dti Technology support Innovation Symposium Innovation for Development

dti Technology support Innovation Symposium Innovation for Development 26 February 2010 Johannes Potgieter the dti

the dti Technology Incentives • Support Programme for Industrial Innovation (SPII) • Technology and Human Resources for Industry Programme (THRIP) • SEDA Technology Programme (STP). • Technology for Women in Business (TWIB)

SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) • Promote development of technologically innovative products/processes that are commercially viable & internationally competitive • Focuses specifically on the development phase that begins at the conclusion of basic research and ends at the point when a pre-production prototype has been produced. • Administered by the Industrial Development Corporation (IDC)

SPII SCHEMES v Matching Scheme v Partnership Scheme v Product Process Development Scheme

Matching scheme • Provides a grant of 50 -75% of the actual direct cost incurred during development • 50% of qualifying costs <25% BEE • 65% of qualifying costs > 25% BEE or > 50 % Women ownership • 75% of qualifying costs >50% BEE ownership • Payments are made against predetermined milestones • Maximum grant amounts to R 3 million per project

Partnership scheme • For larger scale R&D projects • Grant of 50% on the actual direct cost incurred in development activity • Incorporates a conditional repayment mechanism in the form of a levy on sales • Must demonstrate additionality/causality • Technology Platforms

Product Process Development Scheme (PPD) • Promote development of new products and/or processes • Non-repayable grant of 50 -85% on qualifying costs incurred in development activity ü <25% black ownership (50% grant) ü 25 -50% black ownership (75% grant) ü >50%Women ownership (75% grant) ü >50% black ownership (85% grant) ü with 2% paid upfront • Maximum of R 1 m per project

CATEGORIES SUPPORTED • COSTS ON: – Direct labour – Direct material – Direct Subcontracting – Pro-rata portion of capital – Patents

SPII STATISTICS • Budget: dti funds R 46, 9 m (2007/8) • Admin costs: 16% (2006/7), 9, 5%(2007/8), 18% (2008/9) Output for 2008/9: • Approvals: R 56, 1 m • 70 projects (>80% SMME’s) • 40% BEE • 11% women-owned enterprises • Industrial sectors: 2007/8 – Electronics & software 34, 3% – Miscellaneous manufacturing 30, 0% – Chemicals & pharmaceuticals 10, 0% – Mechanical 5. 7%

SPII IMPACT Performance Data 01 April 2008 to 31 March 2009 01 April 2007 to 31 March 2008 01 April 2006 to 31 March 2007 Total local sales R 133, 2 m R 173. 6 m R 138. 4 m Total export sales R 103, 8 m R 153. 5 m R 836. 9 m Total sales R 237. 0 m R 327. 1 m R 975. 3 m Taxes paid – company tax R 35, 1 m R 149. 3 m R 223. 3 m Shop floor jobs created 877 1, 284 1, 773 Research and development as % of sales 43, 8 57. 9 21. 9 Number of completed projects surveyed 91 116 125 Number of detailed responses received 64 83 62

THRIP • • Administered by the NRF and guided by an Advisory Board with representatives from industry, government, HEIs, labour and science councils. Cost-sharing basis with industry, & supports SET research collaboration focusing on technology needs of participating firms.

MISSION OF THRIP • To improve the competitiveness of SA industry by supporting research and technology development activities and, • Enhancing the quality and quantity of appropriately skilled people.

THRIP PRIORITIES • To support an increase in the number of black and female students pursuing technological and engineering careers, • To promote technological know-how within the SMME sector, through the deployment of skills vested in HEIs and SETIs, • To facilitate and support multi-firm projects in which firms (Incl. BEE enterprises) collaborate/ share in project outcomes • Support for BEE and Black-owned Enterprises

Co-investment by Government and Industry

SMMEs and Large Industry supporting THRIP Projects

THRIP STATS • • Output for 2008/9 240 projects 313 Industrial partners (66% SMME’s) 1971 students (57% black, 37% female) 90 BEE enterprises Admin costs 4. 9% (2008/9), budget- R 162 m)

INDUSTRY CATEGORY(2006/7) NUMBER OF PROJECTS THRIP FUNDS (R) AEROSPACE 10 2926868 AGRICULTURE 60 15476909 AUTOMOTIVE 1 742743 BIOTECHNOLOGY 30 16915788 CLOTHING & TEXTILE 1 95000 CULTURAL INDUSTRIES 6 1836800 CHEMISTRY & BIOCHEMISTRY 37 19826930 ENERGY 44 29902702 ICT 38 14958190 METALS 30 20086044 PAPER & PULP 6 6348503 PHARMACEUTICALS 6 1224500 TOURISM 1 203850

stp Aims to develop innovative technology –based platforms that result in the creation of sustainable, globally competitive SMMEs that contribute towards the accelerated growth of our economy

stp

Technology for Women in Business • IDENTIFICATION OF TECHNOLOGICAL NEEDS OF WOMEN IN BUSINESS IN THE IDENTIFIED MARKET SECTORS; • ADDRESSING THE IDENTIFIED NEEDS THROUGH TECHNOLOGICAL INTERVENTIONS IN A PROJECT SPECIFIC WAY; • FACILITATION OF LINKAGES BETWEEN WOMEN IN BUSINESS AND TECHNOLOGY SERVICE PROVIDERS; • IDENTIFICATION AND CREATION OF MARKET AND BUSINESS OPPORTUNITIES FOR THE BENEFICIARIES OF THE TWIB PROGRAMME; • RECOGNITION AND CELEBRATION OF THE SUCCESS OF WOMEN IN THE VARIOUS BUSINESS SECTORS;

Achievements to date…

Contributing to Economic Development… …one business at a time… Alucia Ngobeni Timbali Client

Equipment to be used in production Pall rings that were produced during the research and development phase

Contributing to Economic Development… …one business at a time… Keryn Krause: i. Slices Hans Pieterson: Infantrust e. Goli BIO Client ACORN Technologies Client

What difference can quality & technology make?

Websites • • • www. thedti. gov. za www. spii. co. za www. nrf. ac. za/thrip www. stp. org. za www. twib. co. za • JFAPotgieter@thedti. gov. za