Leveraging Public-Private-Partnerships (PPP) for Increased Investment in ICT
R&D – the DST Experience
GPG ICT 2012 Summit
14 June 2012Gallagher Estate, Midrand
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
ICT R&D Investment: 2001- 2009
Information, computer and communication
9041,061
1,5341,866
2,3142,598
2,763
0
500
1,000
1,500
2,000
2,500
3,000
2001/02 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Year
R' m
illi
on
Transition to knowledge- based
Economy
RESOURCE-BASED ECONOMY
KNOWLEDGE-BASED ECONOMY
4
Global Knowledge Economy Indices (KEI)
Source: World Bank Institute (2004)5
InnovationInformation Infrastructure
EducationEconomic and
Institutional Regime
Interconnected
Interdependent
The Four Pillars of the Knowledge- Based Economy
6
DST Programme in ICT R&D and Innovation
• Advanced Human Resource Capacity Development
• Develop Focused World-Class Research at HEIs and R&D institutions
• Stimulate and Build Strong and Robust Innovation Chain
Strategic Objectives
• Increased ICT Access• Modernised Government• Modernised Economy• Developed Local ICT Industry• Enhanced e-Science• Enhanced Green Economy
ICT R&D and Innovation Outcomes
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
Leveraging Funding through Partnerships with Multinational ICT
Companies
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.
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
Existing and Planned DST Partnerships with MNCs
• Human Capital Development (MSc & PhDs)• Enterprise development• Application of High Performance Computing in
Climate Change
Microsoft SA
• Advanced Human Capacity Development (MSc & PhD)
• Research Capacity Building Programme• Software Development Capacity Programme
SAP
• Mobile Applications Laboratory• Support to the African SKA • Educational Support programmes• Research Ambassador Program• Access to Broadband Network for communities
Nokia Corporation
Planned partnership with IBM => HCD, EnterpriseDevelopment and Establishment of a Research Facility
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
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
Engagement Modalities and Funding Options
Engagement modalities:
• 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.
.
Engagement Modalities and Funding Options (2)
Funding options:
• 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.
The new ICT R&D and Innovation Roadmap will guide future
collaboration with private sector
Roadmap frames and guides ICT RDI activity – focus is on Impact
Research Institutions
Value Chain
Strategy
Service Delivery
Policy and Strategy
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 networkHigher
Education
Government
Industry
TechnologyExpertisePeopleResearchOutputs
People
People
Productsand services
Services
Society
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
Investment Portfolio of 6 Thematic Clusters
6 Strategic Priority Areas
13
2
4
5
6
Ideal Investment and Impact
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
Thank You
