transforming sas nsi for accelerated and shared growth and development rasigan maharajh institute...

Transforming SA’s NSI for Accelerated and Shared Growth and Development

Rasigan MaharajhInstitute for Economic Research on

InnovationNational Innovation Panel Seminar

29 January 2010

Outline

Institute for Economic Research on Innovation

1. Introduction2. Geo-political, Social, Political, Economic,

Cultural & Local Context3. Production & Innovation4. Capacity Building, Research & Technical

Services5. Policies, Representation & Financing6. Innovation Demand7. Conclusions

INTRODUCTION


• Global Change– Financial Crisis– Environmental Calamity– Energy Matters– Food and Nutrition

• Domestic Transition– Executive Reorganisation– Resurgence of Progressive Left

• NLM (SD)+ CP + TU

– Reconnecting with Africa– Institutional Transformation versus Structural re-

Adjustment

Context


• GEO-POLITICAL CONTEXT• SOCIAL, POLITICAL AND ECONOMIC CONTEXT• CULTURAL CONTEXT• REGIONAL AND LOCAL CHARACTERISTICS

Context


• GEO-POLITICAL CONTEXT– National Liberation resulting from simultaneous:

•Domestic – Un-governability– Military Over-extension– Crisis of Accumulation

•International– Overt American & Soviet Withdrawal– Financial Sanctions– Global Solidarity

Context


• SOCIAL, POLITICAL AND ECONOMIC CONTEXT

– Segregation– Alienation– Disempowerment– Dispossession– Cheap Labour– Racial Capitalism– Dualities

Context


• CULTURAL CONTEXT– Racism

• Ethnic Nationalism• Fascism• Violence• Poverty

– Between– Within

– Alternative Culture– Commercial Media

• Cinematography• Music• Art

Context


• REGIONAL AND LOCAL CHARACTERISTICS

PRODUCTION & INNOVATION


• STRUCTURE OF ECONOMIC ACTIVITIES– Labour Productivity– Unit Labour Costs– Knowledge and Technology Intensity of Manufactured Goods– Contribution to the Manufacturing Trade Balance– Gross Fixed Capital Investment– Stock of Inward Foreign Direct Investment– Foreign Direct Investment Networks

• SECTORAL DISTRIBUTION– Sectoral shares of Value-added– Manufacturing Shares of Value-added

• SPATIAL DISTRIBUTION• EMPLOYMENT

– Employment Participation Rate– Unemployment Rate– Employment Composition– Employment of Tertiary-Level Graduates

• SIZE OF PRODUCTION SYSTEM– Value of Production to Population Ratio– Traded Share of Economy

• THE INFORMAL ECONOMY• INNOVATIVE EFFORT

– Innovation Expenditures• OCCURRENCE OF INNOVATIONS• IMPACT OF INNOVATIONS



• STRUCTURE OF ECONOMIC ACTIVITIES– Labour Productivity



• STRUCTURE OF ECONOMIC ACTIVITIES– Unit Labour Costs



• STRUCTURE OF ECONOMIC ACTIVITIES– Knowledge and Technology Intensity of Manufactured Goods

(Export Values)



• STRUCTURE OF ECONOMIC ACTIVITIES– Contribution to the Manufacturing Trade Balance



• STRUCTURE OF ECONOMIC ACTIVITIES– Gross Fixed Capital Investment



• STRUCTURE OF ECONOMIC ACTIVITIES– Stock of Inward Foreign Direct Investment (% GDP)



• STRUCTURE OF ECONOMIC ACTIVITIES– Foreign Direct Investment Networks

• South Africa’s Stock of FDI Assets by Region



• SECTORAL DISTRIBUTION– Sectoral shares of Value-added



• SECTORAL DISTRIBUTION– Manufacturing Shares of Value-added



• Spatial Distribution



• EMPLOYMENT– Employment Participation Rate



• EMPLOYMENT– Unemployment Rate



• EMPLOYMENT– Employment Composition



• EMPLOYMENT– Employment of Tertiary-Level Graduates



• SIZE OF PRODUCTION SYSTEM– GDP/Capita Growth



• SIZE OF PRODUCTION SYSTEM– Traded Share

of Economy



• THE INFORMAL ECONOMY



• INNOVATIVE EFFORT– Composition of Private Innovation Expenditures

(2004)



• OCCURRENCE OF INNOVATIONS



• IMPACT OF INNOVATIONS

CAPACITY BUILDING, RESEARCH & TECHNICAL SERVICES


• BASIC AND TECHNICAL EDUCATION SYSTEM– Human Resources in Society– Education System Inputs– Education System Outputs– Education Resources

• HIGHER EDUCATION SYSTEM– Higher Education System Inputs– Higher Education System Output– Foreign Student Population in Higher Education

• RESEARCH AND DEVELOPMENT SYSTEM– Trends in Domestic R&D Expenditure– R&D Financing and Performance– R&D by type of Expenditure– Public R&D Expenditures– Business R&D Expenditures– Trends in R&D Personnel– Trends in Researchers

• TRAINING AND CAPACITY BUILDING SYSTEM– Participation in Lifelong Learning

• METROLOGY• INTELLECTUAL PROPERTY

– Patents



• BASIC AND TECHNICAL EDUCATION SYSTEM– Human Resources in Society



• BASIC AND TECHNICAL EDUCATION SYSTEM– Education System Inputs (School Learner

Enrolments)



• BASIC AND TECHNICAL EDUCATION SYSTEM– Education System Outputs



• BASIC AND TECHNICAL EDUCATION SYSTEM– Education Resources (School Learners to Teachers)



• HIGHER EDUCATION SYSTEM– Higher Education System Inputs (HEI Enrolments)



• HIGHER EDUCATION SYSTEM– Higher Education System Output



• HIGHER EDUCATION SYSTEM– Foreign Student Population in Higher Education



• RESEARCH AND DEVELOPMENT SYSTEM– Trends in Domestic R&D Expenditure



• RESEARCH AND DEVELOPMENT SYSTEM– R&D Financing and Performance (Share by Source of

Finance)



• RESEARCH AND DEVELOPMENT SYSTEM– R&D by Type of Expenditure



• RESEARCH AND DEVELOPMENT SYSTEM– Public R&D Expenditures



• RESEARCH AND DEVELOPMENT SYSTEM– Business R&D Expenditures



• RESEARCH AND DEVELOPMENT SYSTEM– Trends in R&D Personnel



• RESEARCH AND DEVELOPMENT SYSTEM– Trends in Researchers



• TRAINING AND CAPACITY BUILDING SYSTEM– Participation in Lifelong Learning



• METROLOGY– National Metrology Institute of South Africa

• maintenance, traceability and dissemination of national standards.– South African Bureau of Standards

• Promotion and maintenance of standardization and quality in connection with commodities and the rendering of services

• Publishes national standards that it prepares through a consensus process in technical committees

• provides information on national standards of all countries as well as international standards

• Tests and certifies products and services to standards • Develops technical regulations (compulsory specifications) based on

national standards, monitors and enforces compliance with such technical regulations

• Monitors and enforces legal metrology legislation • Promotes design excellence and • Provides training on aspects of standardisation



• INTELLECTUAL PROPERTY– Patents

POLICIES, REPRESENTATION & FINANCING


• EXPLICIT INNOVATION POLICIES• IMPLICIT INNOVATION POLICIES• INNOVATION REGULATION• INNOVATION PROMOTION• INNOVATION FINANCING



• EXPLICIT INNOVATION POLICIES



• IMPLICIT INNOVATION POLICIES

1994

1996 1st democratic elections for a united, non-racial & non-sexist South Africa, Reconstruction & Development Programme

1996

1999 Macroeconomic Stability

2000

2004 Microeconomic Reform

2005

present Accelerated & Shared Growth Initiative and Joint Initiative on Priority Skills



• INNOVATION REGULATION



• INNOVATION PROMOTION– The Innovation Agency– South African Agency for Science and Technology

Advancement • Advance public awareness, appreciation and engagement of

science, engineering and technology• Building the quantity and quality of mathematics and science

outputs at school level (developing SET human capital)• Raising the general interest in, engagement and appreciation of

the public (and especially poorer communities) for the benefit of science (strengthening the SET culture)

• Communicating science to the South African citizenry (bringing science and scientists closer to civil society)



• INNOVATION FINANCING

INNOVATION DEMAND


• INCOME DISTRIBUTION– Income Inequality

• STRUCTURE OF CONSUMPTION– Natural Resource Endowments– Information and Communication Technologies Availability

• SOCIAL ORGANISATION– Age Distribution of the Population– Social Cohesion– Entrepreneurship– Innovation networks– International flows of human resources

• SOCIAL DEMAND– Poverty and Inequality in Household Characteristics

INNOVATION DEMAND


• INCOME DISTRIBUTION– Income Inequality

1995 2000 2005

Gini coefficient 0.537 0.543 0.587

INNOVATION DEMAND


• STRUCTURE OF CONSUMPTION– Natural Resource Endowments

Reserves as at 2003

Commodity Unit Reserves % World ranking

Alumino-silicates Mt 51 37,4 1Antimony Kt 250 6,4 4

Chrome ore Mt 5 500 72,4 1

Coal Mt 33 814 3,7 7

Copper Mt 13 2,0 14

Fluorspar Mt 80 16,4 2

Gold t 36 000 40,7 1

Iron ore Mt 1 500 0,9 11

Lead Kt 3 000 2,1 7Manganese ore Mt 4 400 80,0 1

Phosphate rock Mt 2 500 5,0 4

Platinum-group metals t 70 000 87,8 2

Silver Kt 10 - -

Titanium minerals Mt 244 27,8 2

Uranium Kt 298 1,6 4

Vanadium Kt 12 000 44,0 1

Vermiculite Mt 10 40,0 2Zinc Mt 15 3,3

Zirconium minerals Mt 14 17,4 2

Source: Minerals Bureau

INNOVATION DEMAND


• STRUCTURE OF CONSUMPTION– Information and Communication Technologies Availability

• Telephony (Mobile + Fixed-lines)

INNOVATION DEMAND


• SOCIAL ORGANISATION– Population Structure

INNOVATION DEMAND


• SOCIAL ORGANISATION– Social Cohesion– Voluntary Unpaid Work versus Voter Participation Rate

INNOVATION DEMAND


• SOCIAL ORGANISATION– Entrepreneurship

INNOVATION DEMAND


• SOCIAL ORGANISATION– Innovation Networks (Collaborative Partners)

INNOVATION DEMAND


• SOCIAL ORGANISATION– International flows of human resources (HEI Enrolments)

2000 2001 2002 2003 2004 2005 2006Asia 0.27% 0.24% 0.23% 0.28% 0.34% 0.34% 0.32%Australia &Oceania 0.03% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02%Europe 0.54% 0.50% 0.48% 0.48% 0.49% 0.49% 0.48%North America 0.13% 0.13% 0.15% 0.19% 0.19% 0.20% 0.20%South America 0.03% 0.03% 0.03% 0.02% 0.02% 0.02% 0.02%

South Africa94.58%

94.27%

93.45%

93.00%

93.13%

93.17%

92.95%

Non-SADC Africa 0.74% 0.76% 0.94% 0.93% 0.93% 0.98% 1.16%SADC (Excl. SA) 3.69% 4.05% 4.70% 5.08% 4.89% 4.78% 4.85%Angola 0.06% 0.07% 0.10% 0.11% 0.13% 0.14% 0.14%Botswana 0.16% 0.73% 0.89% 0.99% 1.05% 0.94% 0.79%Dem. Rep. of Congo 0.03% 0.03% 0.04% 0.05% 0.06% 0.09% 0.12%Lesotho 0.25% 0.27% 0.50% 0.62% 0.55% 0.52% 0.49%Malawi 0.04% 0.04% 0.05% 0.06% 0.07% 0.08% 0.08%Mauritius 0.15% 0.18% 0.24% 0.24% 0.23% 0.21% 0.19%Mozambique 0.07% 0.07% 0.09% 0.11% 0.12% 0.12% 0.13%Namibia 1.06% 0.86% 0.80% 0.92% 0.99% 0.83% 0.96%Swaziland 0.15% 0.19% 0.24% 0.26% 0.29% 0.33% 0.37%Tanzania 0.02% 0.02% 0.03% 0.04% 0.05% 0.05% 0.08%Zambia 0.57% 0.43% 0.36% 0.19% 0.17% 0.18% 0.20%Zimbabwe 1.14% 1.14% 1.35% 1.48% 1.19% 1.30% 1.30%

INNOVATION DEMAND


• SOCIAL DEMAND– Poverty and Inequality in Household Characteristics

2002 2003 2004 2005 2006

HouseholdsWater in house or on site 61 68 68 68 70Access to Electricity 76 79 80 61 81Toilet in Dwelling 36 37 37 37 38Childhood Malnutrition 31 30 26 23 16Medical Insurance 15 15 15 14 14White 68 66 70 64 63African 8 8 7 7 7Coloured 19 19 18 18 16Asian 29 35 36 32 29

Conclusions


Conclusions


• Current context a product of global & local contestation

• Institutional Co-evolution Post-apartheid– Class resurgence as Race recedes– Gender unexplored

• Innovation System fit for Production, Distribution & Consumption System– Concentration, Monopolies & Cartels

• Partial Transformation– National Democracy & Socialism

• Transition continues: Struggle Continues …

Thank you all


• [email protected] and www.ieri.org.za• References:• Abrahams, L. & Thomas Pogue (2009) Innovation Systems and

Inequality: The Experience of South Africa, BRICS Working Paper, IDRC & Redesist, Tshwane.

• Kahn, M.J. (2009) Innovation, Finance and Funding in the National System of Innovation : The South African Experience, BRICS Working Paper, IDRC & Redesist, Tshwane.

• Ndabeni, L. (2009) Small, Medium and Micro Enterprises in South Africa’s National System of Innovation, BRICS Working Paper, IDRC & Redesist, Tshwane.

• Pogue, T. & Rasigan Maharajh (2008) Transforming South Africa’s National System of Innovation for Accelerated and Shared Growth and Development, BRICS Working Paper, IDRC & Redesist, Tshwane.

• Robbins, G. (2009) Transnational Corporations and National Systems of Innovation: The Case of South Africa, BRICS Working Paper, IDRC & Redesist, Tshwane.

• Scerri, M. (2009) The Role of the State in the South African System of Innovation, BRICS Working Paper, IDRC & Redesist, Tshwane.

mailto:[email protected]

http://www.ieri.org.za/

transforming sas nsi for accelerated and shared growth and development rasigan maharajh institute...

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