SOUTH AFRICAN ECONOMY AT A GLANCE

1. South African National System of Innovation (NSI)Derek Hanekom, Deputy Minister of Science and Technology, Republic of South Africa14 February 2007

2. SOUTH AFRICAN ECONOMY AT A GLANCE • Population of 47 million • GDP of $227bn (22nd largest economy) • GDP growth of 4.9% (8 years of consistent growth) • High level of business confidence • Diversified economy

3. BUT ……. • High level of inequality - Gini coefficient of 0,58 • High unemployment (25% of work force) • HDI ranked 120 out of 177 countries (2003) • Life expectancy of 51 years • HIV prevalence: 1 out of 6 of all people aged 15 to 49 years • 24% of adults over 15yrs are functionally illiterate

4. PRE 1994 SCIENCE ENVIRONMENT CHARACTERISTICS OF THE SCIENCE SYSTEM PRE 1994 • Exclusion of black people from SET careers; and • Isolationist approach: R&D expenditure mainly on defence and energy APARTHEID EDUCATION • "Native education should be controlled in such a way that it should be in accord with the policy of the state…If the native in South Africa today in any kind of school in existence is being taught to expect that he will live his life under the policy of equal rights ,he is making a big mistake…There is no place for him in the European community above the level of certain forms of labour…". Dr Hendrik Verwoerd, Minister of Native Affairs, 1953 LEGACY IS STILL WITH US • Black learners remain disadvantaged in Maths and Science • Out of 740 000 learners wrote matric exams last year, less than 10% wrote Maths in higher grade – almost 50% FAILED

5. Raise growth to 6% Halve poverty: from 1/3 of households down to 1/6 Halve unemployment: from 30% to 15% Accelerated& Shared Growth Initiative: 2014 targets

6. The evolution of policies underpinning the NSI Vision of Reconstruction and Development 1994 WHITE PAPER ON SCIENCE AND TECHNOLOGY, 1996 R&D STRATEGY 2002 BIOTECHNOLOGY STRATEGY 2001 ADVANCED MANUFACTURING TECHNOLOGY STRATEGY 2003 INDIGENOUS KNOWLEDGE SYSTEMS STRATEGY 2004 NANO- TECHNOLOGY STRATEGY 2006 INFORMATION AND COMMUNICATION TECHNOLOGY STRATEGY 2007 Comprehensive Implementation Plans

7. PILLARS OF THE NSI • Key to economic growth and competitiveness • Quality of life for all • Addressing the legacy – top priority • Science Centres • Maths/Science Development Camps • Maths and Science dedicated schools • Provides strategic direction and support through the NSI • Research Chairs • Centres of Excellence

8. SCIENCE AND TECHNOLOGY POLICY LANDSCAPE Economic Growth Poverty reduction Quality of Life White Paper on Science and Technology Vision 2014 National R&D Strategy Advanced Manufacturing Technology Strategy Information & Communications Technology Strategy Indigenous Knowledge Systems Strategy Biotechnology Strategy Nano- technology Strategy

9. S&T ACTORS AND STAKEHOLDERS Government International Partners NGOs Social OBJECTIVES Economic Business Education Institutions Science Councils Research Institutions State Corporations

10. 1. Some areas are absolutely necessary for national competitiveness, for any size of country, e.g. information technology, biotechnology. Omit these at your peril! WHAT GUIDED US IN CHOOSING PRIORITY AREAS 2. Other areas present some “geographic” advantage, e.g. astronomy & “human origins” for South Africa. 3. Other areas present a “knowledge” advantage, e.g. traditional knowledge or deep level mining for South Africa. 4. Self-selected areas representing “critical problems”, e.g. HIV/AIDS and Malaria.

11. National Competitiveness : BIOTECHNOLOGY STRATEGY • INNOVATION CENTRES • Finance & business support • Technology Platforms/infrastructure • Cluster development / networking • ENABLING ENVIRONMENT • Public engagement • Inter-departmental coordination • Policy review/development • FRONTIER BIOTECHNOLOGY • Frontier programmes • International science participation • STRATEGIC ADVICE • Biotechnology Advisory Committee

12. THIS IS WHAT YOU GET…. South Africa recently won the bid to host the third component of the International Centre for Genetic Engineering and Biotechnology (ICGEB), which will be hosted by the Institute for Infectious Diseases and Molecular Medicine at the University of Cape Town • The other two components are housed in (Trieste) Italy and (New Delhi) India • ICGEB’s primary focus in the field of Biotechnology is on HIV/AIDS, TB, malaria – an enormous contribution in meeting the MDG goals

13. CURRENT SITUATION The country’s investment in ICT in general and ICT R&D (10%) specifically is far below that of its OECD counterparts (30%) High telecommunication costs and poor bandwidth Tele-density of fixed line is low by worlds’ standards MEASURES INTRODUCED Establishment of the Centre for High Performance Computing Open Source Software promotion SANReN – a high speed network that will enable the exchange of research data between the country’s research institutes and counterparts around the world National Competitiveness : ICT

14. GEOGRAPHIC ADVANTAGE • Fluorine technology • Biodiversity • Human origins • Astronomy

15. SOUTHERN AFRICAN LARGEST TELESCOPE (SALT) The single largest optical telescope in Southern Hemisphere, and is a culmination of multilateral partnerships between SA, New Zealand, Germany, Poland, United Kingdom, India, Russia and the US. A gateway through which we can observe our earliest stars, learn more about the formation of our galaxy. ASTRONOMY – THIS IS THE RESULT…

16. ON THE WAY ….. SQUARE KILOMETRE ARRAY (SKA) • A €1.5 bn international project to create receiving surface of a million square metres • The SKA will provide data for a whole range of astronomical investigations • South Africa short listed along Australia for the hosting of this world’s largest radio telescope • Bid winner is to be announced in 2011

17. AND MORE….. SUMBANDILA SATELLITE • Will be launched in Russia in June this year • Building Africa’s capacity for earth observation data • Constructed locally, this low earth orbiting Satellite is part of multimillion rand integrated capacity building and satellite project • SumbandilaSat will generate imagery that will support decision making areas such as natural resources, agriculture, urban planning and other applications

18. PALAEOANTHROPOLOGICAL RESEARCH The earliest evidence of the origins of life on the planet at the Vredefort Dome World Heritage Site The most prolific evidence of early human ancestry anywhere in the world at the Cradle of Humankind World Heritage Site HUMAN ORIGINS

19. CRADLE OF HUMANKIND Major sites of research Scientific visitor interpretation centre Public awareness THISISTHE RESULT…

20. CRITICAL PROBLEM AREA HIV VACCINE • South Africa is actively engaged in HIV/AIDS vaccine development • The South African Aids Vaccine Initiative (SAAVI) was established in 1999 and is tasked with the development of an affordable, effective vaccine for the country • SAAVI enjoys close collaboration with many other global players in the field, including the US’s National Health Institute and International Aids Vaccine Initiative (IAVI) • The vaccine is going on the Phase 1 clinical trial at the end of the year

21. CRITICAL PROBLEM AREA SOUTH AFRICAN MALARIA INITIATIVE (SAMI) • Malaria kills over 3000 children each day in Sub-Saharan Africa • SAMI was established in 2006 and aims to bring together key researchers in the country with a focus on molecular aspects of malaria drug and insecticide discovery • Outcome of the SAMI programme will lead to enhanced intellectual and human capital in the country

22. KNOWLEDGE ADVANTAGE • Technology for poverty reduction • Indigenous knowledge • Technology for deep mining • Selected human health technologies

23. NEW CHALLENGE – CLIMATE CHANGE CRITICAL TECHNOLOGY MISSION REQUIRED TO ADDRESS CLIMATE CHANGE INCLUDING • Toward Zero Emission Strategies • Energy efficiency strategy • Reducing fossil fuel dependence • Nuclear and Renewable sources • Carbon credits • Ecosystem and biodiversity management • Innovative mitigation and adaptation measures

24. OUR R&D INVESTMENT 55% is Private Sector R&D Spend Target : 1% of GDP by 2008

25. SA VS OECD COUNTRIES

26. STRENGTHS AND CHALLENGES of SA’s NSI STRENGTHS • Fiscal incentives for R&D • Strong government support • Policy and strategies • Indicators and institutionalised R&D survey • International Cooperation • 50 Bilateral partnerships • OECD – Observer status on the Committee for Science and Technology Policy • SA Co-chairs the Group on Earth Observation CHALLENGES • Human Capital • Weak link between knowledge generation and the real economy

27. CONTINENTAL INTITIATIVES • SOUTH AFRICA HAS A VANGUARD ROLE IN ADVANCING S&T IN THE CONTINENT • AFRICAN MINISTERS’ COUNCIL OF SCIENCE AND TECHNOLOGY (AMCOST) • THE AFRICAN PLAN OF ACTION • EARLY SUCCESSES: • AFRICAN LASER CENTRE (ALC) • AFRICAN INSTITUTE FOR MATHEMATICAL SCIENCES (AIMS) • WATER SCIENCES INITIATIVE • BIOSCIENCES INITIATIVE

28. THE FUTURE Foundation for Technological Innovation (FTI) • Moving towards the establishment of the FTI - an agency that will be responsible for stimulating and enhancing technological innovation • Address the innovation chasm • Functions of the FTI • Promote innovation and economic development by increasing capabilities and network linkages of key players in the NSI ; • Develop management information system of all government funded innovation projects • Improve the transfer of knowledge; and • Evolve the development of new institutions e.g. Nanotechnology Institute. THE ESTABLISHMENT OF THE FTI WILL COMPLETE THE INNOVATION FRAMEWORK; CONTRIBUTE TO HUMAN CAPITAL DEVELOPMENT, SUSTAINABLE ECONOMIC GROWTH AND IMPROVED QUALITY OF LIFE FOR ALL

29. “Steadily the dark clouds of despair are lifting, giving way to our season of hope. Our country, which for centuries has bled from a thousand wounds, is progressing towards its healing”. Thabo Mbeki, President of the Republic of South Africa.THANK YOU