technology innovation programmes of the dti parliament 7 september 2004 johannes potgieter...
DESCRIPTION
SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII) MATCHING SCHEME TO SUPPORT INNOVATION IN INDUSTRY CONTRIBUTES UP TO 50% OF INCREMENTIAL COSTS TO DEVELOP NEW PRODUCTS AND PROCESSES NOT FOR PRODUCTION OR COMMERCIALISATION BUT TO DEVELOP A PROTOTYPE MAXIMUM GRANT R1,5 M PER PROJECT ADMINISTERED BY THE INDUSRTIAL DEVELOPMENT CORPORPORATION (IDC) MEMORANDUM OF UNDERSTANDING WITH THE IDCTRANSCRIPT
TECHNOLOGY INNOVATION PROGRAMMES OF the dti
PARLIAMENT7 SEPTEMBER 2004
Johannes Potgieter
Enterprise and Industry Development Division(EIDD)
ALIGNMENT WITH the dti GOALS
GROWTHEQUITYEMPLOYMENT
Specific objective that relates to technology:
“Contribute towards building skills, technology and infrastructure platforms from which enterprises can benefit”
SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII)
• MATCHING SCHEME
• TO SUPPORT INNOVATION IN INDUSTRY
• CONTRIBUTES UP TO 50% OF INCREMENTIAL COSTS TO DEVELOP NEW PRODUCTS AND PROCESSES
• NOT FOR PRODUCTION OR COMMERCIALISATION BUT TO DEVELOP A PROTOTYPE
• MAXIMUM GRANT R1,5 M PER PROJECT
• ADMINISTERED BY THE INDUSRTIAL DEVELOPMENT CORPORPORATION (IDC)
• MEMORANDUM OF UNDERSTANDING WITH THE IDC
SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII)
• MATCHING SCHEME (CONTINUED)
• QUALIFYING COSTS:
• DIRECT MATERIAL • DIRECT LABOUR• DIRECT SUBCONTRACTING• PRORATA PORTION OF CAPITAL • REGISTRATION OF PATENTS• SOFTWARE DEVELOPMENT
• DUE DILIGENCE• MILESTONES• AUDITS (TECHNICAL AND FINANCIAL)
INTELLECTUAL PROPERTY RIGHTS WITH RESPECT TO SPII
MATCHING SCHEME
• IPR BELONGS TO THE APPLICANT
• IPR MUST RESIDE IN SA
• MAY NOT SELL FOR 3 YEARS
• MUST GET IDC APPROVAL
• IF PROJECT IS CANCELLED - PAY BACK TO IDC WITH INTEREST
OUTPUTS FOR SPII
SPII Matching Scheme
0
20
40
60
80
100
120
140
160
180
Mar-00 Mar-01 Mar-02 Mar-03 Mar-04
Year ending
Num
ber
0
10
20
30
40
50
60
70
80
90
Valu
e of
App
rova
ls (R
mill
ions
)
Number of ApplicationsNumber of ApprovalsValue of Approvals
OUTPUTS FOR SPII
SPII Matching Scheme Administration Costs per Approval
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Mar-00 Mar-01 Mar-02 Mar-03 Mar-04Year end
Cos
t per
App
rova
l [R
ands
]
0.0%
5.0%
10.0%
15.0%
20.0%Cost per Approval (R)Cost per Approval (%)Cost per Approval (%) - CPIX
SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII)
(CONTINUED)
PARTNERSHIP SCHEME
• PROVIDES FOR 50% GRANT OF COSTS TO DEVELOP NEW PRODUCTS OR PROCESSES
• SIMILAR TO SPII BUT MAKES PROVISION FOR A PAYBACK
MECHANISM (E.G. IN THE FORM OF A LEVY ON SALES OR EQUITY)
• GENERALLY FOR LARGER PROJECTS
• ADMINISTERED BY THE IDC
• WWW.SPII.CO.ZA
INTELLECTUAL PROPERTY RIGHTS WITH RESPECT TO SPII
PARTNERSHIP SCHEME• APPLICANT TO INFORM IDC
• IPR MUST RESIDE IN SA
• IDC AND APPLICANT HAS PROPORTIONAL JOINT OWNERSHIP OF IPR
• APPLICANT CANNOT SELL IPR TILL 3 YEARS AFTER COMPLETION
• PAYS LEVY TO THE IDC
• UPON COMPLETION – IPR TO APPLICANT
• IF CANCELLED - PAY BACK PLUS INTEREST
OUTPUTS FOR SPII SPII Partnership Scheme
0
5
10
15
20
25
Mar-01 Mar-02 Mar-03 Mar-04 Year ending
Num
ber
20
21
22
23
24
25
26
Valu
e of
App
rova
ls
(Rm
illio
ns)
Number of Applications Number of approvals Value of Approvals
OUTPUTS FOR SPII
SPII Partnership Scheme Administration Costs per Approval
-40,00080,000
120,000160,000200,000240,000280,000320,000360,000400,000440,000480,000520,000560,000
Mar-01 Mar-02 Mar-03 Mar-04Year end
Cos
t per
App
rova
l [R
ands
]
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Cost per Approval (R)
Cost per Approval (%)
Cost per Approval (%) - CPIX
OUTPUTS FOR SPIISPII Schemes Combined
Funded Projects by Asset Size
0%
20%
40%
60%
80%
100%
2000 2001 2002 2003 2004
0 - 1 Million Rand 1 - 10 Million Rand 10 - 50 Million Rand > 50 Million Rand
OUTPUTS FOR SPII
SPII Schemes CombinedApprovals by Sector
(excluding SIC366 - Electronics & Software)
0
5
10
15
Num
ber
2000 2001 20022003 2004
OUTPUTS FOR SPII
SPII Schemes CombinedBreakdown of SIC366 - Electronics and Software
0
20
40
60
80
Num
ber
2000 2001 2003 2004
SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII)
OUTCOMESPerformance Data 01 April 2003 to 31 March 2004
Total local sales R278.0m
Total export sale R 86.4m
Total sales R 364,4
Taxes paid – V.A.T. R 38.9m
Taxes paid – Company Tax R 12.2m
Shop floor jobs created 2 300
Research & development as % of sales 23.4%
Number of completed projects surveyed 173
Number of responses 105
SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII)
EVALUATION
Significant Advance in Technological Expertise
0
20
40
60
80
100
1 2 3 4 5
Importance
Perc
enta
ge
SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII)
EVALUATION
Technical Success of Project
0
20
40
60
80
100
1 2 3 4 5
Importance
Perc
enta
ge
SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII)
EVALUATION
Job Creation/Retention
0
20
40
60
80
100
1 2 3 4 5
Importance
Perc
enta
ge
SUPPORT PROGRAMME FOR INDUSTRIAL INNOVATION (SPII)
EVALUATION
Commercial Success of Project
0
20
40
60
80
100
1 2 3 4 5
Importance
Perc
enta
ge
TECHNOLOGY AND HUMAN RESOURCES FOR INDUSTRY PROGRAMME (THRIP)
PRESENTATION BY DR ROCKY SKEEF
ADMINISTERED BY NRF
www.nrf.ac.za/thrip