DST Corporate Strategy 2010 - 2013

1. DST Corporate Strategy 2010 - 2013 Presentation to the Portfolio Committee 10 March 2010 Thomas Auf der Heyde Acting Director-General

2. Contents • Strategic context • Strategic overview and key policy developments • DST principal goals • Recent outputs and achievements; challenges • Medium-term priorities and initiatives • Selected medium-term output targets • Monitoring and evaluation • Current status of GERD • Financial resources/budget • Institutional overview • Conclusion

3. Strategic context • The Corporate Strategy aligns the Medium-Term Strategic Framework (MTSF), the Ten Year Innovation Plan (2007), and the National Research and Development Strategy (2002): • importance of technology innovation in speeding up economic growth, and creation of decent work and sustainable livelihoods; • build on the current range of strategies and support programmes already supporting innovation in firms, and research and development (R&D) in the private and public sectors with emphasis on biotechnology and pharmaceuticals, space science and technology, energy security and other opportunities presented by climate change; and • SA’s contribution in international cooperation to an improved South Africa, Africa and the world.

4. Strategic overview and key policy developments (1) • Vision • To create a prosperous society that derives enduring and equitable benefits from science and technology • Mission • To develop, coordinate and manage a National System of Innovation (NSI) that will bring about maximum human capital, sustainable economic growth and improved quality of life for all

5. Emerging areas (DST should..) Sector specific (DST may…) Mature areas (Should not…) • Be involved but not be the leader, e.g., health, agric, minerals • Not be involved, but know what goes on • Standard technology-based services • E.g. Weather services • Take the lead • E.g., biotech, nanotech, etc. • Sector Departments lead DST responsibility Strategic overview and key policy developments (2) Strategic Management Framework

6. Strategic overview and key policy developments (3) NSI SWOT benchmarked OECD Review of SA NSI New public S&T missions • Biotechnology • ICT • Advanced manufacturing • Astronomy 10Yr Innovation Plan Policy Implementation Creation of DST R&D Strategy S&T missions Developing the NSI Knowledge-based economy • Grand challenges • Human capital development • TIA • SANSA • IPR & NIPMO • NICs/BRICs S&T White Paper 2009- 2004 1996 2002 2007

7. Enablers Grand challenges Technology development and innovation Human capital - Centres of excellence, South African research chairs initiative, professional development programme, etc. Cross- cutting enablers Farmer to pharma Human & social science Climate change Energy Space science Knowledge infrastructure – Science councils, state-owned enterprises, global projects Ten-Year Innovation Plan • Investment plan based on strategic priorities

8. DST principal goals (1) • To enhance SA’s knowledge-generation capacity in order to produce world-class research papers and turn advanced findings into innovative products and processes. • To develop the innovation capacity of the NSI and thereby contribute to soc-economic development. • Develop appropriate STI human capital to meet the needs of society.

9. DST principal goals (2) • Build world-class STI infrastructure to extend the frontiers of knowledge, train the next generation of researchers, and enable technology development and transfer, as well as knowledge exchange. • Position SA as a strategic international RDI partner and destination through the exchange of knowledge, capacity and resources between SA and its regional and other international partners, thereby strengthening the NSI.

10. Recent outputs & achievements (1) • The launch of SumbandilaSat (a micro earth observation satellite) on 17 September 2009 • The construction of 7 dishes of the KAT-7 (MeerKat precursor) was completed in January 2010 • The launch of the South Africa HIV and Aids Research and Innovation platforms in July 2009 • 82 Research chairs awarded, and supported 423 postgraduate students through grants • 204 000 people participated in the National Science Week programme

11. Recent outputs & achievements (2) • Anglo Platinum launched a R100 million Platinum Development Fund to promote commercialization of platinum group metal technologies in South Africa • SA was elected Vice-President of the Non-Aligned Movement S&T Bureau for the next four years • DST leveraged R178 million through official donor assistance • 10-year Global Change research plan finalised • Rural quality of life improvement initiatives

12. Example: essential oils production • DST established 5 rose geranium essential oil producing SMME’s, and oil sold to local market with international linkages. • All with 30Ha plantation (40 000 plants/Ha) & steam distillation factory. • Elandskraal, Limpopo • KwaNobuhle, Eastern Cape • Onseepkaans, N. Cape • Pella, N. Cape • Hi-Hanyile, Limpopo • 306 Job opportunities sustained

13. Recent outputs & achievements (3) • The roll-out of rural broadband connectivity using a wireless mesh network reached 150 schools in Nkangala district municipality in Mpumalanga and part of Sekhukhune district in Limpopo • Establishment of a titanium Centre of Competence is at an advanced stage

14. Wireless mesh networks…. A communications network made up of radio nodes organized in a mesh topology Allows buildings to be linked that are in line of sight of each other (with distances more than 7 km) Provides broadband connectivity (> 5 megabytes/second), at very low cost, and no need for centralised infrastructure such as high masts and “base stations” Large geographic areas can be covered Ideal for rural settings and marginalised communities

15. Supplier Development Technology Development SA Ti Industry Titanium Centre of Competence Market 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

16. Challenges in implementing key performance areas • The economic recession, which resulted in substantial reprioritisation (also internationally) • Intergovernmental coordination especially on initiatives that require interdepartmental cooperation • Synergy amongst various delivery calendars – e.g., the DST financial year and the academic year that informs NRF disbursement of funds leading to funds accumulation • Establishment of new institutions absorbs time and capacity in DST, and processes are not entirely predictable – e.g., TIA and Space Agency

17. Medium-term priorities and deliverables Informed by the MTSF, TYIP, NRDS: • Development of strong innovation chains in biotech, nanotech, the hydrogen economy, space science, ICT and advanced manufacturing; • Development and application of technologies to address poverty and improve the quality of life of South Africans; • Development of an innovative and diverse flux of young people seeking and finding careers in science and engineering; • Accomplishment of notable successes in turning trends in global science to the national advantage, e.g., in astronomy and space science.

18. Medium-term initiatives (1) • Developing appropriate space technology platforms and promoting the use of space applications for socio-economic benefits • Providing strategic direction towards the construction of the SKA demonstrator telescope and other activities to ensure that South Africa is well-positioned to host the SKA • The operationalisation of TIA, NIPMO and SANSA

19. Medium-term initiatives (2) • Finalisation and implementation of the SET human capital development strategy • Further implementation of the South African Research Chairs Initiative (SARChI) • Continuing implementation of the Youth-into-Science strategy (such as National Science Week, etc.) • Development of a 10-year strategic research infrastructure plan • Systematisation of sectoral and regional innovation systems

21. Medium-Term Initiatives (3) • DST will continue to participate in international engagements in order to: • Mobilise support for the SA SKA bid • Support SADC STI initiatives and STI desk • Establish new OECD initiatives • Promote access to resources, networks, and knowledge • Support SA’s foreign policy • Project SA as a “smart” operator in the global S&T domain

22. Medium-term initiatives (4) • Demonstrate technical, economical and environmental feasibility of commercially growing abalone in the W. Coast (Hondeklip Bay), N. Cape • Pilot passed financial due-diligence by funding institutions • A 120 tonnes p.a. production facility to be established (R50 million private capital investment)

23. Medium-term initiatives (5) • Established a 35-member co-op, hands-on small scale trout farmer project • 35 SMME’s in on-farm (wine estate) irrigation dams • Each produces 6-10 tonnes Grade A trout, and collectively 200 tonnes p.a. • Supply agreement with Three Streams Smokehouse, Hermanus, who processes smoked trout for Woolworths, and Pick ‘n Pay • 298 direct job beneficiaries supported • DST exploring establishing a primary-processing factory for the co-op, and post-harvest value-addition tech transfer

24. Selected output targets (1)

25. Selected output targets (2)

26. Selected output targets (3)

27. Selected output targets (4)

28. Selected output targets (5)

29. Selected output targets (6)

30. Selected output targets (7)

31. Monitoring and evaluation (1) M&E will be informed by the Presidency’s Outcomes Framework Strong focus on outcomes and indicators in corporate strategy Dedicated M&E Unit Business plan captures outputs, activities, indicators, targets, and inputs against medium-term outcomes of the corporate strategy

32. Monitoring and evaluation (2) Quarterly reports Development of an internal Performance Information Management System Ad hoc strategic analysis The shareholder compact will be the key instrument that the DST uses to link public entities targets to DST targets Project funding to entities will be informed by programme objectives to assess the potential long-term impact of the interventions

33. Outputs and Metrics Output 5 and Associated Metrics To increase the pool of Research, Development and Innovation human capital for a growing knowledge economy • In order to build the knowledge economy as highlighted in Outcome 4 we require a base of high level capabilities across a range of areas: • Increase the output of honours, research masters, doctoral and post doctoral graduates: The increased number and equity profile of high-level skills is key for competitiveness and sustainability of the country’s economy. • Increase research output per researcher and South Africa’s research output: Knowledge production is a prerequisite for knowledge use which results in new products, processes and services. • Improve the qualification profile of researchers: The current value of 33,6% of academics with PhD qualifications is a limitation to the growth of the system and needs to be improved. Metric Current Value 2008 Target Value 2014 Rationale Increase the graduate output of honours, research masters, doctoral graduates and post-docs • Number of honours graduates per annum (PA) • Number of research Masters graduates PA • Number of doctorate graduates PA • Number of post doctoral students supported PA 17 055 3 734 1 182 229 20 059 4 246 1 318 288 The production of graduates with high-level skills is necessary for the development of the next generation of researchers and academics and for the generation of new knowledge and innovation. Increase research output per researcher and South Africa’s research output • DHET research subsidy units measuring masters, doctoral graduates and research publications • Average number of research units per academic (Instruction or research) staff member 8 353 0.52 11 201 0.64 • The development of a knowledge based economy is dependent on the country’s capacity to produce new knowledge, innovation and products. Enhance the supervisory capacity within HEIs by improving the qualification profile of researchers • Number of instructional/Research staff with a minimum of a Masters degree • Number of instructional/Research staff with a minimum of a doctoral degree 5 133 5 353 5 894 5 910 The number of academic staff with a minimum of a masters or doctoral degree is a key indicator of improvement of the skills needed to fully function as an academic.

34. Gross Expenditure on R&D

35. GERD • Gross Expenditure on R&D (GERD) - 2007/8 R&D survey shows spending on R&D amounted to R18.6 billion, i.e., 0.93 per cent of GDP - Spending decreased from 0.95% (2006/7 survey) to 0.93% (2007/8 survey) - Private sector spending on R&D 57.7%

36. Breakdown of GERD

37. Medium-term budget

38. 2010/11 Economic classification (Rm)

39. Budget per programme (R million)

40. Historical spending trends

41. Organogram

42. DST public entities • Council for Scientific and Industrial Research (CSIR) • National Research Foundation (NRF) • Human Sciences Research Council (HSRC) • Africa Institute of South Africa (AISA) • Tshumisano Trust • Academy of Science of South Africa (ASSAf) • Technology Innovation Agency (TIA)

43. Conclusion • Medium term outputs driven by MTSF, NRDS and TYIP • Operational and strategic performance satisfactory • Growth in resources and investment slowing • Establishment of innovation instruments • Continued focus on HCD and innovation skills • Public entities aligned to implement government priorities • Robust M&E System is being put in place

44. Conclusion Dankie Enkosi Ha khensa Re a leboga Ro livhuwa Siyabonga Siyathokoza Thank you