Strategic Plan 2020-2025 of the Technology Innovation Agency

2009. We need to critically assess to what extent along with the imperatives of transformation and economic TIA, in fulfilling its mandate, enabled South Africa inclusiveness, have become the centre point around which to traverse its socioeconomic challenges through government, business and all stakeholders have come to technology and innovation. rally, as we plan into the future. TIA is mandated to translate a greater proportion The global economy is experiencing a significant of publicly-funded research into commercial downturn, placing the realisation of the sustainable technology products and services. This implies development goals and responses to the challenges of exploiting the existing body of knowledge at climate change at risk. Across the world, countries are universities and public research organisations, looking for ways to harness science, technology and and channelling it towards the development of innovation to address these challenges. South Africa technology-based industries. This is done with is no different, and the adoption of the White Paper on the intention of creating sustainable jobs and Science, Technology and Innovation in 2019 represents transforming the economy from one that is reliant an important policy development that elevates the on commodity exports to one that is knowledge- discourse around science, technology and innovation based and equipped to address modern local to respond to our national and global challenges. The and global challenges. White Paper places innovation at the core of all efforts to shift South Africa into a new growth and development Includes estimation for 2019/20. 1 Technology Innovation Agency Strategic Plan 2020-2025 | 01 trajectory. Most importantly, it introduces important Review remain relevant and will continue to inspire TIA’s dimensions of inclusivity, transformation, and society- efforts in the future. wide and government-wide approaches to innovation. I have no doubt that TIA has turned the corner. Through a Going forward, TIA’s strategy, which is primarily informed continuous process of self-reflection and interactions with by its mandate, is aimed at supporting the strategic stakeholders, the agency will continue to explore ways intents of the White Paper on Science, Technology and of adapting and responding to the challenges of the day. Innovation, the National Development Plan and other key This Strategic Plan, therefore, constitutes the foundational government policies. For this purpose, TIA’s five-year script on which TIA will aim to mobilise its partners and strategy is predicated on three pillars: stakeholders, and work to make a meaningful impact in addressing South Africa’s challenges. As such, the • Intensifying efforts to accelerate the translation and 2020-2025 strategic planning process has benefited commercialisation of publicly-funded research. tremendously from the collective wisdom of key role • Harnessing the opportunities presented by the bio- players in the National System of Innovation. economy as an important area for future growth. • Increasing and expanding access for innovators to In this regard, I would like to thank the Minister of Higher convert their ideas into products and services through Education, Science and Innovation, Dr Bonginkosi TIA’s Technology Stations infrastructure. Nzimande; the Director-General of the Department of Science and Innovation, Dr Phil Mjwara and his senior Another priority is to support the development of viable management; and our stakeholders and partners for their technology enterprises that are able to compete in global constant, consistent and honest input and feedback. I markets, paying special attention to grassroots innovators would also like to thank the Board of TIA, management as key contributors to the development of local economies. and staff for their commitment and active engagement in developing this strategy. We look forward to this next The imperatives of transformation and inclusivity are important phase in TIA’s existence. paramount in implementing this strategy. Over the period ahead, TIA will place greater emphasis on the empowerment of youth, women and people with disabilities to ensure that they benefit from innovation and are included as important actors in the production of innovative solutions to address South Africa’s socioeconomic challenges. The 2013 Ministerial Review of TIA highlighted the need for the agency to serve as a hub that facilitates effective interactions among actors in the National System of ________________________________ Innovation. This places TIA in the key role of risk funder to, Dr Stephen Lennon in turn, attract other investors to take projects to market. Interim Chairman of the Board Although TIA has made some strides in effecting change in the National System of Innovation, much remains to be done. Many of the recommendations from the Ministerial 02 | Technology Innovation Agency Strategic Plan 2020-2025 Official sign-off It is hereby certified that this Strategic Plan: • Was developed by TIA’s management under the guidance of the Board and the Department of Science and Innovation (DSI). • Takes into account all the relevant policies, legislation and other mandates for which TIA is responsible. • Accurately reflects the impact, outcome and outputs that TIA will endeavour to achieve over the period 2020-2025. Signed by: Mohohlo Molatudi Acting General Manager: Bio-economy division Signature: ________________________________ Elijah Mokhethi Acting General Manager: Sector Funding division Signature: ________________________________ Dr Anitha Ramsuran Acting General Manager: Programmes division Signature: ________________________________ Petro Dekker Executive: Corporate Services Signature: ________________________________ Patrick Krappie Executive Manager: Strategic Engagements and Corporate Relations Signature: ________________________________ Werner van der Merwe Chief Financial Officer Signature: ________________________________ Fuzlin Levy-Hassen Interim Chief Executive Officer Signature: ________________________________ Dr Steven Lennon Interim Chairman of the Board Signature: ________________________________ Approved by: Minister Bonginkosi Nzimande Executive Authority Signature: ________________________________ Technology Innovation Agency Strategic Plan 2020-2025 | 03 Contents Foreword 01 Official sign-off 03 Part A: Mandate 05

1. Constitutional mandate 06

2. Legislative mandate 06

3. Policy mandates 06

4. Relevant court rulings 10 Part B: Strategic Focus 11

1. Vision, mission and values 12

2. Strategic overview 13

3. Situational analysis 15

4. External environment analysis 17

5. Internal environment analysis 22

6. Planned strategic initiatives 26

7. Strategic enablers for enhanced performance 42

8. Budget allocation for the 2020-2025 strategic period 48 Part C: Measuring Performance 50

1. Institutional performance information 51

2. Impact statement 51

3. Measuring outcomes 51

4. Key risks 53 Part D: Technical Indicator Descriptions 55 04 | Technology Innovation Agency Strategic Plan 2020-2025 PART A: MANDATE Technology Innovation Agency Strategic Plan 2020-2025 | 05 PART A: MANDATE

1. Constitutional mandate Over the five-year period, TIA aims to contribute to the realisation of many of these goals by stimulating industry and the broader economy through the directed funding of Not applicable. innovation and commercialisation. This will entail a focus on accelerating the translation of indigenous knowledge

2. Legislative mandate outputs into products and services that contribute to redressing socioeconomic vulnerabilities in marginalised communities in South Africa while ensuring increased TIA was established as a schedule 3A2 public entity inclusivity to encourage the participation of women, youth in terms of the Public Finance Management Act (Act and people with disabilities. Focus will also be placed on 29 of 1999, as amended). Its mandate is derived from the conservation of the country’s natural resources. the provisions of the Technology Innovation Agency Act (Act 26 of 2008), read together with sections 19- 23 of the Science and Technology Laws Amendment African Union Agenda 2063 Act (Act 7 of 2014) which establishes TIA as an agency A 10-year Science, Technology and Innovation Strategy to promote the development and exploitation, in the for Africa was adopted at the 23rd Ordinary Session of public interest, of discoveries, inventions, innovations African Union Heads of State and Government in 2014. The and improvements. TIA’s objective is to support the strategy, which promotes competitiveness through human state in stimulating and intensifying technological capital development, innovation and value-addition, is part innovation to improve economic growth and quality of of the African Union’s long-term, people-centred Agenda life for all South Africans by developing and exploiting 2063, a strategic framework for the socioeconomic technological innovations. transformation of Africa over the next 50 years. It builds on and seeks to accelerate the implementation of past and

3. Policy Mandates existing continental initiatives for growth and sustainable development. This is underpinned by science, technology and innovation as multifunctional tools and enablers for United Nations sustainable achieving development goals on the continent. Agenda development goals 2063 calls for diversifying sources of growth for Africa’s economic performance and, over the long term, lifting The United Nations sustainable development goals seek large sections of the continent’s population out of to end poverty and hunger globally; combat inequality poverty. The strategy also fosters social transformation, within and among countries; build peaceful, just and economic industrialisation and entrepreneurship. TIA inclusive societies; protect human rights; promote gender plans to increase collaboration with research institutions equality and the empowerment of women and girls; and across the continent through the implementation of joint ensure the lasting protection of the planet and its natural technology development programmes and the provision resources. Countries committed to the goals aim to of technical competence and entrepreneurial capacity create conditions for sustainable, inclusive and sustained development to increase the application of knowledge economic growth, shared prosperity and decent work for outputs in stimulating socioeconomic transformation. all, considering different levels of national development and capacities. The goals are integrated and indivisible, and balance the three dimensions of sustainable National Development Plan 2030 development – economic, social and environmental. The National Development Plan recognises that There are 17 goals planned for completion by 2030, and developments in science, technology and innovation 169 targets that demonstrate the scale and ambition of fundamentally alters the way people live, communicate the new universal agenda. 2

Schedule 3A entities are public entities that have the mandate to fulfil a specific economic or social government responsibility. 06 | Technology Innovation Agency Strategic Plan 2020-2025 PART A: MANDATE and transact. The plan highlights that these areas are key mines that are unable to compete globally. TIA will increase to equitable growth and underpin economic advancement, the footprint of its innovation infrastructure to contribute to the and improvement in health systems, education and plan’s aspirations of “a focus on innovation and knowledge infrastructure. The plan is now in its second phase, during generation, packaging and sale, expansion, modernisation which “the country should lay the foundations for more and re-gearing of the higher education sector towards intensive improvements in productivity”. growing and supporting innovation” over the medium term by ensuring that the interventions it undertakes lead to 2019-2024 Medium-Term Strategic inclusive localised development. Framework White Paper on Science, Technology Government’s 2019-2024 Medium-Term Strategic and Innovation Framework serves as the implementation plan for the second phase of the National Development Plan. The Cabinet’s adoption of the White Paper on Science, framework identifies seven priorities to guide planning by Technology and Innovation in March 2019 signals material all stakeholders. These are: policy shifts for activities related to science, technology and innovation to address aspects such as transformation Priority 1: A capable, ethical and developmental state and inclusivity, and strong linkages within the National Priority 2: Economic transformation and job creation System of Innovation. These include: strengthening the Priority 3: Education, skills and health culture of innovation within government and society; Priority 4: Consolidating the social wage through improving policy coherence and more effective budget reliable and quality basic services and programme coordination within the National System Priority 5: Spatial development, human settlements and of Innovation; implementing monitoring and evaluation local government systems; creating a more enabling environment that Priority 6: Social cohesion and safe communities advances innovation; developing local innovation Priority 7: A better Africa and world ecosystems; and increasing investment in technology- based small, medium and micro enterprises and support The DSI has committed to priorities 2 and 3, excluding job to grassroots and social innovation projects. creation per se. Through its mandate, TIA will contribute to these priorities through the commercialisation of DSI Decadal Plan intellectual property from publicly funded research institutions, and support the creation of technology The process to compile the new DSI Decadal Plan, which enterprises that will contribute to job creation with will serve as the implementation plan for the White Paper a specific emphasis on historically disadvantaged on Science, Technology and Innovation, is ongoing. TIA individuals and communities. will align itself with the plan once its finalised. The DSI has identified the following priorities with direct relevance National Spatial Development to TIA’s mandate, wherein plans at subprogramme level Framework 2050 have been identified to realise the intended outcomes: The National Spatial Development Framework 2050 • The circular economy. sets out national spatial directives for all forms of • Education for the future. infrastructure investment and developmental spending • Sustainable energy technologies for marginalised targeted by government in partnership with the private people. sector. In realising this, one of the key thrusts of the plan • Health technology to prevent and treat ill-health and is “technology, innovation, resilience and disruptions in the advance wellbeing for those who are marginalised. space economy”, through which South Africa will roll out • High-tech industrialisation. fast broadband access across the country; support the • Opportunities, threats and impact of information and development of highly automated mining activities; promote communications technology, including smart systems. automation in key economic sectors such as manufacturing • Nutrition security for a healthy population. and agriculture; and accelerate the closure of factories and • Integrated solutions for water security. Technology Innovation Agency Strategic Plan 2020-2025 | 07 PART A: MANDATE Alignment with DSI research and District Coordination Service development roadmaps Delivery Model Over the years, the DSI has developed several research, In August 2019, Cabinet approved the District Development development and innovation roadmaps. These serve as Model to synchronise planning by all spheres of key national frameworks to guide and direct investment government at the national, provincial and local levels. This decisions for research and development, and collaboration model will enable partnerships with civil society, including among various stakeholders in the National System of communities, private industry and labour, at district level Innovation. In implementing its activities under the various countrywide in the development of South Africa’s municipal subprogrammes, TIA will continue to be informed by districts and metros. This developmental initiative is termed these roadmaps, which include advanced manufacturing, “khawuleza” (“hurry up”). information and communications technology, human settlements, water and waste management, and research Government will seek to change the face of rural and infrastructure. Over the strategic period, TIA will work urban landscapes by ensuring greater alignment between closely with the DSI to ensure that there is greater urban and rural development, with a deliberate emphasis alignment with and translation of planned outputs to on local economic development. The district-driven model better inform decision-making and policy formulation. is directed at turning plans into action, and ensuring proper project management and tracking. Shortcomings Bio-economy Strategy in previous service delivery models necessitated a new, more practical, achievable, implementable and The Bio-economy Strategy seeks to use South Africa’s measurable approach to development that is clearly bio-based resources to become a significant contributor aligned with the key government priorities. to the country’s economy by 2030 through the creation and growth of biotechnology-based industries. In turn, The model will be implemented over a five-year period these new industries will generate and develop bio-based commencing in 2020/21, and will be rolled out throughout services, products and innovations in which new and all 44 districts and eight Metros. existing companies will provide and use such solutions. The strategy provides a framework for investments and action by all relevant stakeholders in the National System of Innovation. As the effective implementation of the Bio-economy Strategy forms one of the four strategic outcomes for TIA in the current planning cycle, it will be implemented with greater intensity. Over the five-year strategic period, TIA intends to place a renewed and deliberate emphasis on indigenous knowledge systems as a key basis for promoting economic inclusion and transformation with great potential to lead to the creation of new industries. 08 | Technology Innovation Agency Strategic Plan 2020-2025 PART A: MANDATE TIA’s contribution to the DSI’s outcomes Proxy indicator Outcome Goal statement TIA’s contribution aspects Collaborate with other Formalised partnerships between National System of Innovation constituent parts of the National stakeholders in developing A transformed, Expand, transform System of Innovation technological innovations inclusive, and enhance the through leveraged funds and responsive and responsiveness of the other resources. This includes coherent National National System of partnerships with higher System of Innovation over the next Gross expenditure on research education institutions (including Innovation five years and development as a proportion technical and vocational of GDP of 1,1% education and training colleges) and science councils Knowledge Implement sector master plans Sectoral master plans with utilisation by investing in emerging and science, technology and for economic advanced technologies to innovation components development Improve the sustainability enhance the competitiveness of developed and implemented in revitalising and competitiveness of TIA-funded innovations existing traditional sectors and Improve the performance of Provide financial and non- industries and emerging sectors over the small, medium and micro financial support to small, spurring research next five years enterprises and opportunity medium and micro enterprises and development- gains through technology to take advantage of market led industrial interventions opportunities development Promote and encourage Improve the participation in the technology Human representability of high- innovation value chain by capabilities and end skills, and increase Innovation engagement and historically disadvantaged skills for the the development of awareness institutions economy and for technical and vocational development skills for the economy over Support small, medium and the next five years micro enterprises Technology Innovation Agency Strategic Plan 2020-2025 | 09 PART A: MANDATE Proxy indicator Outcome Goal statement TIA’s contribution aspects Increase the relative Increase the number of contribution of South Prototypes prototypes developed through Increased African researchers and TIA interventions knowledge science, technology and Technology products and/or generation and innovation institutions services commercialised Increase the number of innovation output to global scientific and Translation rate between publicly commercialised technologies, innovation output over financed intellectual property prototypes and demonstrators the next five years disclosure and licensing rate Number of technology Locally developed technology demonstrations and locally Expand the use of deployment across the three developed technology The use of scientific knowledge (as spheres of government deployment to districts and local knowledge evidence) in support of municipalities for inclusive innovation for societal Funding instruments for Support package for grassroots development benefit and public good grassroots innovation innovation over the next five years Publicly financed intellectual Open innovation platform for property made available in grassroots innovators support of grassroots innovators 4. Relevant court rulings Not applicable. 10 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS Technology Innovation Agency Strategic Plan 2020-2025 | 11 PART B: STRATEGIC FOCUS 1. Vision, Mission and Values Vision: Be a leading technology innovation agency that stimulates and supports technological innovation to improve quality of life for all South Africans. Mission: Facilitate the translation of South Africa’s knowledge resources into sustainable socioeconomic opportunities. Values: Together we can do more. TEAMWORK Fostering teamwork creates a TIA work culture that values collaboration and co-operation. At TIA we apply the most appropriate skills, competencies, experience and knowledge of best PROFESSIONALISM practices cohesively in conducting our work. TIA will be accountable to all stakeholders to deliver exceptionally high standards of work and EXCELLENCE performance. At TIA everyone strives to do what they said they would. INTEGRITY “We keep our word”. Engage in inclusive open communication, hold each other accountable for our performance TRANSPARENCY and conduct. At TIA we foster a culture where we continually nurture and implement new ideas from our staff INNOVATION and stakeholders that enhance how we do things and deliver services. 12 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS 2. Strategic Overview Key among these are that TIA: • serves as a “hub” where entities such as publicly funded TIA enters the new strategic cycle against the backdrop research institutions, large and small commercial and of an ecosystem that is rapidly maturing, characterised industrial businesses, innovative private individuals, by the entry of many players in the National System non-governmental organisations and community-based of Innovation. These include institutional and private organisations, and technological innovation support funders, an expanded research base, an active technology instruments funded by government departments and entrepreneurship community and support intermediaries. public and private entities would interface with the In crafting its new strategy, TIA has taken into account objective of converting ideas into commercial activities. these developments, identifying gaps that require targeted • assumes the fundamental role of a publicly funded interventions within the agency’s mandate to avoid the instrument that ensures a national innovation duplication of efforts and focusing on areas where it ecosystem functioning at maximum efficiency and adds value to the functioning of the National System of effectiveness, and an interface for the conversion of Innovation. ideas into commercial activities. • effectively plays its role as a grant-making agency and According to the agency’s Business Case3, “TIA has approaches the accrual of return on investment not in been set up as a public entity that enhances the country’s terms of balance sheet, but rather benefits to the national capacity to translate a greater proportion of local research economy from commercialised innovations (eg. jobs). and development into commercial technology products • enhances its ability to support small, medium and and services. For this purpose, the agency has been micro enterprises through an appropriately positioned tasked with exploiting the existing body of knowledge at and scaled-up Technology Stations Programme. universities and public research institutions and channelling • implements an effective regionalisation strategy. it effectively towards the development of technology-based • improves operational efficiencies and its reputation, industries.” especially in relation to turnaround times for enquiries, applications, progress payments, overhead costs and To carry out its mandate, TIA requires both formalised communication with stakeholders. partnerships with universities and public research • promotes a culture of innovation that enhances the institutions and other government instruments such role of people as innovators through events that as those of the Department of Trade, Industry and highlight role models, and supports the integration of Competition. This ensures connectedness along the entrepreneurship into the education system. innovation value chain, which is critical to allow for the nurturing of technologies from laboratory to market. Over the past five years, TIA has made progress in The ultimate goal is to use South Africa’s science and repositioning the Technology Stations Programme technology base to develop new industries, create to provide much-needed science, technology and sustainable jobs and help diversify the economy away from engineering support to more than 10 000 small, medium commodity exports towards knowledge-based industries and micro enterprises through access to high-end equipped to address modern global challenges. innovation infrastructure and expert technical advice. In addition, TIA has played an important role as a connector In 2013, the DSI undertook an assessment of TIA’s and enabler, promoting interactions among various performance against its mandate and positioning within the stakeholders through strategically selected events. These National System of Innovation. Based on this, the Ministerial include the Innovation Bridge, the Bio Africa Convention Review Report4 highlighted a number of key areas that and the Global Cleantech Awards, all of which have require attention if TIA is to fulfil its mandate effectively and served as effective platforms to promote matchmaking and contribute to building a productive ecosystem. showcase South Africa’s innovations, thereby promoting 3 TIA Business Case (2008). 4 TIA Review Report (2013). Technology Innovation Agency Strategic Plan 2020-2025 | 13 PART B: STRATEGIC FOCUS role models in innovation. In line with the recommendations A critical review of TIA’s execution of its core mandate of the TIA Review Report, the agency has endeavoured reveals that in the past five years the agency has supported to focus on return on investment that emphasises broad a large number of innovations. However, the translation and socioeconomic impact. commercialisation success rate has been suboptimal. As a result, TIA aims to reposition itself strategically within the On the other hand, TIA has not been successful in National System of Innovation, directing a greater proportion expanding its national footprint, primarily due to financial of its resources towards the translation and commercialisation constraints. Nevertheless, there are opportunities to of publicly financed intellectual property emanating from explore the more effective use of Technology Station higher education institutions and science councils. facilities and other co-location models with partners in the National System of Innovation to reach the underserved TIA’s strategy is based on three pillars, as depicted in parts of the country. Figure 1. TIA Core Pillars TIA impact 2015-2020 2025 Transactional TIA joins innovative ideas to supporters and investors Non responsive SMMEs Delivering supported Commercial- on the Bio- through Inefficient ised economy Technology innovations Strategy Stations TIA ensures a national innovation ecosystem Low impact functioning at maximum efficiency and effectiveness Lack of strategic alignment in the system TIA facilitates connections and partnerships to deliver economic value, Low credibility with Enablers transformation and social key stakeholders development • Partnership for funding and Top heavy, thin commercialisation on the ground • Partnership for human capacity and a A swift, agile, lean, effective national culture of innovation and efficient organisation Solid foundation: • Thought leadership for system-wide impact visible in the field, sourcing Seed Fund, • Operational enablers for efficiency and ideas, building bridges and Technology Stations, effectiveness facilitating relationships Technology Platforms, Bio-economy Figure 1. TIA’s strategic focus for the 2020-2025 strategic period 14 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS i. Commercialising innovations with great potential for inclusive development and transformation. Through this strategic thrust, TIA will intensify efforts to increase the rate of translation of locally developed iii. Small, medium and micro enterprises technologies; exploit intellectual property from publicly supported through strategically informed and funded institutions; ensure that these are commercialised regionally distributed Technology Stations in a manner that promotes economic growth and the competitiveness of industry; and respond to the The changing innovation landscape requires that TIA imperatives of transformation and inclusive development. positions its Technology Station capabilities as part of a TIA will focus on leveraging local and global partnerships package of support in the National System of Innovation to support the translation of knowledge from higher to promote the growth of collectives and small, medium education institutions, science councils and the private and micro enterprises; contribute towards innovation- sector into commercialised innovations that will have a led industrialisation processes; and foster inclusive positive impact on the lives of all South Africans. TIA will development through an expanded spatial footprint and also take advantage of the fourth industrial revolution to enhanced access for entrepreneurs throughout the country. stimulate the economy and address some of the social challenges faced by many South Africans. 3. Situational analysis ii. Delivering on the Bio-economy Strategy Transformation in TIA’s operating environment has been Through this focus area, TIA’s efforts will be directed slow, despite government’s deliberate efforts. It is important towards creating new bio-based products and to note that modern challenges of economic development processes and promote the creation of new enterprises require that science, technology and innovation are that will ultimately lead to job creation. In doing so, TIA harnessed effectively as key policy instruments to will increase its efforts to grow and enhance the role of accelerate economic growth and development. In this, indigenous knowledge systems as an important sector TIA has an important role to play. Technology Innovation Agency Strategic Plan 2020-2025 | 15 PART B: STRATEGIC FOCUS SWOT analysis During the strategy development session, the Board deliberated on the operating landscape for the upcoming strategic cycle. In seeking to identify TIA’s internal strengths and weaknesses, and its external opportunities and threats, a diagnostic assessment was undertaken using a strengths, weaknesses, opportunities and threats analysis, the results of which are presented below. Strengths Weaknesses - The uniqueness and extent of TIA’s mandate positions - Top heavy, thin on the ground it as a relevant institutional intervention in the National - Lack of ecosystem/multi-stakeholder project funding System of Innovation - Operational inefficiencies related to poor turnaround - Solid foundation with key instruments such as the Seed times and lack of communication Fund Programme, Technology Stations Programme - Lack of strategic alignment in the National System of and Technology Platforms Programme Innovation - Solid pipeline of near-market technologies for greater - Low credibility with key stakeholders impact in the future - Good baseline of sound strategic partnerships - Unique innovation funding instruments - Sound governance and control environment Opportunities Threats - New policy thrusts arising from government’s 2019- - Reducing fiscal allocation 2024 Medium-Term Strategic Framework, the White - Weak economy Paper on Science, Technology and Innovation, and - Lack of confidence in TIA the DSI Decadal Plan, as well as an emphasis on - Other players/competitors encroaching on TIA activities transformation and inclusivity, provide a good context and an opportunity for TIA to fully deploy its mandate - Positive momentum around innovation, especially with industry partners, presents opportunities to increase the rate of commercialisation for demand-driven approaches to innovation - TIA has established a significant relationship with the SA SME Fund, which presents opportunities to tap into its pool of partnerships with other players and fund managers in South Africa - TIA will have to leverage on its mandate to make a real contribution within the fourth industrial revolution discourse through investments in big data, blockchain and artificial intelligence technologies - Managing sector programmes on behalf of the DSI 16 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS An analysis of TIA’s performance over the past five 4. External environment analysis years reveals that approaches to project sourcing and identification have not been optimal. This is largely due Knowledge generation, intellectual to lack of clearly defined strategic priorities, and a lack property and commercial outputs of alignment with market demands, government priorities and general dynamics in the ecosystem. As a result, TIA TIA depends on the outputs of research conducted at has not been effective in attracting fundable proposals higher education institutions, science councils and other that can progress rapidly to market and have the potential research institutions for its pipeline of early-stage investable for real socioeconomic impact. Although the Seed Fund projects. The agency supports these through to higher Programme has proved to be an important instrument for levels of maturity so that they are sufficiently de-risked to sourcing innovations and ideas from universities and small, attract other funders such as venture capital investors. medium and micro enterprises, much of the pipeline from South Africa possesses strong knowledge-generation this instrument has not progressed into TIA’s main funds, capacity and good research infrastructure within publicly primarily owing to misaligned requirements, inadequate funded organisations. The Offices of Technology Transfer assessment criteria and weak internal coordination. at publicly funded research organisations are an important source of new knowledge and intellectual property with Nevertheless, South Africa’s innovation ecosystem has the potential to be commercialised. As such, Offices of matured over the past few years, with many players Technology Transfer are key sources of investment pipeline having the potential to accelerate TIA’s execution of its for TIA. mandate. However, the ecosystem remains fragmented, with many of these players undertaking initiatives that The National Advisory Council on Innovation, in its are not properly coordinated for maximum impact. In 2019 Science, Technology Innovation Indicators report, response to this, the White Paper on Science, Technology reveals key insights into the performance of the research and Innovation identified partnering and co-creation as a system and the associated spending by government and major strategic intent. In this regard, TIA has a key role to business, as follows. play in continuing and intensifying the implementation of a transparent partnership model (referred to as the “Glass • Government funding of research and development Pipeline” in TIA parlance) to provide a bird’s eye view for the higher education sector increased from 45% in of the system and facilitate the seamless progression of 2010/11 to 56,1% in 2016/17. innovations through the value chain. • The share of total research and development funding from government directed towards science councils In reality, however, TIA remains underfunded, with an decreased from 33,7% in 2010/11 to 30,9% in 2016/17. average annual budget of R500 million that largely Over the same period, however, science councils supports the Bio-economy Programme and Technology received a significant increase in funding, from Stations Programme. The implication of this is that R2,9 billion in 2010/11 to R5,1 billion in 2016/17. there is a relatively small amount of funding available • The higher education sector increased its role in the for meaningful investments in new projects. As the tight South African innovation system between 2007 and economic conditions in South Africa suggest that there 2017, as indicated by the significant increase in the will be few prospects for new or additional funds over proportion of basic research, from 20,6% in 2007/08 the medium term, TIA will formulate a new approach to to 26,7% in 2016/17. project support that focuses on partnerships, the strategic • The share of South Africa’s scientific publications as sourcing of projects and an ecosystem with a multi- part of the top 1% worldwide increased from 1,1% in stakeholder approach to investments. 2007 to 1,6% in 2017, demonstrating the success of the higher education sector in producing high-quality scientific publications. Technology Innovation Agency Strategic Plan 2020-2025 | 17 PART B: STRATEGIC FOCUS The National Advisory Council on Innovation’s 2017 against an increase in basic research and applied Science, Technology and Innovation Indicators report research (collectively 74,5% of measured research and revealed that, as of 2017, universities of technology development spend) means that there is an increase in account for only 4,8% of the total research publications the generation of scientific knowledge, and a decrease in compared to 80,4% published by the other universities. the number of technologies being developed, the number of new and improved products and services being In contrast, the proportion of research and development produced, and the amount of technological knowledge devoted to experimental development has decreased being generated. More innovative economies and those significantly over the years, as shown in Figure 2, which enjoying greater growth rates devote a greater proportion appears in the 2019 State of the South African Research of expenditure towards experimental development than Enterprise report. A decrease in experimental development basic and applied research combined. 80 70 60 37.6 47.8 50 39.8 40 32.9 36.3 30 26.7 20 23.9 25.5 9.5 10 0 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Basic research Applied research Experimental development Figure 2. Trends in research and development expenditure (2004/05-2016/17) 18 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS All types of research and development are important, intellectual property to reward them for proactively securing but given South Africa’s state of development, there intellectual property protection and commercialising it should be an increase in the proportion of the country’s for the general purpose of innovation. Such incentives research and development expenditure going to can comprise up to 30% of institutions’ revenue accruing experimental development. from intellectual property. Patents can, however, compete with publications, and a balanced portfolio is ideal. A In the period 2007-2017 government funding of business large share (87,6%) of patent publications relates to non- expenditure on research and development reduced residents, a trend that is expected to continue beyond significantly from 21,7% to 3,1%. Business expenditure the medium term. In comparison to other upper middle- on research and development, as a percentage of gross income countries, South African residents’ share of patents domestic product, decreased from 0,6% in 2007 to 0,4% was high, at 83,9% in 2017. in 2017. South African innovation Fewer researchers in South Africa are employed by the funding landscape business sector compared to other upper middle-income countries. (Middle-income countries: 43,2%, South Africa: The funding landscape for innovation in South Africa 37%). During the same period, there was a migration of has matured over the past decade, with many actors in researchers from the private sector to higher education the National System of Innovation establishing various institutions. types of funds and funding instruments to support the innovation and commercialisation of technologies The National Advisory Council on Innovation report draws emanating from publicly funded research institutions, the conclusion that South African business enterprises small, medium and micro enterprises, and entrepreneurs need to take on proportionately more researchers or in general. create new businesses that are research intensive. In the absence of such a trend, government instruments such The funding landscape for innovation continues to as the Technology and Human Resources for Industry be dominated by government incentives. These are Programme and the Sector Innovation Fund have become provided mainly through the DSI and several incentive important in enabling the industrial sectors to fulfil this schemes of the Department of Trade, Industry and objective. Competition, including the Technology and Human Resources for Industry Programme; the Support Intellectual property rights: Patents Programme for Industrial Innovation; and the Industrial Development Corporation’s Technology Venture The production of South African patents is decreasing, and Capital Fund. Organisations such as the National this trend is expected to continue beyond 2020. The low Research Foundation and a range of science councils level of invention in South Africa is a serious policy issue that and universities have also established various types of needs urgent attention. Through legislation, the National funding instruments. Figure 3 shows the instruments Intellectual Property Management Office is required available through government. to provide incentives to recipients and the creators of Technology Innovation Agency Strategic Plan 2020-2025 | 19 PART B: STRATEGIC FOCUS Discovery Development and Commercialisation (Research) Pre-commercialisation Applied Technology Research Development Technology Product/ Market Basic Small Scale Market and Market Process Entry/ Research Manufacturing Development Design and Validation Development Launch Business Prototype Engineering Growth Commercialisation R&D tax incentive MCEP Support Fund Technology Venture Capital Technology Seda Technology Programme - Incubation Fund Development Fund IDC THRIP Strategic Partnership STP-Quality Programme and SPII Enterprise Incubation Technology Seed Fund Programme Transfer Legend = related to TIA funding instruments Figure 3. Government innovation and technology funding instruments (Source: Department of Trade, Industry and Competition) TIA plays an important role within this funding ecosystem Technology and Human Resources for Industry through unique risk-funding schemes such as the Seed Programme Fund Programme, the Technology Development Fund and the Pre-Commercialisation Fund. The measure of The Technology and Human Resources for Industry success for TIA’s risk-funding schemes is the extent to Programme, funded by the Department of Trade, Industry which they can support the progression of innovations and Competition, is designed to enable South African to higher levels of maturity with minimised risk to attract industry to access skills, expertise and infrastructure within follow-on funders such as venture capital to take them the higher education sector to develop innovative solutions to market. In this role, evidence points to a mixed record to industry-specific needs. Its aims are to boost South African of success. A key focus for TIA will be to consolidate its industry through technology development while enhancing various funding instruments into one fund. the development of skilled labour for absorption into local industries. Since its incorporation into the department, 20 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS the programme has been scaled up significantly, and its commercialisation of technologies. Between 2013 and impact on various sectors of the economy and provinces 2018, it realised significant growth, with the number of throughout the country is beginning to become evident. investments increasing from 27 to 181, and total investment increasing from R1,9 billion in 2015 to R5,4 billion in 2018. According to the Department of Trade, Industry and The Southern African Venture Capital and Private Equity Competition’s 2017/18 Annual Incentives Report, the Association’s 2019 Venture Capital Survey report reveals programme significantly increased the total value of its that there was a marginal increase in the number of fund grants from R158,2 million in 2016/17 to R235,4 million managers in 2018 due to new independent fund managers in 2017/18, and its portfolio of funded projects from 23 to drawing on the section 12J tax incentive. The 2019 report 35 in key sectors such green energy, agro-processing, reveals interesting insights for TIA, particularly that there pharmaceuticals and manufacturing. However, a familiar is growing venture capital activity in South Africa, and the challenge this programme faces is that it is dominated by venture capital community is becoming increasingly less projects in Gauteng, Western Cape and KwaZulu-Natal. risk averse, investing in early-stage opportunities and TIA will actively promote the use of the programme’s start-up companies. This presents an opportunity for TIA incentives, especially in cases where it facilitates technology to leverage partnerships with venture capital companies to development partnerships between large and small enhance its commercialisation efforts. enterprises and publicly funded research institutions such as higher education institutions. TIA will identify opportunities In addition to the private venture capital sector, the Industrial and build on established initiatives that already exist in the Development Corporation manages the Technology programme, and seek to expand these provincially with Venture Capital Fund on behalf the Department of Trade, identified local economic development partners. Industry and Competition as the only government venture capital instrument. As the fund focuses on fully developed, Support Programme for Industrial Innovation near-market technologies, the Industrial Development Corporation remains one of TIA’s key development partners The Support Programme for Industrial Innovation is as its funds have helped carry technology enterprises designed to promote technology development in local beyond TIA’s funding capacity. industries through the provision of financial assistance for projects that develop innovative products and/or International funding processes. This is in support of government’s priority to strengthen South Africa’s global competitiveness through TIA plans to explore a number of international funding the development of new technologies. The programme opportunities. These include institutions such as the accepts ideas at the proof of concept stage and support Lemelson Foundation; the Bill & Melinda Gates Foundation; projects until they reach a stage at which a prototype is product-development entities such as the Foundation ready for production. The Annual Incentives Report further for Innovative New Diagnostics, the Programme for reveals that the fund increased its portfolio of investments Appropriate Technology in Health, the Medicines for from six in 2016/17 to 25 in 2017/19, and disbursements Malaria Venture and the Global Alliance for Tuberculosis from R20,8 million to R36,3 million over the same period. Drug Development; and many initiatives in Europe TIA recognises the synergies that exist between its risk- and the United States concerned with identifying and funding instruments and the programme. Opportunities to preparing technologies that have the potential to result in share and promote the efficient allocation of resources will commercially or socially viable products and high-potential be pursued and realised over the strategic period. companies. In the longer term, TIA plans to attract venture capital funding from firms interested in social investments Venture capital in Africa in need of an agency to administer funds and manage investments. The venture capital industry in South Africa is a nascent asset class that has come to play an important role in the Technology Innovation Agency Strategic Plan 2020-2025 | 21 PART B: STRATEGIC FOCUS 5. Internal environment analysis TIA’s performance over the 2015-2020 strategic period KPI 1.1 In pursuit of its mandate, during the 2015-2020 strategic period TIA supported 10 530 small, medium and micro enterprises through programmes such as the Technology Stations TRL progression Programme and Technology Platforms Programme; supported 348 50 knowledge products; and recorded 296 technology innovations. During this period, TIA disbursed a total of R2,2 billion to support technology innovation and related infrastructure developments; and attracted R776 million into the portfolio, with more than40 63 products and services commercialised. Figure 4 summarises TIA’s performance in this period. 30 KPI 1.1 20 TRL progression 50 10 40 0 30 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 KPI 1.1 - Planned KPI 1.1 - Actual 20 10 0 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 KPI 1.1 - Planned KPI 1.1 - Actual KPI 1.2 Innovation in the market 30 20 10 KPI 1.2 0 Innovation in the market 30 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 KPI 1.2 - Planned KPI 1.2 - Actual 20 10 4. TIA’s performance over the 2015-2020 strategic period (yellow bars depict projections for 2019/20) Figure 0 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 KPI 1.2 - Planned KPI 1.2 - Actual 22 | Technology Innovation Agency Strategic Plan 2020-2025 KPI 1.3 Third party funding (R'Mil) R400m R300m PART B: STRATEGIC FOCUS R200m R100m KPI 1.3 0 2014/15 2015/16 Third KPIfunding party 2016/17 1.3 2017/18 (R'Mil) 2018/19 2019/20 R400m Third party funding (R'Mil) R400m KPI 1.3 - Planned KPI 1.3 - Actual R300m KPI 1.3 R300m R200m Third party funding (R'Mil) R400m R200m R100m R300m R100m 0 R200m 0 2014/15 2015/16 2016/17 KPI 1.42017/18 2018/19 2019/20 R100m 2014/15 2015/16 2016/17 KPI External 2017/18 income (R'Mil) 2018/19 2019/20 KPI 1.3 - Planned 1.3 - Actual R200m 0 KPI 1.3 - Planned KPI 1.3 - Actual R150m 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 R100m KPI 1.3 - Planned KPI 1.3 - Actual R50m 0 KPI 1.4 2014/15 2015/16 External KPI 2016/17 income (R'Mil) 1.42017/18 2018/19 2019/20 R200m External income (R'Mil) R200m R150m KPI 1.4 - Planned KPI 1.4 - Actual KPI 1.4 R150m R100m External income (R'Mil) R200m R100m R50m R150m R50m0 R100m 0 2014/15 2015/16 KPI 2.12017/18 2016/17 2018/19 2019/20 R50m 2014/15 2015/16 Knowledge innovation 2016/17 products 2017/18 2018/19 2019/20 120 KPI 1.4 - Planned KPI 1.4 - Actual 0 100 KPI 1.4 - Planned KPI 1.4 - Actual 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 80 60 KPI 1.4 - Planned KPI 1.4 - Actual 40 20 0 KPI 2.1 2014/15 2015/16 Knowledge innovation 2016/17 KPI products 2.12017/18 2018/19 2019/20 120 100 Knowledge KPI 2.1 - Planned innovation products KPI 2.1 - Actual 120 KPI 2.1 80 100 60 Knowledge innovation products 80 120 40 60 100 20 40 80 20 60 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 40 20 2014/15 2015/16 2016/17 KPI 2.1 - Planned KPI 2017/18 2.1 - Actual 2018/19 2019/20 0 KPI 2.1 - Planned KPI 2.1 - Actual 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 KPI 2.1 - Planned KPI 2.1 - Actual KPI 2.3 SMMEs supported 3500 3000 2500 2000 1500 1000 500 0 KPI 2.3 2014/15 2015/16 2016/17 KPI 2.3 SMMEs 2017/18 supported 2018/19 2019/20 3500 3000 KPI 2.3SMMEs supported - Planned KPI 2.3 - Actual 3500 2500 KPI 2.3 3000 2000 2500 SMMEs supported 1500 Figure3500 2000 4. 1000TIA’s performance over the 2015-2020 strategic period (yellow bars depict projections for 2019/20) 3000 1500 2500 1000 2000 500 15000 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 1000 2014/15 2015/16 KPI 2.32016/17 2017/18 2018/19 2019/20 500 - Planned KPI 2.3 - Actual Technology Innovation Agency Strategic Plan 2020-2025 | 23 0 KPI 2.3 - Planned KPI 2.3 - Actual 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 PART B: STRATEGIC FOCUS Economic impact 15% Each year, TIA commissions studies to assess the impact 15% it has on the economy. TIA’s disbursement of R2,2 billion through a combination of grant funding and enabling programmes to beneficiaries has contributed R7,5 billion to gross domestic product and created an estimated 18 536 jobs.5 During this period, as depicted in Figure 5, 25% TIA’s average economic multiplier effect was R3,10 for every R1 spent. TIA’s investees generated total revenue of R2,5 billion.5 42% 4,0 3% 3,5 3,0 Large private company Entrepreneur HEI Science council 2,5 SMME 2,0 1,5 Figure 6: Allocation of TIA funds by market segment for 1,0 5 the 2015-2020 strategic period 0,5 0,0 Figure 7 shows that TIA’s expenditure was devoted primarily 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 towards the bio-economy sector, comprising health, agriculture, industrial biotechnology and, to a lesser extent, indigenous knowledge systems. The natural resources portfolio includes mining, water, waste and sanitation. Figure 5. TIA’s economic impact multiplier for the period 2012/13-2018/19 R400m TIA’s funding portfolio over the R350m 2015-2020 strategic period R300m (R’Mil) R250m Over the previous five-year strategic period, TIA funded 185 projects to the cumulative amount of R1,1 billion. R200m (This excludes the Seed Fund Programme). TIA has a R150m contractual obligation to 160 ongoing projects, with 25 R100m projects having been fully disbursed. A detailed analysis R100m of TIA’s portfolio reveals important insights that will inform 0 the organisation’s strategy into the future. Advanced Natural Energy Bio-economy ICT Figure 6 illustrates that TIA allocated 57% of its funding to Resources Manufacturing higher education institutions and science councils during the 2015-2020 strategic period. The remaining 43% was split between small, medium and micro enterprises, large private companies and individual entrepreneurs. Figure 7. TIA’s investment expenditure by sector for 5 Contribution to gross domestic product, jobs created and investee the 2015-2020 strategic period revenue based on Social Accounting Matrix modelling. 24 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS As with many other development finance institutions in South Africa, TIA’s investment portfolio exhibits a bias towards the major provinces of Gauteng, Western Cape and KwaZulu-Natal, primarily due to the high concentration of economic activity in the provinces driven by the presence of large metros. Figure 8 shows that an estimated 77% of funds were disbursed to recipients in Western Cape and Gauteng. Northern Cape and Mpumalanga each received only 0,1% of the allocation during this period. R500m R450m R400m R350m (R’Mil) R300m R250m R200m R150m R100m R50m 0 Free State Western Cape North West Gauteng Eastern Cape Mpumalanga Northern Cape Limpopo KwaZulu-Natal Figure 8. Funding allocation by province for the 2015-2020 strategic period The insights from the analysis of TIA’s portfolio are Office to identify disclosed intellectual property for instructive for the agency’s strategic direction. This is enhanced commercialisation. particularly important given South Africa’s socioeconomic • Although the sectoral split shows that TIA has challenges and the key government policies that aim to prioritised certain sectors, the agency will align address the triple challenges of poverty, inequality and itself with key thematic areas to broaden its sectoral unemployment. This direction will be guided by TIA’s focus reach. This will result in greater alignment with the on contributing to priority 2 (economic transformation and DSI’s Decadal Plan, sectoral master plans and other job creation) and priority 3 (education, skills and health) key government policies aimed at addressing South of government’s 2019-2024 Medium-Term Strategic Africa’s socioeconomic challenges. Framework. In addition, the White Paper on Science, • Expand TIA’s geographical footprint through Technology and Innovation calls for a number of shifts that increased support for underserved provinces in emphasise transformation, inclusivity and partnerships. response to the imperatives of inclusive development The 2013 Ministerial Review Report will also continue to and the empowerment of marginalised constituencies guide TIA’s role and positioning in the National System of such as young people, women and people with Innovation. The following principles will specifically guide disabilities. This will require increased investment in TIA’s strategy over the period ahead: the priority sectors identified in the relevant provincial economic growth and development strategies • Increase funding allocation towards the higher in which TIA will also endeavour to broaden the education institutions and science councils, and in deployment of services offered by Technology so doing driving transformation and inclusivity, with Stations. a focus on historically disadvantaged institutions. • Accelerate the translation rate of ideas to high levels In implementing this initiative, TIA will work closely of maturity and use intellectual property from publicly with the National Intellectual Property Management funded research under appropriate conditions to Technology Innovation Agency Strategic Plan 2020-2025 | 25 PART B: STRATEGIC FOCUS support women and black entrepreneurs when licensing to potential customers, forging strategic such intellectual property is commercialised. TIA will alliances with customers to integrate technology into their adopt an approach that emphasises demographic supply chains, and whether to source equity investment transformation, institutional transformation, and the through a spin-off company or an initial public offering. transformation of the public’s awareness of and value TIA has invested in many technologies that have followed placed on science, technology and innovation. these routes towards commercialisation. However, the • Increase engagement with the private sector, success of innovations in which TIA has invested largely primarily with the aim of promoting collaboration with depends on the extent to which the agency is able to de- the research community; ensuring that TIA’s research risk them. output is aligned with industry and sector needs; leveraging private sector funding and expertise; and Figure 9 shows the technology readiness level status promoting linkages with industry supply chains. for active projects in the Sector Funding division as at the fourth quarter of 2019/20. TIA will focus on commercialising projects that are between technology 6. Planned strategic initiatives readiness levels 7 and 9. This portfolio consists of 22 near- market technologies that constitute an initial portfolio of Enhancing commercialisation projects that TIA will intensify its efforts to commercialise in the early years of the strategic cycle. Beyond this, The commercialisation of promising ideas and innovations TIA will adopt new development and funding strategies from publicly funded intellectual property remains at the to enhance its commercialisation efforts, ensuring that core of TIA’s mandate. Although the agency supported a it carefully selects and invests in projects based on the range of innovations over the previous strategic period, the following approaches: current socioeconomic context requires that TIA explores a variety of approaches to increase the rate at which it • The intensified deployment of a scaled-up Seed Fund is able to accelerate early-stage ideas to higher levels Programme. of maturity, and thereby increase its commercialisation • An ecosystem approach to project funding. success rate. • An approach led by industry demand that emphasises partnerships with the private sector. Innovators have a range of options to consider when • Joint technology development with African and commercialising their technologies. These include international partners. 26 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS TRL 2/3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9 Rare Earth Compressed Brayfoil Solar Varibox Rubber Nano FibreLux Air Energy Technologies Incidence Tourism App Storage Helio NovelQuip Weldcore Centre for Meganika Machine SAMAC HyPlat Water and Small Scale MultiCam AcqAqua Technology sanitation Pyrolysis Engineering Coalgae and management system Cardio Flow Integrated Tiisetso Cognitive Innovation Diode Pump Systems GasCam Price Labelling Development Solid State Solutions Settle Bed laser Geo- Intellicred Contactable Detector Location Ellumin8 Impact Free FibrePoynt Based Water Custos Balancell Lithium Dynamics Manganese Spectrum RIOT One-step Nickel Oxide Allocation Reactor Continuous Numad SpaceDecode Superficial PST Sensors Rotowinner Fluid GemPay Tertiary Extraction treatment and beneficiation Poly-Nano PAISA of domestic Composite wastewater Technovera use Smart Sensor microalgae Beneficiation Bioremediation of Zircon of wetlands Mineral Water and Green Iron sanitation Technology management system Trailblazer Technologies Figure 9. Technology readiness level status of active projects in the Sector Funding division Scaling up the Seed Fund Programme The Seed Fund Programme has demonstrated a good track record as an instrument for sourcing promising projects from the research community and small, medium and micro enterprises. As a result, many of TIA’s projects that made it to market were largely from the Seed Fund Programme portfolio. This fund will be deployed with greater intensity and scaled up through effective funding partnerships. Critical to this will be to foster better alignment between the Seed Fund Programme and the other TIA funding instruments to ensure a streamlined funding process that maximises TIA’s limited funding resources. These funds will be aligned with key strategic focus areas across all provinces within the various sectors identified, and as a result, the sourcing of projects from universities, science councils and small, medium and micro enterprises will be directly connected with the thematic areas identified in the strategic plan. Specifically, the fund will be directed to stimulate innovation initiatives in the underserved provinces in partnership with the economic development agencies and other relevant stakeholders. This will assist in promoting the geographical diversity of TIA’s portfolio. Technology Innovation Agency Strategic Plan 2020-2025 | 27 PART B: STRATEGIC FOCUS Consolidation of TIA funding instruments the research community and other international experts to share ideas, exchange knowledge and initiate strategic Improving TIA’s commercialisation efforts requires innovation programmes to be funded by TIA. the agency to streamline its funding instruments to ensure a smooth transition from one fund to another. Innovation led by industry demand TIA provides risk funding through the Seed Fund Programme, Technology Development Fund and the The White Paper on Science, Technology and Innovation Pre-Commercialisation Fund. The impact of these funds identifies increased support for and collaboration with is negatively affected by the disparate manner in which the business sector as a specific policy intent. The they are organised resulting in multiple processes that 2019 National Advisory Council on Innovation Science, underpin systems and frameworks. In many ways, this Technology and Innovation Indicators report reveals a has undermined the smooth transition of projects from few insightful findings on the role of business in research, one fund to another. TIA will therefore consolidate all its development and innovation. Key among these are that funding instruments into one Innovation Fund that will be government spending on business has decreased, as a governed by a single process and framework. This will percentage of gross domestic product, from 0,6% in 2007 ensure quicker turnaround times for decision-making and to 0,4% in 2017; and that researchers are moving from the provision of coordinated support to projects to ensure the business sector into the academic sector, making that they progress rapidly to the market. business more reliant on partnering with universities to source innovative solutions to their challenges. As a Technology Acquisition and Deployment Fund result, South Africa is spending less on innovation led by industry. Through the Thematic Network initiative and TIA, in partnership with the DSI, is piloting the Technology TIA’s funding instruments and technology infrastructure, Acquisition and Deployment Fund with the aim of the agency will seek to deepen its linkages with the facilitating the commercialisation of locally developed private sector to identify demand opportunities for technologies and promoting their uptake by the public science, engineering and technology interventions sector to improve their operations, enhance service within key sectoral value chains that enhance industry’s delivery and address pressing socioeconomic challenges. productivity and competitiveness. This is in line with the Through this fund, South African entrepreneurs, start-ups Sector Innovation Fund managed by the DSI, in which TIA and small, medium and micro enterprises will have the will play a role. opportunity to access much-needed capital for market testing and the demonstration and validation of their International partnerships innovations in real market and operational settings. Through its International Partnerships Programme, TIA Ecosystem approach to innovation will promote the development of joint innovation initiatives between South African researchers; small, medium and Given TIA’s funding constraints and the need to fully micro enterprises; and companies with carefully selected exploit South Africa’s knowledge endowments and the counterparts in countries in Europe, the Americas and Asia. capabilities of the National System of Innovation, the This approach will enable South Africans to access much- agency will increasingly adopt an ecosystem approach to needed knowledge and technology transfer, international the identification and funding of projects. This approach expertise, intelligence on trends in global markets, and will promote increased collaboration with key stakeholders access to high-end research and development facilities. in the National System of Innovation who will bring to bear The co-funding model with international partners will their expertise, co-funding, networks and knowledge of promote a cost-sharing approach per project. Through technology trends. The Technology Innovation Cluster this approach, TIA will leverage more resources within Programme will form an important basis for the launch of the context of its budgetary constraints while increasing various initiatives for the bio-economy and industry. This opportunities for accelerating its investments towards will be underpinned by the establishment and funding of commercialisation and faster access to global markets. themed sector networks that will bring together industry, 28 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS Enhancing the role of the bio-economy • creating a coherent policy environment; in economic development • investing in knowledge, innovation and skills; • ensuring participative governance and informed The bio-economy has attracted significant interest as dialogue with society; and a means to address some of the major challenges • creating new infrastructure and instruments. characterising the 21st century. The cross-cutting nature of the bio-economy offers a unique opportunity State of the bio-economy in South Africa to comprehensively address interconnected societal challenges, such as health care and the burden of Research, development and innovation disease, food security, the scarcity of natural resources, dependence on fossil fuels and climate change, while Bio-economy-related research is thriving in universities, achieving sustainable economic growth. science councils, government research units, industry associations and private research facilities. This research Advancements in biotechnological research and resultant is generally aligned with national priorities such as uptake of innovation will allow South Africa to improve the infectious diseases, food security, climate change and management of its renewable biological resources and the environment. Despite some weaknesses such as open new and diversified markets in food and bio-based low investment in research and development, a stagnant products. South Africa has a significant capacity for human resource base and declining business spend knowledge generation in the bio-economy domain, which on research and development, there is a solid basis for has the potential to maintain and create economic growth, TIA to continue with its translation of publicly funded develop and grow capabilities in human resources, intellectual property to advance the objectives of the Bio- increase the number of jobs and businesses, and improve economy Strategy. the economic and environmental sustainability of primary production and processing industries. TIA will target the health, indigenous knowledge systems, agriculture and industrial biotechnology sectors. The capacity to generate knowledge in these sectors and promote collaboration between the public and private sectors is essential for the enhancement of existing value chains and the creation of new ones. The successful implementation of this strategy requires a high degree of alignment and engagement among multiple stakeholders and role players across the ecosystem. TIA’s bio-economy agenda is aimed at strengthening the agency’s ability to inform research and innovation in the relevant sectors, and facilitate a more coherent policy environment and a more engaged public dialogue. By focusing on the following points, TIA expects the bio- economy to yield great benefit to South Africa by: • ensuring food security; • managing natural resources sustainably; • reducing dependence on non-renewable resources; • mitigating and adapting to climate change; • creating jobs and improving competitiveness; Technology Innovation Agency Strategic Plan 2020-2025 | 29 PART B: STRATEGIC FOCUS Public and private funding of biotechnology Policy measures such as tax incentives for research and development exist to encourage technology-based The early-stage development of biotechnology innovation among business enterprises. In the public innovations is predominantly supported by government sector, innovation is incentivised through the 2008 funding. This has served well to reduce the risk associated Intellectual Property Rights from Publicly Financed with early-stage investment opportunities, thus attracting Research and Development Act. The use of public other interested follow-on funding partners. The South procurement to stimulate innovation and create markets African Venture Capital and Private Equity Association’s for South African products is not yet well developed. 2019 Venture Capital Survey shows that the number of During the next five-year strategy period, the functioning of venture capital investments in biotechnology-related these schemes will be crucial to enable TIA and other role products has grown steadily over the past five years, players to deliver on the objectives of the Bio-economy particularly in health, medical devices, and food and Strategy to improve innovation and commercialisation beverages. Life sciences, biotechnology and agriculture outcomes in agriculture, health, industry and the account for a smaller proportion. The introduction of a environment, and indigenous knowledge. private sector-funded Biotech Fund in 2019 bodes well for the growing venture capital market in South Africa, Agriculture specifically the bio-economy sectors. TIA must continue to build appropriate strategic partnerships to boost this Agriculture remains a significant provider of employment, sector and diversify the sources of funding available to especially in rural areas, and is a major earner of early-stage business enterprises. foreign exchange. South Africa needs to ensure that the agricultural industry remains healthy so that it continues to Legislative and regulatory environment contribute to the country’s gross domestic product, food security, social welfare, job creation and ecotourism while The policy and regulatory environment for the stimulation of a adding value to raw materials. However, South Africa is knowledge-based bio-economy is a key enabler for the sector affected by a number of global trends that influence food to thrive. South Africa has a sound regulatory environment security, poverty, and the overall sustainability of food and for bio-based products in areas such health, agriculture and agricultural systems. The main developments placing food, but one of key challenges remains the long turnaround pressure on agriculture to meet the demands of the future times in the approval process. TIA, through the DSI and with are rapid population growth, a reduction in the amount other role players, must play an active thought leadership of available arable land, the scarcity and/or depletion of and advocacy role to improve the responsiveness of the natural resources, and climate change. regulatory system through the provision of evidence-based policy advice where appropriate. 30 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS The agriculture sector must embrace efficient South Africa runs a two-tiered health care system methodologies provided by advancements in sensors, comprising the public and the smaller, rapidly growing robotics, and information and communication technologies private sector. Access to affordable, high-quality medical to produce food in safe and environmentally friendly ways. care is a major challenge. The public health sector is Some of the influential trends over the next five years are under-resourced and caters for 84% of the population, expected to be: whereas the highly resourced private health sector caters to only 16%. To eliminate this inequality and provide the • Acceleration in technology: The use of data will population with essential universal health care coverage, supplement what farmers know intuitively and, in some government is in the process of implementing national cases, challenge those assumptions. New products health insurance. rely on aerial satellite imagery, greenness sensors, soil maps and millions of weather data points. Data The South African health sector has experienced ownership will be a subject of growing debate. significant challenges, in both communicable and non- • Resource scarcity: More than 40% of the increase in communicable diseases, among a population facing a food production since 1961 has been accomplished heavy burden of perinatal and maternal disorders, injury through irrigation, but groundwater supplies are finite. and violence. The country’s burden of non-communicable Farmland is fast diminishing as a result of urbanisation. diseases such as HIV and tuberculosis is considerable: Climate change also poses challenges. Scientists South Africa is home to more people living with HIV than estimate that for each 2°C increase in temperature, anywhere else in the world, and ranks the third among key crop yields decrease by 10%. countries with the highest burden of tuberculosis, after • Influence of environmental awareness: From the India and China. However, as major non-communicable use of fertilisers to pesticides, farmers must be mindful diseases (cardiovascular disease, cancer, diabetes and of a complex, growing web of regulations. chronic respiratory disease) share common behavioural • Flux in government policy: Successive risk factors (tobacco, unhealthy diet, physical inactivity administrations in South Africa and other countries and the harmful use of alcohol), there are common have established approaches to land use, biofuels, pathways for prevention. genetically modified organisms and monetary policy that seem likely to continue to affect the industry. Health The National Development Plan envisages a strong health system that works for everyone, produces positive health outcomes and is accessible to all for improved health and wellbeing. The plan targets the following health outcomes by 2030: • Raise the life expectancy of South Africans to at least 70 years. • Progressively improve tuberculosis prevention and cures. • Reduce maternal, infant and child mortality. • Significantly reduce the prevalence of non- communicable diseases. • Reduce injury, accidents and violence by 50% from 2010 levels. Technology Innovation Agency Strategic Plan 2020-2025 | 31 PART B: STRATEGIC FOCUS Figure 10 illustrates a “cocktail of four colliding epidemics” – maternal, newborn and child health; HIV/AIDS and tuberculosis; non-communicable diseases; and violence and injury. Maternal, newborn and HIV/AIDS and Non-communicable Violence and injury child health tuberculosis disease • The increasing trend • Marked changes • Non-communicable • Interpersonal in the maternal in mortality have diseases, as a violence and mortality was reversed been experienced group, now account road traffic in 2010 and Maternal with declines for the highest injuries account Mortality Rate reached corresponding with number of deaths in for considerable 152 per 100 000 the roll-out of ART South Africa premature loss of livebirths in 2015 and the earlier PMTCT life - inter-sectoral intervention - 153 000 • Cardiovascular actions are needed • Under 5 Mortality Rate people died from conditions are the to change norms in has declined from 80 HIV/AIDS in 2012 leading category of society and build per 1000 livebirths in compared to 300 000 non-communicable social cohesion 2003 to 34 per 1000 in 2006 disease deaths livebirths in 2016 in South Africa • 52% reduction in • HIV/AIDS remains the accounting for 19% death rate from • Neonatal conditions, leading cause of death of deaths in 2012 interpersonal HIV/AIDS, diarrhoeal • efforts to provide violence (homicide) disease and lower access to treatment • Essential to between 1997- respiratory infections/ must be enhanced address leading 2012, accompanied pneumonia need • prevention risk factors for political stabilisation to be addressed to efforts must be non-communicable in the country, and reduce child mortality strengthened, diseases i.e. Fire Arms Control further particularly among smoking, alcohol, Act of 2000 young women physical inactivity and diet, and • The homicide rate in • SA is estimated to provide primary South Africa remains have the biggest healthcare to much higher than tuberculosis burden in manage them the global average the world - a sizable number of HIV/AIDS deaths are associated with tuberculosis Figure 10. South Africa’s burden of disease (Source: South African Medical Research Council) 32 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS Indigenous knowledge-based innovation portfolio of investment in indigenous knowledge systems and actively participate in national initiatives such as the As the world’s third-most biologically diverse country, multi-institutional BioProducts Advancement Network South Africa has a major comparative advantage. The South Africa. TIA will work with its partners to develop country is home to almost 10% of the world’s known support programmes that are inclusive in the sourcing of plant species and 15% of all known coastal marine indigenous knowledge-based projects, provide technology species. South Africa comprises nine unique vegetation development and early-stage commercialisation financing, types (biomes), of which three have been declared and provide entrepreneurship support to establish global biodiversity hotspots, and is also the only country sustainable enterprises. to contain an entire floral kingdom – the Cape Floristic Region. South Africa’s natural capital of biological diversity, In a survey of public perceptions on biotechnology, South combined with its wealth of indigenous knowledge, forms Africans have commonly used biotechnology in the context one of the country’s greatest assets. of indigenous knowledge systems and practices6. Up to 47% of respondents reported using traditional medicines There is also a need to strengthen and coordinate the with varying frequencies, 44% reported using biological informal indigenous knowledge-based herbal medicines processes to prepare food, and 38% reported using market to grow and formalise the African traditional traditional farming practices. The high levels of awareness medicines sector by seeking to add value through cutting- and use of indigenous knowledge-based biotechnology edge biodiversity-based bioprospecting and research in in daily life provides a solid basis to promote innovation product development. and local product development. It is estimated that 80% of the South African population Industry and the environment uses traditional medicine. The formalisation of the traditional medicines informal sector is expected to South Africa has historically grown its economy primarily contribute to rural economic development, and has through mining and the use of non-renewable resources. the potential to negate the trend to migrate to cities in As these resources become increasingly limited, new search of employment. It will also enable the optimal technologies are being used to enable economic growth. management of indigenous biological resources and The potential for industrial biotechnology to contribute reduce the uncontrolled harvesting of certain wild plants, to the bio-economy focuses on industry and sustainable thus protecting them from extinction. This will contribute environmental management. The focus on industry to environmental sustainability, economic development involves bio-based chemicals, biomaterials and bio- and improved household incomes in rural areas, and energy, whereas the focus on sustainable environmental capitalise on the global demand for natural products. management involves water and waste as means of providing environmental sustainability for the industrial Although progress in mainstreaming the development of bio-economy. and commercialisation in indigenous knowledge systems has been slow, there are promising signs that this is Furthermore, in line with global trends, there is a growing changing. The promulgation of the Protection, Promotion, need to explore alternative and/or renewable raw materials Development and Management of Indigenous Knowledge for the production of commercially important products. Act (2019) is a significant milestone in the mainstreaming Building a sustainable bio-economy requires a source of of the indigenous knowledge-based innovation. The renewable materials. Plant biomass is widely considered Act aims to, among other things, protect and promote a potentially useful substrate for use as raw material, but indigenous knowledge, and facilitate and coordinate processes need to be optimised to make this a feasible indigenous knowledge-based innovation in South Africa. option. Traditionally, South African agriculture does It provides TIA with a solid foundation to improve its not process plant by-products, resulting in more than 6 Public perceptions of biotechnology in South Africa (2018). Technology Innovation Agency Strategic Plan 2020-2025 | 33 PART B: STRATEGIC FOCUS 20 million tons of underutilised resources each year, with and recycle this important resource. The development of the uncontrolled growth of invasive plants contributing bioremediation solutions for wastewater treatment is an a further 17 million tons. There is therefore a need for important intervention in the conservation of water and enabling technologies that provide a feasible conversion preventing the contamination of other natural resources. of biomass at the industrial scale to a variety of value- Wastewater treatment also offers the opportunity to extract added products that would also lead to job creation. useful materials using bio-based solutions. Biorefineries are seen by many as key components of a strong, diversified bio-economy to enable the efficient The South African chemicals industry is highly diversified conversion of a broad range of biomass feedstocks into and plays a major role in the economy, contributing 25% to commercially viable bioproducts. local manufacturing and 4% to the country’s gross domestic product, mainly through commodity chemicals and mineral Biorefineries provide the opportunity to introduce greener fuels. In recognising that it is critical to innovate to improve production processes to develop value-added products in the competitiveness of the sector, the development of green an integrated economic and technically feasible manner. chemical processes, preferably based on sustainable Biorefineries depend on specialised microbial strains that feedstocks to produce value-added products, must form can efficiently produce fuels and chemicals from different part of the innovation agenda for the sector. Biocatalysis, feedstocks in high yields. Biorefinery products may using both enzymes and microbes, is an important either be integrated into existing value chains where they capability to harness to realise such ambitions. Biocatalysis replace existing products, or bio-based products that are could help South Africa produce chemicals such as those novel and cannot easily be integrated into existing value found in pharmaceuticals in a cost-effective manner, as well chains. However, the funding required to commercialise as for products in food, beverages, medical supplies and these products might be prohibitive. various consumer goods. Water scarcity is a South African and global challenge that highlights the need to seek new ways to conserve 34 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS Bio-economy initiatives Figure 11 depicts each of the bio-economy subsectors with their respective areas of focus. Agriculture Health Industry & Environment IK-Based Innovation Breeding and Reproduction Digital Health Biobased Chemicals African Natural Medicines Animal Health and Nutrition Medical Devices and Biomaterials Cosmeceuticals Diagnostics Plant Health and Nutrition Bioenergy Neutraceuticals Pharmaceuticals Post-Harvest Technologies Water Health Infusions Biopharmaceuticals Waste Technology Platforms Programme Technology Innovation Clusters Figure 11: Bio-economy focus areas Technology Innovation Agency Strategic Plan 2020-2025 | 35 PART B: STRATEGIC FOCUS Agriculture The objectives of TIA’s Agriculture subprogramme are to promote food security, rural and township development and economic transformation, and create more resilience to climate change across the agriculture value chain (Figure 12). In this regard, TIA will focus on developing and exploiting technologies in areas such as breeding and reproduction; animal health and nutrition; plant health and nutrition; and agro-processing and post-harvest technologies, including smart or information and communication technology-based agricultural technologies. Input supply Agricultural Processing Distribution industry production and marketing Machinery Small-scale Logistics manufacturers, Farmers, cooperatives processing, agri-food companies, agrochemicals, feed industry industry wholesale and retail • Fertilizer production • Irrigation • Drying • Cooling • Crop protection • Fertilizer • Cooling • Distribution • Livestock protection • Conservation • Storage • Fodder and feed agriculture • Food and beverage • Machinery • Livestock & crop processing • Breeders and seed production suppliers • Veterinary services • Protected cropping • Agricultural machinery Figure 12. Agriculture value chain • Food safety, security and nutrition: In line with the Through this approach, TIA will promote the transfer of national 2017-2022 Food and Nutrition Security Plan technologies and knowledge benefits to poor people and the Bio-economy Strategy, TIA will leverage in rural communities and the informal economy. technologies that are already developed to promote • Climate change resilience: TIA will continue to food security and nutrition. To this end, TIA will pursue support the development of technologies that enable opportunities in post-harvest technologies and storage agricultural production in adverse conditions that or techniques to improve shelf life; agro-processing arise from erratic and changing climate patterns technologies and the detection of mycotoxins; and that cause severe drought and heavy rains. This soil health and agronomic technologies. will include pursuing opportunities in breeding and • Inclusive development and rural economic production technologies; drought- and disease- transformation: TIA will partner with research resistant technologies; early-warning technologies institutions such as universities, the Agricultural and diagnostics; and improved agronomic practices Research Council and the Council for Scientific such as precision agriculture, no-till techniques and and Industrial Research to design broad-based conservation agriculture. deployment and diffusion of technology solutions. 36 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS Health Through the Health subprogramme, TIA will work towards bridging the innovation chasm that exists between concept formulation and full-scale product manufacturing in the health value chain, as depicted in Figure 13. Bridging the gap between Research and Commercialisation Demonstration/ Prototype/ Registration Full Marketing Clinical Market R&D Product and Scale and Development validation/ Development Approvals Manufacturing Distribution Piloting Figure 13. Health value chain During the strategic period, TIA will support the • Medical devices and diagnostics: This is a key advancement of health-related technologies through area of intervention to contribute to equitable and product development, validation and market testing. These affordable access to health care for all. TIA will target efforts will be directed towards addressing the diagnosis technologies that address early screening or the timely and treatment of diseases relevant to South Africa and and more accurate or efficient diagnosis of diseases, Africa more broadly. In so doing, TIA will seek to exploit the as well as the management of disease. confluence of digital technologies and big data to improve • Pharmaceuticals: TIA will target opportunities that the delivery of health care services, in line with priority 3 are at a late stage (pre-clinical and later) in cases (education, skills and health) of government’s 2019-2024 where co-funding or collaboration with other partners Medium-Term Strategic Framework. Future investments exists through arrangements such as public-private will mainly prioritise digital health, medical devices and partnerships or product development partnerships. diagnostics, including technologies that improve access to This will be done through ongoing investment in health care and address high-burden diseases. relevant Technology Platforms, programmes and clusters for drug development and industries that • Digital health: This area promises to provide myriad manufacture active pharmaceutical ingredients. solutions to address challenges in health care. The Artificial intelligence will further support enabling Department of Health’s eHealth Strategy is aimed interventions and programmes to address gaps and at developing an integrated, national patient-based shortfalls in the industry. information system that is able to interface with • Biopharmaceuticals: There are opportunities to other systems used in the health sector. eHealth explore biosimilars or biobetters and other innovative covers technologies in electronic health records, production technologies, such as biopharming health management information, consumer health and biologics. Opportunities also exist to assist informatics, telemedicine, virtual health care, mobile local industry development, potentially including health and health research. bioprocessing, quality control laboratories, and protein engineering or production. Technology Innovation Agency Strategic Plan 2020-2025 | 37 PART B: STRATEGIC FOCUS • Precision or personalised medicine: Through biorefinery approach provides the opportunity to use initiatives such as genomics platforms, TIA will continue renewable biomass to generate high-value products such to support existing sites that generate and analyse big as proteins, fine chemicals, carbohydrates and oils, which data. This provides scope to implement genomic and in turn create potential economic opportunities. The use precision medicine solutions, particularly for African of bio-based solutions in industrial processes is depicted populations, and further assess the landscape for in Figure 14. other emerging technology areas. TIA will also support existing bioprocessing and Industry and environment biomanufacturing capabilities for product development and the creation of small, medium and micro enterprises. Bioprocessing technologies are used to convert various The establishment of biorefinery initiatives will be a priority types of feedstock or biomass into useful products, over the next five years, particularly the development ranging from bulk products to fine, high-value products. and deployment of technologies such as extraction Water security is a global problem, and the recent droughts and formulation processes within the natural products in South Africa have thrown this issue into sharp relief. industry. The focus in this sector will be primarily on bio- The use of wastewater as feedstock in bioprocessing based chemicals and, more broadly, on bioproducts, technologies can be deployed to remediate wastewater bioremediation and waste beneficiation. while producing valuable products. The integrated Biofuels BULK Ethanol Hydrogen Increasing value Biomass, Sugars feedstock Biomaterials Polymers Ceramics Bioprocesses Biochemicals Food ingredients Pharmaceuticals FINE Fine chemicals Figure 14. Industrial biotechnology value chain • Bio-manufacturing industry development: In and specialty biochemicals such as nutraceuticals, partnership with the Council for Scientific and flavourants and cosmeceuticals, with a specific focus Industrial Research and other role players, TIA will on building small enterprises. The secondary thrust establish a dedicated programme for new and existing will be to develop human capacity by encouraging small enterprises in the biomanufacturing sector. The small, medium and micro enterprises to participate primary thrust of the programme will be to use a value in the programme to create critical mass within the chain approach to improve the local production of bulk biomanufacturing sector. 38 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS • Biocatalysis: TIA will support investments in acceptable standards before discharge. This includes projects, programmes and initiatives that deploy supporting projects and programmes to promote biocatalytic technologies to develop products in bioremediation and the rehabilitation of contaminated various industries including fine chemicals, polymers, areas, including landfills. textiles, cosmetics, flavours and fragrances, with a particular focus on technologies that reduce Indigenous knowledge systems manufacturing costs and environmental impact, and use more benign process conditions. Biocatalysis TIA will use sectors such as indigenous knowledge to uses enzymes or micro-organisms to replace support economic transformation and promote inclusivity, conventional industrial chemical processes, and particularly of historically marginalised segments of society. provides alternative manufacturing solutions. Indigenous knowledge systems hold great potential for • Integrated biorefineries: This approach will be the establishment of new industries, and, as such, the adopted to invest in projects and programmes sector is poised to give South Africa a competitive edge that use renewable biomass to produce a range of internationally. The capacity to generate knowledge in this chemical outputs. Outputs include bio-energy, bio- area and the promotion of public and private collaboration based chemicals, biomaterials, food, and animal are important pillars for enhancing existing value chains feed products. TIA will work with other partners and creating new ones. The successful implementation to consolidate various activities and develop of this industry requires a high degree of alignment and strategic capabilities to realise integrated biorefinery multi-stakeholder engagement with role players across approaches. A key component of this strategy is to the ecosystem. provide support to the forestry and sugar industries to improve the use of forestry and sugar cane biomass, South Africa has a rich biodiversity and long-held and the exploitation of algal biotechnologies. knowledge systems on the use of various flora. This • Wastewater bioremediation: Domestic and industrial resource base provides opportunities for the development wastewater contributes to environmental pollution and of commercially viable products in African traditional degradation. TIA will support projects, programmes medicines, and cosmeceutical and nutraceutical industries, and initiatives that focus on the treatment of domestic as depicted in the broad value chain in Figure 15. and industrial wastewater and acid mine drainage to Proof of Raw material concept Natural product Target market Processing and Sales and Harvesting Manufacturing formulation distribution Figure 15. Natural products value chain Technology Innovation Agency Strategic Plan 2020-2025 | 39 PART B: STRATEGIC FOCUS TIA will harness indigenous ideas by supporting the centralising the development and application – with the development of technologies to conduct process associated infrastructural costs – of certain technological development, product formulation and, where capabilities so that they are accessible to and shared with necessary, the clinical validation of indigenous-based others, rather than funding individual entities or projects natural products. These products have the potential to to acquire such capacity independently. Technology benefit from increasing consumer demand for naturally Platforms will continue to be selected based on their produced medicines, foods, beverages and cosmetics. potential to support technology development in various TIA aims to grow the proportion of funding dedicated sectors of the economy. One of the key considerations to investments in indigenous knowledge-based projects that will inform the choice to invest in certain technological and programmes in its portfolio. The agency will adopt capabilities will be the extent to which these technologies inclusive innovation approaches that make knowledge can contribute to the achievement of national priorities holders and communities part of the development and and deliver value in line with the Bio-economy Strategy. commercialisation value chain, and thus contribute to the creation of community-based enterprises and jobs. To this Investments in technological infrastructure over the next end, TIA will pursue opportunities in: five years will be guided by optimising the use of existing capabilities to support biomanufacturing endeavours for • African traditional medicines: One of the key small enterprises; strengthening support for indigenous focus areas will be to build capabilities to support knowledge-based innovators in various value chains the validation of efficacy and the safety of African in product development, market testing and validation; traditional medicines, and support their mainstream enhancing access to large-scale infrastructure requirements commercialisation. TIA will also provide financial to successfully realise integrated biorefineries; developing and non-financial support that promotes inclusivity capabilities for technology and product development in of indigenous knowledge holders in product veterinary and human health applications; and developing development and commercialisation. capabilities to exploit conversion technologies, such as big • Cosmeceuticals, nutraceuticals and health data generation and analysis to exploit local opportunities, infusions: TIA will establish facilities to assist in amongst other measures. product development and the pre-commercial manufacturing of nutraceuticals and cosmeceuticals. Technology Innovation Clusters Programme In addition, the agency will use the capabilities of its innovation infrastructure in Technology Platforms and TIA stimulates the development of value chain activities Technology Stations to support these initiatives. or mechanisms to facilitate sector- or industry-level engagement through the crosscutting approach adopted Collaboration with key stakeholders in the ecosystem will in the Technology Innovation Clusters programme. This form an important component in the development value is intended to address systemic weaknesses that hamper chain for indigenous knowledge-based products. In this innovation and commercialisation beyond just the role, TIA will provide funding for technology development, provision of funding to individual projects. competencies and infrastructure capabilities to increase the creation of and support innovative start-ups and Through this programme, TIA manages a number of small, medium and micro enterprises. The agency will initiatives that are strategically aligned with national also leverage the capabilities of existing stakeholders priorities. These include agricultural programmes in such as the Small Enterprise Development Agency for the areas such as beef and dairy genomics, animal health provision of entrepreneurial support. and forestry molecular genetics. Clusters relevant to the health sector include active pharmaceuticals, nuclear Technology Platforms Programme medicines, and medical devices and diagnostics. Technology Platforms seek to achieve efficiencies in key biotechnology innovation value chains through 40 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS Positioning Technology Stations for Government has placed emphasis on small, medium and enhanced small, medium and micro micro enterprise development as important policy priority enterprise support to promote the establishment of viable enterprises to spur new businesses, and thereby stimulate job creation and TIA provides a wide range of science, engineering and reduce unemployment and poverty. technology support through its network of 18 Technology Stations throughout the country. These largely serve as The imperatives of transformation require an increase technology transfer centres that offer support to small, in the spatial footprint of innovation in South Africa that medium and micro enterprises and access to high-end will contribute to the improvement of local economies equipment, and are resourced with experts in specialised through the creation of a stronger role for innovation in fields to develop new products and processes. They rural development and support for regional and local effectively serve as technology nurseries that play an systems of innovation. important role in lowering barriers to entry for innovators, and have been successfully deployed to provide small, The White Paper on Science, Technology and Innovation medium and micro enterprises and industry with envisages a number of important shifts regarding the various technology packages. During the previous positioning of Technology Stations. Firstly, as these strategic period, TIA provided support to more than provide innovative science, engineering and technology 10 000 small, medium and micro enterprises and solutions for complex engineering challenges within individual entrepreneurs. various industrial sectors to support government’s socioeconomic priorities, TIA will position the stations to support the effective implementation of various sectoral master plans. Secondly, efforts will be intensified to support the localisation and diffusion of technologies through existing and new technology-based support interventions. Thirdly, the White Paper on Science, Technology and Innovation acknowledges that small, medium and micro enterprises often struggle to innovate, perform research and development, access knowledge and absorb new technology. As a result, through interventions such as walk-in support at Technology Stations, the delivery model will be scaled up to provide broad-based support to these enterprises to ensure that more of them are able to access services, equipment and support in product and technology commercialisation. Technology Stations will be scaled up and repositioned as a package of offerings in the National System of Innovation, leveraging complementary features with other government and industry support instruments. However, Figure 16. Network of Technology Stations TIA is aware that the concentration of these facilities in cities and metros implies that budding entrepreneurs However, the Technology Stations model is no longer in rural areas and townships face the risk of further adequate to service the needs of an evolving innovation marginalisation. As a result, in the strategic period, TIA will landscape. The increasing diversity of sources of innovative work to build on this solid foundation to ensure that the ideas has widened to include entrepreneurs outside formal science, engineering and technology support provided to systems of innovation, such as grassroots innovators, non- small, medium and micro enterprises and entrepreneurs governmental organisations and other community-based is strategically informed and regionally distributed through organisations, as opposed to only the scientific community. a number of initiatives. Technology Innovation Agency Strategic Plan 2020-2025 | 41 PART B: STRATEGIC FOCUS In doing this, the agency will seek to: ability to achieve its set objectives effectively. These include building and leveraging strategic partnerships for • increase the performance and relevance of increased funding in the National System of Innovation Technology Stations, enabling them to serve a larger to bolster TIA’s funding base and resources; creating number of small, medium and micro enterprises partnerships to develop innovation skills and a national and entrepreneurs. This will involve the drive to culture of innovation; enabling thought leadership for modernise facilities, ensuring that they are accredited system-wide impact; and implementing measures to and adequately geared to respond to the challenges increase operational efficiency and effectiveness. and opportunities arising from the fourth industrial revolution and sectoral master plans. Consequentially, TIA will consolidate a number of its • expand and diversify the suite of science, engineering innovation-enabling programmes to enhance their potential and technology support to enhance reach to for maximum impact. In the strategic period, various marginalised communities through models such programmes will be streamlined to strengthen the agency’s as Living Labs, technology incubators and walk-in impact on the creation and provision of support to start- centres, thereby improving spatial inclusivity. This is ups and small, medium and micro enterprises. Effort will be particularly important in light of the changing nature of directed towards strengthening transformation, economic sources of innovation to include grassroots innovators inclusivity, and the development of viable enterprises in and cooperatives. In expanding science, engineering rural and township economies. Emphasis will be placed on and technology support models, TIA will work with supporting women, youth and people with disabilities. other partners such as industry, township hubs, accelerators and incubators to explore opportunities Partnerships for funding and for co-location and shared services. commercialisation • provide technical and vocational skills that are sectoral specific in partnership with training authorities. In Over the past five years, TIA established a wide range this regard, Technology Stations will partner with the of partnerships with various stakeholders in the National Quality Council for Trades and Occupations, sectoral System of Innovation. These include science councils, education and training authorities, and technical higher education institutions, development finance and vocational education and training institutions to institutions, the private sector, national and provincial ensure that educators are equipped to teach learners government, and African and other international partners. the necessary skills required by industry. Through these, TIA has sought to promote collaboration and coordination among various constituents of the All these efforts are important in light of the imperatives National System of Innovation to bolster the execution arising from the National Spatial Development Framework of its mandate and develop sound strategic capital for and the District Development Model, both of which seek to its main clients – innovators. During this period, TIA promote the coordination of effort across government at successfully piloted various partnership models, which local and district level. Through this, TIA aims to increase will be scaled up for maximum impact. its spatial footprint and double the number of innovators who have access to key innovation infrastructure facilities Partnerships for enhanced system co-ordination and the requisite support. More importantly, Technology Stations will be positioned to support the objectives of Through the Glass Pipeline model, TIA promotes the various sectors identified by the Department of Trade, interconnectedness within the National System of Industry and Competition’s Reimagining South Africa’s Innovation. The model is intended to increase visibility Industrialisation initiative. of innovation activity throughout the innovation value chain and promote the seamless progression of innovative projects from lab to market. This is articulated 7. Strategic enablers for as the backward and forward integration approach that enhanced performance systematically links TIA with the upstream knowledge- generation community that feeds into the investment To deliver on its strategy, TIA will leverage and activate pipeline, as well as a wide range of downstream a number of key levers that will serve to enhance its ecosystem players that serve to enable the successful 42 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS commercialisation of technologies though follow-on Small Enterprise Development Agency, the National funding and support once they have been through the TIA Empowerment Fund, the Small Enterprise Finance funding cycle. Agency, the National Youth Development Agency and a range of regional agencies and other support In the strategic period, TIA will implement this partnership intermediaries for small, medium and micro enterprises model with greater intensity through three workstreams: to create formal referral mechanisms for innovators. • Intensified engagements with science councils Hub-and-Spoke partnership model and higher education institutions to leverage existing relations to enhance the commercialisation TIA’s Hub-and-Spoke partnership programme positions of publicly funded intellectual property. Throughout the agency as a national innovation management and this process, due consideration will be given to funding instrument. The funding model aims to promote the imperatives of transformation and inclusivity in the allocation of funds by various government departments support of transforming the demographic ownership and their entities, at the national, provincial and local profile of technology-based firms, and enabling levels, dedicated specifically to the development and the commercialisation of intellectual property for execution of strategic innovation programmes to support the benefit of black entrepreneurs, women, youth service delivery mandates. Through this, TIA will deploy and people with disabilities. TIA will work closely its institutional capabilities such as fund management, with the National Intellectual Property Management project management, technical competencies and Office, the Southern African Research & Innovation technology infrastructure to underpin systems and Management Association, and the South African processes across government. Technology Network to strengthen the capacity of Offices of Technology Transfer as key agents for The DSI’s 2017 Survey on Government Funding for identifying promising research output in universities Scientific and Technological Activities reveals that an and engaging in commercialisation efforts. estimated R23,4 billion was spent on scientific and • Enhanced efforts to strengthen partnerships technological activities in 2016/17. Many government with industry, made up of large private sector departments have identified innovation as an important organisations, state-owned enterprises and locally enabler for addressing pressing strategic national based multinational corporations. This will require challenges in various sectors such as energy, agriculture, closer collaboration with the Department of Trade, security and human settlements, with some departments Industry and Competition to identify sectors in which even having established innovation programmes. there is a strong need for technology innovation to TIA has worked with departments such as Tourism, promote the revitalisation of ailing industries and Communications and Digital Technology, and Agriculture, competitiveness. Collaboration with the private sector, Land Reform and Rural Development to design and initiate industry bodies and associations is expected to focused programmes that aim to support the execution of lead to partnerships around joint calls for proposals, their mandates through innovation. innovation competitions and joint funding. Through this, TIA will support the DSI’s efforts in implementing In 2018, the DSI concluded and approved the Framework the Sector Innovation Fund. for Science and Technology Cooperation with government • Development finance institutions and instruments departments. The White Paper on Science, Technology constitute important partners for joint funding, follow- and Innovation has subsequently included a specific policy on funding and business development support intent to promote the use of government procurement as a for projects in which TIA invests. Partnerships with lever to increase innovation. The DSI has also established government innovation-funding instruments will be the Innovation for Service Delivery programme. These enhanced, in particular with and through the Support key initiatives represent important opportunities for close Programme for Industrial Innovation, the Technology collaboration to pursue innovation with greater intensity in and Human Resources for Industry Programme, the the future. Technology Innovation Agency Strategic Plan 2020-2025 | 43 PART B: STRATEGIC FOCUS International Partnerships Further afield, TIA’s international partnerships are expected to leverage resources through co-investment TIA’s International Partnerships programme, in in joint technology and innovation development projects; collaboration with the DSI, is an important enabler for promote market access and the internalisation of scaling up South Africa’s innovation capability and promising South African technologies and small, medium promoting greater connectedness with global innovation and micro enterprises; and attract interventions to ecosystems. Through this programme, TIA pursues develop skills for the benefit of the South African National partnerships at bilateral and multilateral levels to promote: System of Innovation. TIA has been working with several international partners in Europe, the Americas and Asia • collaborative research, development and innovation to drive initiatives connected to these objectives. These initiatives that will enable South African enterprises to include, among others, implementing the Soft Landing leverage international expertise and provide access to programme with France and the United Kingdom, through high-end facilities around the world. which more than 40 TIA investees have participated in • market access and international networking for TIA market access and partnership programmes that aim to investees and other deserving, outward-looking, support commercialisation. technology-based small, medium and micro enterprises. • capacity-building partnerships for the National System An important policy intent of the White Paper on Science, of Innovation, consisting of skills transfer on innovation Technology and Innovation is to increase funding to management and commercialisation. the National System of Innovation with a focus on increasing foreign investment. Development cooperation In line with the intents of the White Paper on Science, programmes of many bilateral partners in the Global Technology and Innovation and government’s 2019-2024 North are aimed at supporting the attainment of the United Medium-Term Strategic Framework, TIA’s international Nations sustainable development goals. Therefore, partnerships strategy is expected to strengthen development cooperation funds are expected to form an collaboration with countries in Africa. TIA has established important source of funding innovations in South Africa strategic partnerships with like-minded institutions in various that are geared towards solving pressing socioeconomic countries on the continent, such as Tanzania, Zambia and and challenge-driven innovation initiatives. In this regard, Egypt, where TIA has secured co-investment partnerships; TIA implements the Southern Africa Innovation Support and with Ghana and Botswana, with a specific focus on Programme, an initiative to support the development of capacity-building initiatives for the National System of functional and effective innovation ecosystems in selected Innovation. Further efforts are under way to finalise new countries within the Southern African Development partnership with countries such as Tunisia, Angola, Kenya Community region, including South Africa. and Rwanda. The primary aim of these engagements is to promote the translation of research outputs from historical Partnerships for human capacity and a bilateral partnerships in which the DSI has traditionally national culture of innovation invested through the National Research Foundation. TIA’s Business Case identifies two key enablers for the Recently, two significant developments in Africa for TIA agency to succeed in delivering on its mandate, and are the establishment of the Africa Continental Free promoting innovation skills and a culture of innovation. In Trade Agreement and the adoption of the Southern the past few years, TIA has successfully implemented a African Development Community Innovation Programme range of initiatives through its Youth Technology Innovation by the region’s Ministers of Higher Education, Science Programme and Skills Development Programme to and Technology. These initiatives will see TIA playing mobilise innovators, and young people in schools and an important role, working closely with the DSI and communities to understand the concept of innovation and the Department of Trade, Industry and Competition, to appreciate its value as it affects their daily lives. The White leverage opportunities created by these platforms. Paper on Science, Technology and Innovation highlights 44 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS the need to adopt a broader concept of innovation and • institutional capacity-building initiatives aimed at its sources to include other models of innovation beyond empowering local and district-level institutions such as research and development. TIA will build on its critical- technical and vocational education and training colleges thinking skills programmes, the FUTR500, to direct efforts and community colleges to support innovators. towards supporting grassroots, youth-led and women- • the hosting of and partnering with strategically led innovation initiatives, particularly in marginalised selected events to showcase successful innovations township and rural communities, as this is where it is and role models. likely to make the greatest and most measurable impact in building a culture of innovation and promoting a culture In addition to promoting a culture of innovation, TIA of entrepreneurship. also launched and successfully implemented several initiatives to develop entrepreneurial skills. These have In so doing, TIA will work closely with technical and been targeted mainly at its investees so as to enable them vocational education and training colleges and community to establish viable technology-based enterprises and colleges, which will serve as key platforms for rolling out take their technologies to market. Key among these are specific interventions aimed at empowering communities the Global Cleantech and the NextGen 100 programmes, in marginalised environments. TIA will work with other key which aim to select and accelerate the progression of the partners such as the South African Technology Network, most promising innovators to market through a range which comprises seven universities of technology of commercialisation skills. The technology enterprise predominantly located in townships and marginalised component in TIA’s Enterprise Development Framework communities. Key interventions for promoting a culture of (Figure 17) is largely geared towards beneficiaries innovation will include: that have developed technologies, are seeking market validation, are establishing start-ups and require support • awareness campaigns undertaken throughout the with business development activities to intensify their country, mainly under the auspices of the Science commercialisation efforts. Engagement programme managed by South African Agency for Science and Technology Advancement. Enhancing Business Stimulation Building Human Capital Enterprise Commercial Incubation and Development Culture for Institutional Development Development Support Entrepreneurship and Market Innovation Capacity in Internship Programme Services Validation and Leadership Innovations Skills Development Technology Enterprise Development Figure 17. TIA’s Enterprise Development Framework Technology Innovation Agency Strategic Plan 2020-2025 | 45 PART B: STRATEGIC FOCUS Thought leadership for system- Operational enablers for efficiency and wide impact effectiveness South Africa has extensive expertise and knowledge in Systems various technical fields across all sectors of the economy. Extensive research is being conducted in public research TIA’s Information Technology Strategy focuses institutions, industry, government institutions and various on business enablement and support through the sectors of society in the fields of biotechnology and other implementation of functional systems for streamlined industrial sectors such as mining, energy, information and automation and business efficiency. As TIA’s business communication technology, and advanced manufacturing. evolves to align with evolving stakeholder demands The constrained fiscal environment and the government’s and the external landscape, information technology will pressures to devote resources to those areas that are likely increasingly underpin every aspect of the agency’s new to have greater impact on South Africa’s socioeconomic business model for enhanced efficiency. This requires challenges require careful investment decisions. an information technology strategy to drive the creation of business value and outcomes that are impactful by To harness this capacity and encourage research enabling the automation of business processes and the institutions and industry to share ideas, promote the delivery of services to internal and external stakeholders. transfer of knowledge and technologies, and act as It is essential that TIA’s business model adapts to innovation drivers in their specialist fields, TIA will establish keep up with the pace of innovation by ensuring that Sector Thematic Networks. Each network will specialise in stakeholder expectations are met. Speed, quality, agility a specific area of innovation, and will serve to: and adaptability are the key attributes expected of such responsive information technology. • promote knowledge exchange, dialogue and information sharing. As a result, to enhance business performance and • identify common challenges and solutions, including outcomes throughout the agency, TIA’s 2020-2025 relevant technology trends. Information Technology Strategy will focus on integrated, • play an important role in informing TIA’s investment end-to-end business solutions aligned with TIA’s overall decisions and the design of appropriate funding strategy and business processes across the value instruments. chain. The performance measure will be based on the • initiate focused innovation initiatives and projects enablement and improvement of business outcomes with visible impact on South Africa’s socioeconomic aligned with business target for value delivery. Strategic challenges. objectives will focus on: TIA has accumulated extensive experience through its • Information technology as an enabler: Information past investment activities. This enables the agency to technology systems and business intelligence will assist in informing policy and supporting the DSI in the be used to improve efficiency and ensure accurate development of decision support tools. TIA will continue information for decision-making and reporting. The to invest in this capability through the development consolidation of and collaboration between functional of an effective knowledge management system and technologies and services to improve speed, agility intelligence sources, and through its complement of and flexibility will enable the delivery of TIA’s mandate competent staff with expertise in various disciplines. TIA within shorter turnaround times. will use this depth of knowledge to influence discussions • Information technology as a facilitator: Information and host dialogues on key issues that are pertinent to technology systems will be used to reach and support the discourse around innovation. stakeholders in different geographical areas. 46 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS • Information technology to enable agility: Information Processes technology must enable quick decision-making and processing to enhance stakeholder satisfaction. Long turnaround times and decision-making processes This will entail the reinforcement and optimisation combined with a lack of proactive communication lead of business intelligence and data analytics for to major frustrations for TIA’s stakeholders. Improving performance measurement, and to provide insights operational efficiencies and reducing turnaround times will be into thematic areas. an important priority as the new strategic period commences. • Risk mitigation: Secure and effective access to a This will enable TIA to maximise value from its expenditure on growing inventory of information will be provided while innovation and reduce administrative expenses. ensuring confidentiality and integrity. TIA embraced business analysis and knowledge People management as a key discipline to provide a platform to achieve operational excellence. Business analysis as a Difficult economic conditions, budget constraints and discipline creates a platform for developing and holistically fierce competition to attract top talent are some of the managing the agency’s process architecture – a hierarchy challenges TIA faces. As the philosophy of remunerating of end-to-end processes designed to create value for employees at the 25th percentile of the national benchmark the customer – rather than a piecemeal improvement will not be sustainable over the strategic period, TIA of specific processes and/or technology solutions. It will focus on the development and benchmarking of an further enables linkage between the core elements of employee value proposition to find solutions other than people, processes, technology and information to drive monetary compensation to recognise and reward top organisational transformation and collaboration. talent. To improve the stakeholder experience and embed a TIA will equip its human resources to be agile and culture of customer centricity, TIA will implement a number responsive. They will be empowered with the skills, tools, of initiatives to address these challenges: systems and support needed to operate more effectively and be more adaptable. Through its talent management • Re-engineer and develop coordinated and streamlined strategy and governance environment, TIA will create a end-to-end business processes, including performance high-performance culture with motivated and results- measures to monitor process effectiveness and efficiency. driven employees. Strategic objectives will focus on: • Introduce multidisciplinary assessment teams to shorten project assessment timelines by leveraging a • Employee value proposition: Enhance the employee wide variety of expertise in various disciplines. value proposition to attract and retain high-calibre, • Implement the predictive call system, piloted by TIA motivated employees. in the previous financial year, to enable improved • Employees and technology: Equip employees to planning and allocation of resources, and greater operate from anywhere at any time, and be agile and efficiencies in assessment and approval processes. effective. They need to be incentivised for knowledge • Establish a call centre to ensure that customers sharing, innovation and engagement. are attended to, and that customer complaints are • Talent management: Ensure the right talent is in the measured, monitored and improved upon. right place at the right time. Equip human resources with the required skills and tools to enhance operational Facilities management performance in a fast-changing environment. • High-performance culture: Create a high- TIA will continue to provide its employees with a safe performance culture through incentives, policies and working environment to stimulate innovation and creative other human resources tools to help TIA achieve thinking through the acquisition and management of consistently high levels of performance to ensure the facilities, security services and office support services. effective delivery of the agency’s mandate and have a Facilities management will ensure that the work real impact on society. environment is maintained in a cost-effective manner that enhances stakeholder satisfaction. It should be flexible to enable changes in the use of space when required. Technology Innovation Agency Strategic Plan 2020-2025 | 47 PART B: STRATEGIC FOCUS 8. Budget allocation for the 2020-2025 strategic period In the 2019 State of the Nation Address, the President stated that unless we take extraordinary measures, we will not realise our vision of socioeconomic transformation by 2030. As TIA’s budget over the five-year period is in line with this statement, the agency will prioritise effective cost management solutions and ensure that funds are appropriated to areas where they are needed the most. The five-year strategic period begins with numerous structural challenges in the broader economy. This has already led to reductions on TIA’s budget over the Medium-Term Expenditure Framework period, as approved by the DSI. Accordingly, the Board has directed the agency to focus on its mandate and core activities, and reduce its salary and administrative budget by R50 million in 2020/21. Funding for the technology development pipeline, a crucial area of the agency’s funding activities, has been constrained by the availability of funds. This makes it necessary for the agency to adjust its budget by reducing staff and administrative costs to release funding for project and programme expenditure. Over the period ahead, funds resulting from these reductions will be reprioritised towards investments, as per Table 3. Table 3. Budget for the 2020-2025 strategic period Budget Budget Budget Budget Budget Total 2020/21 2021/22 2022/23 2023/24 2024/25 over 5 R’ 000 R’ 000 R’ 000 R’ 000 R’ 000 years R’ 000 Administration 173 094 171 106 179 661 188 644 197 726 910 231 Support and infrastructure cost 60 244 58 256 61 169 64 228 67 439 311 336 Human resources 112 849 112 849 118 492 124 416 130 287 598 895 Investments 447 764 464 793 473 713 489 423 506 257 2 381 950 Bio-economy 206 476 215 474 220 754 229 029 238 768 1 110 500 Technology stations 96 713 99 019 100 685 103 019 105 470 504 906 Commercialisation 85 075 88 690 90 584 95 600 100 155 460 104 Innovation Enabling 59 500 61 610 61 691 61 775 61 864 306 439 Total Expenditure 620 858 635 898 653 374 678 067 703 983 3 292 181 Total funding received 620 858 635 898 653 374 678 068 703 984 3 292 181 Allocation from DSI 455 858 471 398 488 874 513 318 538 984 2 468 431 Baseline (other than Bio-economy 217 426 220 091 228 268 239 681 251 665 1 157 132 and Technology stations) Bio-economy 195 719 206 288 213 921 224 617 235 848 1 076 393 Technology Stations 42 713 45 019 46 685 49 019 51 470 234 906 Additional income target 154 000 154 000 154 000 154 000 154 000 770 000 Interest 11 000 10 500 10 500 10 750 11 000 53 750 Surplus/deficit - - - - - - 48 | Technology Innovation Agency Strategic Plan 2020-2025 PART B: STRATEGIC FOCUS Staff and administrative costs Sector Funding (commercialisation): The commercialisation unit focuses on development and In ensuring that funds are made available for the commercialisation for product-funded projects. Deals that agency to fulfil its mandate, significant reductions have are currently in the funding pipeline are valued at R550 been effected on staff and administrative costs. Staff million, exceeding the amount for funding available. As costs amount to R598 million over the five-year period. such, most of the funds freed up through reductions in Significant reductions are reflected in this amount, staff and administrative costs have been allocated to the particularly in the first two years of the strategic cycle, as Sector Funding programme. Total allocations over the staff costs will be maintained by freezing vacant positions, five-year period amount to R460 million, which will be cutting annual bonuses and filling only critical positions. spread across various focus areas to fund technological For the three outer years of the strategic cycle, salaries development, commercialisation and early-stage seed will only increase in line with inflation. Costs related to funding. To streamline the funding process, the Seed support and infrastructure, which amount to R311 million Fund will be administered within the programme and will over the period, will also be reduced through focused be deliberately aligned with key strategic focus areas initiatives such as reducing costs associated with travel, in the various sectors. Greater emphasis will be placed rental and events. Funds realised from reductions in staff on leverage funding and partnerships to manage the and support and infrastructure costs will be used to fund funding demand. prioritised investments. Estimated savings over the five- year period amount to R361 million. Innovation Enabling: The programme will focus on rural development, partnerships and enterprise development. Investment funding It is mostly funded through partnerships and specifically contracted funds received from the DSI and other partners. Investment in the following programmes will be prioritised Disbursements through the programme are expected over the period ahead: Bio-economy, Technology Stations, to amount to R306 million over the five-year period. As Sector Funding (commercialisation) and Innovation the initiative is crosscutting, further funding will be made Enabling. available from other supported areas. Bio-economy: As this is a key programme, all funds Other income received from the DSI will be allocated to it. Total allocations from the department over the period amount Other funding is important for TIA to enhance its de-risking to R1,1 billion, accounting for 46% of the investment role as the primary funder of early-stage technology budget. Of the total, a significant portion is for technology innovation in the National System of Innovation. To development, where focus will be placed on indigenous increase its funding capacity, TIA pursues strategies to knowledge systems, industrial biotech, and partnering with strengthen its funding base, with careful consideration of other funders in the National System of Innovation with the the constrained fiscal conditions under which it operates. aim of supporting the development of commercially viable Accordingly, over the period ahead, the agency will products. Over the period ahead, TIA will continue to be a continue to focus on creating other income streams to knowledge leader in the bio-economy space and partner support its programmes and initiatives. This will be done with higher education institutions, science councils, and through contract-specific funds from the DSI and other small, medium and micro enterprises to fund early-stage government institutions, and fostering partnerships in the innovation. public and private sectors by means of the hub-and-spoke model. Funding from these partnerships is expected Technology Stations: With a total allocation of R505 to amount to R770 million over the five-year period. In million over the five-year period, TIA will continue to addition, maturing technology development projects are support innovation through its Technology Stations expected to yield returns in the form of royalties, loan Programme, which aims to translate ideas into prototypes repayments and other exits. Through effective working and marketable products. Funding for the programme capital management, the agency aims to maximise is received through the ring-fenced grant allocation and interest earned on cash reserves, which will be used to specific contracts from the DSI. fund innovation initiatives. Technology Innovation Agency Strategic Plan 2020-2025 | 49 PART C: MEASURING PERFORMANCE 50 | Technology Innovation Agency Strategic Plan 2020-2025 PART C: MEASURING PERFORMANCE 1. Institutional performance information 2. Impact statement Impact statement Improving the quality of life of all South Africans through innovation. 3. Measuring outcomes Outcome 1: Commercialised innovations Priority 2 (economic transformation and job creation) and priority 3 (education, skills MTSF priority and health) Outcome statement Outcome indicator Baseline Five-year target Commercialised 1.1 Number of technologies commercialised 77 100 innovations Explanation of planned performance over the five-year period a) Through this outcome, TIA will respond to priority 2 (economic transformation and job creation) and priority 3 (education, skills and health) of government’s 2019-2024 Medium-Term Strategic Framework. TIA aims to support the development of technologies linked to the implementation of sectoral master plans, all of which are aimed at promoting industrialisation, localisation and exports. TIA also aims to support the commercialisation of technologies to improve competitiveness. This includes the adoption of information and communications technologies, contributing to an increase in gross domestic product, and stimulating job creation. TIA will also contribute to addressing geographic disparities, rural development, transformation and inclusive development. TIA will contribute to transformation by adopting an approach that promotes the creation of technology-based enterprises owned by black youth, women and people with disabilities. b) Enablers The following will be critical for TIA to achieve its outcomes: • Strategic sourcing of high-potential projects through partnerships and the ecosystem approach for collaborative funding. • Sectoral thematic networks to underpin industry alignment for project sourcing and the promotion of co-funding of projects. c) Contribution of outcome to achieving impact Commercialising innovations will enable TIA to de-risk the development of technological innovations by leveraging existing and new partnerships. This will, in turn, enable the agency to support and commercialise many innovations that will result in a greater social impact and improve the quality of life of many South Africans. Technology Innovation Agency Strategic Plan 2020-2025 | 51 PART C: MEASURING PERFORMANCE Outcome 2: Delivering on the Bio-economy Strategy Priority 2 (economic transformation and job creation) and priority 3 (education, skills MTSF priority and health) Outcome statement Outcome indicator Baseline Five-year target 2.1 Number of bio-based technologies Stimulating a New indicator 60 commercialised productive bio- 2.2 Number of bio-based entrepreneurs and economy through organisations accessing high-end science, New indicator 600 innovation engineering and technical services Explanation of planned performance over the five-year period a) In terms of this outcome, TIA will primarily contribute to the DSI’s commitment to priority 2 (economic transformation and job creation) of government’s 2019-2024 Medium-Term Strategic Framework. The agency expects that the metrics will assist in tracking its contribution to the mobilisation of government and business expenditure towards research and development, while creating commercial opportunities that will eventually lead to the transformation of South Africa’s economy to a knowledge-based economy. TIA will also support priority 3 (education, skills and health) of government’s 2019-2024 Medium-Term Strategic Framework in that it seeks to invest in and support technologies that will address the diagnosis, treatment and management of priority areas of communicable and non-communicable diseases. b) Enablers The implementation of the Bio-economy Strategy recognises that in addition to identifying strategic focus areas, TIA must also deliver its offerings efficiently and effectively. To this end, several key interventions are planned and will be monitored and tracked within the annual bio-economy work plan: • Bio-entrepreneurship: There is a need to provide post-investment support for TIA’s beneficiaries beyond simple project and programme management. Business enterprises require interventions to continuously adjust and validate business models, build appropriate internal capacities, raise further rounds of funding, and access markets, among other activities. TIA will adopt an ecosystem model using its growing network of incubators and accelerators to support this initiative. • Adopting a value chain approach to investments: TIA will take a value chain approach to conducting its investments. This will be a marked departure from the project-by-project approach it has adopted since its establishment. An 80/20 split between targeted calls and unsolicited applications will be adopted. This is also expected to have a positive impact on the long turnaround times for applications. • Strategic partnerships and fundraising: There is a growing need for TIA to maximise its resources to support technology development and commercialisation. TIA will build on its recent partnership success with the creation of the Biotech Fund to attract funding from the private sector. Another opportunity is the roll-out of the Natural Products Fund to coordinate funding from the public sector to support technology-based enterprises. It is also envisaged that the value chain, or programmatic, approach will enhance TIA’s chances of attracting industry co- funding and technology-based solutions that address common industry challenges. • Historical portfolio alignment: Significant funding has gone into bio-innovation projects since TIA’s establishment. There is a need to align this portfolio with the selected focus areas and retain value and promote the progression of such investments. As such, TIA will create a matchmaking marketplace to promote other funders’ uptake of these technologies. TIA will use the initiatives such as the BIO Conventions, Bioportal and Innovation Bridge as mechanisms to achieve this. • Communication: Over the next five years, TIA will adopt a dedicated strategy to communicate with stakeholders to improve its visibility and public engagement. The DSI has selected the agency to host the national bio-economy portal. This initiative is aimed at improving the exchange of information among individuals and organisations in the bio-economy sector; and facilitating communication, improving cohesion, and promoting functional integration and collaboration. The bio-economy portal is envisaged as a user-friendly, integrated and data-rich resource that will 52 | Technology Innovation Agency Strategic Plan 2020-2025 PART C: MEASURING PERFORMANCE offer quality, valuable data and analytical capacity to all stakeholders. This communication initiative, including TIA’s participation in the BIO Conventions, must be consolidated into a coherent strategy of active and consistent engagement with the public, and convey TIA’s activities in the Bio-economy programme and other developments in the sector. c) Contribution of outcome to achieving impact In line with its mandate, TIA must support technology to advance projects towards commercialisation. Accordingly, the agency aims to ensure that its implementation of the Bio-economy Strategy addresses the strategy’s ambition for science, technology and innovation to be key contributors to gross domestic product. Outcome 3: Small, medium and micro enterprises supported through strategically informed and regionally distributed Technology Stations MTSF priority Priority 2 (economic transformation and job creation) Outcome statement Outcome indicator Baseline Five-year target Small, medium and micro enterprises supported through 3.1 Number of small, medium and micro enterprises strategically accessing science, engineering and technical 10 530 15 750 informed and services regionally distributed Technology Stations Explanation of planned performance over the five-year period a) Through this outcome, TIA will contribute to priority 2 (economic transformation and job creation) by investing in new forms of technology development infrastructure in partnership with other role players in the National System of Innovation, and increasing access for innovators across the country to receive science, engineering and technical support. The Technology Stations programme will be closely aligned with relevant industrial sectors to promote innovation-led industrialisation, localisation and the promotion of exports. This will be in line with the sectoral master plans that are under development, led by the Department of Trade, Industry and Competition. b) Key enablers • Partnership with relevant industry stakeholders. • Availability of funding through the Infrastructure Fund. c) Contribution of outcome to achieving impact Technology infrastructure will enable innovators and small, medium and micro enterprises to commercialise their technologies and improve the competitiveness of their products, leading to job creation and localised economic growth. 4. Key risks TIA employs a robust, systematic process at the operational and strategic levels, which is integrated and central to its strategic planning process. The applied methodology is derived from the prescripts of the Committee of Sponsoring Organisations’ Enterprise Risk Management Framework, ISO 31000 on Risk Management, National Treasury’s Public Sector Risk Management Framework, the Institute of Risk Management South Africa’s risk principles, and TIA’s Risk Management Policy. A review of the risk landscape will be undertaken once the priorities for the DSI’s Decadal Plan, government’s 2019- 2024 Medium-Term Strategic Framework, the five-year Bio-economy work plan and the five-year Technology Stations Programme work plan are approved. A review was undertaken to determine the emerging risk profile, the results of which Technology Innovation Agency Strategic Plan 2020-2025 | 53 PART C: MEASURING PERFORMANCE were tabled and approved at the Enterprise Risk Management Committee, Executive Committee and the Audit and Risk Committee, which are outlined in Table 4. Table 4. Strategic risk and mitigation plans for 2020-2025 Outcome Key risk Risk mitigation The risk that TIA cybersecurity systems might Increased monitoring of information fail due to enhanced cyber-attacks on current technology system vulnerabilities through operating system vulnerabilities enhanced automated system assessment The risk that TIA’s governance practices may Strengthen internal control policies and 1. A sound not be adequate in detecting and preventing processes for regulating contracting with third governance instances of fraud, bribery and corruption parties administration The risk that the TIA management does not Managed implementation of the organisational have the capability to deliver on the strategy realignment through phased adoption based on planned performance requirements over the strategic cycle The risk that TIA’s demand for technology Mobilisation of funding through strategic development funding emanating from the partnerships with key public and private investment pipeline may exceed available institutions, locally and internationally 2. A sustainable funding resources available Bio-economy The risk that TIA’s investment and Formulation of appropriate policies and Strategy administrative operations may not effectively controls to ensure that considerations into the be addressing environmental sustainability impact on the environment are observed considerations in relation to the pursuance of its strategic objectives The risk of the affordability and sustainability of Regular health checks done on all infrastructure 3. Sustainable infrastructure Innovation infrastructure Cost of preventative maintenance and replacement of old and redundant equipment Lack of adequate, knowledgeable and skilled Targeted recruitment and headhunting 4. Successfully resources to execute this planned outcome bridging the (lack of commercialisation skills) innovation chasm Unable to form strong partnerships due to Drastically improve stakeholder relations TIA’s reputation 54 | Technology Innovation Agency Strategic Plan 2020-2025 PART D: TECHNICAL INDICATOR DESCRIPTIONS Technology Innovation Agency Strategic Plan 2020-2025 | 55 PART C: MEASURING PERFORMANCE Outcome 1: Commercialised innovations Indicator title 1.1 Number of technologies commercialised Number of technological innovations that have been introduced into the market for social Definition benefit or commercial gain, directly or indirectly (products, processes or services) Source of data Programme/project database(s) Method of calculation/ Simple count assessment Innovation outputs will be developed successfully to a point where there is a market or Assumptions social demand Women (30%) Disaggregation of Youth (20%) beneficiaries People with disabilities (10%) Spatial transformation To be informed by and aligned with the priorities of government’s 2019-2024 Medium-Term (District Development Strategic Framework, as guided by the DSI Model) Reporting cycle Annual Performance equal to or greater than planned target Desired performance Achievement of 90% of the target will be deemed acceptable General Manager: Sector Funding Indicator responsibility General Manager: Programmes Outcome 2: Delivering on the Bio-economy Strategy Indicator title 2.1 Number of bio-based technologies commercialised Number of bio-based technological innovations that have been introduced into the market Definition for social benefit or commercial gain, directly or indirectly (products, processes or services) Source of data Programme/project database(s) Method of calculation/ Simple count assessment Innovation outputs will be developed successfully to a point where there is a market or Assumptions social demand Women (30%) Disaggregation of Youth (20%) beneficiaries People with disabilities (10%) Spatial transformation To be informed by and aligned with the priorities of government’s 2019-2024 Medium-Term (district development Strategic Framework, as guided by the DSI model) Reporting cycle Annual Performance equal to or greater than planned target Desired performance Achievement of 90% of the target will be deemed acceptable Indicator responsibility General Manager: Bio-economy 56 | Technology Innovation Agency Strategic Plan 2020-2025 PART D: TECHNICAL INDICATOR DESCRIPTIONS 2.2 Number of bio-based entrepreneurs and organisations accessing high-end Indicator title science, engineering and technical services Bio-based entrepreneurs and organisations accessing high-end science, engineering and Definition technical support for the purposes of developing innovative, bio-based products or services through the financial or non-financial support of the Technology Platforms network Source of data Programme/project database(s) Method of calculation/ Simple count assessment Adequate numbers of bio-based entrepreneurs and organisations will be interested in the services offered Assumptions The Technology Platforms possess adequate expertise and have access to adequate funding to provide and maintain infrastructure required for science, engineering and technical support Historically disadvantaged individuals (80%) Disaggregation of Women (45%) beneficiaries Youth (40%) People with disabilities (3%) Spatial transformation To be informed by and aligned with the priorities of government’s 2019-2024 Medium-Term (district development Strategic Framework, as guided by the DSI model) Reporting cycle Annual Performance equal to or greater than planned target Desired performance Achievement of 90% of the target will be deemed acceptable Indicator responsibility General Manager: Bio-economy Technology Innovation Agency Strategic Plan 2020-2025 | 57 PART C: MEASURING PERFORMANCE Outcome 3: Small, medium and micro enterprises supported through strategically informed and regionally distributed Technology Stations 3.1 Number of small, medium and micro enterprises accessing science, engineering Indicator title and technical services Small, medium and micro enterprises that access science, engineering and technical Definition support for the purposes of developing innovative products or services through the financial or non-financial support of the Technology Stations network Source of data Programme/project database(s) Method of calculation/ Simple count assessment An adequate number of small, medium and micro enterprises will be interested in the services offered Assumptions Technology Stations possess adequate expertise and have access to adequate funding to provide and maintain infrastructure required for science, engineering and technical support Historically disadvantaged individuals (80%) Disaggregation of Women (45%) beneficiaries Youth (40%) People with disabilities (3%) Spatial transformation To be informed by and aligned with the priorities of government’s 2019-2024 Medium-Term (district development Strategic Framework, as guided by the DSI model) Reporting cycle Annual Performance equal to or greater than planned target Desired performance Achievement of 90% of the target will be deemed acceptable Indicator responsibility General Manager: Programmes 58 | Technology Innovation Agency Strategic Plan 2020-2025 Notes Technology Innovation Agency Strategic Plan 2020-2025 | 59 Notes 60 | Technology Innovation Agency Strategic Plan 2020-2025 Technology Innovation Agency Strategic Plan 2020-2025 | 61 GAUTENG HEAD OFFICE KWAZULU-NATAL OFFICE WESTERN CAPE OFFICE +27 (0) 12 427 2700 +27 (0) 31 220 3101 +27 (0) 21 442 3780 Postal Address Postal Address Postal Address P.O. Box 172 P.O. Box 30603 P.O. Box 13372 Menlyn Mayville Mowbray Pretoria Durban Cape Town 0181 4058 7705 Physical Address Physical Address Physical Address TIA House 4th Floor 4th Floor, Central Park 83 Lois Avenue 102 Stephen Dlamini Road Black River Business Park Menlyn Musgrave Fir Road, Observatory Pretoria Durban Cape Town www.tia.org.za @tiaorgza tiaorgza www.linkedin.com/company/technology-innovation-agency TIA DESIGN SPECIFICATIONS LOGO SYMBOLISM signature is the single most important graphic element and the brand. It is thoroughly linked with the services and will many emotional and moving aspects as well. in the logo grows in a step-wise direction, symbolising ation. These steps also symbolise the multiple phases that technology innovation idge the gap between research, product development and n. A G E N C Y s how TIA helps ideas take flight. In addition, the wing forms Innovating Tomorrow Together esents several parties working towards a single goal. epresents TIA’s prominence within the sector. The icon may necessary and still be 62 | Technology Innovation Agency Strategic Plan 2020-2025 recognisable. ” surrounding the logo represents the space TIA creates to .