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The Technology Innovation Agency (TIA): Mobilising resources for Innovation led growth and development
TIA Vision and Perspectives08 March 2010
Stelelnbosch
Dr Nhlanhla Msomi, Interim CEO : TIA
Contents
1. TIA Background and Context• Policy Impetus• Bridging the “Chasm” • Landscape
2. TIA Strategic Context• Mandate, Mission and Objectives• Intent• Structure• Organisational Model and Modalities
3. Way forward• Migration and full operationalisation
SA Innovation Policy & Institutional Milestones
S&T White Paper
Technology ForesightStudies
R&DStrategy
Creation of DST
OECD Review
1996 2000 2002 2004
10 Year Innovation
Plan
TIA Act
2007 2008 2009/10
Explicit reference to Foundation for Technological Innovation (FTI)
NSI Challenges:•Existence of innovation “Chasm”•Fragmentation of instruments•Narrow definition of Innovation
The “Knowledge Economy”:•Knowledge = basic form of capital •Economic growth driven by innovation
TIA Board&
CEO
OECD Review: Key Findings
• A long term planning Framework is needed • Human Capital for S&T is sub-optimal• The governance framework needs more vertical
and horizontal integration• There is an innovation chasm with an insufficient
number of research products directly influencing the real economy
• Science, technology and innovation for social impact and poverty alleviation should be more pronounced and visible
Research Development Manufacturing
LocalKnowledge
Value addedlocal technology
Products & services
OVERSEAS TECHNOLOGY SOURCESResearch Development Production
Technology
Transfer
$
Innovation “Chasm”
Bridging the “Chasm” through local technology commercialisation and diffusion
PPP’s
Private Equity
Basic Research Applied Research Tech Development Manufacturing
IP V
alu
e
“Early
Stage”“Interm
ediate VC” “Classic VC”
TIA Support
Low Risk/High Return
High Risk/Uncertain Return
CoCs
TIA geared towards addressing “market failure”and building bridges and institutional linkages along the innovation value chain:
Partnerships(e.g. IDC)
Partnerships(e.g. NRF)
The TIA will focus its financial and non-financial offerings along the innovation chasm,
and will operate with the required flexibility across the innovation value chain through
mobilising and leveraging national, regional and international partnerships
Performers
Commercialisation
SETI Landscape
Agencies
CSIR
MRC
Mintek
NECSA
Industry
TIA
Industry
IDC
SPII
Industry
Industry
IDC
Basic Research
Applied Research and Technology Development
Pre-commercial R&D and Technology Development
NRF
General University Funds
Industry
Universities
Science Councils
Science Councils
Universities
Industry
Science Councils
Universities
Industry
Industry-scale technology demonstration and Commercial Start-up
Industry Industry
?
?
TIA Mandate & Vision
The TIA Act [No 26 of 2008]:
“The object of the Agency is to support the State in stimulating and intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by supporting the development and exploitation of technological innovations”
Strategic Context
• The TIA Act frames the mandate and its context (Mission and Strategic Objectives)
– Mission provides the four strategic pillars
• Appropriately structured financial and non-financial interventions
• Human capital development for innovation
• Developing a culture of innovation
• Leveraging local and international partnerships
– Strategic objectives – recurrent theme is competitiveness
• Leverage – capital inflows for technological innovation/transfer
• Support development of new products and services
• Grow number of technology-based start-ups and SME’s
• Support key industry sectors that are better able to utilize local and international technology innovation to enhance their global competitiveness
• Immediate challenge is to build an organisation that can deliver on these strategic imperatives
Strategic Vision & Intent
Build the TIA organisation focusing on governance, HR, Finance, technology
innovation management systems,
tech SME dev, and branding
Deliver first products in the market from the National Innovation
Strategies. Target one high impact product per
Strategy
FY 2010 - 2011FY 2012 - 2013
Restructure and Consolidate the
investment portfolio, focusing on new
funding instruments and support modalities
Leverage and Synergy
TIA’s Strategic Intent: A world class innovation agency that supports and enables technological innovation to achieve socio-economic benefits for South Africa through leveraging strategic partnerships
Model
Finance
Legal
IT
HR
Marketing & Communication
Knowledge ManagementKnowledge
Management
Advocacy & Capacity
Development
International Resources
Seed/Grant-------
Soft / Convertible Loans / Equity
-------Venture Capital
(PPPS)
Centres of Competence (CoCs)
Expert Services
Technology Nursery
Portfolio Management, Monitoring & Evaluation
Biotech & Health Biotech & Health
EnergyEnergy
Minerals Processing
Minerals Processing
ManufacturingManufacturing
ICTICT
Receive, Assign, Assess
Receive, Assign, Assess
Special Purpose Vehicles (SPVs)
In-bound Tech Transfer
In-bound Tech Transfer
Innovation for Social Impact (ISI)
Innovation for Social Impact (ISI)
Infrastructure Management
Risk Management OtherOther
Strategic Relationships
Corporate Services
Strategic Partnerships& Enabling Services
Fund Management
Technology Development &
Innovation
Technology Commercialisation
…TIA Functional overview: Assessment &
Recommendations
Funding
Advisory & Support services
Advisory & Support services
Commercial & Business Expertise
Commercial & Business Expertise
FUNCTIONAL STRUCTURE
Core 1Core 1 Core 2Core 2Support
3Support
1Support
2
Example Sectors
HUMAN DEVEL-
CAPI TALOPMENT
ADVOCACY & STAKEHOLDER MANAGEMENT
KNOWLEDGE MANAGEMENT
LEGENDTechnological
I nnovation Core Functions
Technological I nnovation Support
Functions
Operations Support Functions
EMERGI NG SECTORS
CHEMI CALS/ PLASTI CS
FABRI CATI ON & PHARMACEUTI CALS
FUNDI NG MI NERALS SECTOR
I CT SECTORI T
BUSI NESS & I NNOVATI ON
SUPPORT
OPERATI ONAL FI NANCES
TECHNOLOGY COMMERCI ALI SA
TI ON
MARKETI NG
MARKETI NG, PR & COMMUNI CATI ONS
STRATEGI C PORTFOLI O
(CONSOLI DATED) MANAGEMENT
TECHNOLOGI CAL I NNOVATI ON
CORE COMPETENCE
STRATEGI C SECTOR MANAGEMENT
BOARD SECRETARI AT
I NVESTMENTS MANAGEMENT
HR (Strategy, Policies &
Management)
TECHNOLOGY DEVELOPMENT
T I A O R G A N I SA T I O N A L F UN C T I O N S
LEGAL: COMMERCI AL;
I P
I NTERNAL AUDI T
OPS & ADMI N FI NANCE
PEOPLE DEVELOPMENT
AND STAKEHOLDER MANAGEMENT
OFFI CE ADMI N &
I NFRASTRUCTURE
ENERGY SECTOR
TIA Components
Two TIA components:
1. TIA central model:
• National strategy setting, planning oversight & governance (incl. Risk Management), regional support & coordination of all TIA functions
• Funding approval
• Executive portfolio management of investments
2. TIA regional model [strategy execution & implementation]:
• Gauteng; EC; KZN; WC; FS & NC; NW Limpopo & MP
• Corporate strategy execution, regional partnerships and linkages
• Technology Nurseries: client interface and advisory services
• Identify & assess opportunities, manage funded projects
Research Development Manufacturing
LocalIP and R&D base
Value addedlocal technology
Products & services
OFFSHORE TECHNOLOGY SOURCESResearch Development Production
(Royalties)
$
Bridging the Innovation
“Chasm”
In-bound Technology Transfer- Strengthening the R&D base and reducing the development risk -
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Mapping local assessed needs to:
(i) technologies available offshore and (ii) local technology and manufacturing capabilities
In-bound Technology Transfer based on assessed needs
Increased R&D and IP base
Improved manufacturing
capabilities
Fast-tracked product
development
Technology Business Support and Advisory Services (aka Nurseries)
ESSENTIAL INFRASTRUCTURE
• Technology stations• Technology platforms• Office and laboratory space• High value equipment
ESSENTIAL INFRASTRUCTURE
• Technology stations• Technology platforms• Office and laboratory space• High value equipment
TE
CH
NO
LO
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BA
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OP
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UN
ITIE
ST
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PP
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TU
NIT
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TIATIA
PROCESS / PRODUCT CONFIGURATION
(test the market)
• Prototypes / clinical candidates
• Essential data / proven technologies / processes
BUSINESS DEVELOPMENT
(identify market opportunity)
• markets (what, types, sizes, dynamics, barriers, competitors, etc)
• economic viability
• commercial and legal (incorporation, business plan)
• intellectual property (freedom to operate, strategic licensing
ScienceCouncilsScienceCouncils
Higher Education Institutions
Higher Education Institutions
Techno-entrepreneurs
Techno-entrepreneurs
VIA
BL
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TE
CH
NO
LO
GY
BA
SE
D E
NT
ER
PR
ISE
S
ADVISORY SERVICES• Portfolio managers• Project management• Business warehouse• Expert Services
• IP management• Commercialisation
• Technology Transfer• Capacity/Infrastructure •In-bound technologies
Strategic Investment Portfolio:High Impact Projects
• Clearly defined domestic market, pref. with a strong public sector pull (AMC):– Particularly national priorities such as health, education, rural development
• Technology must be mature and IP possibly out of patent– Manufacturing bias
• Ability of the in-house TIA – Commercialisation & IP unit to negotiate technology transfer– Technology project managers to source, evaluate utility, and facilitate transfer
from technology sources to SME’s
• Availability of an appropriate local private sector company (preferably SME)
• Focus will be on current investment/projects portfolio, with the In-Bound strategy filling the gaps in the IP to move through the chasm:
– Engineering capabilities required for product manufacturing provided by internal platforms such as Tshumisano and AMTS
– Intensive mining of the inherited investment portfolio
• TIA will develop and execute an Implementation Plan by Q4, FY2010/11– Will require additional funding
Way forward: Board appointed April ‘09
Dr Mamphela Ramphele(Chair)
Dr Patrick Ngwenya(Deputy Chair)
Ms Cheryl Carolus
Prof. Susan Harrison
Dr Steven Cornelius
Ms Helen Brown
Mr Craig Venter
Mr IlanLax
Mr Ross Norton
Dr Nhlanhla Msomi(Member of Board
& Acting CEO)
Thank You!