M Mangena: Innovation Fund Annual Report

23 October 2006

The Executive Officer of the Innovation Fund, Dr Eugene Lottering
Representatives from the National Research Foundation
Distinguished guests
Ladies and gentlemen

Innovation is one of the cornerstones of the National Research and
Development Strategy. The establishment of the Innovation Fund in 1999
pre-dated the strategy, and anticipated the critical focus on innovation. Now
more than 170 projects are supported by the Innovation Fund. By the end of next
year, more than R1 billion would have been invested in this programme. Sectors
such as health, agriculture, manufacturing, mining, education, safety and
security, energy, tourism, information and communications technology (ICT) and
biotechnology have been supported in this process.

From its early years as a "closed call" fund in the then Department of Arts,
Culture, Science and Technology, the Innovation Fund has deepened and broadened
its activities to include the protection of intellectual property, seed
financing of technology ventures, and the creation of science and technology
platforms in partnership with industry.

This year we are increasing investment in developing the next generation of
patent attorneys by providing a new learnership programme. We are already
reaping benefits from the focus on innovation management, and insisting on
partnerships between higher education institutions, research councils and
businesses in the main funding programmes.

Francis Bacon, the English essayist and statesman claims: "The births of
living creatures, at first, are ill-shapen: so are all innovations, which are
the births of time." This quotation neatly reveals the challenge of innovation;
only those close to the process will see clearly what the innovation could
become. It is a risky process as Woody Allen says, "If you are not failing
every now and again, it is a sign that you are not doing anything very
innovative." The strange marriage of successes and failures in innovation is
not going to change. What can change is the rate and intensity of innovation
arising from research.

These changes have been greatest in science and technology settings where a
few key factors can be observed:

* Firstly, multidisciplinary research is actively promoted and supported
with the requisite infrastructure in place.
* Secondly, it is a level playing field, the quality of the proposal is
evaluated on its merits, not the history, however eminent, of the
proposer.
* Thirdly, research proposals are subjected to peer review, business proposals
are subject to business scrutiny.
* Fourthly, progress is actively reviewed and measured.

The Innovation Fund has been at the forefront of developing these four
characteristics. Retaining these disciplines will stand the Fund in good stead
in years to come.

In addition to these essential elements, the leadership in the Innovation
Fund has had an uncompromising approach to excellence. They won a top
competition last year for the quality of their annual report.

The 2005/2006 Annual Report highlights some of the key milestones that the
Innovation Fund has achieved. I always enjoy the focus on the projects and
people who are involved in the Innovation Fund. It is not only a celebration of
focus and commitment by the team, but it is also a partnership in which the
innovation community is mobilised and strives for higher things.

It is noted in the Research and Development (R&D) Strategy that new
technologies have created new challenges with regard to intellectual property.
In 2005, the Intellectual Property Management Office of the Innovation Fund
officially launched the Patent Support Fund and Patent Incentive Funds. The
Patent Support Fund for Small to Medium Enterprises aims to support patenting
costs up to a maximum of R250 000, particularly for Black Empowered Small
Medium and Micro Enterprises (SMMEs). During 2005/06, investments of up to R750
000 were concluded under this instrument. There is an ongoing challenge to
ensure that we make the most of the intellectual property developed by our
researchers and small enterprises. This remains a significant challenge. We
still patent at a fraction of the rate of the international community we
benchmark ourselves against. At a time when we are asking publicly funded
institutions to do more in this regard, there is some evidence that some are
doing less well than we had hoped.

I strongly believe that science and technology should be at the forefront of
poverty reduction. South Africa and the region face considerable challenges of
poverty.

The globally agreed Millennium Development Goals, which range from halving
extreme poverty to halting the spread of HIV and AIDS, and providing universal
primary education by 2015, form a blueprint agreed to by the world's countries,
including leading development institutions. But evidence points to the
difficulties faced by countries in attaining these goals.

The outgoing United Nations Secretary-General, Kofi Annan claims that the
world will take time to reach the Millennium Development Goals unless it breaks
with the convention of doing business as usual. "It takes time to train the
teachers, nurses and engineers, to build the roads, schools and hospitals, to
grow the small and large businesses able to create the jobs and income needed.
We must more than double global development assistance over the next few years.
Nothing less will help to achieve the Goals."

Ladies and Gentlemen, South Africa cannot ignore two major technology
developments taking place globally. These are ICT and biotechnology. ICT seems
to be pervasive in the country; however, it is clear that the vast majority of
ICT spending is on imported technologies (to a level of some 98%). South Africa
does not have a strong R&D capacity in ICT in the public sector. The
innovation potential is high, but the results have been patchy. It is therefore
necessary to invest in a number of ICT domains that have unique characteristics
that would favour local development and globalisation.

Publishing an Annual Report ushers a time to review what was achieved the
previous year against set objectives. It also provides a time to congratulate
each other on a job well done, and an opportunity to review the innovation
priorities of our country to determine whether they are still in line with
global trends.

With that in mind, ladies and gentlemen, allow me to congratulate Dr
Lottering and his team on achieving yet another milestone. Tangible results are
important. To break the cycle of poverty, people need to see demonstrable
changes in their quality of life. Our citizens, especially the poor, will not
thank us if we squander these scarce resources available for innovation. No one
can dispute that innovation is central to economic prosperity.

The capacity to innovate in our society is directly proportional to the
capacity to defeat poverty. Deliberate actions to bring more people into our
system of innovation will not be wasted. A single failing school fails not only
its learners; it fails its community and sets the next generation up for
failure.

There is no time for compromise; we must increase our focus on excellence
and creativity; we must ensure our institutions desire the best and demand the
best from staff, students, researchers and innovators. After all, the
Innovation Fund depends for its success on all the variegated layers of the
system.

I thank you.

Issued by: Department of Science and Technology
23 October 2006
Source: Department of Science and Technology (http://www.dst.gov.za)