“Research and Development for Industrial Competitiveness”

Technology and Human Resourcesfor Industry Programme (THRIP)

Romilla Maharaj (PhD, MBA)Executive Director: Human Institutional Capacity Development

National Research Foundation23 October 2008

Presentation outline

• History

• Thumbnail statistics

• THRIP supported Research and Development

• About THRIP

• Investment in THRIP projects

History

• A government and private sector partnership programme established in 1992.

• Conceptualised by NRF and research community.

• Response to the shortage of skills for industry and, the need to make South Africa’s industry more competitive.

• First grants awarded in 1994.

Thumbnail statistics

• 85% of new jobs are in knowledge and service work.

• In-house Research and Development (R&D) in business sector accounts for 58% of national R&D.

• Only 1.8% of sales income was spent on innovation.

• 51% of SA firms had no R&D efforts.• In 2003, 1% large, 2% medium, 8% small,

49% micro and 39% very small enterprises.

• Only 1.3% of South Africans owned and managed a business that had survived more than three years.

• Rate of 1.3% is stable, but very low.• SMMEs accounted for 36% of GDP in

2003.• SMME sector in SA is underdeveloped.• Very few firms are technology orientated.

Thumbnail statistics (cont.)

Why should an SMME invest in R&D?

• Enhance products and services;• Create new product development;• Development of products and/or

services;• Gives SMMEs a competitive

edge; and• Innovation and productivity.

Break-even-analysis

Year

Money

Cash drainNeed R&D

Point of establishing yourself

Angel investor / loan

Customer base needs to grow every year.

Links between citation and wealth intensities

Patents granted in USPTO and EPO 1991 -2005

Patent applications 1991 -2005: ZA (red), Singapore (yellow), India (green)

THRIP Mission

To improve the competitiveness of South African industry, by supporting research and technology development activities and by enhancing the quality and quantity of appropriately skilled people.

THRIP supported

R&D

Cultivating the rootsof economic growth

Cassava provides one of the main sources of starch for poor rural farmers.

In South Africa it is an important potential crop for food security and as an industrial starch for economic growth and wealth creation.

Changing theface of crime

Excessive Internet usage for non-work purposes and deliberatemisuse of the Internet have become a serious problem in many organisations.

The University of Pretoria doesresearch on computer security, protection of privacy and webservices – all of which is aimed atcreating more secure mobileComputing and reducing electronic Payment vulnerability.

Beefing upthe cattle industry

Irene Animal Production Institute apply software that enables farmers to predict the true breeding potential of individual animal.

The breeder is able to identify animals that will improve the genetic ability of the herd, while avoiding animals that are genetically inferior.

About THRIP

Key objectives of THRIP

• Specific responses to the technology needs of industry;

• Produce highly skilled researchers and technology managers;

• Educational experience for students within the industry environment; and

• Foster collaboration among industry and, researchers.

THRIP Process

IndustryAcademic /

SETI Researchers

Partnership

Submit THRIP proposal to NRF

Industry Government

THRIP cost and benefit sharing

Benefits:•People

•Products•Processes etc.

How can SMMEs benefit?

• Matching R&D funds;• Sharing cost and risks;• New or improved technologies,

processes and products; • Spin-off technologies or companies;

and • Tapping into knowledge at universities.

Cost sharing between industry and government

Industry Partner(s)THRIP

contribution

Large industry

contribution

Small andMedium

Enterprise contribution

Very Small/Micro

Enterprise contribution

Large industry(ies) only 1 3 N/A N/A

Large industry(ies) plus minimum of 25% by number of SMMEs 1 2

5% of highestcontribution

No financialContribution

All SMMEs1 N/A 1

No financialContribution

All SMMEs and all BEEs2 N/A 1

No financialContribution

Industrial Sectors supported

83

30

16

41

4944

35

9 72

56

0

10

20

30

40

50

60

Aeros

pace

Agricu

lture

Autom

otive

Biotec

hnolo

gy

Clothin

g an

d te

xtile

Cultur

al ind

ustri

es

Chem

istry

and

bioch

emist

ry

Energ

yIC

T

Met

als

Paper

and

pulp

Pharm

aceu

ticals

Touris

m

Standard Industrial Classification Category

Nu

mb

er

of T

HR

IP a

pp

lica

tion

s

Investment in THRIP projects

Co-investment by Government and Industry

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

inve

stm

ent a

mou

nt

Industry financial investment in THRIP Projects

0

20

40

60

80

100

120

140

160

180

2000 2001 2002 2003 2004 2005 2006 2007 2008

Year

Con

trib

utio

n am

ount

(R

'000

000

)

SMME Large THRIP

SMMEs and Large Industry supporting THRIP Projects

050

100150

200250

300350

400450

2003 2004 2005 2006 2007 2008

Year

Num

ber o

f com

pani

es

SMMEs companies only Large companies only TOTAL

SMMEs involved with multiple projects

2 24

8

4 4 3 3

30

0

5

10

15

20

25

30

35

Industry partner

Num

ber

of p

roje

cts

Industry Partner breakdownfor 2008/09 projects

Large, 79, 29%

Large and SMME, 98,

37%

SMME, 93, 34%

Large Large and SMME SMME

How can you become an industry partner?

Contact us @

Etresia du PlessisTel: (012) 481-4040

E-mail: etresia@nrf.ac.zaWebsite: www.nrf.ac.za/thrip