Gallagher Estate, Midrand Leveraging Public-Private-Partnerships (PPP) for Increased Investment in ICT R&D – the DST Experience GPG ICT 2012 Summit 14 June 2012 Gallagher 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

Transition to knowledge- based Economy RESOURCE-BASED ECONOMY

Global Knowledge Economy Indices (KEI) C:\Documents and Settings\velaphim\Desktop\Desktop\Innovation\LitReview\Knowledge based economy Source: World Bank Institute (2004)

The Four Pillars of the Knowledge- Based Economy Innovation Information Infrastructure Education Economic and Institutional Regime Interconnected Interdependent

DST Programme in ICT R&D and Innovation Strategic Objectives Advanced Human Resource Capacity Development Develop Focused World-Class Research at HEIs and R&D institutions Stimulate and Build Strong and Robust Innovation Chain ICT R&D and Innovation Outcomes Increased ICT Access Modernised Government Modernised Economy Developed Local ICT Industry Enhanced e-Science Enhanced Green Economy

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 Microsoft SA Human Capital Development (MSc & PhDs) Enterprise development Application of High Performance Computing in Climate Change SAP Advanced Human Capacity Development (MSc & PhD) Research Capacity Building Programme Software Development Capacity Programme Nokia Corporation Mobile Applications Laboratory Support to the African SKA Educational Support programmes Research Ambassador Program Access to Broadband Network for communities Planned partnership with IBM => HCD, Enterprise Development 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 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 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 Society 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 network Technology Expertise People Research Outputs Government Research Institutions Service Delivery Policy and Strategy Services People Products and services Higher Education Value Chain Strategy People Industry

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 5 2 1 3 6 4

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