Submission on the TIA Bill to the Parliament Portfolio Committee 16 January 2008 by The Innovation Hub Mr Tsietsi Maleho and Dr Jill Sawers
Jan 04, 2016
Submission on the TIA Billto the
Parliament Portfolio Committee16 January 2008
byThe Innovation Hub
Mr Tsietsi Maleho and Dr Jill Sawers
Introduction
The Innovation Hub (TIH) is strongly supportive of the principle of a TIA
Comments presented drawn from experience in working with small technology based enterprises
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Business Clusters
Incubation
Key Elements of The Hub
Networking
INNOV8
EnablingEnvironment
Space
Education & Industry Interfaces
Technology Transfer
International Definition of a Science Park
A Science Park is an organisation managed by specialised professionals, whose main aim is to increase the wealth of its community by promoting the culture of innovation and the competitiveness of its associated businesses and knowledge-based institutions.
To enable these goals to be met, a Science Park stimulates and manages the flow of knowledge and technology amongst universities, R&D institutions, companies and markets; it facilitates the creation and growth of innovation-based companies through incubation and spin-off processes; and provides other value-added services together with high quality space and facilities.
IASP Definition April 20024
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Features of The Knowledge Economy
• Important drivers are Knowledge and Technology-based companies
• Small and emerging technology companies are vital to innovation system
• Important to have collaboration in the triple helix (business, research/academia, government)
• Successful countries have an enabling environment for innovation
What is innovation?
TIH working definition:
Innovation must lead to commercial products or services to impact economically or socially
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DM 3610001-2006 Copyright © Tekes
Innovation environment in FinlandResources and funding
Pri
vate
Basic research Applied research Business R&D
Business developmentMarketingInternationalisation
R&Dat companies
3,684
The figures represent the total extent of each organisation in million euros in 2004. In parenthesis the share that is funded from the State budget. The funds of Tekes, the Academy of Finland and Innofin are funded entirelyfrom the State budget.
BusinessAngels
approx. 380
Pu
blic
Finnvera412 (44)
Universities1,040 (454)
Academyof Finland
208Ministries,
TE-Centres,sectorial research
312 (221)
Tekes415
VTT218 (68)
From abroad169
Innofin6 (4)
Finpro32 (20)
Venture capitalists:Private 336
Industry Investment Ltd 37Sitra 28
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1. Concerns re. Object
Process for stimulating and intensifying technological innovation and invention: “by developing and exploiting innovations and inventions”
• Implies direct involvement rather than facilitation
• TIA will be perceived to compete with private sector and discourage collaboration
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Proposed additions to “Objects of Agency”
Anticipated ROIHave an effective innovation value chain that ensures that South Africa remains globally competitive by enhancing commercial and socio-economic benefits
Appropriate Methodology must result from collaborationTo establish a facilitating agency (TIA) promoting collaboration between business, research/academia and government interests
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2.Concerns re. 2.1 Powers and Duties
Para 4(1)(a)(ii) …establishing operational companies to develop/exploit any technological innovation or inventionPara 4(1)(c)…acquire any right in or to any technological innovation, invention, or patent….
– Government culture very different to entrepreneurial culture required to run agile companies
– Government will compete with entrepreneurs, but with public money (unfair advantage)
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2.2 Powers and Duties
Para 4(2)…where the Agency enters into any transaction with any …enterprise or company…the Agency must….ensure that the Department is represented in the (company) Board…– No discretion is left to the TIA Board or the Minister– TIA will HAVE to be represented on the boards of
EVERY investment• How big will TIA have to be?• How diverse will TIA’s skills set need to be?• Is questionable why government should play such a
direct role in business ventures – what value will it add and how empowered will the representatives be to make fast decisions?
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3. Concerns re. Board
TIA Board
– If Board makes technical decisions, this increases potential for conflict of interest and biased decision-making. Difficult to create Boards with the required level of independence when they comprise part-time members
– Bill addresses selection and operating principles, but not
adequately terms of reference, roles and responsibilities
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Conclusion
Comments have been based on experience of private sector knowledge-based businesses with governmental programmes
TIH strongly supportive of the creation of a TIA, but recommends international good practice in innovation funding viz. via grants and low-interest loans
For the necessary collaboration to stimulate innovation, TIA must be positioned as facilitational rather than competitive– The current TIA Draft Bill does not support this facilitational role
A long term ROI (employment and company taxes) rather than a short term ROI should be expected from TIA. TIA needs to be risk tolerant.
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Thank You
www.theinnovationhub.com
Finalist:
Intelligent Communities Forum (NY)
Visionary Project of the Year 2004
Tel : +27 12 844 0000
Fax : +27 12 844 1107
E-mail: [email protected]