1. ANNUAL PERFORMANCE PLAN 2016/17 PRESENTATION Parliament Portfolio Committee on Science and Technology (PPCST) MR BARLOW MANILAL CHIEF EXECUTIVE OFFICER

2. OUTLINE 2Technology Innovation Agency

3. 1.Overview of TIA 2.Alignment to National Policies 3.Delivering on the TIA Mandate 4.Strategic Initiatives and Programmes 2016/17 5.Budget Allocation 2016/17 6.Forward Planning. OUTLINE 3 Technology Innovation Agency

4. 1. OVERVIEW OF TIA 4Technology Innovation Agency

5. A national agency that supports the development and commercialisation of technology ideas for: Economic growth Improved quality of life Idea Impact THE TECHNOLOGY INNOVATION AGENCY (TIA) Technology Innovation Agency Annual Report 2015 TIA Taking Innovation Further Progression of ideas from TRL 3-8 Innovation - in the form of ideas and or inventions Market – in the form of ready made products 5

6. OUR MANDATE The mandate of TIA is derived from the provisions of the Technology Innovation Act (Act 26 of 2008), which establishes TIA as an Agency to promote the development and exploitation, in the public interest, of discoveries, inventions, innovations and improvements. The objective of TIA is to support the State, through the DST, in stimulating and intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by developing and exploiting technological innovations. In addition, the Public Finance Management Act (Act No. 1 of 1999) (PFMA) classifies TIA as a Schedule 3A public entity. Chapters 5 and 30 of the National Treasury Regulations provide a framework upon which TIA must prepare a Strategic Plan that is consistent with the period covered by the Medium-Term Expenditure Framework for approval by the relevant Executive Authority. The mandate of TIA is derived from the provisions of the Technology Innovation Act (Act 26 of 2008), which establishes TIA as an Agency to promote the development and exploitation, in the public interest, of discoveries, inventions, innovations and improvements. The objective of TIA is to support the State, through the DST, in stimulating and intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by developing and exploiting technological innovations. In addition, the Public Finance Management Act (Act No. 1 of 1999) (PFMA) classifies TIA as a Schedule 3A public entity. Chapters 5 and 30 of the National Treasury Regulations provide a framework upon which TIA must prepare a Strategic Plan that is consistent with the period covered by the Medium-Term Expenditure Framework for approval by the relevant Executive Authority. Technology Innovation Agency 6

7. VISION To be a world-class leading technology innovation agency that stimulates and supports technological innovation to improve the quality of life for all South Africans VISION To be a world-class leading technology innovation agency that stimulates and supports technological innovation to improve the quality of life for all South Africans MISSION To facilitate the translation of South Africa’s knowledge resource into sustainable socio- economic opportunities MISSION To facilitate the translation of South Africa’s knowledge resource into sustainable socio- economic opportunities OUR VISION AND MISSION Technology Innovation Agency 7

8. OUR VALUES Technology Innovation Agency8

9. 2. ALIGNMENT TO NATIONAL POLICIES 9Technology Innovation Agency

10. 10 Technology Innovation Agency ‘Innovation is the primary driver of technological growth and drives higher living standards…. and brings about economic growth, we propose a larger, more effective innovation system, closely aligned with firms’ The National Development Plan, 2012 A Country Vision: 2030 National Treasury has indicated that it expects the economy to expand 0.9% in 2016/17, which is down 0.8 percentage points from a previous estimate. This is due to a moderation in Chinese demand and low commodity prices on the global market. National Budget 2016/17 : Economic Outlook Chapter 2

11. NATIONAL POLICIES Technology Innovation Agency11 TIA Strategic Plan FY15/20 National Developmen t Plan 2030 Industrial Policy Action Plan 2 New Growth Path DST Priorities Government Nine Point Plan

12. The President during 2016 State of the Nation Address highlighted that: “…We continue to promote innovation within the Nine Point Plan programme… “ The Nine-Point Plan has three types of interventions – job drivers, enablers and cost-cutting interventions, have been designed to work in collaboration to revitalise economic activity. GOVERNMENT NINE POINT PLAN Technology Innovation Agency 12

13. TIA in its strategic positioning has structured all the programs to address the identified priority areas in a bid to propel innovation products as a key growth translator. It is envisaged that the development and commercialisation of localised technologies by TIA in the implementation of the Nine Point Plan would lead to : -improved productivity -an increase in core industry competitiveness and -encourage the development of Small Micro to Medium Scale Enterprises involved in technology. TIA ADDRESSING ECONOMIC CHALLENGES Technology Innovation Agency 13

14. 3. DELIVERING ON THE TIA MANDATE 14Technology Innovation Agency

15. TIA Strategic Impact: Contribution towards an innovation economy Stimulating and intensifying technology innovation resulting in a vibrant eco-system Socio-economic impact of technology innovations Growth in the number of skilled jobs Increasing revenues e.g. taxes, improved trade balance Increase in knowledge intensity of businesses and industries DELIVERING ON OUR 5-YEAR PLAN Technology Innovation Agency 15

16. STRATEGIC OUTCOME ORIENTED GOALS Strategic Outcome Oriented Goal 1 Support commercialisation of technological innovations Goal Statement Over the next 5 years, continue to accelerate the development and deployment of market ready technologies the market to increase economic competitiveness and socio-economic transformation Proxy Indicators Proxy Indicator 1 Develop 35 innovation project outputs and ensure that these are taken up by the market by 2019. Proxy Indicator 2 Develop 39 technologies, products, processes that would advance by two or more Technology Readiness Levels by 2019. Proxy Indicator 3 Raise an amount of R414.1 m to fund technology development by 2019 Technology Innovation Agency16

17. STRATEGIC OUTCOME ORIENTED GOALS Technology Innovation Agency17 Strategic Outcome Oriented Goal 2 Increase infrastructure access for technology development Goal Statement Over the next 5 years, broaden access to advanced technology infrastructure that would enable knowledge and skills transfer to support innovation. Proxy Indicators Proxy Indicator 1 Develop 65 knowledge innovation products by 2019 Proxy Indicator 2 Assist 67% PDI SMEs as a percentage of total projects supported, receiving funding, support and/or technology services from TIA by 2019 Proxy Indicator 3 Support 6600 Small Micro to Medium Enterprises (SMMEs) in having access to technology infrastructure by 2019

18. STRATEGIC OUTCOME ORIENTED GOALS Technology Innovation Agency18 Strategic Outcome Oriented Goal 3 Stimulate an agile and productive National System of Innovation Goal Statement Over the next 5 years, encourage synergistic local and international partnerships that connect ideas resources and funding to individuals, industries, SMME’s and knowledge institutions. Proxy Indicators Proxy Indicator 1 Host 36 Technology Innovation initiatives undertaken by 2019 Proxy Indicator 2 Secure an amount of R219m in additional funding to TIA’s budget for technology development support by 2019

19. The organisation has set the following strategic objectives in order to realize the overarching strategic goals set for the current planning period 1.To provide customer-centric technology development funding and support in high impact areas. 2.To provide thought leadership and an enabling environment for technology innovation in collaboration with other role players. 3.To develop an effective and efficient internal environment to successfully execute the strategy. STRATEGIC OBJECTIVES Technology Innovation Agency 19

20. TIA will strengthen its innovation programmes aimed at enabling and stimulating the culture of innovation in South Africa (building a vibrant ecosystem within the National System of Innovation (NSI)). TIA’s Innovation Programmes are : – Innovation Funding and Pre Commercialisation Support. – Innovation Enabling and Support. STRATEGIC PROGRAMMES Technology Innovation Agency 20

21. STRATEGIC OFFERINGS Technology Innovation Agency21

22. STRATEGIC INITIATIVES Technology Innovation Agency22

23. FUNCTIONAL ORGANOGRAM CEO Innovation Funding & Pre Commercialisation Innovation Enabling and Support Finance People Systems and Facilities Board Secretariat PRIME (Planning, Risks, Intelligence, Monitoring & Evaluation) Technology Innovation Agency23

24. TIA’S ORGANISATIONAL FRAMEWORK Technology Innovation Agency 24

25. ORGANISATION IMPERATIVES 2016/17 Technology Innovation Agency Annual Report 2015 25 1.Develop Technology Development Plans and Innovation Programmes linked to National Priorities in collaboration with the relevant NSI stakeholders to support development of SMME’s, youth participation and transformation of the NSI ; 2.Engagement with strategic stakeholders in the NSI to bolster the product offering to the identified stakeholders; 3.Embed the new structure to ensure greater organisational effectiveness through seamless functionality across the structure; and 4.Build a strong culture of high performance.

26. 4. KEY PERFORMANCE INDICATORS - FOR 2016/17 26Technology Innovation Agency

27. MEDIUM TERM TARGETS STRATEGIC OBJECTIVE 1: To provide technology development funding and support in strategic high impact areas. Technology Innovation Agency27 STRATEGIC OBJECTIVE 1 Baseline 2015/16 Medium-Term Targets 2016/172017/182018/19 Key Performance Indicator 1.1 Number of technologies, processes or services advancing by two or more TRL levels. 8121314 1.2Number of innovation project outputs taken up in the market 6141011 1.3Amount of additional funding attracted into TIA’s portfolio R200mR59mR66mR94m 1.4Amount of income received. R65.5mR124mR141.8mR148.3m

28. MEDIUM TERM TARGETS STRATEGIC OBJECTIVE 2: To provide thought leadership and an enabling environment for Technology Innovation in collaboration with other role players. Technology Innovation Agency28 STRATEGIC OBJECTIVE 2 Baseline 2015/16 Medium-Term Targets 2016/172017/182018/19 Key Performance Indicator 2.1 Number of knowledge innovation products produced (prototypes developed, patents registered, technology demonstrators and technology transfer packages) as a result of TIA funding and support programmes 30465465 2.2 Number of knowledge innovation products produced by TIA supported programmes receiving third party funding 725 2.3 Number of Small and Medium Enterprises receiving technology support 21882200 2.4 Number of PDI owned SMEs assisted as a percentage of total projects supported, receiving funding, support and/or technology services from TIA. 58%63%65%67% 2.5Number of Technology Innovation initiatives (conference papers, presentations and posters; policy recommendations; panel discussions; position papers; publications and think tanks; relating mainly to keynote addresses) undertaken by TIA. 3101214

29. MEDIUM TERM TARGETS STRATEGIC OBJECTIVE 3: To develop an effective and efficient internal environment to successfully execute the strategy. Technology Innovation Agency29 STRATEGIC OBJECTIVE 3 Baseline 2015/16 Medium-Term Targets 2016/172017/182018/19 Key Performance Indicator 3.1Investment approval turnaround time 4 months 3.2 Improved adequacy and effectiveness of the control environment Clean Audit 3.3 Amount of funds utilised for projects and programmes as a percentage of the total actual expenditure 70%69%70% 3.4 Functional organisational structure as measured by vacancy rate 11.6%Below 8%Below 5% 3.5Effective implementation of talent management initiatives – employee engagement ratio. No baseline3.54.0

30. 5. FINANCIAL BUDGET 2016/17 30Technology Innovation Agency

31. 1.To provide customer-centric technology development funding and support in high impact areas (29% of Total Budget Allocation) 2. To provide thought leadership and an enabling environment for technology innovation in collaboration with other role players (40% of Total Budget Allocation) 3. To develop an effective and efficient internal environment to successfully execute the strategy (31% of Total Budget Allocation) Technology Innovation Agency31 BUDGET ALLOCATION PER STRATEGIC OBJECTIVE FY2016/17

32. INCOME OVER MTEF PERIOD Technology Innovation Agency 32 2016/17 R’m 2017/18 R’m 2018/19 R’m MTEF Income382,4396,7420,3 Other Income134,0139,8145,3 TOTAL INCOME516,4536,5565,6 Other income as a % of Total Income 26%

33. EXPENDITURE OVER MTEF PERIOD Technology Innovation Agency 33 2016/17 R’m 2017/18 R’m 2018/19 R’m Administration and support costs159,7166.8175.2 Project funding356,7381.7403.4 TOTAL EXPENDITURE516,4548,5578,6 Admin Cost as a % of Total Cost31%30%

34. INVESTMENT EXPENDITURE Innovation Funding & Pre Commercialisation Technology Innovation Agency34 R 33 million R 116 million Total Allocation – R 149 million Definition of Technology Readiness Level

35. INVESTMENT EXPENDITURE Innovation Enabling & Support 35 Total Allocation – R 208 million Definition of Technology Readiness Level

36. 6. FORWARD PLANNING 36Technology Innovation Agency

37. PROGRESS TO DATE Organisation Re- Design Approved Strategic Plan FY14/15 Appointment of PRIME unit Development of tactical synergies FY15/16 Enhanced offering to stakeholders High performance FY16/17 Technology Innovation Agency 37

38. STRATEGIC EVOLUTION

39. CRITICAL CONSIDERATIONS Prevent duplication of activities and seek greater alignment and collaboration within the DST family Strengthen initiatives to align with ongoing national and strategic priorities and reduce sector bias Broaden portfolio of projects across the TRL levels and risk thresholds Improve performance for transformational targets in all strategic programmes. Leverage funding through high-yield partnerships and linkages both domestically ( across all geographic regions) and internationally Continuously assess the TRL progression and determine root causes to optimise the graduation from lower technology readiness levels to commercialisation Continuous improvement programmes for organisational efficiencies, robust governance, agility and responsiveness Technology Innovation Agency 39

40. THANK YOU 40Technology Innovation Agency Photo credit: Google images