Keynote address by the Minister of Science and Technology, Derek Hanekom, at the launch of the Stellenbosch Innovation District, Stellenbosch

Programme Director;
President Unger,State President of Geneva
Mr Christian Meuwly,Swiss Ambassador to South Africa
Miss Irene Flückiger,Consul General of Switzerland
Mr Max Jan Bertschmann, Counsellor Trade at the Embassy of Switzerland;
Members of the Swiss delegation;
Councillors of the District and Local Municipality;
Professor Arnold Schoonwinkel, Vice-Rector of the University of Stellenbosch;
Mr Andrew Boraine, CEO of the Western Cape Economic Development Partnership;

I am delighted to have been invited to witness yet another milestone in our country’s drive towards transforming our economy into a knowledge-based one. This occasion follows a mere three months after the establishment of the Southern Gauteng Regional Innovation Forum in July this year. This confirms that the Department of Science and Technology is a department of action, determined to make a difference in our communities.

The University of Stellenbosch also seems to be a place of action. Only last Monday, the shiny new building for the Africa Centre for HIV/Aids Management was officially opened in Joubert Street. Allow me to wish the university staff and students the very best in their brand-new premises as they heighten their efforts in the ongoing battle against HIV/Aids.

It is pleasing that we launch this Stellenbosch Innovation District in the presence of a high-powered delegation from Switzerland, a country that has raised its hand as one of our worthwhile international partners when it comes to science, technology and innovation.

As a government, we are clear that the development of our economy and our people cannot be dependent upon the extractive phase only. While minerals and their extraction do play a crucial role in the competitive advantage a country’s economy could have, there are many examples of successful economies in countries around the world that hardly have any minerals. This is not to downplay the importance of minerals in economic growth, but a reminder of the importance of investment in human capital development, research and innovation.

It is for this reason that in 2008 Cabinet adopted the Ten Year Innovation Plan designed to streamline and drive South Africa’s economic development. To give effect to the Plan, my Department, after an extensive consultation process involving various stakeholders and local government officials, drafted the National Science Park Development Plan. Globally, the development of Science and Technology Parks is seen as a vital component of science-based innovation policy, with most developed countries having incorporated Science Parks into their innovation policies in order to drive and support regional innovation in particular.

Developing countries understandably lag behind the developed countries in this regard. There are, however, some success stories in developing countries where significant, even commercial, operations such as the Busy Internet in Ghana, as well as The Innovation Hub in South Africa, have been established. The International Association of Science Parks has experienced an unprecedented growth in its membership over the past decade, which shows that Science Parks do play a vital role in the innovation space.

Africa has only three IASP-accredited Science Parks, and there is only one in South Africa. The South African Government is aware of this, and fully grasps the importance of transforming the country from a resource-based economy into a knowledge-based economy. Even though we do have a strong policy framework in place, this transformation can only happen if various instruments that guide and stimulate innovation, are established. In order to achieve the targets of the Ten Year Innovation Plan within the specified time-lines, renewed efforts are being made to extend the range of implementation instruments. The Science Park is one such instrument that needs to be explored, especially if the country is to raise its profile as a leading knowledge economy in the region.

Over the past two years, my Department has facilitated the development of Regional Innovation Forums to support the development of South Africa’s Provincial Systems of Innovation, of which the Science Parks form an integral part.

Regional Innovation Systems refer to the innovation activities and collaboration of the triple-helix role-players, which are the public sector, private sector and research and academia, at regional level. The objective is to use the opportunities in the region for its economic development, thereby increasing regional and national competitiveness and contributing to social development.  Regional innovation systems play a key role in translating national science and technology policies, coupled with industrial and economic policies, into a real impact at local and regional levels.

As is the case with all assets, the value of Science Parks depends on how they are used. They can be highly valuable assets in promoting national and regional competitiveness, but by themselves do not guarantee regional success.  For Science Parks to succeed in promoting regional economic growth, they must be fully integrated into the overall regional, social and economic development strategy and context.

There is a strong need to coordinate the various Science Parks so that they do not operate in a fragmented mode. Thus my Department is working on a robust Science Park development plan as part of its set of implementation interventions to pro-actively utilise the strengths of these institutions to drive its objectives. A focus on the support for human capacity development for the emerging discipline of Science Park management and for the important value-added services will be a productive development area for the Department of Science and Technology support.

We have a number of science park planning initiatives across the countryincluding the East London Industrial Development Zone, Nelson Mandela Metropolitan University in Port Elizabeth, North-West University in Potchefstroom, Vaal University of Technology near Vereeniging and the Health Technology Park in Cape Town following in the path of Africa’s first IASP-accredited Science Park, the Innovation Hub in Pretoria.

With these developments, my Department’s strategic objective is to develop in each of the provinces a number of Regional Innovation Forums which would help to set collective research priorities for each province and to elevate innovation as a driver for economic and social development. The Provincial Growth and Development Strategies and Integrated Development Plans are seen as important policy instruments to incorporate support for strengthening Provincial Systems of Innovation. 

The Stellenbosch Innovation District that we are launching here today is an example of a Regional Innovation Forum with the key aim of fostering collaboration between the partners within the Local Stellenbosch Innovation System and of setting shared priorities for research and development.  But more importantly, the aim is to create infrastructure and institutions that can exploit the generated knowledge and create those much-needed jobs.

My Department will be signing a contract amounting to R970 000 with the University of Stellenbosch in the 2012/13 financial year to facilitate the development of the Stellenbosch Innovation District and to conduct a feasibility study that will support the transformation of the current Technopark into a workable Science Park. It is hoped that the project will start as soon as early next month.

In order to ensure the sustainability of the Stellenbosch Innovation District, the activities of the Regional Innovation Forum will have to be aligned with the key strategic priority sectors that have been earmarked as drivers for our country’s economic growth. These sectors include the green economy, information and communication technology and Agro-processing, all of which have been identified in one or more of our various macro and micro policies and planning frameworks such as the National Development Plan, which is our Vision for 2030, the New Growth Path, the Industrial Policy Action Plan and  the National Sustainable Development Strategy.

The National Sustainable Development Strategy, which was approved by Cabinet in November 2011, recognises that South Africa needs to ensure that a green economy is supported by initiatives to shift towards a resource-efficient, low-carbon and pro-employment growth path. The development of domestic technologies has to be coupled to a strategic use of inbound technologies; this is where partnerships with developed countries such as Switzerland are very important in leapfrogging the development trajectory to a green economy. The promotion and growth of green technologies is very important as they have the potential to create jobs and grow the economy, improve rural livelihoods, conserve natural resources and reduce pollution.

The National Growth Plan supports the development of a competitive, labour-absorbing, fast-growing and labour-intensive green economy. A significant advantage of this green economy is of course the stimulation and growth of sustainable sources of renewable energy, notably through solar and wind energy but also through hydrogen fuel cell technology. This requires both technology innovation and technology localisation. The Technology Innovation Agency is the body mandated to enable the commercialisation of viable technologies, with entities such as Green Cape, for example, doing important work in identifying and unblocking obstacles to the successful implementation of such opportunities.

As far as Information and Communication Technology is concerned, the roll-out of SANReN, the connections via WACS, SEACOM, EASSY and others are beginning to provide the basis for the development of important work in large-scale data management and utilisation. The Square Kilometre Array, for example, will be a hugely significant centre for Research and Development in such large-scale data management and utilisation.

Following on the relatively successful implementation of the ICT R&D and Innovation strategy over the past 5 to 6 years, the DST in partnership with the CSIR, is developing a long-term ICT R&D and innovation implementation roadmap. Through intense consultations with all stakeholders and experts, nation-wide workshops and desktop research, the ICT RDI Roadmap has now matured into a framework for planning and decision-making for South Africa’s future investment in ICT R&D and innovation.

With regard to Agro processing, my Department has also been busy. We continue to support some key initiatives as part of the sustainable livelihoods portfolio. These include the NkowaNkowa Demonstration Centre in Tzaneen in the Limpopo Province, which capitalises on the surplus fruit and nuts produced by commercial and small-scale farming in the area. Value is added to the pulp of the fruit and from the seeds (usually considered as ‘waste’) oil is extracted to explore the possible use of the oil in cosmetic products. Other initiatives include the cultivation of medicinal plants by local communities, under the guiding hand of the Agricultural Research Council and the CSIR, and the establishment of six Essential Oils projects in rural parts of Limpopo, the Eastern and Northern Cape, North-West Province and the Western Cape. 

Ladies and Gentlemen, we are confident that the launch of the Stellenbosch Innovation District today will boost the conversion of knowledge into new products, processes and services that can create the much-needed socio-economic benefits for the surrounding communities under these majestic mountains of Stellenbosch.

During an interview with Fortune magazine in 1998, the late CEO of Apple, Steve Jobs said: “Innovation has nothing to do with how many research and development dollars you have. It’s about the people you have, how you’re led, and how much you get it.” Well, I know that this University has the right people, and that it is led with great fortitude and foresight. But despite what Steve Jobs said, I do believe that for innovation to work, you need people AND money. I therefore have great pleasure in presenting this cheque an enormous one both in the literal and figurative sense to the University of Stellenbosch.

Thank you very much.

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