NACI 2016/17 ANNUAL REPORT Presentation to the Portfolio Committee on Science and Technology Presenter: Dr Mlungisi Cele Date: 04 October 2017

Presentation Outline Mandate, vision and mission Policy context and key challenges Strategic outcome-oriented goals Selected Highlights Finances Conclusion

NACI in Context National councils for STI are usually established based on three models, namely, (a) planning and priority setting (for instance in Japan, Korea, China and Finland); (b) advisory (in Austria, Canada, Denmark, Germany's Commission of Experts for Research and Innovation, Singapore, Switzerland, the United Kingdom and the United States); and (c) coordination (sometimes in addition to the advisory model, in Finland, Germany's Innovationsdialog and Wissenschaftsrat, Japan, Korea and China). Some members of Global Forum of STI Councils-National Council of Innovation for Development of Chile (CNID), Korea Institute of S&T Evaluation and Planning (KISTEP), National S&T Council (NSTC), Cambodia; National Council for S&T Policy (NCSTP), Vietnam, Council for STI, Japan.

Mandate Section 3 of the NACI Act (Act 55 of 1997) “…advise the Minister for Science and Technology, and through the Minister, the Minister’s Committee and Cabinet, on the role and contribution of science, mathematics, innovation and technology, including indigenous technologies, in promoting and achieving national objectives”

Legislative Functions (1) NACI may or shall on request of the Minister, advise on- the coordination and stimulation of the national system of innovation (NSI); strategies for the promotion of technology innovation, development, acquisition, transfer and implementation in all the sectors; the co-ordination of science and technology policy and strategies with policies and strategies in other environments; the identification of research and development (R&D) priorities, and their incorporation in the process of government funding of R&D

Legislative Functions (2) the promotion of mathematics, the natural sciences and technology in the education sector; on the establishment and maintenance of information systems that support monitoring and evaluation of the NSI management and functioning; international liaison and co–operation in the fields of science, technology and innovation (STI); developments in the fields of STI which might require new legislation.

Legislative Functions (3) strategies for promotion of the dissemination and accessibility of scientific knowledge & technology, as well as for promotion of public understanding of S&T and their supportive role in innovation for development and progress; establishment, phasing out, rationalisation & management of science councils, national facilities utilised for research, national R&D programmes conducted by science councils and S&T institutions within the NSI; funding of S&T system in respect of its contribution to innovation; any other matters on STI & mathematics referred to NACI by the Minister.

Vision and mission Vision: A leading advisory body to government on science, technology and innovation (STI) within a well-coordinated, responsive and functioning National System of Innovation (NSI). Mission: To provide evidence-based advice to the Minister of Science and Technology and through the Minister to Cabinet on STI matters through research expertise and engagement with stakeholders.

Context The 2030 National Development Plan (NDP) advances: an expanded, coherent, well-coordinated and effective National System of Innovation (NSI); That contributes to sustainable, diversified and inclusive socio-economic development; and alleviation of social challenges such as poverty, unemployment and inequality.

NACI’s contribution to NDP NACI’s contribution to NDP occurs through: Provision of evidence based/informed, responsive and confidential advice (proactive and reactive); Systemic monitoring, evaluation and learning; Analysis, research expertise and stakeholder engagement (roundtable discussions).

Selected NDP areas and NACI Increasing the size and effectiveness of the NSI NACI’s contribution Under exploratory discussion-to increase the size of the NSI. In respect of effectiveness Production of STI indicators booklet Development of STI scorecard Production of state of STI Performance analysis of NSI Various MEL studies

Selected NDP areas and NACI Creating a common overarching framework to address pressing challenges in the NSI (including higher and further education, state-owned enterprises (SOEs) and private industries). The NSI should function in a coordinated manner with objectives that are aligned to national priorities NACI’s contribution Review of the 1996 White Paper completed Development of framework for well-functioning, effective, and responsive NSI (current) Advice on the new White Paper (current).

Selected NDP areas on STI Transform the demographic composition of researchers in higher education, research councils, and private research establishments. Revitalising science and mathematics by increasing the number of school leavers eligible to study science and mathematics-based subjects at university. NACI’s contribution Production of STI indicators booklet Performance analysis of NSI report Exploring future initiative with NRF, HSRC,COE etc.

STI Policy Trajectory

NACI contributed to policy reflection and initial development stages of the new White Paper

Progress since 1996 White Paper on S&T Significant’ implementation in all areas; highlights include: the establishment of new actors (DST, NACI, TIA, NIPMO, NRF) ongoing policy support including the National R&D Survey, the R&D Audit, Innovation Surveys, NACI STI Indicators supply side funding and support for R&D and innovation, including the R&D tax incentive, Centres of Excellence, SARChI and dti incentives improved management of public science, engineering and technology institutions (SETIs) and higher education institutions (HEIs) building international partnerships and opening the science system to R&D collaborations with a range of countries to mutual advantage (NACI, 2016). Source: Performance analysis of NSI (NACI, 2017)

STI outputs Metric 1996 2016 Business expenditure on R&D: GERD (%) 41,5 47,1 ì Basic Research (%) 19,6 24,5 è Expenditure R&D on Engineering & Tech (%) 41,7 25,8 î Expenditure on R&D on Health (%) 6,9 17,2 Expenditure R&D Soc Sci & Humanities (%) 7,7 14,8 HEI STEM enrolment (%) (1996; 2014) 23,7 29,6 Degrees awarded to Black students (1996; 2014) 38 383 145 831 PhD graduates 630 1 576 Foreign university students (%) <1 8 Foreign PhD graduates (%) n.a. 20 FTE Researchers (excl PhD &Post Doc) 12 102 11 644 Female Researchers (%) 42,3 GERD (2010 Rand)/FTE researcher (000s) 844 1 848 HEI HC researcher/PhD enrolment[1] 1.4 1 Black Researchers, Government sector (%) <3 ± 55 TVET enrolment. NC(V) 154 960

STI outputs Cont. ì è î Articles (Web of Science Core) 1995; 2015 3 233 12 251 ì Articles, books, conference proceedings, fractional 2351 9 679 International co-authorship (%) 30 49 Top 1% most highly cited 2003-2013 n.a. 3 ZA h index, Web of Science (1996-2000; 2006-2010) 162 192 è World share of publications (fractional); rank 0,38 (31) 0,44 (35) US Patent awards 105 144 Patent Cooperation Treaty applications 442 Trademark applications (ZA resident) 7 051 19 522 Trademark applications (ZA abroad) 11 5 694 Plant cultivars in force, world share %; rank 2710;2,6;8 î Sales of innovative products (2002/4); (2005/7) bn 177 370 High technology exports % of total exports**** 5 6 GCI; Basic requirements; Innovation 56; 89; 37 GII 60

Preliminary assessment of Ten-Year Plan Targets Tranformation 2018 Target 2016 Actual Address the “innovation chasm” - improving access to finance, creating an innovation - friendly regulatory environment and strengthening the NSI Not achieved. Economic growth attributable to technical progress (10% in 2002) 30 15? National income derived from knowledge-based industries >50 Proportion of workforce employed in knowledge-based jobs Proportion of firms using technology to innovate 65.4 (2005-07) GERD/GDP (0.92 in 2005; short-term 2008 target was 1%) 2 0.73 (2013-14) ((Global share of research outputs (0.5% in 2002) 1 0.8 (2014) High & med-tech exports/services % of exports/services (30% in 2002) 55% Number of South African-originated US patents (100 in 2002) 250 140 University exemption in maths & sci (5.2% maths ; 5.9% science, 2005) 10 8 at 50%. % SET graduates in public HE (28% in 2005) 35 29 (2014) Number of SET PhD graduates per year (561 in 2005) 3 000 1 130 Number of full-time equivalent researchers (was 11 439 in 2005). 20 000 11 644 FTE researchers/1000 workforce employed (1.5 in 2005) 2.6 1.6

Strategic Outcome-Oriented Goal (1) To learn from previous experience to improve efficacy, relevance and ensure evidence-based, confidential and timely STI advice to the Minister of Science and Technology and, through the Minister, Cabinet. Council is alive to the following: Selection, content and context, availability and quality of data and information analysis; Useful advice might not lead to policy responses; Important to have realistic expectations as to what can be achieved even in a ‘best-case scenario’; Strike balance “credibility and influence”, a challenge which is accentuated by the tendency of media to pay more attention to negative than positive critique (Serger, Wise and Arnold, 2015).

Strategic Outcome-Oriented Goal (2) To contribute to the building of NSI monitoring, evaluation and learning capability in order to assess the health of the NSI and its contribution to sustainable and inclusive development. This remains work-in progress. Aware policy initiatives might not always be evaluated in a meaningful way, or evaluations might not trigger policy improvements Emphasis on partnering and having system’s robust measurement framework. Developing necessary and adequate capability

Strategic Outcome-Oriented Goals (3) To contribute to the building of a well-coordinated, responsive and effective NSI. Assume the new White Paper will retain concept of NSI and lay basis for addressing some long-standing STI policy questions of governance (coordination, prioritisation, financing, size and shape) and role and contribution of STI to socio-economic development. Key challenge remains how to create a better ecosystem (regulation, public-private partnerships, mobility between public-private-academia, public procurement, access to market and so forth); role of private sector. Systemic approach and dedicated focus are required. 3rd Global Forum will contribute.

A model of NSI Source: Kahn, 2016

Strategic Outcome-Oriented Goals (4) Transforming NACI into a smart, efficient and learning organisation. Seize opportunities of digitisation; Quality and turn around time; Communication; Knowledge management; Skills development; Improving internal planning, performance and reporting; Partnerships with NSI actors and international bodies and institutions.

Performance against predetermined objectives

Areas that remain challenge are: Planning remains work-in progress. Areas of concern Areas that remain challenge are: Planning remains work-in progress. Finance management. underspending/savings due to internal development of the STI data and information portal, and delays in the foresight exercise process. Working with CFO to improve

Selected highlights (1) Performance analysis of NSI completed, shared and submitted to the Minister: Augment 2016 review report of 1996 White Paper on Science and Technology Development of STI data and information portal: Multiple uses-system intelligence, research platforms, storage of STI data, meet needs of policy makers; Designed and ‘soft’ launched of portal-make it accessible to technical data experts; Collaboration with National Research Foundation (NRF), Human Science Research Council (HSRC), Department of Higher Education and Training (DHET), STATsSA, Reserve Bank, Council on Higher Education etc. Biennial state of innovation report.

Selected highlights (2) Government support for a Venture Capital Fund Issues of sustainable use of biomass, food security and implementation of South Africa’s bioeconomy strategy. South African Science, Technology and Innovation (STI) Indicators booklet was finalised. South African Innovation Scorecard pilot results.

Selected highlights (3) A number of round-table discussions occurred focusing on the following: Hosting of business symposium on R&D investment-attended by the Minister, DG, CEOs and senior representatives of the private sector. South African innovation scorecard-range of local experts participated The performance analysis and situational analysis surrounding NSI-local and international partners The 2016 South African Science, Technology and Innovation Indicators report-HSRC, NRF and CREST contributed. DST Communications Unit played key role.

Selected highlights (4) Hosted 3 seminars attended by NACI and DST staff and addressed by international experts. Professor Johan Schot Professor Arie Rip Dr Chux Daniels Ms Claire Nauwelaers Dr Gernot Hutschenreiter Internal knowledge management strategy was not developed.

International engagements A number of international engagements and networks established. SADC-STI indicators meeting in Botswana OECD Committee of Science and Technology Policy (CSTP) and Global Science Forum (GSF) 2nd Global Forum on national Advisory Councils BRICS Economic Forum Malaysia Joint Committee of South Africa and Malaysia STI Collaboration. DST ICR is appreciated for its support.

Composition of the Council Name Organisation 1.Prof Cheryl de la Rey (Chairperson) University of Pretoria 2.     Prof Anton Eberhard Unversity of Cape Town 3.     Adv Louisa Zondo Human Rights Activist 4.     Dr Azar Jammine Econometrix PTY LTD 5.     Dr Shadrack Moephuli Agricultural Research Council 6.     Dr Andile Ngcaba Convergence Partners 7.     Dr Sibusiso Sibisi Council for Scientific and Industrial Research 8.  Mr Dhesigen Naidoo Water Research Commission 9.  Mr Kevin Nassiep South African National Energy Development Institute 10.  Mr Garth Strachan Department of Trade and Industry 11.  Mr Sim Tshabalala Standard Bank Group 12.  Ms Clare Busetti SiMODisa 13.  Ms Zanele Monnakgotla FreeWi 14.  Ms Nonkululeko Nyembezi-Heita IchorCoal N.V 15.  Prof Roseanne Diab Academy of Science South Africa 16.  Prof Glenda Gray Medical Research Council 17.  Prof Jennifer Ann Thomson University of Cape Town 18. Dr Molapo Qhobela National Research Foundation 19. Prof Crain Soudien Human Sciences Research Council 20. . Mr Paul Steenkamp I am Jack Frost 21. Mr Mafika Mkwanazi HULAMIN Board 22. Mr Sullivan O’Carroll Consumer Goods Council of South Africa

NACI Budget and Expenditure Breakdown Expenses Allocated Budget Available funds (R'000) Compensation of employees 8 451 10 515 2 064 Goods and Services 5 762 8 252 2 490 Payment for financial assets 4 - Household (leave gratuity) 32 Total 14 249 18 803 4 554

CONCLUSION Strive to produce quality, relevant and timely advice Improving performance against predetermined objectives Systemic analytical, monitoring, evaluation and learning capability Staff development and knowledge management Continue to enhance partnerships with local and international actors.

Ngiyabonga Obrigado Спасибо धन्यवाद 谢谢 Thank you