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

2. A common problem….
people
How do you move ?

3. More roads?

4. New concepts in transportation?

5. Perhaps the solution is within reach…

6. Or perhaps it’s way out there …

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

8. 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

9. 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

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

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

16. 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

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

18. 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

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

20. 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

21. 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

22. 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

23. 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

24. 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

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

26. 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

27. 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

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