South Africa invested R2 billion more in research and development (R&D) in 2011/12 compared to 2010/11. This increased the gross expenditure on research and development (GERD) to R22,2 billion. The additional R&D investment maintains the level of GERD at 0,76% of GDP, which is the same as it was in 2010/11. This indicates a bottoming-out of the declining GERD over the last few years from a high of 0,95% in 2006.
"We anticipate that we are turning the corner and starting to increase the level of investment in R&D once again in South Africa," said Derek Hanekom, Minister of Science and Technology.
The National Development Plan (NDP) calls for greater investment in research and development, combined with efforts to make better use of existing resources, the development of more nimble institutions that facilitate innovation, and enhanced cooperation between public science and technology institutions and the private sector. In response to the NDP's call for greater investment in R&D, government has included an ambitious target of achieving an increase in R&D investment to 1,5% of GDP by 2019.
The Director-General of the Department of Science and Technology (DST), Dr Phil Mjwara, notes that such an ambitious target is significant. It represents a clear recognition of the crucial role that R&D can play in dealing with the development challenges that need to be confronted. R&D is pivotal for the development of new and improved products, the creation of new industries, improved competitiveness of existing industries and enhancement of infrastructure and improved service delivery.
The R&D survey is conducted annually by the Centre for Science, Technology and Innovation Indicators (CeSTII) on behalf of the DST, and serves as an important instrument to monitor R&D trends in South Africa. The survey produces internationally benchmarked statistics on the resources devoted to R&D in five sectors, namely, the government, science councils, higher education institutions, business enterprises, and not-for-profit organisations.
In addition to R&D investment levels, the survey also generates important insights into R&D personnel trends in South Africa. The headcount increased to 59 487 in 2011/12, which is 3 956 more than in 2010 - a healthy increase of 7%. South Africa will need to maintain this level of increase if it is to take advantage of the knowledge economy.
The survey highlights that, since 2007/08, government has become a major funder of R&D; it directly invested R9,5 billion (43,1% of the total) in R&D in 2011/12, compared to business-sector funding of R8,6 billion (39,0%). The increased investment by government has enabled the country to make impressive gains in building much needed research capacity, modernising research infrastructure, and stimulating the development of innovations that can support economic development and improve quality of life.
The Minister highlighted the fact that, on a weekly basis, the fruits of government investment are enjoyed by the nation. In the past few weeks new research chairs have been awarded, which will further contribute to growing research. The addition of five new centres of excellence was also announced. Together with our African partner countries, the first MeerKAT antenna was launched in March. In the last year, several scientists made breakthroughs in health, laser technology and environmental sciences.
The Director-General noted that, although all of the key sectors targeted by the survey had increased their R&D expenditure, greater effort is required from the private sector. Through interventions like the R&D tax incentives, direct government grants for R&D, R&D partnerships such as the creation of co-managed Sector Innovation Funds and support for technology localisation, government is contributing significantly to supporting business. However, as government increases its level of investment, a similar level of increased R&D investment by the private sector is needed. Over the next few years, the DST plans to enhance its level of interaction with the private sector to achieve the R&D investment targets.
For more information please contact:
Tommy Makhode
Cell: 082 379 8268
E-mail: Tommy.Makhode@dst.gov.za
Taslima Viljoen
Cell: 082 990 1685
E-mail: Taslima.Viljoen@dst.gov.za
