technology innovation agency (south africa) an overview
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Technology Innovation Agency (South Africa) An Overview. TIA established Apr 2010. Innovation Policy Drivers and Milestones. National System of Innovation Challenges: Existence of innovation “Chasm” Fragmentation of instruments Narrow definition of Innovation. TIA Act 2008. 10 Year - PowerPoint PPT PresentationTRANSCRIPT
Technology Innovation Agency (South Africa)An Overview
16 June 2011 1DR JANINE CHANTSON
Date Author 2
Innovation Policy Drivers and Milestones
S&T White Paper
National System of Innovation Challenges:•Existence of innovation “Chasm”•Fragmentation of instruments•Narrow definition of Innovation
The “Knowledge Economy”:•Knowledge = basic form of capital •Economic growth driven by innovation
Technology ForesightStudies
R&DStrategy
Creation of DST
OECD Review
10 Year Innovation
Plan
TIA Act2008
TIA established
Apr 2010
16 June 2011 J Chantson 3
Technology Innovation Value Chain
Directed Fundamental
ResearchDevelop-ment Technology & market
validation Market Launch Early Business Operation
Directed applied research
Proof of Principle
Proof of Concept
Product/Process/Service/Prototype
Trading Business
Market acceptedProduct/Process/Service/Prototype
Adapted from Doug Sanyahumbi 2010
Date Author 4Adapted from Doug Sanyahumbi 2010.
Directed Fundamental
ResearchDevelop-ment Technology & market
validation Market Launch Early Business Operation
Directed applied research
Proof of Principle
Proof of Concept
Product/Process/Service/Prototype
Trading Business
Market acceptedProduct/Process/Service/Prototype
Technology Innovation Value Chain
Innovation Chasm
Local Knowledge
IP€€
Local Industry
€€€€
Technology-basedProducts/services
Date Author 5
Basic Research Applied Research Tech Development Commercialisation
IP V
alu
e
Pre-Seed
Lowered Risk/More certain Return
Lowered Risk/More certain Return
High Risk/Uncertain Return
High Risk/Uncertain Return
Partnerships(e.g. IDC, NEF,
SEDA)
Partnerships(e.g. IDC, NEF,
SEDA)
Partnerships(e.g. NRF)
Partnerships(e.g. NRF)
Focus of TIA financial and non-financial offerings:
Across the innovation chasm, operating with the required flexibility along the innovation value
chain through mobilising and leveraging national, regional and international partnerships
TIA’s Positioning Along The Innovation Value Chain
Seed & Start-up
Capital
Development
Capital
GrowthCapital
TIA Support
16 June 2011 6J Chantson
Strategic Objectives
Developing Human Capital for Innovation
Promoting a Culture of Innovation
•Collaboration • Cooperative ventures• Follow-on Funding • Technology Transfer• Skills Transfer• Best (Next) practices
16 June 2011 7J Chantson
Financial Products
Technology
Development
Fund
Industry
Matching
Fund
Start-up /
Equity
Fund
Idea
Development
Fund
Royalties; Loans; Convertible Loans, Preference Shares; Equity
Universities; Science Councils; SMEs; Techno-entrepreneurs
16 June 2011 8J Chantson
Non-financial Products
Business
Support &
Advisory
Services
Human
Capital
Development
Programmes
Engineering
services to
technology-
based SME’s
via TIA
Technology
Stations
e.g. Agro-processing; Chemicals; Tooling ;
Electronics; etc
Research
support via
TIA
Technology
Platforms
e.g. Centre for Proteomic & Genomic Research;
Biosafety; Metagenomics
Enabling Infrastructure
16 June 2011 J Chantson 9
Business Support & Advisory Services
Within context of typical TIA investment company (market reality):
•Many tech start‐ups are started (& often run) by 1st‐time entrepreneurs
•Invariably 1st‐time entrepreneurs don’t know what they don’t know..
•And don’t have the resources or ‘operational critical mass’ to cover all
business bases or hire for every business function
Within the context of TIA’s business purpose:
•The need to enhance the chances of success of TIA’s investments
(including managing business risks).
•The need (or expectation) to offer a state‐funded nursery/incubation
service.
16 June 2011 J Chantson 10
• Primarily through approved external service providers
that are able to provide context-specific inputs into
technology innovation and commercialisation
• Levering resources from partner organisations
• Building trust relationships with investees
(proactive vs reactive interventions)
• Networking
• Up-skilling of staff within Investee companies
• Linking investees with follow-on funders
Business Support & Advisory Services
16 June 2011 J Chantson 11
Examples of SA Incubators (1)
• Small Enterprise Development Agency (SEDA)– 27 Incubators– E.g. Chemin, eGoli Bio, Furntech – Broad public mandate– No IPO in past six years
• Maxum– Specifically targets high-growth, high-potential businesses with
high level of technology usage– 2 IPOs
16 June 2011 J Chantson 12
Examples of SA Incubators (2)
• Raizcorp; Aurik– Private– Virtual & physical– Companies at commercialisation stage
• Biotechnology Regional Innovation Centres (now part of TIA)– Government– Virtual– Companies at pre-commercialisation stage
16 June 2011 J Chantson 13
• Philosophies around business support / incubation
• Practices and models in use
• Alignment of various players
• Enabling policies or incentives
• Lessons learnt
Discussion points
16 June 2011 14J Chantson
THANK YOU.
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