Experimental Development (R&D)
25 May 2007
The Department of Science and Technology (DST) today releases the first
results of the 2005/06 Survey of Inputs to Research and Experimental
Development (R&D). This is the fourth annual R&D Survey since the
re-launch of the R&D Survey time series from 2001 onward. This is the
fourth R&D Survey that the Human Sciences Research Council (HSRC) Centre
for Science, Technology and Innovation Indicators has conducted for the
department.
The indicators produced from the survey data form a key resource for
national science and technology (S&T) policy by providing the evidence base
for monitoring, benchmarking and planning around the R&D financial and
human resource inputs to the national system of innovation. The survey is
carried out annually according to the international guidelines provided by the
Organisation for Economic Co-operation and Development (OECD).
The 2005/06 R&D Survey found that gross expenditure on R&D (GERD)
now stands at R14,0 billion, a rise of R2,0 billion since the 2004/05 R&D
Survey. This means that R&D expenditure expressed as a percentage of Gross
Domestic Product (GDP) has risen from 0,87% for 2004/05 to 0,91% for 2005/06,
representing a new high of R&D intensity in the country.
If the level of growth of R&D expenditure in relation to GDP is
maintained we are confident that the target of attaining a national level of
R&D expenditure equivalent to 1% of GDP by 2008/09 will be attainable.
South Africa's R&D expenditure as a percentage of GDP is slightly less than
that of Hungary for 2005 (0,94%) and is more than that of Portugal (0,81%) but
lags far behind the leading European Union (EU) countries such as Sweden
(3,86%) and Finland (3,48%). The level for Brazil is 1%, while that for Russia
is around 1,1%.
The business sector increasingly plays the most important role in performing
competitive R&D in the country, and business sector expenditure on R&D
has continued its robust growth, accounting for 59% of gross R&D
expenditure. This level compares favourably with that of industry R&D
performance in European Union countries that averaged 63% of member state gross
R&D expenditure for 2005.
The Government sector (comprising science councils, some government
departments and public research institutes) and the higher education sector
spend almost equal amounts on R&D at around 20 percent of the total.
The department is pleased to note that the number of full-time equivalent
researchers (excluding doctoral students) has also increased, from 10 966 to 11
439. The total headcount of R&D personnel, including technicians, PhD and
post-doctoral students now stands at 39 000.
This overall increase is a combination of organic growth and improved
responses to the survey. The department anticipates that reported business
sector R&D expenditure will show yet further growth as a result of the
enhanced R&D tax incentive. The Revenue Laws Amendment Act (No. 20 of
2006), subject to certain prerequisite conditions, allows companies to deduct
150% of R&D expenditure, and also permits the flow of information regarding
such expenditure to the department. We expect that this change, effective from
2 November 2006, will be an incentive for company expenditure on R&D and
make South Africa a place attractive to foreign sourced R&D activity.
While we are pleased to note the increased availability of R&D personnel
there is no room for complacency in regard to this prized resource. Skilled
people are the most important inputs to the national system of innovation and
the department is committed to ensuring that an adequate supply of skilled
human resources with a penchant for doing R&D is developed in the country
so that they can contribute to further growth and stability of the South
African R&D base.
Enquiries:
Nhlanhla Nyide
Chief Director: Communication
Cell: 082 871 6767
Issued by: Department of Science and Technology
25 May 2007
Source: Department of Science and Technology
