Leveraging Public-Private-Partnerships (PPP) for Increased Investment in ICT R&D – the DST Experience

1. Leveraging Public-Private-Partnerships (PPP) for Increased Investment in ICT R&D – the DST Experience 14 June 2012 Gallagher Estate, Midrand GPG ICT 2012 Summit

2. South African R&D Investment Source: DST/HSRC – National Survey of Research and Experimental Development (2008/2009 Fiscal Year

3. ICT R&D Investment: 2001- 2009

4. Transition to knowledge- based Economy KNOWLEDGE-BASED ECONOMY RESOURCE-BASED ECONOMY

5. Global Knowledge Economy Indices (KEI) Source: World Bank Institute (2004)

6. The Four Pillars of the Knowledge- Based Economy Economic and Institutional Regime Education Interconnected Interdependent Innovation Information Infrastructure

7. DST Programme in ICT R&D and Innovation

8. Key RDI Initiatives & Flagships • Cyber-Infrastructure (SANReN and CHPC) • Increasing ICT access and enabling inclusive use of ICTs • Rural connectivity – Wireless Mesh Networks Project • Human Language Technologies • TheDigital Doorway – increasing access to computing infrastructure and information resources • Supporting national priorities • Education & Health: Mobile apps and services • Monitoring: Earth observation and sensing • Strategic Independence: Information security

9. Leveraging Funding through Partnerships with Multinational ICT Companies

10. Why ICT MNC Investment in SA (1) Factors attributable to MNCs’ decision to invest • Exploiting domestic markets • Managerial and technological knowledge • Lower factors of production and competitive labour costs • Purchasing power of the local market and proximity to other viable markets • Compliance with existing regulatory and legal regime, e.g. NIPP, BBEEE Act, BEE Equity Equivalents etc.

11. Why ICT MNC Investment in SA (2) DST’s Foreign Direct Investment requirements • Human Capital Development • Innovation and Technology-based SME development • World-class research infrastructure, e.g. R&D laboratories and innovation centres • Technology transfer – adoption of practices that will foster transfer and diffusion of technology within the existing IRP regime

12. Existing and Planned DST Partnerships with MNCs Planned partnership with IBM => HCD, Enterprise Development and Establishment of a Research Facility

13. Existing DST Partnerships with MNCs The SAP Example • HCD Programme supported about 21 post graduate students (5 PhDs and 16 Masters) over the past 4 years • Research led to innovation projects in mobile applications to support Very Small Enterprises to: • Support supply chain activities for Spaza shops • Currently conceptualising an mobile application for the taxi commuter

14. Existing DST Partnerships with MNCs (2) The Nokia Example – The mLab Initiative • Mobile Application Lab Southern Africa (mLab) – managed by a consortium that include CSIR Meraka Institute , The Innovation Hub, Ungana Africa and the Coach Lab • Funded through a partnership between DST, Nokia Corporation, World Bank InfoDev and Finnish Ministry of Foreign Affairs • Based at the Innovation Hub, the project supports innovation and entrepreneurship development bases on mobile application development

15. Engagement Modalities and Funding Options Engagement modalities: • Begin with high level expression of intent between DST and MNC and lead to MoU. • Definition and agreement on broad areas of collaboration, alignment with mutual priorities. • Execution of formal funding contract between the DST and implementing agency, i.e. CSIR • Institute an agreement between CSIR and the MNC >>> MoA. A Programme Management Office assist the CSIR to develop detailed projects for collaboration. • Monitoring, evaluation, assessment of impact. .

16. Engagement Modalities and Funding Options (2) Funding options: • Funding options depend on the nature and scope of the collaboration • Funding levels from each party depend on weight they attach to the particular project. • Funding could also be in kind, i.e. access to researchers, infrastructure and facilities.

17. The new ICT R&D and Innovation Roadmap will guide future collaboration with private sector

18. Roadmap frames and guides ICT RDI activity – focus is on Impact Society • Improved quality of basic education • A long and healthy life for all South Africans • Decent employment through inclusive economic growth • A skilled and capable workforce to support an inclusive growth path • An efficient, competitive and responsive economic infrastructure network Government Technology ExpertisePeople Research Outputs Value Chain Strategy Research Institutions Services People Products and services Service Delivery Policy and Strategy Higher Education People Industry

19. The ICT RDI Roadmap Purpose Enable increased public and private investment in ICT RDI (by a factor of 3 to 4) by providing a mechanism to forecast technology developments in targeted areas; identifying critical areas that must be developed to meet SA's socio-economic objectives ; and by surfacing and demonstrating the ICT research community and sector's understanding and agreement on the trends, market potential, priorities and investment requirements Provide a framework to plan and coordinate technology developments both nationally and regionally – to enable sophisticated decision making

20. Investment Portfolio of 6 Thematic Clusters

21. 6 Strategic Priority Areas 1 5 2 3 6 4

22. Ideal Investment and Impact

23. Conclusion Implemented R&D programmes linked to SA challenges Developed a mechanism for engaging with MNCs The Roadmap identified future areas for R&D focus

24. Thank You