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FY2018/19 Annual Performance Plan Presentation:Parliamentary Portfolio Committee on Science and Technology

Mr Barlow Manilal

Chief Executive Officer

19 April 2018

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Contents

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1. Overview of the Agency

2. Alignment to National Policies, MTSF outcomes, and DST Priorities.

3. Reflection against FY2015/20 Strategic Plan & Priorities

4. Impetus for the FY 2017/18 Commitments

5. Inputs to the FY2018/19 Annual Performance Plan

6. Performance Targets for FY2018/19

7. MTEF Budget Allocation for FY2018/19

8. Way Forward

9. Questions

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Overview of the Agency

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The original TIA Business Case –developed in 2010

TIA's ultimate goal was "to use South Africa's

science and technology base to develop new

industries, create sustainable jobs and help

diversify the economy away from commodity

exports towards knowledge-based industries

equipped to address modern global

challenges".

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Vision

To be a leading technology innovation

agency that stimulates and supports

technological innovation to improve the

quality of life for all South Africans.

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Mission

To facilitate the translation of South Africa’s knowledge resource into sustainable socio-economic opportunities.

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Mandate of the Technology Innovation Agency

-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.

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TIA Value Proposition

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TIA’s ROLE

Technology

Innovation

Agency

Provide access to technical expertise

Advisory

Provide Innovation

Skills Development

Enable access to high-end

equipment

Facilitate and assist

innovators to secure funding

Capacitate NSI

Provide Funding

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ACCERLERATING TECHNOLOGY DEVELOPMENT

Hub and Spoke Model

A model that positions TIA as a national capability forinnovation management and funding management acrossall government departments.

It promotes allocation of

funds by government and

industry to establish strategic

innovation programmes to

execute their mandates

• Repatriate innovation instruments & programmes from DST (IID; AIP; Bio-economy; FGP; SIF)

• Consolidate innovation instruments in the NSI

• Establish government innovation programmes

• Establish sector-specific innovation programmes with industry

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Focus areas to accelerate Technology Development

Innovation for Industry Renewal

Innovation for Industry

competitiveness

Innovation for Inclusive

Development

Innovation for enhanced

service delivery

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How to Accelerate Technology Development

Glass Pipeline Model

A partnership programme to promote porous boundaries, a singular view of

innovation activity in the NSI and seamless transition of innovations from lab to

market through institutional integration and collaboration.

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Funding and Programmes

• Funding:

• Seed Fund:

• HEI Seed Fund

• SMME Seed Fund

• Technology Development Fund

• Commercialisation Support Fund

• Programmes:

• Technology Stations Programmes (18)

• Technology Platforms Programme (10)

• Innovation Skills Development

• Youth Technology Innovation Programmes

• Technology Innovation Cluster Programmes (4)

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Technology Areas within our Portfolio

• Advanced Manufacturing

• Agricultural Biotechnology

• Health Biotechnology

• Energy

• Information and Communication

Technology

• Natural Resources

• Industrial Biotechnology *

* requires further development within the Bio-economy workplan

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Alignment to National Policies,

MTSF Outcomes, and DST Priorities

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TIA Strategic Operating Model

Needs

Quality of life

Service Delivery

Innovative competencies

Developing

Scientific & Technological

capabilities

Exploit biodiversity

Plan

National Policies and priorities

Strategic Plan

Annual Performance Plan

Strategic and Operational Risks

Impact

New knowledge products

New process

New services

Jobs

Contribute to increasing GDP

New companies

Competitiveness

Improve the Balance of Payments

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Alignment to National Government Policies and Priorities

National Development

Plan 2030

Applicable RDI

Roadmaps

Industrial Policy Action

Plan

New Growth Path

Operation Phakisa

Government Nine Point

Plan

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Alignment to Medium Term Strategic Framework (MTSF)

Outcome 2: A long and healthy life for all South

Africans

Sub-Outcome 8: Reduced costs of health care

Outcome 4: Decent employment through inclusive

economic growth

Sub-Outcome 10: Investment in research, development and innovation

supports inclusive growth by enhancing productivity of existing and emerging

enterprises and supporting the development of new industries.

Outcome 5: A skilled and capable workforce to

support an inclusive growth path

Sub-Outcome 2: Increase access and success in programmes leading to

intermediate and high-level learning

Outcome 10: Protect and enhance our

environmental assets and natural resources

Sub-Outcome 3: An environmentally sustainable, low-carbon economy

resulting from a well-managed transition.

The NDP has been divided into five-year implementation plans, the first ofwhich has been the 2014-2019 Medium-Term Strategic Framework (MTSF).The MTSF has 14 Outcomes of which TIA has aligned its initiatives andcontributes to the following four outcomes:

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Reflection against FY2015/20 Strategic Plan and Priorities

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CUMULATIVE PERFORMANCE FY2013/14 – FY2016/17 (4yrs)

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CUMULATIVE PERFORMANCE FY2013/14 – FY2016/17 (4yrs)

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3 Strategic Outcome Oriented Goals FY2015/16 – FY2019/20

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Support Commercialisation of Technological Innovations -

Over the next 5 years, continue to accelerate the development and

deployment of technologies into the market to increase economic

competitiveness and socio-economic transformation

Increase infrastructure access for technology development-

Over the next 5 years, broaden access to advanced technology

infrastructure that would enable knowledge and skills transfer to

support innovation

Stimulate an agile and responsive NSI - Over the next 5 years,

encourage synergistic local and international partnerships that

connect ideas, resources and funding to individuals, industries,

SMMEs and knowledge institutions

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Strategic Outcome Oriented Goals FY2015/16 – FY2019/20

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Support Commercialisation of Technological Innovations -

Over the next 5 years, continue to accelerate the development and

deployment of technologies into the market to increase economic

competitiveness and socio-economic transformation

a) Invested more than R465m for various technology development

projects.

b) In supporting the technology development and pre-

commercialisation activities of its funded technologies, TIA also

raised additional income of R110m, which was R43m less than

the previous year.

c) Facilitated the commercialisation of 21 innovations compared to

nine in FY2015/16. This represents a 130% increase,

demonstrating the relevance of projects that the agency invests in.

d) Of TIA’s total portfolio funded in FY2016/17, 31 projects advanced

by two or more Technology Readiness Levels (TRLs) with some

reaching the demonstration stage. This marks an improvement of

four above the 27 projects realised in FY2015/16 with the Seed

Fund Programme being the key contributor to this result.

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a) TIA provides infrastructure services for technology development

through its network of 18 Technology Stations and ten

Technology Platforms.

b) The 16/17 financial year saw 64 technologies and knowledge-

innovation products such as prototypes, patents, technology

demonstrators and technology transfer packages supported from

these facilities.

c) The Programme has achieved a slight increase in the number of

SMMEs accessing technology infrastructure to 2 261 of which

1 458 were Previously Disadvantaged Individuals (PDIs).

a) The performance from these programmes highlights the continued

demand for such services. TIA has thus commissioned studies to

evaluate the impact of these programmes to inform how they

may be scaled up and repositioned to contribute to technology

localisation which unlocks economic development and inclusive

growth.

Increase infrastructure access for technology development-

Over the next 5 years, broaden access to advanced technology

infrastructure that would enable knowledge and skills transfer to

support innovation

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a) TIA portfolio also continued to attract interest from third

parties who have invested a total of R182,2m, representing

an 86% increase from the previous financial year’s R97,9m

leveraged to support commercialisation of promising

technologies. In addition to funding, TIA continued also to

embark on various thought leadership initiatives to inform the

national discourse on innovation.

b) Over 56 strategic engagements were undertaken in 2016/17

compared to 27 in the previous financial year.

Stimulate an agile and responsive NSI - Over the next 5 years,

encourage synergistic local and international partnerships that

connect ideas, resources and funding to individuals, industries,

SMMEs and knowledge institutions

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TIA has become more relevant to its stakeholders, delivered greater impact and

continues to strengthen its institutional capacity, albeit starting from a low base. The organisation is migrating from transactional

to transformative.

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Inputs to the FY2018/19

Annual Performance Plan

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Progress in the implementation of the Ministerial and DST Inputs FY2017/18

• Demonstrate how we are addressing the mandate

• TIA should interrogate possible mission drift

• Greater focus on addressing Government priorities and high impact areas

• Embark on thought leadership activities through partnerships

• Value chain approach for greater impact

• Bio-economy strategy to be clearly articulated

• Socio-economic impact analysis

• Closer collaboration with DST’s Communications Dept. for greater coverage of success stories

• Transactional activities to Transformative impact

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On Strategic Partnerships

Backward Integration

• We have engaged with HEI’s such as UKZN, CPUT, TUT, NMMU, WSU,UWC).

• Science Councils such as ARC, MRC, WRC, SANSA, CSIR, NIMPO and SANEDI.

• The outcomes of the engagement is that TIA would support downstreaminnovation activities to integrate these with the current strategic programmes.

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On Strategic Partnerships

Forward Integration

• We have engaged Institutional funders such as IDC, PIC, THRIP and SPII.

• We have also engaged with private sector funders such as Standard Bank, GeneralElectric, Investec through their own Enterprise Development programmes to accesstheir Business Readiness Levels (BRL’s) and Market Readiness Levels (MRL’s)capabilities.

• In addition we have engaged with the Venture Capital community in an effort toensure that there is market traction for TIA investees [Knife Capital]. Our partnershipwith this community enjoys a special place in TIA’s effort to development a effectiveand effective innovation eco-system.

1. Follow on funding and market traction.

2. Placement of CHUMA candidates with VC entities to develop commercialisationmanagement capacity.

3. Capacity building of TIA Portfolio Managers.

4. Partnership with the Black Business Council. 31

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International Partnerships

• We have prioritized engagements with Africa. TIA has established the AfricaProgramme that aims to translate and scale up research outputs from NRFhistorical investments with Namibia, Tanzania, Tunisia, Egypt and Zambia.

• We have hosted Botswana, Namibia and Swaziland as part of the capacity buildinginitiatives. Furthermore TIA deployed technical experts to Tanzania to assist withskills transfer.

• TIA is also partnering with the Finnish government under a MoU with the DST toimplement the Southern Innovation Support Programme (SAIS). This is a four-year,R140 million programme with 4 SADC countries to support technologyentrepreneurship, institutional capacity building for our innovation intermediaries andsupporting social innovation projects and initiatives.

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Performance Targets for FY2018/19

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FY2018/19 Performance Targets

STRATEGIC OBJECTIVE 1: To provide technology development funding and support in strategic, high-impact areas.

No Performance IndicatorsReporting

periodFY2017/18 FY2018/19

Quarterly targets

Quarter

1

Quarter

2

Quarter

3

Quarter

4

1.1 Number of technologies, processes or

services advancing by one or more TRL

levels 1

Quarterly 26 28 3 6 8 11

1.2 Number of innovation project outputs

taken up in the marketQuarterly 10 11 2 2 3 4

1.3 Amount of additional funding attracted

into TIA’s portfolioQuarterly R113m R147m R20.5m R35.5m R40.5m R50.5m

1.4 Amount of income recognised 2 Quarterly R141.8m R108.3m R12m R14m R26m R56.3m

1. This KPI was changed from two movements to one

2. This KPI was changed to reflect actual accounting practices i.t.o GRAP 934

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STRATEGIC OBJECTIVE 2: To provide thought leadership and an enabling environment for Technology Innovation in collaboration

with other role-players.

No Performance Indicators Reporting

period FY2017/18 FY2018/19Quarterly targets

Quarter 1 Quarter 2 Quarter 3 Quarter 4

2.1 Number of knowledge

innovation products

produced as a result of TIA

funding and support

programmes, consisting of:

Quarterly 83 91 10 21 25 35

2.1a Prototypes developed Quarterly 42 46 7 11 13 15

2.1b Intellectual Property Quarterly 9 10 1 1 2 6

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STRATEGIC OBJECTIVE 2: To provide thought leadership and an enabling environment for Technology Innovation in collaboration

with other role-players.



Quarterly targets


2.1c Technology demonstrators

developedQuarterly 30 33 2 9 10 12

2.1d Technology transfer

packagesYear-end 2 2 0 0 0 2

2.2 Number of knowledge

innovation products

produced by TIA-

supported programmes

receiving additional

funding

Quarterly 27 30 3 5 10 12

2.3 Number of Small, Medium,

and Micro Enterprises

receiving technology support

Quarterly 2 800 3 360 840 840 840 840

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STRATEGIC OBJECTIVE 2: To provide thought leadership and an enabling environment for Technology Innovation in

collaboration with other role-players.



Quarterly targets


2.4 Number of PDI owned

SMMEs assisted as a

percentage of total

SMMEs supported,

receiving funding, and

support and/or

technology services

from TIA

Quarterly 65% 67% 10% 17% 20% 20%

2.5 Number of Technology

Innovation initiatives

undertaken by TIA,

consisting of:

Quarterly 31 37 2 3 9 23

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STRATEGIC OBJECTIVE 2: To provide thought leadership and an enabling environment for Technology Innovation in

collaboration with other role-players.


period FY2017/18 FY2018/19Quarterly targets


2.5a Conference

papersYear-end 1 1 0 0 0 1

2.5b Presentations Quarterly 10 12 0 1 4 7

2.5c Policy

recommendationsYear-end 1 1 0 0 0 1

2.5d Panel discussions Quarterly 7 9 2 0 1 6

2.5e Position papers Year-end 1 1 0 0 0 1

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STRATEGIC OBJECTIVE 3: To develop an effective and efficient internal environment to successfully execute the strategy. 3


period FY2017/18 FY2018/19

Quarterly targets


3.1 Investment

approval

turnaround time

Quarterly 16 Weeks 15 Weeks 15 Weeks 15 Weeks 15 Weeks 15 Weeks

3.2 Amount of funds

utilised for projects

and programmes

as a percentage of

the total actual

expenditure

Quarterly 68% 65% 5% 15% 22% 23%

3. Three operational KPIs were removed, namely ISO9001, Vacancy rate and Staff engagement Index

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MTEF Budget Allocation for FY2018/19

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2018/19

R’m

2019/20

R’m

2020/21

R’m

MTEF Income 420,3 443,9 468,3

Other income 116,3 153,0 208,0

Total income 536,6 596,9 676,3

Other income as a % of Total

income

21,7% 25,6% 30.8%

Income over MTEF Period

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Expenditure over the MTEF Period

2018/19

R’m

2019/20

R’m

2020/21

R’m

Administration and support

costs

189,7 201,1 212,4

Project/programme funding 346,9 395,8 463,9

Total expenditure 536,6 596,9 676,3

Admin expenditure as a %

of total expenditure

35% 34% 31%

Bio-economy 202.5 215.3 235.3

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2018/19

Total

R’m

Baseline

R’m

Bio-

economy

R’m

TSP

R’m

Allocation letter 420,3 216,3 165,7 38,3

Utilised through:

Administration and support cost (189,7) (177,6) (12,1) -

IFPCS (102,0) (44,2) (57,8) -

IES (136,6) (9,0) (89,3) (38,3)

New Initiatives/ Specific

Contracted

(108,3) (65,0) (43,3) -

Over-utilisation funded through

other income generated

(116,3) (79,5) (36,8) -

MTEF Allocation Letter Reconciliation

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The Control Environment

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QUALITY MANAGEMENT SYSTEM

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Way Forward

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Going forward….• Fast track move to a high-performance culture , continue nil roll-overs

• Position the organisation as a central hub for innovation and technology development nationally – in accordance with its mandate, through advancing the Hub-n-Spoke Model

• Implement the “Glass Pipeline” concept incorporating backward and forward integration

• Rapid response funding instruments + impactful non-funding support systems, compressed turn-around times

• Market Readiness Levels (MRL) and Business Readiness Levels (BRL) to augment the TRL’s

• Enterprise development and continuous post-investment support

• Move from largely unsolicited applications to Predictive Calls across all units – strategic motivation for calls

• Maintain 3 day payments to SMME vendors.

• Expand Youth Programmes by overhauling the existing Youth Technology Innovation Programme (YTIP).

• Grater focus on service delivery innovation, rural & township innovation programmes – inclusive development, greater industry engagement

• Introduction of a BEE & Equity Policy to effect transformation of investment portfolio

• Move from Transactional to Transformative impact through improved intelligence, improved decision support tools, high yield partnerships and organisational agility. 47

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Move from transactional focus

Gear up to

Transformational focus

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Planned Transformational Initiatives.

1. Leverage the full capability of the TIA institutional network – integration

mechanisms to identify synergies.

2. Scaled up water innovation network programme including AMD.

3. Scaled up Energy programme (Hydrogen Economy & Clean Energy)

4. Advanced Manufacturing, Nano-tech and FIR programme integrating all

Technology Stations nationally.

5. Ramp up Environmental initiatives.

6. National Service Delivery (NSD) programme – diagnostics, think tank,

implementation.

7. TIA proactively identifies which Development Finance Institutions (DFIs) to

partner with and when and determines the terms of such partnership.

8. Create leading genome-scale Next Generation Sequencing offering in Africa.

9. Build premiere Precision Medicine process-solution and value proposition for

research, translational and diagnostics markets in Africa.

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Planned Transformational Initiatives.

10 Boost Genomics capacity in Africa through quality services and collaborative

projects.

11 Glass pipeline approach incorporating backward and forward integration for full

value chain visibility.

12. TIA to be included into the SARS 11th Schedule of the Income Tax Act – this will

enable the entity to benefit from a tax exemption on its grants – official letter of

support from Minister to follow.

13. Retention of surplus – enabled by the TIA Act , Minister of DST and Minister of

Finance to support in writing - official letter of support from Minister to follow.

14. Large scale innovation based agri programme for emerging farmers.

15. Regional technology incubation centres and hubs – thematic and geographic

niche based.

16. Large scale, bold marketing and brand awareness campaign – national TV

coverage.

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Contact Details:

Mr Barlow Manilal

Chief Executive Officer

E-mail: [email protected]

Tel: 012 472 2783

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mailto:[email protected]

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Abbreviations

HEI’s - Higher Education Institutions

UKZN – University of Kwa Zulu Natal

CPUT - Cape Peninsula University of Technology

TUT – Tshwane University of Technology

NMMU – Nelson Mandela Metropolitan University

WSU – Walter Sisulu University

UWC – University of Western Cape

ARC - Agricultural Research Council

MRC - Medical Research Council

WRC - Water Research Council

SANSA - South African National Space Agency

CSIR - Council for Scientific and Industrial Research

NIPMO - National Intellectual Property Management Office

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Abbreviations

SANEDI – South Africa National Energy Development Initiative

IDC - Industrial Development Corporation

PIC – Public Investment Co-operation

THRIP - Technology Human Resource for Industry Programme

SPII – Support Programme for Industrial Innovation

VC – Venture Capital.

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