M Mangena on research and development investment

South Africa's public investment in research and development
(R&D) is right on target

25 May 2007

Cape Town: South Africa in well on track to reach its research and
development spending target of one percent of Gross Domestic Product (GDP) by
next year, according to the Minister of Science and Technology, Mosibudi
Mangena. This is well ahead of the goal set by Heads of States at the Eighth
Ordinary Session of the Assembly of the African Union (AU) in Ethiopia, earlier
this year.

Minister Mangena made this announcement during his department's budget vote
speech in Parliament earlier today. The intensity of R&D expenditure
measured as the percentage of GDP spent on R&D is a good indication of the
competitiveness of the country's economy. Minister Mangena said his department
will receive an additional allocation of R1,2 billion over the medium term
which he said "is intended to help us achieve our aim of having one percent of
our Gross Domestic Product devoted to research and development spending by the
2008/09 period."

This is in line with an accepted norm in countries at an intermediate level
of development whereas the average spent in developed countries in greater than
two percent with the private sector commonly contributing more that the public
sector.

In this regard Minister Mangena said he was encouraged by the results of the
2004/05 R&D survey which reports that during the review period business,
universities, science councils, government research institutions and
non-governmental organisations (NGOs) spent R12 billion on R&D, which is
equivalent to 0,87% of GDP.

The results of the 2005/06 R&D survey indicate that the country's total
R&D expenditure has continued to increase to R14 billion, or 0,91% of GDP.
The business sector share of this R&D activity has risen from 56% to
59%.

The critical human resource shortage in science, engineering and technology
(SET) careers tops the Department of Science and Technology's (DST) agenda
which explains why the lion's share of the department's budget over the medium
term, i.e. about R323 million, will be spent on human capital development
programmes.

Minister Mangena says, "There is no doubt that we have to do more to address
the very real problem of South Africa's relatively meagre supply of qualified
human resources in practically every field of activity." The investment in
human capital development is in line with the government's strategy for higher
economic growth, including the Accelerated and Shared Growth Initiative of
South Africa (AsgiSA), Joint Initiative for Priority skills Acquisition
(Jipsa), the National Industrial Policy Framework and a variety of skills
development strategies and initiatives.

The DST has also allocated R178 million to provide modern research
facilities and infrastructure for the research community. The money will be
used to buy or upgrade instruments for national research institutions and to
provide infrastructure foe world-class research capacity development.

The DST and the National Advisory Councils on Innovation compiled a
comprehensive report on the infrastructure requirements for both science and
innovation. This report now forms the basis of a long-term infrastructure plan
for science and technology. Following an agreement with the Department of
Health around the development of a Health and Innovation Strategy, the DST has
assigned R63 million to target research and innovation that leads to the
discovery and pre-clinical phases of new drug and treatment regimes.

"When the pre-clinical development of new vaccines, new diagnostic methods
as well as novel medical devices reach a stage of clinical development and use,
they will be taken up by the Department of Health", says Minister Mangena.

With Africa Day being celebrated across the continent today, Minister
Mangena used the opportunity to announce that the Eighth Ordinary Session of
the Assembly of the African Union in Ethiopia also designated 2007 as the 'Year
of Scientific Innovations. The year will be launched formally during July this
year at an extra-ordinary summit in Accra, Ghana.

"Most people are largely unaware of the Continent's innovative capacity, and
this (the year of scientific innovations) will sharply increase awareness."

In the spirit of Africa Day, Minister Mangena also highlighted the science
and technology achievements of other African countries. "There are increasing
examples of scientific and technological competencies and prowess all over
Africa," said Minister Mangena.

For media information contact:
Celeste Tema
Cell: 083 399 0765
E-mail: celeste.tema@dst.gov.za

Nhlanhla Nyide
Cell: 082 871 6767
E-mail: nhlanhla.nyide@dst.gov.za

Issued by: Department of Science and Technology
25 May 2007

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