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

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

3. 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.

4. 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”

5. 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

6. 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.

7. 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.

8. 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.

9. 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.

10. 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).

11. 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

12. 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).

13. 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.

14. STI Policy Trajectory

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

16. 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)

17. 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
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)

18. 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
n.a. 3
ZA h index, Web of Science ( ; )
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

19. 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 ( )
GERD/GDP (0.92 in 2005; short-term 2008 target was 1%) 2
0.73 ( )
((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 in 2005).
20 000
11 644
FTE researchers/1000 workforce employed (1.5 in 2005)
2.6
1.6

20. 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).

21. 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

22. 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.

23. A model of NSI
Source: Kahn, 2016

24. 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.

25. Performance against predetermined objectives

26. 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

27. 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.

28. 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.

29. 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.

30. 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.

31. 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.

32. 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

33. 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

34. 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.

35. Ngiyabonga
Obrigado
Спасибо
धन्यवाद 谢谢
Thank you