Strategies for public-private partnerships in innovation Making connections: Strategies for public-private partnerships in innovation Tracy Bromfield Sasol Technology R&D

A common problem…. people How do you move ?

More roads?

New concepts in transportation?

Perhaps the solution is within reach…

Or perhaps it’s way out there …

What a great idea! Time Risk management Resources Purpose Skills Appetite Knowledge Skills Risk management Resources Purpose

Industry Institution Create competitive advantage Why innovate? Industry Institution Create competitive advantage Build barriers to entry Freedom to operate Commercial value Create new knowledge Build capability Freedom to disseminate Reputation value

Innovation Ecosystems Model economic dynamics between actors and entities involved in innovation Value extraction Networks and tensions Scale Research Economy Commercial Economy copyright reserved 2012, Sasol Technology

Flows within innovation systems Jackson, D, What is an Innovation Ecosystem?, URENIO Research Unit 2011

Jackson, D, What is an Innovation Ecosystem Jackson, D, What is an Innovation Ecosystem?, URENIO Research Unit 2011

Innovation: a business imperative South African business executives have identified the energy and healthcare sectors as sectors that can benefit the most from innovation, but would like to see more government support for research and development. 86% of South African business leaders, in line with the global average, believe that innovation "is the best way to create jobs". 2nd GE Innovation Barometer 2012

The value of collaboration Risk mitigation Access to skills, resources, capital Diversification Unique value proposition

A case study: Sasol’s University Collaboration Initiative coal mining gas E&P oil E&P synthetic fuels & chemicals oil refining & fuel marketing chemicals Co-products Fischer-Tropsch Conversion Chemical products Markets Sasol markets products directly to the consumer, as well as to commercial and industrial markets, integrating its upstream and downstream activities. copyright reserved 2012, Research and Development, Sasol Technology

Sasol’s local innovation network Research Councils (CSIR) Universities Analytical Laboratories DST (Tax incentive) NRF (research chairs, postgraduate bursary schemes)

A Strategic Intent Ensure long-term sustainability of scientific and engineering capability for Sasol and South Africa Secure access to: Skills Resources Research capability Actively promote transformation within the chemical industry Effectively manage IP to ensure protection of competitive advantage copyright reserved 2012, Research and Development, Sasol Technology

A hub and spoke approach R250m commitment over ten years Develop and retain talented academics Build capacity in research and teaching in fields of chemistry and chemical engineering Upgrade research and teaching facilities Create opportunities for young researchers and promote diversity within the chemical industry NWU UJ UCT SU RU UKZN UWC UFS "This is a proactive step to help our universities meet critical research and development skills essential to the future growth and prosperity of our industry and our nation," Sasol CE Pat Davies 2008

Overview of funds allocated since 2006 Funding element R (millions) Investment in infrastructure (large equipment) 54 Postgraduate student support (research grants) 34 * Non-binding grants 3 Academic faculty salary subvention 9 Young academic support 6 Rotation of Sasol personnel to universities 7 TOTAL to date 113 copyright reserved 2012, Research and Development, Sasol Technology

Developing young researchers Secondees Non-binding grants (focus on diversity) Research grants Young academic support Salary subventions copyright reserved 2012, Research and Development, Sasol Technology

Investing in state-of-the-art facilities “We are thrilled that Sasol is part of this centre and its one-of-a-kind technology. More importantly, the development of skilled operators and researchers for Sasol and South Africa will be significant.” copyright reserved 2012, Research and Development, Sasol Technology

Novel capability development copyright reserved 2012, Research and Development, Sasol Technology

Key learnings Must be good alignment between spokes and focus of hub Look for opportunities to collaborate Critically important to take a strategic view of capital equipment Expert operators Young academics need mentoring and support to become effective Great need for funding towards running costs for postgraduate research Laboratory safety awareness could be improved copyright reserved 2012, Research and Development, Sasol Technology

Challenging times IPR act can deter companies from partnering with universities Full cost – is it value for money? Universities lack the resources to commercialise/monetise technology Industry is impatient and demanding Responding to market demands Needs options Pool of skilled resources is small, mobile and in demand Need to identify key strengths and focus on developing them National and corporate level

A thriving innovation ecosystem Skills transfer Academia RISK SHARING Industry Research Councils Society Aligned capability and core commercial advantages Government