1. “Research and Development for Industrial Competitiveness” Technology and Human Resources for Industry Programme (THRIP) Romilla Maharaj (PhD, MBA) Executive Director: Human Institutional Capacity Development National Research Foundation 23 October 2008

2. Presentation outline History Thumbnail statistics THRIP supported Research and Development About THRIP Investment in THRIP projects

3. History A government and private sector partnership programme established in 1992. Conceptualised by NRF and research community. Response to the shortage of skills for industry and, the need to make South Africa’s industry more competitive. First grants awarded in 1994.

4. Thumbnail statistics 85% of new jobs are in knowledge and service work. In-house Research and Development (R&D) in business sector accounts for 58% of national R&D. Only 1.8% of sales income was spent on innovation. 51% of SA firms had no R&D efforts. In 2003, 1% large, 2% medium, 8% small, 49% micro and 39% very small enterprises.

5. Only 1.3% of South Africans owned and managed a business that had survived more than three years. Rate of 1.3% is stable, but very low. SMMEs accounted for 36% of GDP in 2003. SMME sector in SA is underdeveloped. Very few firms are technology orientated. Thumbnail statistics (cont.)

6. Why should an SMME invest in R&D? Enhance products and services; Create new product development; Development of products and/or services; Gives SMMEs a competitive edge; and Innovation and productivity.

7. Break-even-analysis Year Money Cash drain Need R&D Point of establishing yourself Angel investor / loan Customer base needs to grow every year.

8. Links between citation and wealth intensities

9. Patents granted in USPTO and EPO 1991 -2005

10. Patent applications 1991 -2005: ZA (red), Singapore (yellow), India (green)

11. THRIP Mission To improve the competitiveness of South African industry, by supporting research and technology development activities and by enhancing the quality and quantity of appropriately skilled people.

12. THRIP supported R&D

13. Cultivating the roots of economic growth Cassava provides one of the main sources of starch for poor rural farmers. In South Africa it is an important potential crop for food security and as an industrial starch for economic growth and wealth creation.

14. Changing the face of crime Excessive Internet usage for non-work purposes and deliberate misuse of the Internet have become a serious problem in many organisations. The University of Pretoria does research on computer security, protection of privacy and web services – all of which is aimed at creating more secure mobile Computing and reducing electronic Payment vulnerability.

15. Beefing up the cattle industry Irene Animal Production Institute apply software that enables farmers to predict the true breeding potential of individual animal. The breeder is able to identify animals that will improve the genetic ability of the herd, while avoiding animals that are genetically inferior.

16. About THRIP

17. Key objectives of THRIP Specific responses to the technology needs of industry; Produce highly skilled researchers and technology managers; Educational experience for students within the industry environment; and Foster collaboration among industry and, researchers.

18. THRIP Process Industry Academic / SETI Researchers Partnership Submit THRIP proposal to NRF IndustryGovernment THRIP cost and benefit sharing Benefits: People Products Processes etc.

19. How can SMMEs benefit? Matching R&D funds; Sharing cost and risks; New or improved technologies, processes and products; Spin-off technologies or companies; and Tapping into knowledge at universities.

20. Cost sharing between industry and government Industry Partner(s) THRIP contribution Large industry contribution Small and Medium Enterprise contribution Very Small/Micro Enterprise contribution Large industry(ies) only 13N/A Large industry(ies) plus minimum of 25% by number of SMMEs 12 5% of highest contribution No financial Contribution All SMMEs 1N/A1 No financial Contribution All SMMEs and all BEEs 2N/A1 No financial Contribution

21. Industrial Sectors supported

22. Investment in THRIP projects

23. Co-investment by Government and Industry

24. Industry financial investment in THRIP Projects

25. SMMEs and Large Industry supporting THRIP Projects

26. SMMEs involved with multiple projects

27. Industry Partner breakdown for 2008/09 projects

28. How can you become an industry partner? Contact us @ Etresia du Plessis Tel: (012) 481-4040 E-mail: etresia@nrf.ac.zaetresia@nrf.ac.za Website: www.nrf.ac.za/thrip