign Affairs
Based at the Innovation Hub, the project supports innovation and entrepreneurship development bases on mobile application development

15. Engagement Modalities and Funding Options
Begin with high level expression of intent between DST and MNC and lead to MoU.
Definition and agreement on broad areas of collaboration, alignment with mutual priorities.
Execution of formal funding contract between the DST and implementing agency, i.e. CSIR
Institute an agreement between CSIR and the MNC >>> MoA. A Programme Management Office assist the CSIR to develop detailed projects for collaboration.
Monitoring, evaluation, assessment of impact. .

16. Engagement Modalities and Funding Options (2)
Funding options depend on the nature and scope of the collaboration
Funding levels from each party depend on weight they attach to the particular project.
Funding could also be in kind, i.e. access to researchers, infrastructure and facilities.

17. The new ICT R&D and Innovation Roadmap will guide future collaboration with private sector

18. Roadmap frames and guides ICT RDI activity – focus is on Impact
Society
Improved quality of basic education
A long and healthy life for all South Africans
Decent employment through inclusive economic growth
A skilled and capable workforce to support an inclusive growth path
An efficient, competitive and responsive economic infrastructure network
Technology
Expertise People
Research
Outputs
Government
Research Institutions
Service Delivery
Policy and Strategy
Services
People
Products
and services
Higher Education
Value Chain
Strategy
People
Industry

19. The ICT RDI Roadmap Purpose
Enable increased public and private investment in ICT RDI (by a factor of 3 to 4) by
providing a mechanism to forecast technology developments in targeted areas;
identifying critical areas that must be developed to meet SA's socio-economic objectives ;
and by surfacing and demonstrating the ICT research community and sector's understanding and agreement on the trends, market potential, priorities and investment requirements
Provide a framework to plan and coordinate technology developments both nationally and regionally – to enable sophisticated decision making

20. Investment Portfolio of 6 Thematic Clusters

21. 6 Strategic Priority Areas5 2 1 3 6 4

22. Ideal Investment and Impact

23. Conclusion Implemented R&D programmes linked to SA challenges
Developed a mechanism for engaging with MNCs
The Roadmap identified future areas for R&D focus

24. Thank You