1. TECHNOLOGY INNOVATION PROGRAMMES OF the dti PARLIAMENT 7 SEPTEMBER 2004 Johannes Potgieter Enterprise and Industry Development Division (EIDD)

2. ALIGNMENT WITH the dti GOALS GROWTH EQUITY EMPLOYMENT Specific objective that relates to technology: “Contribute towards building skills, technology and infrastructure platforms from which enterprises can benefit”

3. SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) MATCHING SCHEME TO SUPPORT INNOVATION IN INDUSTRY CONTRIBUTES UP TO 50% OF INCREMENTIAL COSTS TO DEVELOP NEW PRODUCTS AND PROCESSES NOT FOR PRODUCTION OR COMMERCIALISATION BUT TO DEVELOP A PROTOTYPE MAXIMUM GRANT R1,5 M PER PROJECT ADMINISTERED BY THE INDUSRTIAL DEVELOPMENT CORPORPORATION (IDC) MEMORANDUM OF UNDERSTANDING WITH THE IDC

4. SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) MATCHING SCHEME (CONTINUED) QUALIFYING COSTS: DIRECT MATERIAL DIRECT LABOUR DIRECT SUBCONTRACTING PRORATA PORTION OF CAPITAL REGISTRATION OF PATENTS SOFTWARE DEVELOPMENT DUE DILIGENCE MILESTONES AUDITS (TECHNICAL AND FINANCIAL)

5. INTELLECTUAL PROPERTY RIGHTS WITH RESPECT TO SPII MATCHING SCHEME IPR BELONGS TO THE APPLICANT IPR MUST RESIDE IN SA MAY NOT SELL FOR 3 YEARS MUST GET IDC APPROVAL IF PROJECT IS CANCELLED - PAY BACK TO IDC WITH INTEREST

6. OUTPUTS FOR SPII

8. SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) (CONTINUED) PARTNERSHIP SCHEME PROVIDES FOR 50% GRANT OF COSTS TO DEVELOP NEW PRODUCTS OR PROCESSES SIMILAR TO SPII BUT MAKES PROVISION FOR A PAYBACK MECHANISM (E.G. IN THE FORM OF A LEVY ON SALES OR EQUITY) GENERALLY FOR LARGER PROJECTS ADMINISTERED BY THE IDC WWW.SPII.CO.ZA

9. INTELLECTUAL PROPERTY RIGHTS WITH RESPECT TO SPII PARTNERSHIP SCHEME APPLICANT TO INFORM IDC IPR MUST RESIDE IN SA IDC AND APPLICANT HAS PROPORTIONAL JOINT OWNERSHIP OF IPR APPLICANT CANNOT SELL IPR TILL 3 YEARS AFTER COMPLETION PAYS LEVY TO THE IDC UPON COMPLETION – IPR TO APPLICANT IF CANCELLED - PAY BACK PLUS INTEREST

10. OUTPUTS FOR SPII

15. SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) OUTCOMES Performance Data 01 April 2003 to 31 March 2004 Total local sales R278.0m Total export sale R 86.4m Total sales R 364,4 Taxes paid – V.A.T. R 38.9m Taxes paid – Company Tax R 12.2m Shop floor jobs created 2 300 Research & development as % of sales23.4% Number of completed projects surveyed173 Number of responses 105

16. SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) EVALUATION

17. SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) EVALUATION

18. SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) EVALUATION

19. SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) EVALUATION

20. TECHNOLOGY AND HUMAN RESOURCES FOR INDUSTRY PROGRAMME (THRIP) PRESENTATION BY DR ROCKY SKEEF ADMINISTERED BY NRF www.nrf.ac.za/thrip