Technology Innovation Agency (South Africa) An Overview 16 June 20111DR JANINE CHANTSON

DateAuthor2 Innovation Policy Drivers and Milestones S&T White Paper /10 National System of Innovation Challenges: Existence of innovation “Chasm” Fragmentation of instruments Narrow definition of Innovation The “Knowledge Economy”: Knowledge = basic form of capital Economic growth driven by innovation Technology Foresight Studies R&D Strategy Creation of DST OECD Review 10 Year Innovation Plan TIA Act 2008 TIA established Apr 2010

16 June 2011J Chantson3 Technology Innovation Value Chain Directed Fundamental Research Develop- ment Technology & market validation Market Launch Early Business Operation Directed applied research Proof of Principle Proof of Concept Product/Process/ Service/Prototype Trading Business Market accepted Product/Process/ Service/Prototype Adapted from Doug Sanyahumbi 2010

DateAuthor4 Adapted from Doug Sanyahumbi Directed Fundamental Research Develop- ment Technology & market validation Market Launch Early Business Operation Directed applied research Proof of Principle Proof of Concept Product/Process/ Service/Prototype Trading Business Market accepted Product/Process/ Service/Prototype Technology Innovation Value Chain Innovation Chasm Local Knowledge IP €€ Local Industry €€ Technology-based Products/services

DateAuthor5 Basic ResearchApplied ResearchTech Development Commercialisation IP Value Pre-Seed Lowered Risk/ More certain Return Lowered Risk/ More certain Return High Risk/ Uncertain Return High Risk/ Uncertain Return Partnerships (e.g. IDC, NEF, SEDA) Partnerships (e.g. IDC, NEF, SEDA) Partnerships (e.g. NRF) Partnerships (e.g. NRF) Focus of TIA financial and non-financial offerings: Across the innovation chasm, operating with the required flexibility along the innovation value chain through mobilising and leveraging national, regional and international partnerships TIA’s Positioning Along The Innovation Value Chain Seed & Start-up Capital Development Capital Growth Capital TIA Support

Support for Technology Innovation Promoting Local & International Partnerships 16 June 20116J Chantson Strategic Objectives Developing Human Capital for Innovation Promoting a Culture of Innovation Collaboration Cooperative ventures Follow-on Funding Technology Transfer Skills Transfer Best (Next) practices

16 June 20117J Chantson Financial Products Technology Development Fund Industry Matching Fund Start-up / Equity Fund Idea Development Fund Royalties; Loans; Convertible Loans, Preference Shares; Equity Universities; Science Councils; SMEs; Techno-entrepreneurs

16 June 20118J Chantson Non-financial Products Business Support & Advisory Services Human Capital Development Programmes Engineering services to technology- based SME’s via TIA Technology Stations e.g. Agro-processing; Chemicals; Tooling ; Electronics; etc Research support via TIA Technology Platforms e.g. Centre for Proteomic & Genomic Research; Biosafety; Metagenomics Enabling Infrastructure

16 June 2011J Chantson9 Business Support & Advisory Services Within context of typical TIA investment company (market reality): Many tech start ‐ ups are started (& often run) by 1 st ‐ time entrepreneurs Invariably 1 st ‐ time entrepreneurs don’t know what they don’t know.. And don’t have the resources or ‘operational critical mass’ to cover all business bases or hire for every business function Within the context of TIA’s business purpose: The need to enhance the chances of success of TIA’s investments (including managing business risks). The need (or expectation) to offer a state ‐ funded nursery/incubation service.

16 June 2011J Chantson10 Primarily through approved external service providers that are able to provide context-specific inputs into technology innovation and commercialisation Levering resources from partner organisations Building trust relationships with investees (proactive vs reactive interventions) Networking Up-skilling of staff within Investee companies Linking investees with follow-on funders Business Support & Advisory Services

16 June 2011J Chantson11 Examples of SA Incubators (1) Small Enterprise Development Agency (SEDA) – 27 Incubators – E.g. Chemin, eGoli Bio, Furntech – Broad public mandate – No IPO in past six years Maxum – Specifically targets high-growth, high-potential businesses with high level of technology usage – 2 IPOs

16 June 2011J Chantson12 Examples of SA Incubators (2) Raizcorp; Aurik – Private – Virtual & physical – Companies at commercialisation stage Biotechnology Regional Innovation Centres (now part of TIA) – Government – Virtual – Companies at pre-commercialisation stage

16 June 2011J Chantson13 Philosophies around business support / incubation Practices and models in use Alignment of various players Enabling policies or incentives Lessons learnt Discussion points

16 June J Chantson THANK YOU. NioPulse an integrated Electronic Design Automation suite for Superconductive Electronics Blue Cube Mineral Grade Quantification Equipment MYRIAD TM Condition monitoring of Steel Cord Conveyor Belting using Multi-sensor digital magnetic imaging Disa Vascular Coronory Stents Shimoda Biotech Novel cyclodextrin Drug Delivery platform Acquired by Abraxis Bioscience, wholly owned subsidiary of Celgene Corporation