1. Portfolio Committee on Science and Technology 23 May 2018
Progress update – increasing the uptake of locally developed Technologies
Portfolio Committee on Science and Technology
23 May 2018

2. Background
As part of the 9-point plan strategy, Cabinet identified the need to enhance the uptake of locally developed technologies
DST asked to lead with support from other economic sector departments
Such a strategy would advance both STI priorities as well as economic development priorities
Proposal to Cabinet on 7 key work packages approved

3. Working definition of a locally developed technology
Two criteria to qualify as a locally developed technology that would inform the strategy
IP generated by South African researchers (alone or in partnership with international collaborators)
Significant local exploitation (manufacture, creation of a service sector)
Both criteria to be satisfied

4. Comprehensive 10-year strategy
Seven proposed work-packages
Comprehensive 10-year strategy
3-year rolling action plan – Health
3-year rolling action plan – Security and Defence
3-year rolling action plan – Social Infrastructure
Small Business Innovation Research grant
Technology Acquisition and Deployment Fund
Data consolidation and analysis

5. Comprehensive 10-year strategy
Systematically work through the full range of opportunities (see next slide for high-level framework)
Determine the current level of use of locally developed technologies, green shoots, and barriers preventing the further uptake of locally developed technologies
Define performance indicators (proxy outcome as well as output indicators)
Propose high-impact policy proposals and government actions

6. Source of Technology
Use of Technology
Type of Technology
Public science institutions (largely universities and science councils)
Government
Manufactured final products
Services
Scientific approaches & methodologies
Firms
Intermediate products
Consumers
Manufactured Final Products

7. Action Plan - Health
Anchor opportunity – need to improve the efficiency and costs of the public health sector (as part of the move to National Health Insurance)
Three families of technologies proposed – medical devices and diagnostics, e-health solutions, pharmaceuticals
Existing efforts currently being consolidated into a formalised action plan
Medical diagnostics interest group (IDC, DST, manufacturers, DoH, NT)
Roll-out of some technologies (Umbiflow, m-Health solutions, LODOX, etc.)
Detailed analysis of procurement by national and provincial departments (DPME-led project)
API’s

8. Issues and challenges - health
Lack of detailed data on health procurement needs (product, volumes, minimum performance standards)
Priority of health departments – cost and performance
No formal commitment by the sector to use locally developed technologies
Recent finalisation (with the support of the CSIR) of an e-health inter-operability framework and implementation plan

9. Action Plan – Social Infrastructure
Three major anchor opportunities – 10-year catalytic human settlement project pipeline, School and Health Facility building programme, and bulk infrastructure development (smart infrastructure focus)
Major technologies proposed – Innovative Building Technologies, Water and Sanitation, Energy, Connectivity, Road construction, and ICT-based decision-support systems
Existing efforts being consolidated into a formalised action plan
Energy (traffic lights, primary and back-up energy source for schools)
Detailed study by Rebelworks (Hydrogen Fuel Cells), CSIR (innovative building technologies, connectivity, smart infrastructure)
Housing Development Agency (HDA), PICC resolutions
Individual projects (EcoSun, etc.)

10. Issues and challenges – social infrastructure
Lack of detailed data on procurement opportunities (product, volumes, minimum performance standards)
Decentralised delivery of social infrastructure (provinces and local government)
Indirect influence by government on technology choice
Lack of capacity and capability at provincial and local levels
Strong commitment by the sector to use locally developed technologies but support arrangements not in place
Delays in the initiation of large-scale catalytic projects combined with the fact that planning for many initiatives is advanced

11. Action Plan – Defence, Security, and Surveillance
Major anchor opportunities – Border Management Strategy, focus on cybersecurity, defense recapitalization, state-owned enterprises)
Major technologies proposed – Biometrics, information security, defense equipment, surveillance and monitoring technologies (drones, undersea drones, etc.)
Existing efforts being consolidated into a formalised action plan
Defense Industry Development process
Existing deployments (Oceans Phakisa, AFIS, drones)
CSIR engagement with grants payments process
DST-lead as part of an intergovernmental process on cybersecurity

12. Issues and challenges – defense, security and surveillance
Lack of detailed data on procurement opportunities (product, volumes, minimum performance standards)
Formal commitment to locally developed technologies in the Border Management Strategy and the cyber-security strategy

13. Small Business Innovation Research grant
Successful US funding instrument in place for the past three decades
Adopted by a range of other governments as well
Key features
Enable SME’s to customize late-stage innovations that can meet a defined public procurement requirement (example, technologies for the Mars Rover)
Existence of a trusted implementing agency
Two structured rounds of funding supporting
Competitive grant
Funding provided by the procuring department
Exclusive procurement for products that have passed the strict SBIR processes)

14. Small Business Innovation Research grant
Focus on secure both a budget and partner to initiate a pilot
Includes opportunities in the health, social infrastructure, and defense areas

15. Technology Acquisition and Deployment Fund
Target – relatively low-cost technologies that require support to break into a new or established market
Based on some case studies (TIA Fibrelux investment, new statoscope developed through a TIA YTIF grant, products developed by grassroots beneficiaries, etc.)
Two major benefits
Case flow and earned income for the entrepreneur
Valuable market intelligence to enhance product design and performance
Fund team geared towards both acquisition, warehousing and deployment

16. Technology Acquisition and Deployment Fund (2)
Securing a budget to pilot the fund. Opportunity identified with energy technologies supported by the DST
Interest by Corporate Social Investment (CSI) initiatives (for example, SAB foundation, etc.) to partner with government

17. Data acquisition and analysis
DST part of a DPME-led project looking at current procurement patterns in detail.
Initial report has helped to validate the three opportunity areas identified by DST
But project has identified some key challenges that are being addressed
Building registers of available technologies, especially those associated with the action plan

18. Concluding comments Significant and complex undertaking
A key medium-term policy priority that has been included in the new White Paper
In addition to maintaining the momentum on existing short-term initiatives, the work underway will feed into the proposed decadal plan
Changes will be required to procurement approaches and policy
Capacity constraints impacting on the pace of progess