Leveraging Public-Private-Partnerships (PPP) for Increased Investment in ICT

R&D – the DST Experience

GPG ICT 2012 Summit

14 June 2012Gallagher Estate, Midrand

South African R&D Investment

Indicator 2007/08 2008/09

Gross domestic expenditure on R&D (GERD) – R’ Millions

18 624 21 041

GERD as a percentage of GDP 0.93 0.92

ICT expenditure on R&D as a percentage of GERD

14.0 13.1

ICT GERD as percentage of GDP 0.12 0.13

Source: DST/HSRC – National Survey of Research and Experimental Development (2008/2009 Fiscal Year

ICT R&D Investment: 2001- 2009

Information, computer and communication

9041,061

1,5341,866

2,3142,598

2,763

0

500

1,000

1,500

2,000

2,500

3,000

2001/02 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09

Year

R' m

illi

on

Transition to knowledge- based

Economy

RESOURCE-BASED ECONOMY

KNOWLEDGE-BASED ECONOMY

4

Global Knowledge Economy Indices (KEI)

Source: World Bank Institute (2004)5

InnovationInformation Infrastructure

EducationEconomic and

Institutional Regime

Interconnected

Interdependent

The Four Pillars of the Knowledge- Based Economy

6

DST Programme in ICT R&D and Innovation

• Advanced Human Resource Capacity Development

• Develop Focused World-Class Research at HEIs and R&D institutions

• Stimulate and Build Strong and Robust Innovation Chain

Strategic Objectives

• Increased ICT Access• Modernised Government• Modernised Economy• Developed Local ICT Industry• Enhanced e-Science• Enhanced Green Economy

ICT R&D and Innovation Outcomes

Key RDI Initiatives & Flagships

• Cyber-Infrastructure (SANReN and CHPC)

• Increasing ICT access and enabling inclusive use of ICTs

– Rural connectivity – Wireless Mesh Networks Project

– Human Language Technologies

– The Digital Doorway – increasing access to computing infrastructure and information resources

• Supporting national priorities– Education & Health: Mobile apps and services

– Monitoring: Earth observation and sensing

– Strategic Independence: Information security

Leveraging Funding through Partnerships with Multinational ICT

Companies

Why ICT MNC Investment in SA (1)

Factors attributable to MNCs’ decision to invest

• Exploiting domestic markets

• Managerial and technological knowledge

• Lower factors of production and competitive labour costs

• Purchasing power of the local market and proximity to

other viable markets

• Compliance with existing regulatory and legal regime,

e.g. NIPP, BBEEE Act, BEE Equity Equivalents etc.

Why ICT MNC Investment in SA (2)

DST’s Foreign Direct Investment requirements

• Human Capital Development

• Innovation and Technology-based SME development

• World-class research infrastructure, e.g. R&D

laboratories and innovation centres

• Technology transfer – adoption of practices that will

foster transfer and diffusion of technology within the

existing IRP regime

Existing and Planned DST Partnerships with MNCs

• Human Capital Development (MSc & PhDs)• Enterprise development• Application of High Performance Computing in

Climate Change

Microsoft SA

• Advanced Human Capacity Development (MSc & PhD)

• Research Capacity Building Programme• Software Development Capacity Programme

SAP

• Mobile Applications Laboratory• Support to the African SKA • Educational Support programmes• Research Ambassador Program• Access to Broadband Network for communities

Nokia Corporation

Planned partnership with IBM => HCD, EnterpriseDevelopment and Establishment of a Research Facility

Existing DST Partnerships with MNCs

The SAP Example

• HCD Programme supported about 21 post graduate

students (5 PhDs and 16 Masters) over the past 4 years

• Research led to innovation projects in mobile

applications to support Very Small Enterprises to:

• Support supply chain activities for Spaza shops

• Currently conceptualising an mobile application for

the taxi commuter

Existing DST Partnerships with MNCs (2)

The Nokia Example – The mLab Initiative

• Mobile Application Lab Southern Africa (mLab) – managed by a

consortium that include CSIR Meraka Institute , The Innovation

Hub, Ungana Africa and the Coach Lab

• Funded through a partnership between DST, Nokia Corporation,

World Bank InfoDev and Finnish Ministry of Foreign Affairs

• Based at the Innovation Hub, the project supports innovation and

entrepreneurship development bases on mobile application

development

Engagement Modalities and Funding Options

Engagement modalities:

• Begin with high level expression of intent between DST and MNC

and lead to MoU.

• Definition and agreement on broad areas of collaboration,

alignment with mutual priorities.

• Execution of formal funding contract between the DST and

implementing agency, i.e. CSIR

• Institute an agreement between CSIR and the MNC >>> MoA. A

Programme Management Office assist the CSIR to develop

detailed projects for collaboration.

• Monitoring, evaluation, assessment of impact.

.

Engagement Modalities and Funding Options (2)

Funding options:

• Funding options depend on the nature and scope

of the collaboration

• Funding levels from each party depend on weight

they attach to the particular project.

• Funding could also be in kind, i.e. access to

researchers, infrastructure and facilities.

The new ICT R&D and Innovation Roadmap will guide future

collaboration with private sector

Roadmap frames and guides ICT RDI activity – focus is on Impact

Research Institutions

Value Chain

Strategy

Service Delivery

Policy and Strategy

Improved quality of basic education

A long and healthy life for all South Africans

Decent employment through inclusive economic growth

A skilled and capable workforce to support an inclusive growth path

An efficient, competitive and responsive economic infrastructure networkHigher

Education

Government

Industry

TechnologyExpertisePeopleResearchOutputs

People

People

Productsand services

Services

Society

The ICT RDI Roadmap Purpose

• Enable increased public and private investment in ICT RDI (by a

factor of 3 to 4) by

providing a mechanism to forecast technology developments in targeted

areas;

identifying critical areas that must be developed to meet SA's socio-

economic objectives ;

and by surfacing and demonstrating the ICT research community and

sector's understanding and agreement on the trends, market potential,

priorities and investment requirements

• Provide a framework to plan and coordinate technology

developments both nationally and regionally – to enable sophisticated

decision making

Investment Portfolio of 6 Thematic Clusters

6 Strategic Priority Areas

13

2

4

5

6

Ideal Investment and Impact

Conclusion

• Implemented R&D programmes linked to

SA challenges

• Developed a mechanism for engaging with

MNCs

• The Roadmap identified future areas for

R&D focus

Thank You