Portfolio Committee Briefing

Centres of Competence (CoC) Programme

Presenter: Mr Steven RatsatsiChief Director: Innovation Planning &

Instruments 15 September 2010

Overview

Background Conceptualisation

CoE vs. CoC Characteristics of a CoC

Features Models and; Benefits (industry and Academia)

Current Status Highlights and Challenges Case Study – Titanium CoC Questions

Conceptualisation

• What is a CoC?– Collaborative partnership for technology

development.– Involves government, industry, HEIs and

research institutions.– Higher risk, longer term research to increase

global competitiveness.– Aimed at technology commercialisation.

Conceptualisation

• CoC versus CoE– CoCs: industry lead focus on development of

near market technologies with the explicit objective for technology commericialisation.

– CoEs: University lead focus on fundamental research with the explicit objective to produce new knowledge discovery.

Characteristics of a CoC

• Features– Pooling of existing research capabilities.– Pooling of funding resources.– Platform for new contractual and institutional

relationships.– Infrastructure and human capital development.– Long terms partnerships leading to R&D

licensing and commercialisation.

Industry InterestAcademic Interest

Relationship Gap betweenIndustry and Academia

Profit and opportunitydriven, low risk

Knowledgedriven andacademicexcellence CoC

pulls

R&D and IP CapabilitiesHuman Capital "raw"

Market knowledgeand access,Production capacitiesExperienced & trainedHuman Capital

Natural Challenge:Different interests between academia andindustry automatically creates natural gap

Fundamental CoC Philosophy

Various approaches to CoC formation

• Approaches:1. Deliberate top down processes

– Based on national priorities

2. Open competitive processes– Linked to national requirements and consortium

strength

3. Bottom up initiatives– Based on strength of strength of research

consortium

CoC – Outcome known

CompetenceCompetenceCapabilities (in various partners)

TechnologyPlatforms

Potential Products/Service

Production methods & Integration

CoC – Unknown Outcome

CompetenceCompetence

Capabilities (in partners)

TechnologyPlatforms

PotentialProducts/ Services

Capability gap

Enabling platform

Unknown Outcome(To be defined)

CoC Capability Gaps& RTD

CompetenceCompetence

Existing Capabilities (in partners)

TechnologyPlatforms

PotentialProducts/ Services

Capability gaps

Production methods & Integration

Figure 4: Outcome is a platform that leads to further products

CompetenceCompetence

Capabilities (in partners)

TechnologyPlatforms from each partner

platformSpin off

Spin off

Spin off

PotentialProducts/ Services

Capability gap

Enabling platformas stepping stone Production methods & Integration

Characteristics of a CoC

• Benefits– Benefits to industry

• Opportunity to engage in higher risk, longer term development of products and services.

• Direct input into strategic direction of CoC.• Access to IP and influence on its exploitation.• Networking with opportunities for involvement in

other R&D initiatives.• Appropriate fit with a commercialisation culture.

Characteristics of a CoC

• Benefits (continued)– Benefits to universities and research

institutions• Dynamic interaction with industry to ensure R&D

will deliver economic benefits.• Longer term funding mechanism, allowing time to

bring R&D to fruition.• Possibility to spin out new commercial entities and

exploit IP.• Access to larger streams of funding.

CoC positioning in the NSI

Basic Applied Tech Develop Transfer and Production

DHE / DST / NRF DST / NRF DST / TIA / VC / SPII DTI / IDC/ VC&PE

COE CoC

Publications / new knowledge Patents / new knowledge / products

Universities

Research Councils

Industry

CommercialisedProducts/services

RTDI (Research Technology Development and Innovation)

performance and institutional intervention landscape.

NIPMO (IP management capability )

CoC

• Physical or virtual platform

• Establishes collaborative environment– Government, industry, higher education and

science councils

• Provides secure – even contractual – basis of relating between parties

• Aim is technology commercialisation

Centre of Competence:•Semi-independent

•Dedicated management•Commercialisation Hub

International Collaborators

Advisors:IP; Tech transfer;Market analysis;Business dev.

Market Opportunity & Social Challenges

Consortium Members

Competencies

Business Concepts

Synergies

Infrastru cture

Patents

Funding

People & skills

Market s (local/ int)

R&D Capability

Funding:DST funding

and/or other sources

Some key considerations:

Challenges

• Some challenges facing CoC Programme:– Lack of suitable intellectual property and

capabilities– Difficult to get industry interested (Universities

are seemingly easy)– CoCs are naturally positioned in a high risk

space that not many parties risk investing, which leads to funding gap (now TIA is in place and forming appropriate partnership with other funding agencies)

Challenges (cont)

• Some challenges facing CoC Programme:– Unclear commercialisation strategies may

discourage industry interest (especially if time to market is unknown)

– Establishment process (from concept formation to feasibility studies, business planning and establishment) may be too long

– Quantum of funds required to leap from knowledge to prototypes, testing and pilot production often huge and not many players in this space in SA, an area of concern

Current State (cont)

• Space– All CoC at concept stage– Not yet funded

• Hydrogen and Fuel Cells– Operational– Funded

• Advanced Manufacturing– Natural Fibre Reinforced

BioComposites – operational and funded

– Two more at concept stage – Micro-sensors and Unmanned Arial Vehicle

• Titanium Industry (case study included)– Operating as network of partners

– Business plan approved

– MOA signed for implementing the CoC

Current State (cont)

• Human Health and Biotechnology– Structural Biology,

Tuberculosis and Malaria – Research Platforms

– A number under consideration – BioPharming, Bioprospecting, Eucalyptus, Sugar beneficiation, Pre-Clinical Drug Development, Chronic Disease

• Medical Device – operational and funded

• Nuclear Technologies for Medical and Biosciences Initiative (NTeMBI) – operational and funded

• SA HIV/Aids Research and Innovation Platform (SHARP) – operational and funded

Current State (cont)

• Nanotechnology– Minerals Beneficiation and

Advanced Materials under consideration

• Fluorochemicals– Operational– Funded

• ICT– Business case being

developed and refined– Funding allocated

Successes and Challenges

• Successes– Hydrogen and Fuel

Cells – a number of products

– MDCoC – product got CE marking

• Challenges– Issues relating to IP– Funding streams – no

diversification– Industry partnership

take up

Hydrogen Powered Bicycle

Case Study

South Africa and a new Titanium Industry

South African Innovation Opportunity

Raw Material Processes & Technologies Market

SignificantTi Ore

Reserves

Existing Markets:Aerospace Automotive

MedicalRecreational

Industrial(e.g. Power Plants)

Chemical

PrimaryMetal and Mill

ProductTechnologies

ComponentManufacturingTechnologies

Establish a Titanium Centre of Competence toIntegrate and Coordinate R&D

and the Approach Across the Supply Chain

20 000 tpa, CP-Grade Ti Powder, R3.3 bn pa by 2020

Titanium Centre of CompetenceDeveloping and Commercialisingthe Technology Building Blocksof the South AfricanTitanium Industry

SATi Industry

Supplier Development

Market Development

Industrialisation & Commercialisation

PrimaryTitanium Metal

Production

CSIRMintek

UP, NecsaThermtron

InvestmentCasting

of Titanium

CSIRUCTUS

Boeing

R&D Platforms

Joiningof Titanium

NMMU NLC

CPUT

Powder BasedProcessing of

Titanium

CSIRNIMS (Japan)

ULIM, WITS, SUMintek, CUT, NLC

Technology DevelopmentMachiningof Titanium

USUJ

UCTCSIR

Formingof Titanium

(Later)

Simulation and Modelling:ULim(Ab Initio), CSIR(FEM, ProCast, Ab Initio), UCT(FEM, Proc. Mod.), CPUT(Weld Sim), UKZN

Laboratories & R&D Facilities: CSIR, UCT, UP, US, NMMU, CUT, Mintek, Necsa, NLC

Physical Metallurgy of Titanium: UP, UCT, UKZN

AdditiveManufacturing

of Titanium

CUTNLC

Aerosud

THANK YOU