Portfolio Committee Briefing

1. Portfolio Committee Briefing Centres of Competence (CoC) Programme Presenter: Mr Steven Ratsatsi Chief Director: Innovation Planning & Instruments 15 September 2010

2. 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

3. 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.

4. 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.

5. 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.

6. Fundamental CoC Philosophy

7. Various approaches to CoC formation • Approaches: • Deliberate top down processes • Based on national priorities • Open competitive processes • Linked to national requirements and consortium strength • Bottom up initiatives • Based on strength of strength of research consortium

8. CoC – Outcome known Potential Products/Service Production methods & Integration Technology Platforms Capabilities (in various partners) Competence

9. CoC – Unknown Outcome Unknown Outcome (To be defined) Potential Products/ Services Enabling platform Capability gap Technology Platforms Capabilities (in partners) Competence

10. CoC Capability Gaps& RTD Potential Products/ Services Production methods & Integration Capability gaps Technology Platforms Existing Capabilities (in partners) Competence

11. Figure 4: Outcome is a platform that leads to further products Spin off platform Spin off Spin off Potential Products/ Services Enabling platform as stepping stone Production methods & Integration Capability gap Technology Platforms from each partner Capabilities (in partners) Competence

12. 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.

13. 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.

14. RTDI (Research Technology Development and Innovation) performance and institutional intervention landscape. Basic Applied Tech Develop Transfer and Production Research Councils Universities Industry Commercialised CoC COE Products/services NIPMO (IP management c apability ) DST / NRF DHE / DST / NRF DST / TIA / VC / SPII DTI / IDC/ VC&PE Patents / new knowledge / products Publications / new knowledge CoC positioning in the NSI

15. 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

16. Some key considerations:

17. 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)

18. 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

19. 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

20. 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)

21. Current State (cont) • Nanotechnology • Minerals Beneficiation and Advanced Materials under consideration • Fluorochemicals • Operational • Funded • ICT • Business case being developed and refined • Funding allocated

22. 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 Successes and Challenges

23. Hydrogen Powered Bicycle

24. Case Study South Africa and a new Titanium Industry

25. South African Innovation Opportunity Existing Markets: Aerospace Automotive Medical Recreational Industrial (e.g. Power Plants) Chemical Significant Ti Ore Reserves Primary Metal and Mill Product Technologies Component Manufacturing Technologies Raw Material Processes & Technologies Market Establish a Titanium Centre of Competence to Integrate and Coordinate R&D and the Approach Across the Supply Chain

26. 20 000 tpa, CP-Grade Ti Powder, R3.3 bn pa by 2020

27. Technology Development SA Ti Industry Titanium Centre of CompetenceDeveloping and Commercialisingthe Technology Building Blocksof the South AfricanTitanium Industry Market Development Supplier Development Industrialisation & Commercialisation Primary Titanium Metal Production CSIR Mintek UP, Necsa Thermtron Powder Based Processing of Titanium CSIR NIMS (Japan) ULIM, WITS, SU Mintek, CUT, NLC Investment Casting of Titanium CSIR UCT US Boeing Machining of Titanium US UJ UCT CSIR Additive Manufacturing of Titanium CUT NLC Aerosud Joining of Titanium NMMU NLC CPUT Forming of Titanium (Later) Physical Metallurgy of Titanium: UP, UCT, UKZN 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 R&D Platforms

28. THANK YOU