1. 2013/14 ANNUAL REPORT Presentation: Portfolio Committee on Science and Technology Presenter: Date: 15 October 2014

2. Presentation Outline 1.Background 2.Innovation Policy Advisory System 3.State of the NSI 4.Key Outputs and Policy Considerations 5.Further Engagements with Government 6.The Current Policy Work Programme 7.A High-Level Futuristic View 8.Human Resources 9.Expenditure for the Year 10.Conclusion 2

3. Background The Statutory Mandate: Section 3 “…advise the Minister for Science and Technology and through the Minister, the Minister’s Committee and Cabinet on the role and contribution of science, mathematics, innovation and technology, including indigenous technologies, in promoting and achieving national objectives”. 3

4. Terms of Reference for NACI (2013): –Display an understanding of government priorities and policies in relation to the NSI; –After consultation with the Minister for Science and Technology, advise on priorities and agenda setting for STI; –Undertake special assignments, including requests for rapid policy advice; –From time to time, provide a progress review on the state of innovation in the country etc. Background cont… 4

5. Operational Context: A glimpse into some of the issues arising from reviews pertaining to NACI: –… a properly positioned and appropriately empowered NACI is essential; –… stronger capacity to govern and coordinate the innovation system; –…the Department needs to use NACI to give direction on new technologies that should be investigated; –… the measures that government has taken (especially related to the roles of the DST and NACI, as designated coordinators of an otherwise fragmented and diverse NSI) have yet to find sufficient effect. Background 5

6. Level 1 High-Level Policy Level 2 Policy and Strategy Divisions Level 3 Institutional Expert Bodies in the NSI Innovation Individual Experts E.g. ASSAF, NSTF, HSRC, AISA, CSIR E.g. Ministerial Advisory Council on Energy INNOVATION COMMUNITY Individual Sector Experts, Business, Academia, NGOs, Science Councils, Spheres of Government, International community, etc. E.g. National Broadband Advisory Council; National Cyber Security Advisory Council Council on Higher Education National Advisory Council on Innovation Department of Higher Education & Training Department of Science & Technology Department of Trade & Industry Department of Telecommunicati ons & Postal Services Department of Energy Department of Small Business Development etc Department of Health E.g. Medical Research Council Presidency National Planning Commission PCAS E.g. National Small Business Advisory Council Innovation Policy Advisory System 6

7. Strengths of the NSI: –Considerable increase in SET PhDs awarded (15%) between 2011-2012; –Increased number of SA patents granted by the United States Patent & Trademark Office (6%) between 2010- 2011; –Improvement in the Technology Balance of Payment (5%) between 2010-2011; –Increased no. of high impact publications (3.8%) between 2011-2012; –Overall increased proportion of SET enrolments and SET graduations (2%) between 2010-2011 State of the NSI… 7

8. Weaknesses of the NSI: –Lack of effective M&E across the NSI, pointing to a need for an evaluation framework with progress indicators for specific policy prescripts e.g. NDP, IPAP etc; –Measuring system limited to R&D activities; –Poor integration across implementing agencies in the NSI; –“Missing Role Players”: business and the Not for Profit sector; –Innovation infrastructure not properly networked; –Weak capacity for scaling within government in general; –Shortage of good quality skills for innovation. 8

9. State of the NSI: comparative assessment to BRICS 9

10. State of the NSI…Patenting Process Illustration of Patent Corporation Treaty (PCT) process (international patenting) Patent application is a first step, followed by publication, examination and granting 10

11. State of the NSI…Trends in Technological Progress Negative trends for South African patents (proxy for technological progress) Policy issues for consideration:  Implications of researchers rating system (NRF)  Implications of research outputs incentive (DHET)  Science and technology integration (impact of science) 11

12. State of the NSI: Trends in Technological Progress General decline in patents published (selected technologies) High trade deficit in communication electronics confirms low patenting in telecommunications Policy issues for consideration:  prioritisation/ focus?  NSI technology commercialisation mechanisms 12

13. “ A Proposal for a Refocused NSI” Key Outputs 2013/14 : Policy Considerations... 13

14. Key Outputs 2013/14 : Policy Considerations... A Refocused NSI: –Skills: current mix is unbalanced and skewed towards high end skills; –Investment: Funding must be accessible to the SME sector; –Inclusivity: NSI is currently an exclusive domain of the science community; –Infrastructure: must be aligned to the NDP vision; –Flagship Projects: build on existing e.g. SKA; –Champions and Role models: nurture and highlight success of innovation activities 14

15. Gender and Race in the STI: a snapshot from the NRF rating system Key Outputs 2013/14 : Policy Considerations... 15

16. Innovation Skills : (need to consider a healthy mix of productive & high end skills) Key Outputs 2013/14 : Policy Considerations... 16

17. Entrepreneurship: a case in the biotechnology sector 17 Key Outputs 2013/14 : Policy Considerations...

18. 18 Innovation Infrastructure: infrastructure on the edge of commercialisation not sufficiently networked: Policy considerations :  Gaps in the innovation infrastructure landscape Desired networks among infrastructures for STI

19. Assessment of the National Innovation System (STI Indicators); Policies and legislations affecting the implementation of the Bioeconomy Strategy; Established an E-learning Platform for Gender Mainstreaming Booklet: Understanding Mainstreaming- a practical guide to gender and disability mainstreaming Booklet: South African Science and Technology Indicators Consultative workshops on: –Skills; – Bioeconomy; and –a Design-Thinking workshop on a refocused NSI Other Key Outputs 2013/14 : Policy Considerations... 19

20. Further Engagements with Government Departments Department of Higher Education and Training: –Strengthening the vocational education and training pipeline; –Review research output incentives to encourage technological development e.g. arising from the patenting process Department of Trade and Industry: –Discuss trends in technological progress in the context of prioritisation and focus, as well as the NSI technology commercialisation mechanisms. –We see the Science and Technology sector as proving enabling mechanisms. National Planning Commission: –Discuss infrastructure for research and innovation Department of Science and Technology: –Gender and Race in the STI Strategic workshop with the Innovation community: –Proposed National Innovation Framework 20

21. Ongoing Work Programme: The Structure, Governance and Coordination of the NSI; NSI Indicators: –Innovation Data Portal; –Mobility of SA researchers; –Bio-economy indicators ( supporting the Bioeconomy strategy) Skills Sustainability and Planning of Government Flagship Projects Diagnostic Assessment of gender and race in Science and Engineering in selected parts of the public sector; Indigenous technologies and sustainable management of biodiversity; Sustainable Biomass Refining 21 The Current Policy Work Programme 2014/15

22. A Strong Advisory Function with a focus on the macro STI landscape aligned with the NDP Review the White Paper for Science and Technology (1996) against the achievements of various actors in the NSI Advise on a new White Paper (on STI) Develop a Long-Term Vision for STI (Decadal Plan) Deliver regular reports on the state of innovation in the country 22 NACI – the Next Term (based on discussion with Minister for S&T)

23. Composition of the new Council 23 Name Organisation 1. Prof Cheryl de la Rey (Chairperson) University of Pretoria 2. Prof Anton Eberhard Unversity of Cape Town 3. Adv Louisa Zondo Human Rights Activits 4. Dr Azar Jammine Econometrix PTY LTD 5. Dr Shadrack Moephuli Agricultural Research Council 6. Dr Andile Ngcaba Convergence Partners 7. Prof Olive Shisana Human Science Research Council 8. Dr Sibusiso Sibisi Council for Scientific and Industrial Research 9. Dr Albert Van Jaarsveld National Research Foundation 10. Mr Dhesigen Naidoo Water Research Commission 11. Mr Kevin Nassiep South African National Energy Development Institute 12. Mr Garth Strachan Department of Trade and Industry 13. Mr Sim Tshabalala Standard Bank Group 14. Ms Clare Busetti SiMODisa 15. Ms Zanele Monnakgotla Industrial Development Corporation 16. Ms Nonkululeko Nyembezi-Heita IchorCoal N.V 17. Prof Roseanne Diab Academy of Science South Africa 18. Prof Glenda Gray Chris Hani Baragwanath Hosipital 19. Prof Jennifer Ann Thomson University of Cape Town

24. CHIEF EXECUTIVE OFFICER (Vacant) SENIOR ADMINISTRATIVE ASSISTANT DIRECTOR POLICY INVESTIGATION DEPUTY DIRECTOR POLICY INVESTIGATION DIRECTOR STI MEASUREMENTS DEPUTY DIRECTOR STI MEASUREMENTS DIRECTOR POLICY ANALYSIS DEPUTY DIRECTOR POLICY ANALYSIS CHIEF DIRECTOR POLICY INVESTIGATION DEPUTY DIRECTOR POLICY ANALYSIS ASSISTANT DIRECTOR POLICY ANALYSIS ADMINISTRATIVE OFFICER Human Resources 2013/14 24

25. Expenditure 2013/14 25 BUDGET AND EXPENDITURE BREAKDOWN AS AT 31 MARCH 2014 DESCRIPTIONExpenditureCommitmentsBudgetAvailable Budget Compensation of Employees R6,826,391.02R0.00R6,849 000.00R890,608.98 Goods & Services R4,923,439.29R22,943.915,643 000.00R-160,383.20 Transfers & Subsidies R10,826.00R0.00R11,000.00R-10,826.00 TOTALR11,760,656.31R22,943.91R12,503,000.00R719,399.78

26. THANK YOU 26