1. DST Corporate Strategy 2010 - 2013 Presentation to the Portfolio Committee 10 March 2010 Thomas Auf der Heyde Acting Director-General

2. Contents Strategic context Strategic overview and key policy developments DST principal goals Recent outputs and achievements; challenges Medium-term priorities and initiatives Selected medium-term output targets Monitoring and evaluation Current status of GERD Financial resources/budget Institutional overview Conclusion

3. Strategic context The Corporate Strategy aligns the Medium-Term Strategic Framework (MTSF), the Ten Year Innovation Plan (2007), and the National Research and Development Strategy (2002): –importance of technology innovation in speeding up economic growth, and creation of decent work and sustainable livelihoods; –build on the current range of strategies and support programmes already supporting innovation in firms, and research and development (R&D) in the private and public sectors with emphasis on biotechnology and pharmaceuticals, space science and technology, energy security and other opportunities presented by climate change; and –SA’s contribution in international cooperation to an improved South Africa, Africa and the world.

4. Strategic overview and key policy developments (1) Vision –To create a prosperous society that derives enduring and equitable benefits from science and technology Mission –To develop, coordinate and manage a National System of Innovation (NSI) that will bring about maximum human capital, sustainable economic growth and improved quality of life for all

5. Strategic overview and key policy developments (2) Emerging areas (DST should..) Sector specific (DST may…) Mature areas (Should not…) Take the lead E.g., biotech, nanotech, etc. Be involved but not be the leader, e.g., health, agric, minerals DST responsibility Sector Departments lead Not be involved, but know what goes on Standard technology-based services E.g. Weather services Strategic Management Framework

6. S&T White Paper R&D Strategy S&T missions 10Yr Innovation Plan OECD Review of SA NSI 19962002 2004 2007 Creation of DST New public S&T missions  Biotechnology  ICT  Advanced manufacturing  Astronomy Knowledge-based economy  Grand challenges  Human capital development NSI SWOT benchmarked Developing the NSI 2009- Policy Implementation  TIA  SANSA  IPR & NIPMO  NICs/BRICs Strategic overview and key policy developments (3)

7. Ten-Year Innovation Plan Investment plan based on strategic priorities Enablers Farmer to pharma Human & social science Climate change EnergySpace science Technology development and innovation Human capital - Centres of excellence, South African research chairs initiative, professional development programme, etc. Cross- cutting enablers Grand challenges Knowledge infrastructure – Science councils, state-owned enterprises, global projects

8. DST principal goals (1) To enhance SA’s knowledge-generation capacity in order to produce world-class research papers and turn advanced findings into innovative products and processes. To develop the innovation capacity of the NSI and thereby contribute to soc-economic development. Develop appropriate STI human capital to meet the needs of society.

9. DST principal goals (2) Build world-class STI infrastructure to extend the frontiers of knowledge, train the next generation of researchers, and enable technology development and transfer, as well as knowledge exchange. Position SA as a strategic international RDI partner and destination through the exchange of knowledge, capacity and resources between SA and its regional and other international partners, thereby strengthening the NSI.

10. Recent outputs & achievements (1) The launch of SumbandilaSat (a micro earth observation satellite) on 17 September 2009 The construction of 7 dishes of the KAT-7 (MeerKat precursor) was completed in January 2010 The launch of the South Africa HIV and Aids Research and Innovation platforms in July 2009 82 Research chairs awarded, and supported 423 postgraduate students through grants 204 000 people participated in the National Science Week programme

11. Recent outputs & achievements (2) Anglo Platinum launched a R100 million Platinum Development Fund to promote commercialization of platinum group metal technologies in South Africa SA was elected Vice-President of the Non-Aligned Movement S&T Bureau for the next four years DST leveraged R178 million through official donor assistance 10-year Global Change research plan finalised Rural quality of life improvement initiatives

12. Example: essential oils production DST established 5 rose geranium essential oil producing SMME’s, and oil sold to local market with international linkages. –All with 30Ha plantation (40 000 plants/Ha) & steam distillation factory. Elandskraal, Limpopo KwaNobuhle, Eastern Cape Onseepkaans, N. Cape Pella, N. Cape Hi-Hanyile, Limpopo –306 Job opportunities sustained

13. Recent outputs & achievements (3) The roll-out of rural broadband connectivity using a wireless mesh network reached 150 schools in Nkangala district municipality in Mpumalanga and part of Sekhukhune district in Limpopo Establishment of a titanium Centre of Competence is at an advanced stage

14. Wireless mesh networks…. A communications network made up of radio nodes organized in a mesh topology Allows buildings to be linked that are in line of sight of each other (with distances more than 7 km) Provides broadband connectivity (> 5 megabytes/second), at very low cost, and no need for centralised infrastructure such as high masts and “base stations” Large geographic areas can be covered Ideal for rural settings and marginalised communities

15. Titanium Centre of Competence SA Ti Industry Supplier Development Market Development Industrialisation & Commercialisation Primary Titanium Metal Production CSIR Mintek UP, Necsa Thermtron Investment Casting of Titanium CSIR UCT US Boeing R&D Platforms Joining of Titanium NMMU NLC CPUT Powder Based Processing of Titanium CSIR NIMS (Japan) ULIM, WITS, SU Mintek, CUT, NLC Technology Development Machining of Titanium US UJ UCT CSIR Forming of Titanium (Later) Simulation and Modelling: ULim (Ab Initio), CSIR (FEM, ProCast, Ab Initio), UCT (FEM, Proc. Mod.), CPUT (Weld Sim), UKZN Laboratories & R&D Facilities: CSIR, UCT, UP, US, NMMU, CUT, Mintek, Necsa, NLC Physical Metallurgy of Titanium: UP, UCT, UKZN Additive Manufacturing of Titanium CUT NLC Aerosud

16. Challenges in implementing key performance areas The economic recession, which resulted in substantial reprioritisation (also internationally) Intergovernmental coordination especially on initiatives that require interdepartmental cooperation Synergy amongst various delivery calendars – e.g., the DST financial year and the academic year that informs NRF disbursement of funds leading to funds accumulation Establishment of new institutions absorbs time and capacity in DST, and processes are not entirely predictable – e.g., TIA and Space Agency

17. Medium-term priorities and deliverables Informed by the MTSF, TYIP, NRDS:  Development of strong innovation chains in biotech, nanotech, the hydrogen economy, space science, ICT and advanced manufacturing;  Development and application of technologies to address poverty and improve the quality of life of South Africans;  Development of an innovative and diverse flux of young people seeking and finding careers in science and engineering;  Accomplishment of notable successes in turning trends in global science to the national advantage, e.g., in astronomy and space science.

18. Medium-term initiatives (1) Developing appropriate space technology platforms and promoting the use of space applications for socio-economic benefits Providing strategic direction towards the construction of the SKA demonstrator telescope and other activities to ensure that South Africa is well-positioned to host the SKA The operationalisation of TIA, NIPMO and SANSA

19. Medium-term initiatives (2) Finalisation and implementation of the SET human capital development strategy Further implementation of the South African Research Chairs Initiative (SARChI) Continuing implementation of the Youth-into- Science strategy (such as National Science Week, etc.) Development of a 10-year strategic research infrastructure plan Systematisation of sectoral and regional innovation systems

21. Medium-Term Initiatives (3) DST will continue to participate in international engagements in order to: –Mobilise support for the SA SKA bid –Support SADC STI initiatives and STI desk –Establish new OECD initiatives –Promote access to resources, networks, and knowledge –Support SA’s foreign policy –Project SA as a “smart” operator in the global S&T domain

22. Medium-term initiatives (4) Demonstrate technical, economical and environmental feasibility of commercially growing abalone in the W. Coast (Hondeklip Bay), N. Cape –Pilot passed financial due-diligence by funding institutions –A 120 tonnes p.a. production facility to be established (R50 million private capital investment)

23. Medium-term initiatives (5) Established a 35-member co-op, hands-on small scale trout farmer project 35 SMME’s in on-farm (wine estate) irrigation dams Each produces 6-10 tonnes Grade A trout, and collectively 200 tonnes p.a. Supply agreement with Three Streams Smokehouse, Hermanus, who processes smoked trout for Woolworths, and Pick ‘n Pay 298 direct job beneficiaries supported DST exploring establishing a primary-processing factory for the co-op, and post-harvest value- addition tech transfer

24. Selected output targets (1) ObjectiveMeasure/indicatorOutput 2010-2013 Attract investment to the knowledge economy by winning the bid to host the SKA Successful SKA bidSuccessful bid by 31 December 2012 Establish TIA to provide support, and stimulate and intensify commercialisation of IP that leads to new products, patents, services and high-tech industries Fully operational TIAFully operational TIA by 31 March 2013

25. Selected output targets (2) ObjectiveMeasure/indicatorOutput 2010-2013 Provide support towards the creation of new companies to ensure technology commercialisation of products, processes and services that address socio- economic challenges Number of new technology companies with commercial activity support Creation of 25 sustainable technology- based companies with full commercial activities by 31 March 2012 To commercialise alternative energy technologies through spin-off companies in order to diversify the energy industry and the economy Number of alternative energy technologies demonstrated and taken up by industry 1 Company established by 31 March 2013

26. Selected output targets (3) ObjectiveMeasure/indicatorOutput 2010-2013 Establishment of the South African National Space Agency (SANSA), implementation arm of the national space programme SANSA Board in place with CEO appointed and agency fully operational Fully operational SANSA by 31 March 2013 Create an enabling environment for health innovation Number of health-related research and innovation initiatives established 4 new health innovation initiatives by 31 March 2013 Increase access to international STI and development resources that will contribute to national and regional development Value of funding and in- kind assistance leveraged R299m by 21 March 2013

27. Selected output targets (4) ObjectiveMeasure/indicatorOutput 2010-2013 Enhance the impact of SA and the region on the international STI environment to make the country and region important international STI partners Number of SA-led SADC initiatives successfully implemented 5 SA-led SADC initiatives successfully implemented by 31 March 2013 Develop high-level human capital for the National System of Innovation Number of postgraduate research students awarded bursaries 4900 students awarded bursaries by 31 March 2013

28. Selected output targets (5) ObjectiveMeasure/indicatorOutput 2010-2013 Enhance youth access to science, technology, engineering and mathematics in order to improve their participation in Science, Engineering and Technology- based careers Number of learners supported 8 100 learners provided with supplementary tuition in mathematics, physical science and English by 31 March 2013 Number of people participating in SET awareness programmes 825 000 people visited NSW sites, and 15 million reached through media by 31 March 2013

29. Selected output targets (6) ObjectiveMeasure/indicatorOutput 2010-2013 To ensure the availability of appropriate infrastructure for RDI Operational broadband network for all research and academic institutions Connection of 76 academic and research institution by 31 March 2013 Promote and develop RDI in IKS Establishment of an IKS CoE 1 CoE established by 31 March 2011 To increase the number of households benefiting from technology-based interventions Number of households benefiting from technology-based interventions 9 300 households benefiting from technology-based interventions by 31 March 2013

30. Selected output targets (7) ObjectiveMeasure/indicatorOutput 2010-2013 To enable growth in advanced industries through support to companies and investing in new developments Number of companies provided with TAPs 76 Companies provided with TAPs by 31 March 2013 To increase support for agro-processing and aquaculture to enhance sustainable economic opportunities Number of new businesses created 15 new businesses created by 31 March 2013

31. Monitoring and evaluation (1) M&E will be informed by the Presidency’s Outcomes Framework Strong focus on outcomes and indicators in corporate strategy Dedicated M&E Unit Business plan captures outputs, activities, indicators, targets, and inputs against medium- term outcomes of the corporate strategy

32. Monitoring and evaluation (2) Quarterly reports Development of an internal Performance Information Management System Ad hoc strategic analysis The shareholder compact will be the key instrument that the DST uses to link public entities targets to DST targets Project funding to entities will be informed by programme objectives to assess the potential long- term impact of the interventions

33. Outputs and Metrics Output 5 and Associated Metrics To increase the pool of Research, Development and Innovation human capital for a growing knowledge economy In order to build the knowledge economy as highlighted in Outcome 4 we require a base of high level capabilities across a range of areas: Increase the output of honours, research masters, doctoral and post doctoral graduates: The increased number and equity profile of high-level skills is key for competitiveness and sustainability of the country’s economy. Increase research output per researcher and South Africa’s research output: Knowledge production is a prerequisite for knowledge use which results in new products, processes and services. Improve the qualification profile of researchers: The current value of 33,6% of academics with PhD qualifications is a limitation to the growth of the system and needs to be improved. MetricRationale Current Value 2008 Target Value 2014 Number of instructional/Research staff with a minimum of a Masters degree Number of instructional/Research staff with a minimum of a doctoral degree 5 133 5 353 The number of academic staff with a minimum of a masters or doctoral degree is a key indicator of improvement of the skills needed to fully function as an academic. Enhance the supervisory capacity within HEIs by improving the qualification profile of researchers Number of honours graduates per annum (PA) Number of research Masters graduates PA Number of doctorate graduates PA Number of post doctoral students supported PA 17 055 3 734 1 182 229 20 059 4 246 1 318 288 The production of graduates with high-level skills is necessary for the development of the next generation of researchers and academics and for the generation of new knowledge and innovation. Increase the graduate output of honours, research masters, doctoral graduates and post-docs DHET research subsidy units measuring masters, doctoral graduates and research publications Average number of research units per academic (Instruction or research) staff member 8 353 0.52 11 201 0.64 The development of a knowledge based economy is dependent on the country’s capacity to produce new knowledge, innovation and products. Increase research output per researcher and South Africa’s research output 5 894 5 910

34. Gross Expenditure on R&D

35. GERD Gross Expenditure on R&D (GERD) - 2007/8 R&D survey shows spending on R&D amounted to R18.6 billion, i.e., 0.93 per cent of GDP - Spending decreased from 0.95% (2006/7 survey) to 0.93% (2007/8 survey) - Private sector spending on R&D 57.7%

36. Breakdown of GERD

37. Medium-term budget Programmes Medium-term expenditure estimates 2010/112011/122012/13 R million Administration 183 194 204 Research, Development and Innovation 1,284 1,341 826 International Co-operation and Resources 135 143 148 Human Capital and Knowledge Systems 1,749 1,955 1,934 Socio-Economic Partnerships 1,265 1,335 1,448 Total 4,616 4,969 4,560

38. 2010/11 Economic classification (Rm)

39. Budget per programme (R million)

40. Historical spending trends

41. Organogram Director-General DDG: Corporate Service and Governance DDG: Research, Development and Innovation DDG: International Cooperation and Resources DDG: Human Capital and Knowledge Systems DDG: Socio-Economic Partnerships Chief Operating Officer

42. DST public entities  Council for Scientific and Industrial Research (CSIR)  National Research Foundation (NRF)  Human Sciences Research Council (HSRC)  Africa Institute of South Africa (AISA)  Tshumisano Trust  Academy of Science of South Africa (ASSAf)  Technology Innovation Agency (TIA)

43. Conclusion Medium term outputs driven by MTSF, NRDS and TYIP Operational and strategic performance satisfactory Growth in resources and investment slowing Establishment of innovation instruments Continued focus on HCD and innovation skills Public entities aligned to implement government priorities Robust M&E System is being put in place

44. Conclusion Dankie Enkosi Ha khensa Re a leboga Ro livhuwa Siyabonga Siyathokoza Thank you