dti Technology support

Innovation Symposium

Innovation for Development

26 February 2010

Johannes Potgieterthe dti

the dti Technology Incentives

• Support Programme for Industrial Innovation (SPII)

• Technology and Human Resources for Industry Programme (THRIP)

• SEDA Technology Programme (STP).

• Technology for Women in Business (TWIB)

SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII)

• Promote development of technologically innovative products/processes that are commercially viable & internationally competitive

• Focuses specifically on the development phase that begins at the conclusion of basic research and ends at the point when a pre-production prototype has been produced.

• Administered by the Industrial Development Corporation (IDC)

SPII SCHEMES

Matching Scheme Partnership Scheme Product Process

Development Scheme

Matching scheme

• Provides a grant of 50-75% of the actual direct cost incurred during development

• 50% of qualifying costs <25% BEE• 65% of qualifying costs > 25% BEE or > 50 %

Women ownership• 75% of qualifying costs >50% BEE ownership• Payments are made against predetermined

milestones• Maximum grant amounts to R3 million per project

Partnership scheme

• For larger scale R&D projects

• Grant of 50% on the actual direct cost incurred in development activity

• Incorporates a conditional repayment mechanism in the form of a levy on sales

• Must demonstrate additionality/causality

• Technology Platforms

Product Process Development Scheme (PPD)

• Promote development of new products and/or processes

• Non-repayable grant of 50-85% on qualifying costs incurred in development activity<25% black ownership (50% grant)25-50% black ownership (75% grant)>50%Women ownership (75% grant)>50% black ownership (85% grant) with 2% paid upfront

• Maximum of R1m per project

CATEGORIES SUPPORTED

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

SPII STATISTICSSPII STATISTICS

• Budget: dti funds R46,9m (2007/8)• Admin costs: 16% (2006/7), 9,5%(2007/8), 18% (2008/9)

Output for 2008/9:• Approvals: R 56,1m• 70 projects (>80% SMME’s)• 40% BEE• 11% women-owned enterprises• Industrial sectors: 2007/8

– Electronics & software 34,3%– Miscellaneous manufacturing 30,0%– Chemicals & pharmaceuticals 10,0%– Mechanical 5.7%

SPII IMPACT

Performance Data 01 April 2008 to 31

March 2009

01 April 2007 to 31

March 2008

01 April 2006 to 31

March 2007

Total local sales R133,2m R173.6m R138.4m

Total export sales R103,8m R153.5m R836.9m

Total sales R237.0m R327.1m R975.3m

Taxes paid – company tax R35,1m R149.3m R223.3m

Shop floor jobs created 877 1,284 1,773

Research and development as % of sales 43,8 57.9 21.9

Number of completed projects surveyed 91 116 125

Number of detailed responses received 64 83 62

• Administered by the NRF and guided by an Advisory Board with representatives from industry, government, HEIs, labour and science councils.

• Cost-sharing basis with industry, & supports SET research collaboration focusing on technology needs of participating firms.

THRIP

• To improve the competitiveness of SA industry by supporting research and technology development activities and,

• Enhancing the quality and quantity of appropriately skilled people.

MISSION OF THRIP

THRIP PRIORITIES

• To support an increase in the number of black and female students pursuing technological and engineering careers,

• To promote technological know-how within the SMME sector, through the deployment of skills vested in HEIs and SETIs,

• To facilitate and support multi-firm projects in which firms (Incl. BEE enterprises) collaborate/ share in project outcomes

• Support for BEE and Black-owned Enterprises

050

100150200250300350400450500

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year

Tota

l THR

IP a

nd In

dust

ry

inves

tmen

t am

ount

Co-investment by Government and Industry

050

100150

200250

300350

400450

2003 2004 2005 2006 2007 2008

Year

Num

ber o

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SMMEs companies only Large companies only TOTAL

SMMEs and Large Industry supporting THRIP Projects

• Output for 2008/9 • 240 projects• 313 Industrial partners (66% SMME’s)• 1971 students (57% black, 37% female)• 90 BEE enterprises • Admin costs• 4.9% (2008/9), budget- R162m)

THRIP STATS

INDUSTRY CATEGORY(2006/7)

  NUMBER OF PROJECTS

THRIP FUNDS(R)

AEROSPACE 10 2926868

AGRICULTURE 60 15476909

AUTOMOTIVE 1 742743

BIOTECHNOLOGY 30 16915788

CLOTHING & TEXTILE 1 95000

CULTURAL INDUSTRIES 6 1836800

CHEMISTRY & BIOCHEMISTRY 37 19826930

ENERGY 44 29902702

ICT 38 14958190

METALS 30 20086044

PAPER & PULP 6 6348503

PHARMACEUTICALS 6 1224500

TOURISM 1 203850

 

stp

Aims to develop innovative technology –based platforms that result in the creation of

sustainable, globally competitive SMMEs that contribute towards the accelerated growth of

our economy

stp

Technology for Women in Business

• IDENTIFICATION OF TECHNOLOGICAL NEEDS OF WOMEN IN BUSINESS IN THE IDENTIFIED MARKET SECTORS;

• ADDRESSING THE IDENTIFIED NEEDS THROUGH TECHNOLOGICAL INTERVENTIONS IN A PROJECT SPECIFIC WAY;

• FACILITATION OF LINKAGES BETWEEN WOMEN IN BUSINESS AND TECHNOLOGY SERVICE PROVIDERS;

• IDENTIFICATION AND CREATION OF MARKET AND BUSINESS OPPORTUNITIES FOR THE BENEFICIARIES OF THE TWIB PROGRAMME;

• RECOGNITION AND CELEBRATION OF THE SUCCESS OF WOMEN IN THE VARIOUS BUSINESS SECTORS;

Achievements to date…

Contributing to Economic Development……one business at a time…

Alucia Ngobeni

Timbali Client

Equipment to be used in production

Pall rings that were produced during the research and

development phase

Contributing to Economic Development…

…one business at a time…Keryn Krause: iSlices

eGoli BIO Client

Hans Pieterson: Infantrust

ACORN Technologies Client

What difference can quality & technology make?

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

• JFAPotgieter@thedti.gov.za

Websites