presentation to the portfolio committee on science...
TRANSCRIPT
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PRESENTATION TO THE PORTFOLIO COMMITTEE ON SCIENCE AND TECHNOLOGY19 APRIL 2012
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THE INNOVATION CHALLENGE
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Invention
Context
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Innovation +
Market
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The innovation chasm
4
THE IDEAS, RESEARCH AND DEVELOPMENT
COMMERCIAL INDUSTRIES AND MANUFACTURING
VALLEY OF DEATH
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THE TIA MANDATE“BRIDGING THE INNOVATION CHASM”
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The TIA Act [No 26 of 2008]
“The object of the Agency is to support the State
in stimulating and intensifying technological
6
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”
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TIA
Bridging the innovation chasm
7
COMMERCIAL INDUSTRIALISTRIES
AND MANUFACTURING
THE IDEAS, RESEARCH AND DEVELOPMENT
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Our Vision & Mission
Our Vision
To be a world class innovation agency that supports andenables technological innovation to achieve socio-economic
Vision and Mission
enables technological innovation to achieve socio-economicbenefits for South Africa.
Our Mission
To support technology innovators to unlock South Africa’sglobal competitiveness and deliver socio-economic value.
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Private Equity
IP V
alue
Proposed TIA Support
Low Risk/
High Return
High Risk/
Uncertain Return
TIA geared towards addressing “market failure ”and building bridges and institutional linkages along the innovation value chain :
Partnerships
9
PPP’s
Basic Research Applied Research Tech Development Manufacturing
IP V
alue
Proposed TIA Support Partnerships(e.g. IDC, NEF)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 t he innovation value chain through mobilising
and leveraging national, regional and international partnerships
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Investment Risk
Mini-grants
Matching grants/ loans
Accumulative Investment
Fin
anci
al P
rodu
cts
Offerings across the value chain
10
Basic research
Applied research &
developmentCommercialization Production
Equity Financing
Market Analysis
IP Rights
Technology Platforms
Tech Transfer Brokering
Business Support Internationalization
Entrepreneurial Networks
Non
-fin
anci
alS
ervi
ces
Fin
anci
al P
rodu
cts
Technology Stations
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Basic researchProof ofconcept
technical development /commercial
planning
Product &business
development
Businessstart-up(scienceBased )
Businessgrowth
IdeaGeneration
& Development
Phase 1
Phase 2Phase 3
Phase 4
ExpansionEarlyexpansionStart-up
Seed
Funding Value Chain
Universities
Science Councils
DST, DoE & NRF
TIA Support IDCOther
Industry
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KEY INFLUENCES
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Who is a TIA customer ?
Where do you find them?
• Technology Innovators
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• HEI
• Science Councils
• State Owned Entities
• Private Companies
• Community
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The TIA Stakeholders
INNOVATOR INVESTOR
TIA
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CITIZEN
TIA
TIA is at the confluence of the needs and aspiratio ns of these stakeholders.
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Stakeholder needs (1)
The Innovator - Higher Education Institutions; Science
Councils; State Owned Entities & Private companies
• Commercial & technical expertise
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• Responsiveness and reliability
• Customer centric products & services
• Supporting infrastructure
• Access to technology innovation eco-system
• Sound advice
INNOVATOR
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Stakeholder needs (2)
Investor - DST, Government Departments and Agencies;
Provincial and Local Government & Industry
• Technical acumen
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• Commercial acumen
• Sound governance
• Risk mitigation
• Return on investment
• Rigorous ongoing monitoring & evaluation
INVESTOR
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Stakeholder needs (3)
• Technology solutions to humanity’s problems
• Security
Communities
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• Education
• Employment opportunities
• Systems level planning
• Improved quality of life
CITIZENS
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ALIGNING TIA TO THE STAKEHOLDER’S NEEDS
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TIA Strategic objectives (1)The Balanced Scorecard Approach
Financial
1. To support the development and demonstration of
technology based products, processes and services
2. To support the commercialisation of technology
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Stakeholder
3. To develop an enabling environment for technology
innovation and commercialisation in South Africa.
2. To support the commercialisation of technology
innovations.
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TIA Strategic objectives (2 )The Balanced Scorecard Approach
Internal Business Processes
4. To develop an enabling environment within TIA to
successfully execute its strategy.
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Learning and Growth
5. To facilitate the development of technology innovation skills to
support technology innovation and commercialisation.
6. To become a schedule 3B entity in terms of the Public
Finance Management Act.
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ALIGNING TIA TO THE GOVERNMENT’S OUTCOMES AND DST POLICY MANDATES
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Link to government outcomes
Government Outcomes Description TIA’s role
Outcome 2 A long and healthy life for all
South Africans
Stimulation of PPP’s in drug
development of priority diseases
and investments in projects
aimed at improved healthcare
Outcome 4 Decent employment through
inclusive economic growth
Investments in projects in
economic sectors identified in
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inclusive economic growth economic sectors identified in
NGP (Agric value chain, Mining
value chain, Manufacturing,
Tourism and High-level Services)
Outcome 5 A skilled and capable workforce Though TIA’s ISD initiatives aimed
at developing skills for innovation
Outcome 7 A vibrant, equitable and
sustainable rural communities
and food security
Investment in projects aimed at
improved cattle farming, crop
production, agric exports,
knowledge transfer
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Link to DST’s Ten -Year Innovation Plan
•Tia will facilitate Health Sector collaborations with HEI’s and SC’s
•TIA hosting South African HIV/AIDS Platform (SHARP); South African TB Research Initiative and SA Malaria Initiatives
•BioPharming Platform; Biosafety Platform and the Omics platforms
•New Animal Health Cluster
Strengthening the Bio-economy
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•Among the sectors that TIA intends to focus on is Energy.
• The main focus being clean and renewable energyEnergy Security
•TIA will assess projects that are supportive of the Climate Change programme.
•New Electric Vehicle Platform
Climate change
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THE TIA SECTORS
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Choice of TIA Sectors
ECONOMICDrivers - Productivity and
competitivenessHurdles encountered - Technology development, investment and HCD
SOCIALDrivers - Knowledge base
Hurdles encountered - poor quality public education
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ENVIRONMENTALDrivers - Resource optimisation
Hurdles encountered - Technology development
Technology Innovation
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TIA Sectors (1)
• TIA evaluates technology applications from all
sectors indiscriminately
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• The following sectors have been identified for
emphasis from an inherited portfolio and South
Africa’s economic influence/ priorities
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TIA Sectors (2)In
dust
ry/E
cono
mic
Sec
tors
Cross-Cutting Technology Sectors
Agr
o S
ecto
r
Hea
lth S
ecto
r
Ene
rgy
Sec
tor
Min
ing
Sec
tor
Industrial Biotech
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ICT
Advanced Manufacturing
Indu
stry
/Eco
nom
ic S
ecto
rs
Agr
o S
ecto
r
Hea
lth S
ecto
r
Ene
rgy
Sec
tor
Min
ing
Sec
tor
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OFFERINGS THROUGHOUT THE VALUE CHAIN
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TIA offerings
1. Funding
2. Business Support & Strategic Partnerships
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3. Technology Development Infrastructure
4. Innovation Skills Development
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Funding
Royalty -grants
Technology & Development
Youth Technology Innovation
Industry Matching
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30
Royalty -grantsLoans, EquityIdea
Development Venture Capital
CUSTOMER CENTRIC SOLUTIONSALONG THE INNOVATION VALUE CHAIN
The five funding instruments of TIA
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Technology infrastructure
Technology Platforms
Technology Stations
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Industry Clusters
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Technology StationsTechnology infrastructure location
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Sectors and infrastructure clusters
Biotechnology
Sectors
Industrial
Sectors
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He
alt
h
Ag
ricu
ltu
re
Ind
ust
ria
lB
iote
ch
En
erg
y
Min
ing
Ad
van
ced
M
an
ufa
ctu
rin
g
ICT
Electronics Design & Mnf (Incl. ICT)
Foundries Technology, Light metals & Tooling (4)
Innoveton/Down Stream Chemicals
Agro Food and Processing (2)
Chemistry & Cosmetics (2)
General Engineering, Composites and Reinforced Plastics (2)
Product Design & Development (2)
Database of Technology Infrastructure, Services and Expertswww.heda.co.za/satnsearchengine/formsa/
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PRODUCTPRODUCTDEVELOPMENTDEVELOPMENT
TECHNOLOGY & TOOLINGTECHNOLOGY & TOOLINGDEVELOPMENTDEVELOPMENT
MANUFACTUREMANUFACTURE QUALITYQUALITYCONTROLCONTROL
‘Time’‘Time’ andand ‘cost ’‘cost ’ toto commerc ia l isecommerc ia l iseR E D U C E DR E D U C E D
Impact on TIA and Funded Projects
CONCEPTCONCEPT ANALYSISANALYSIS VERIFICATIONVERIFICATION DESIGNDESIGN ANALYSISANALYSIS NC PROGRAMNC PROGRAM MACHININGMACHINING MEASURINGMEASURING
‘Exceptional Skills ‘Exceptional Skills Development & SET Capacity Development & SET Capacity Building for a locally based Knowledge Building for a locally based Knowledge EconomyEconomy
andandExploitation Exploitation of inbound Technology’of inbound Technology’
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The Free State station at CUTBed for bedridden patients to reduce bed sores
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Car for the disabled
• The client is a disabled entrepreneur/ innovator who is supported by TIA/TSP in the design and development of a Car for the disabled
• The Technology Station at CUT in Bloemfontein conducted a Product Design and Technology Development with objective to reduce the current Design and Technology Development with objective to reduce the current cost of making disabled individuals mobile without assistance
• Graduates from university are exposed to design & fabrication technologies. The local manufacture of car will results in job creation/employments
No. graduates involved: 25
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Automatic Pill Press Machine
• Scientific SUPER-KILL is a local enterprise in the pest control and scientific health care sector that was supported by CUT technology station to automate their products range manufacturing process for Rat poison pill
• The Technology Station offered: • The Technology Station offered: Applied Engineering, Design and Development and Engineering Project management.
• Benefits to enterprise: • improved unit cost of production• and increased volumes• To be competitive in pricing for
international markets
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Platform OBJECTIVES
Bioprocessing Provides infrastructure to enterprises requiring downstream
production of various bioproducts
Institute of
Diagnostic
Research (IDR)
Develops components for cost-effective, rapid diagnostic kits
National A modern and high throughput sequencing facility
Platform activities (1)
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National
Genomics
Platform (NGP)
A modern and high throughput sequencing facility
Metagenomics Discovers and develops products and processes from South Africa’s
extreme biomes for industrial applications.
Metabolomics Employs metabolite analyses to develop solutions for the diagnosis of
infectious diseases and inherited disorders.
Bioinformatics Supports the data management and analysis for the ‘omics’ platforms
CPGR Provides genomics and proteomics research service for academic and
industry clients
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Platform OBJECTIVES
Drug Delivery Systems Designs and develops intelligent systems to improve the delivery
and efficacy of new and existing drugs
Drug Discovery Establish the capability to develop and optimize new drug
candidates for clinical tests
Platform activities (2)
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Vaccine Delivery
System
Develop a system to improve safety and efficacy of animal
vaccines.
Protein Expression
System
Develop a yeast-based expression system to produce therapeutic
peptides
Biosafety Facilitates access to strategic information about biosafety risk
assessment in biotech development
Bioprospecting Identifies anti-HIV activity from plant extracts based on
indigenous knowledge in Limpopo
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Business support
• Financial Management
• Contract Negotiation
• Marketing
• Business Plan Development
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• Business Plan Development
• Governance
• Networking
• Internationalisation
• IP Management
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Innovation Skills Development
• Enabling education through accessible technology
• Fast tracking skills development through
technology innovation in a value based manner
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• Programmes aimed at addressing skills shortage in
manufacturing & other industrial processes.
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INTERNAL DELIVERY MECHANISMS
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Online
Application
Intelligent
Systems
Access
TIA delivery mechanisms
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43
Cross
Functional
Teams
Key
Skills
Strong
Regions
Collaborative
Approach
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TIA Business Development (strong regions)
TIA National &
Investor
ClientProvincial Dev
Agencies
Municipalities
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TIA National &
RegionalFinance
Sectors
TSP
Platforms
etc
RegionalBDM’s
BDO’s
Municipalities
Private companies
SOEs
Others
Inventor ClientHEIs
Science Councils
Innovators
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The capabilities that TIA will need in order to deliver on mandate
• Technology innovation expertise • Deal making / portfolio management• Leadership
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• Business development and support• Cross functional teamwork and collaboration • Expert services • Finance
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THE MTEF ALLOCATION
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MTEF Allocation (1)
Medium Term Expenditure Estimates
R’ thousand
Adjusted
Appropriation
2011/12
2012/2013 2013/2014 2014/2015
Operations 66 410 53 279 51 732 51 038
Human Resources 83 382 86 487 90 861 96 312
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Human Resources 83 382 86 487 90 861 96 312
Innovation Skills
Development8 014 9 104 9 564 10 118
Investments 259 319 295 118 313 930 336 647
Marketing and
Business
Development
12 353 6 656 7 348 7 707
Capital Expenditure 4 338 4 552 4 782 5 068
Total 433 816 455 196 478 217 506 910
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MTEF Allocation (2)
12%
19%
1% 1%
As a percentage of allocation
Operations
Human Resources
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2%
65%
Skills Development for Innovation
Investments
Marketing and Business
Development
Capital Expenditure
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Leveraged Funds
Number of co-funded projects in sectors Co-fundingAgriculture
2 Projects 4 557 090.005 100 000.00
Advanced Manufacturing2 Projects 11 000 000.00
2 688 076.00ICT
1 Project 500 000.00Health
2 Projects 20 000.005 008 200.00
Energy1 Project 93 000 000.00
TOTAL 121 873 366.00
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THE NEW INITIATIVES
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Youth Technology Innovation Fund
1. Criteria– South African Citizens of ages 18 – 30 years not already funded through the normal TIA
process.
2. Offerings– Voucher for use of SABS services for product certification up to R100 000.– Vouchers for Business Coaching services up to 160 hours .
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– Voucher for use of TIA’s technology platforms and stations up to R250 000 for rapidprototyping.
– Voucher for incubation services at a recognised TIA partner for up to 2 years.– Voucher for IP protection for no more than R150 000.– R60 000 per annum stipend for inventors for no more than 2 yrs and up to four people.
3. Administration
– To be administered by the GM: Special Projects.
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TIA Index for Technology Innovation
1. Criteria•Higher Education Institutions•Individual Companies
2. Higher Education Institutions•Index measures how many technology innovation companies have been spun out.•Index measures how many technology innovation products and services have beenspun out
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spun out
3. Individual Companies•Index measures how many technology innovation companies have been spun out.•Index measures how many technology innovation products and services have beenspun out
4. Administration•To be administered by an Independent Panel set up by TIA with local andinternational experts.•The secretariat to be established within TIA and administered by Business PlanningManager in the CEO’s office
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The Animal Health Bio -cluster Project in Tshwane
• Flagship project for catalysing economic development
through biotechnology
• Revitalise animal vaccine manufacturing in the region
• Accelerate the commercialisation of biotechnology
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• Accelerate the commercialisation of biotechnology
products and facilitate transfer to industry
• Diversify regional economy towards knowledge intensive
industries
• Leverage regional knowledge based in animal health
research and commercialisation
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Tshwane Animal Health Bio -cluster
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What is a bio -cluster?
Definition of a cluster:
“ Geographic concentration of different players such interconnected
companies, suppliers, institutions which compete and cooperate in
industry “
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Cluster development is complex and involves:
Government departments
Economic development agencies
Universities
Research centers
Companies
Financial institutions
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Why is bio -clustering is important ?
• Firms tend to cluster around research centres, knowledge
intensive industry e.g. France Genopole, Cambridge Bio-
cluster (UK), Boston Route 128 bio clusters (USA), Turku
Biocluster (Finland)
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• Firms also need access to specialised facilities e.g. testing
labs, fermentation, cGMP& cGLP facilties etc.
• Clustering promotes innovation and networking
• Cluster approach promotes triple helix concept (industry -
academic –government co-operation)
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Animal Health Industry
Prevention •Vaccines•Nutraceuticals •Probiotics •Medicinal feed additives
Animal Health
•Therapeutic Proteins•Biopharmaceuticals •Bioengineering •Medical devices •Tissue and cell engineering•Anti-infectives and parasiticides
Treatment Diagnosis
•Molecular Diagnostics•Monoclonal Antibodies
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Why Tshwane Metropolitan Area?
• One of the leading animal health research environment in South Africa (UPTA, ARC, TUT and ACGT) –produces 80% of research publications in South Africa (from NACI Reports)
• Onderstepoort corridor tradition area of strength in animal health and biosciences -OBP, ARC-OVI, UPTA Veterinary Sciences
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• Presence of 15 local companies e.g. Avimune, Afrivert, Virbac, Onderstepoort Biological Products and multinationals in the province (Bayer, Merial, Pfizer, Novartis)
• Vaccine manufacturing infrastructure at OBP and ARC (FMD), animal testing facilities, Biosafety facility (level 3), OIE reference laboratory status
• It has been shown that trying to seed a cluster from scratch is generally not successful- Tshwane has some of the infrastructure and assets that are required
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Concept of Tshwane Animal HealthCare Biocluster-Actors and linkages
Large (Pfizer, Bayer, Merial)
Local firms (OBP, Avimune,
Afrivet, etc)
Suppliers
(manufacturing, marketing
and distribution )
Knowledge Use
Intermediary Organisations
Provincial and Local •Gauteng Department of Agriculture •Gauteng Department of Economic Affairs
National Depts. •DST, DAFF,DTI
TIA
UPTA, Vet Dept.
ARC-OVI
ARC-API
ACGT
(scientific infrastructure,
research programmes, skills
and expertise)
Knowledge Generation
Organisations Economic Affairs •Tshwane Metro.•Local Economic Development Agencies
Industry Association•African Horse Sickness Trust •South African Animal Health Association•Meat Industry Association
TIA(Funding, commercialisation ,
facilitation & coordination )
… a system of innovation approach
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What are the expected outcomes?
• Development and commercialisation of new
products for animal disease control
• Creation of viable start ups to commercialise new
products
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products
• Uptake of products by existing companies
• Address diseases that are unique to South Africa
and SADC region
• Create an world class cluster in animal health and
contribution to regional economic growth
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What is TIA’s role ?
• Host/lead organisation for the cluster
development process
• Get industry participation and involvement
• Ensure that innovation supports and builds on
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• Ensure that innovation supports and builds on
existing strengths
• Leverage funds from stakeholders
• Facilitate collaboration and networking
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THE ART NGUNI CATTLE PROJECTSCIENTIFIC OUTPUT COMING ALIVE
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The ART Nguni Cattle project launch(1st February 2012)
64
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Vuvha , Kefiloe and Bongi
65
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The Electric Vehicle Platform
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Why the Electric Vehicle Platform?
There are five (5) critical areas that offer ideal opportunities for technology development to support the EV industry:
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I. Charging infrastructure
II. Cars themselves
III. Battery management systems
IV. Battery technologies
V. Human capacity development
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The EV value chain
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The TIA Role
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SA SYSTEMS INTERVENTION
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Using TIA position in support of the technology innovation in the
ecosystems
• Easing access to IDC• Easing access to SABS
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• Easing access to SABS• Easing access to the MCC• Easing other relevant Institutions
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The TIA Executive Structure
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TIA Board
Chief Executive Officer
Group Executive :
Biotechnology Sectors
Group Executive :
Industrial Sectors
Group Executive :
Corporate AffairsGeneral Counsel
Chief Financial Officer Chief Operating Officer
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TIA’s KPIs2012/13
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Strategic objective 1
Performance Indicator Annual Target
1. To stimulate the development and demonstration o f technology based products, processes and services
1.1 Number of high impact investments 1
1.2 Number of technology based products/ processes developed through 25
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investments1.3 Number of technology based products/processes developed or
improved through Technology Stations450
1.4 Number of products/processes developed or improved through Technology Platforms
5
1.5 Number of new green technologies supported 1
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Strategic objective 2
Performance Indicator Annual Target
2. To support the commercialisation of technology i nnovations2.1 Number of investments commercialised 10
2.2 Number of technology based companies established 2
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2.2 Number of technology based companies established 2
2.3 Percentage of co-investment attracted 10%
2.4 Percentage of investments attracting second round fundingfrom external sources
5%
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Strategic objective 3
Performance Indicator Annual Target
3. To develop an enabling environment for technolog y innovation and commercialisation in South Africa
3.1 Number of new TIA regional offices established 1
3.2 Number of new industry clusters established 1
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3.2 Number of new industry clusters established 1
3.3 Number of new technology stations or new technologyplatforms established
1
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Strategic objective 4 (1)
Performance Indicator Annual Target
4. To develop an enabling internal environment with in TIA to successfully execute its strategy
4.1 To put in place an IT architecturethat enables investment & portfolio management
Identified tool aligned with approved processes
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management
4.2 Efficient investment monitoring & evaluation system
Online system database for all approved applications with clear pipeline measures approved per project on the system
4.3 Compliance with all relevant legislation
Approved IT policies pertaining to IT Security, Operations and service continuity
Awareness campaigns TIA wide for adoption
Unqualified audit opinion
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Strategic objective 4 (2)
Performance Indicator Annual Target4. To develop an enabling internal environment with in TIA to successfully
execute its strategy
4.4 Alignment of TIA’s critical positions with organisational design & relevant
Development of core skills through training
Staff turnover below the national benchmark
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design & relevant competencies , including retention of skills
Staff turnover below the national benchmark
Staff turnover of core skills below 10%
4.5 Development of a desired organisational culture
5% improvement on previous yearBased on culture survey results
Average performance management rating of 100%
Average leadership rating of 5 across all competencies
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Strategic objective 5
Performance Indicator Annual Target
5. To facilitate the development of innovation skil ls to support technology innovation and commercialisation
5.1 Number of learners / educators on webinar 900/100
5.2 Number of candidates trained through mobile technology 50000
Number of interns trained through TSP programme/platforms
124-02-2011 S. Duma 80
5.3 Number of interns trained through TSP programme/platforms 130
5.4 Number of FET interns trained to develop industry skills 40
5.5 Number of NRF interns trained 26
5.6 Number of unemployed graduates trained 60
5.7 Number of candidates trained through CNC machining skills programme
200
5.8 Number of candidates trained in Design & Simulation 200
5.9 Number of candidates trained in Rapid Prototyping 200
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Strategic objective 5 (continued)
Performance Indicator Annual Target
5. To facilitate the development of innovation skil ls to support technology innovation and commercialisation
5.10 Number of schools participating in Technology Innovation 25
124-02-2011 S. Duma 81
5.10 Number of schools participating in Technology Innovation Week
25
5.11 Number of schools adopted by Tech stations /platforms 13
5.12 Number of Business Plans resulting from exploitation of off-shelf IP
50
5.13 Number of solutions implemented from the Idea Development Programme
5
5.14 Number of candidates trained through Swiss Bio Entrepreneur / Innovation Management Programme
70
5.15 Number of Candidates trained through Chuma Management Development Programme
10
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Strategic objective 6
Performance Indicator Annual Target
6. To become a schedule 3B entity in terms of the P ublic Finance Management Act
6.1 Amount of funds raised by TIA as a percentage of MTEF allocation
10% of current MTEF
124-02-2011 S. Duma 82
6.2 Number of Initial Public Offerings of TIA investments
0 this year
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Thank You.....