Mapping Innovation for Rural Development in uMzinyathi District Municipality MAPPING INNOVATION ACTIVITIES FOR RURAL DEVELOPMENT IN UMZINYATHI: PILOT STUDY PRELIMINARY FINDINGS RURAL INNOVATION ASSESSMENT TOOLBOX (RIAT) PHASE TWO Prepared by: Brigid Letty, Hlokoma Mangqalaza, Makale Ngwenya, Brandon Bodenstein, Kgabo Ramoroka, Tim Hart and Peter Jacobs 31 August 2013 TABLE OF CONTENTS LIST OF FIGURES ............................................................................................................................ v LIST OF TABLES ............................................................................................................................. vi ACKNOWLEDGEMENTS ................................................................................................................ vii EXECUTIVE SUMMARY ................................................................................................................ viii 1 INTRODUCTION ................................................................................................................... 1 2 BACKGROUND TO RIAT ........................................................................................................ 1 3 CORE CONCEPTS AND WORKING DEFINITIONS ..................................................................... 2 4 METHODOLOGY ................................................................................................................... 6 5 SOCIO-ECONOMIC INFORMATION FOR THE DISTRICT ................................................................ 8 5.1 Social profile .......................................................................................................................... 10 5.1.1 Population ........................................................................................................................... 10 5.1.2 Poverty and health .............................................................................................................. 10 5.1.3 Education ............................................................................................................................ 10 5.1.4 Number of houses by type of dwelling ............................................................................... 11 5.2 Economic profile .................................................................................................................... 13 5.2.1 Employment ........................................................................................................................ 13 5.2.5 Gross Value Added by region .............................................................................................. 14 5.3 Conclusion ............................................................................................................................. 16 6 RURAL INNOVATION IN UMZINYATHI DISTRICT MUNICIPALITY .......................................... 16 6.1 Introduction ........................................................................................................................... 16 6.2 Enterprise profiles ................................................................................................................. 16 6.3 Understanding of innovation and the purpose of innovating ............................................... 19 6.4 Innovation value chains and types ........................................................................................ 22 6.4.1 Invention ............................................................................................................................. 22 6.4.2 Adoption ............................................................................................................................. 23 6.4.3 Diffusion .............................................................................................................................. 24 6.4.4 Adaption ............................................................................................................................. 25 7 ILLUSTRATIVE CASE STUDIES OF INNOVATION ................................................................... 27 7.1 Introduction ........................................................................................................................... 27 7.2 Example 1: uMzinyathi Arts and Crafts ................................................................................. 27 7.2.1 Description of the enterprise and innovation activities ...................................................... 27 7.2.2 Reason for innovation ......................................................................................................... 28 7.2.3 Innovation value chain ........................................................................................................ 28 7.3 Example 2: Foundation for Building Schools ......................................................................... 29 7.3.1 Description of the enterprise and innovation activities ...................................................... 29 7.3.2 Innovation value chain ........................................................................................................ 29 7.4 Comparison of the illustrative cases ...................................................................................... 30 8 MICRO OR INTERNAL ENVIRONMENT OF THE ENTERPRISES ............................................... 32 8.1 Innovation enabling environment ......................................................................................... 32 8.2 Training and skills development ............................................................................................ 34 9 MACRO CONTEXT – BROADER INSTITUTIONAL AND REGULATORY ENVIRONMENT ............ 36 9.1 Introduction ........................................................................................................................... 36 9.2 Institutional awareness and influences ................................................................................. 36 iii 9.3 Rural innovation systems ...................................................................................................... 40 10 CONCLUSION AND LESSONS ............................................................................................... 42 11 REFERENCES ...................................................................................................................... 45 APPENDIX ONE: RURAL INNOVATION ASSESSMENT TOOLBOX (RIAT) FEEDBACK SESSION TO UMZINYATHI DISTRICT ................................................................................................................ 46 iv LIST OF FIGURES Figure 5.1: KwaZulu-Natal Provincial Map (Source: LGH KwaZulu-Natal, 2013). ................................. 9 Figure 5.2: uMzinyathi District Municipality Map (Source: LGH KwaZulu-Natal, 2013). ...................... 9 Figure 6.1: Common combinations of innovation activities ............................................................... 24 Figure 6.2: An example of multiple innovation value chains .............................................................. 26 v LIST OF TABLES Table 5.1: Total population by gender and age ................................................................................. 10 Table 5.2: Highest level of education: age 15years+ ......................................................................... 11 Table 5.3: Housing infrastructure ...................................................................................................... 12 Table 5.4: Employment shares in formal economic sectors, KZN and uMzinyathi (2011) ................ 13 Table 5.5: Areas of development identified for the four local municipalities ................................... 14 Table 5.6: Sector’s contribution to economic growth ....................................................................... 15 Table 5.7: GVA per sector .................................................................................................................. 15 Table 5.8: Contribution to total economic growth (% point, Constant 2005 prices) ......................... 15 Table 6.1: Share (%) of enterprises/organisations in terms of statutory registration, taxation, economic sector, group membership & output distribution by enterprise Type, (N = 115) ................................................................................................ 18 Table 6.2: Average number of part time and full time workers per organisation or enterprise, (N=115) ........................................................................................................... 19 Table 6.3: Share (%) of enterprises aware of social innovation and main purpose of innovation by enterprise type, (N=115) ............................................................................ 22 Table 6.4: Share (%) of enterprises engaged in innovation activities by enterprise type, 2011 & 2012, (N = 115) ..................................................................................................... 23 Table 8.1: Share (%) of enterprises with direct access to resources and facilities for innovation, (N = 115) ........................................................................................................ 33 Table 8.2: Share (%) of enterprises using ICTs for innovation and type of ICT by enterprise type, (N=115) ............................................................................................................................. 34 Table 9.1: Share (%) of enterprises familiar with ST&I state policies by enterprise