2 3 Contents List of Abbreviations ................................................................................5 Acknowlegements .................................................................................. 8 Executive Summary ................................................................................ 9 Chapter 1 Introduction ......................................................................................14 Chapter 2 The Innovation System Approach .................................................17 2.1 Taking stock and moving forward ............................................. 17 2.2 Innovation and innovation systems .......................................... 19 2.3 The well-functioning innovation system ....................................30 2.4 The big picture .............................................................................34 2.5 The innovation system approach in South Africa.................... 36 Chapter 3 Policies, Strategies, Plans and Reviews .........................................40 3.1 The innovation system in national policy ..................................40 3.2 Specifi c innovation policy initiatives ......................................... 43 3.3 The NSI as a learning system ...................................................... 45 3.4 Other government initiatives ..................................................... 48 3.5 Presidential programme of action reviews .............................. 50 3.6 Concluding remarks .................................................................... 50 4 5 AAAS American Association for the Advancement of Science A&HCI Arts and Humanities Citation Index AIDP Automotive Industries Development Programme ANC African National Congress ARC Agricultural Research Council ASSAf Academy of Science of South Africa AsgiSA Accelerated and Shared Growth and Skills Initiative for South Africa AU African Union BAC Biotechnology Advisory Committee Contents BERD Business expenditure on research and development Chapter 4 BRICs Biotechnology Regional Innovation Centres Quantitative Evidence: Inputs, Outputs and Outcomes ..............52 BRICS Brazil, Russia, India, China, South Africa CAGR Compound annual growth rate 4.1 Introduction .................................................................................. 52 CEO Chief executive offi cer 4.2 The skills pipeline ..........................................................................52 Abbreviations CESM Classifi cation of educational subject matter 4.3 The inputs to R&D ........................................................................ 60 CHE Council on Higher Education 4.4 Research output ..........................................................................64 CoC Centre of Competence 4.5 Research focus and concentration ..........................................66 4.6 Citation of research and career incentives .............................68 CoE Centre of Excellence 4.7 Innovation outputs ......................................................................69 COFISA Co-operation Framework on Innovation Systems between 4.8 Technology balance of payments ........................................... 73 Finland and South Africa 4.9 Concluding remarks .................................................................... 74 CSIR Council for Scientifi c and Industrial Research List of DACST Department of Arts, Culture, Science and Technology Chapter 5 DBE Department of Basic Education The Evolving Research and Innovation System ............................76 DEDEAT Department of Economic Development, Environmental Af- fairs and Tourism 5.1 A map of the landscape ............................................................76 DHET Department of Higher Education and Training 5.2 Key actors in the NSI ................................................................... 78 DORA Declaration on Research Assessment 5.3 Key elements of a successful NSI ...............................................89 DST Department of Science and Technology 5.4 Strengths and weaknesses of the NSI ....................................... 95 ESASTAP European South African Science and Technology Advance- ment Programme Chapter 6 ........................................................................98 EU European Union Toward 2030 FDI Foreign direct investment 6.1 Refl ection ..................................................................................... 98 FET Further education and training 6.2 Key fi ndings and recommendations .......................................100 FOSAD Forum of South African Director-Generals FTE Full-time equivalent Bibliography ..................................................................109 HEI Higher education institution HEMIS Higher education management information system GEAR Growth, employment and redistribution GERD Gross expenditure on research and development GCI Global Competitiveness Index GDP Gross domestic product GEM Global Entrepreneurship Monitor GII Global Innovation Index HE Higher education HMO Hermanus Magnetic Observatory 6 7 HRD Human resources development SAAO South African Astronomical Observatory HRD-SA Human resources development – South Africa SADC Southern African Development Community HSRC Human Sciences Research Council SALT Southern African Large Telescope HySA Hydrogen South Africa SAQA South African Qualifi cations Authority IBSA India, Brazil, South Africa SARChI South African Research Chairs Initiative ICT Information and communication technology S&T Science and technology IDC Industrial Development Corporation SCI Science Citation Index IDRC International Development Research Centre SEDA Small Enterprise Development Agency IEI Innovation Effi ciency Index SETA Sector Education and Training Authority IPAP Industrial Policy Action Plan SETI Science, engineering and technology institutions JIPSA Joint Initiative on Priority Skills Acquisition SKA Square Kilometre Array JSE Johannesburg Stock Exchange SME Small and medium-sized enterprise KAT Karoo Array Telescope SMME Small, medium and micro-enterprises KEI Knowledge Economy Index SPII Support Programme for Industrial Innovation MCST Minister’s Committee on Science and Technology SSA sub-Saharan Africa MRC Medical Research Council SSCI Social Science Citation Index NACI National Advisory Council on Innovation STA Scientifi c and technological activity NCRI National Council for Research and Innovation (Proposed) STEM Science, technology, engineering and mathematics NDP National Development Plan STI Science, technology and innovation NEPAD New Partnership for Africa’s Development STP SEDA Technology Programme NGO Non-governmental organisation SU Stellenbosch University NGP New Growth Path TBP Technology balance of payments NIPMO National Intellectual Property Management Offi ce the dti Department of Trade and Industry NPC National Planning Commission THRIP Technology for Human Resources and Industry Programme NRF National Research Foundation TIA Technology Innovation Agency NRTF National Research and Technology Foresight TIMSS Trends in International Mathematics and Science Study NSDS National Skills Development Strategy TVC Technology venture capital NSF National Science Foundation TYIP Ten-Year Innovation Plan NSI National System of Innovation UCT University of Cape Town NSMM New Strategic Management Model UK United Kingdom OECD Organisation for Economic Cooperation and Development UNESCO United Nations Educational, Scientifi c and Cultural Organisation ORIP Offi ce for Research and Innovation Policy (Proposed) US United States PBMR Pebble-bed Modular Reactor USPTO United States Patent and Trademark Offi ce PCT Patent Cooperation Treaty VC Venture capital PRI Public research institution WEF World Economic Forum PRO Public research organisation WIPO World Intellectual Property Organisation R&D Research and development Wits University of the Witwatersrand RDP Reconstruction and Development Programme WoS Web of Science WTO World Trade Organisation 8 9 This Report follows a request from the Department of Science and Technology (DST) to the Academy of Science of South Africa (ASSAf) for an independent critical appraisal of the State of the Science, Tech- nology and Innovation (STI) System in South Africa. Summary It follows and builds on two other system reviews, the 2007 Organisation for Economic Cooperation and ledgements Development (OECD) Review of Innovation Policy and the 2012 Ministerial Review Committee report on the STI landscape. Most importantly, the Report con- siders how the National System of Innovation(NSI) is conceived of within the National Development Plan (NDP) and the expectations that attach to its func- tioning in this context. The six chapters of the Report take stock of where the country was in 1994, and where it is now, two dec- Executive Acknow ades after the fi rst democratic election. The Report This Report was commissioned by the Department provides a critical analysis of the NSI and, where pos- of Science and Technology (DST), who funded the sible, seeks to make better use of economic analysis project. The work was undertaken by an Academy and draws on international experience to tease out panel over the period March 2012 to August 2013. the issues. It identifi es knowledge defi ciencies and The panel was chaired by Professor Robin Crewe offers some immediate recommendations and sug- and consisted of panel members Professors Ahmed gested areas for future research. Bawa, Wieland Gevers, John Higgins, Johann Mou- ton, Francis Petersen, Tshilidzi Marwala and Dr Petro Terblanche. They were