Dr Hoffie Maree, Group Executive: Operations of the Council for Scientific and Industrial Research
AMTS Project participants from our universities, industry and science councils
International collaborators
Other representatives of industry
Members of the AMTS Implementation Unit
Ladies and gentlemen
This symposium is taking place at a time of significant change and uncertainty, at both national and international level.
South Africa is not immune from the impact of the global economic recession. By the end of June the national accounts data showed that South Africa's economy had contracted for the third consecutive quarter. Gross domestic product (GDP) decreased by 0,8% in the second quarter of 2009, following a 1,7% drop in the first quarter. In comparison with a year ago, output was 2,8% lower. And the manufacturing sector, which is our second largest sector, responsible for 14% of GDP, was the key drag, accounting for more than half of the contraction.
Manufacturing output continues to fall. Figures published last Friday show a 13,7% annual fall for July, following a 17% decline in June. Although there are indications that the trough may have been reached and that we can look forward to positive growth in the near future, it is likely to be a slow recovery, and it will be a while before we see net employment growth in the economy.We still need to take the right kind of action that will put us a new sustained growth path, and make us more globally competitive and less dependant on technology imports.
International experience has shown that economic slowdowns provide a useful opportunity for technology-led economic development. We hope that the ongoing support for programmes such as the AMTS will enable industry to take advantage of this opportunity.
South Africa was fortunate in having the plans for a large-scale public infrastructure build programme in place. Government is using this to support the development of the local manufacturing base through the Competitive Supplier Development Programme (CSDP), which should help lessen the impact of some of the global recession's adverse effects on manufacturing. Within the framework of the CSDP, the Department of Science and Technology has designed a Technology Localisation Framework, aimed at boosting the technological capacity of local firms by providing technology benchmarking support and targeted technology assistance packages. The implementation of this framework has just begun, and there is engagement with a number of key sectors of the economy.
The recently released Medium-Term Strategic Framework (MTSF) for 2009 to 2014 has made speeding up growth and transforming the economy to create decent work and sustainable livelihoods its first strategic priority. One of the ways in which this is to be achieved is through the National Industrial Policy Framework. This framework acknowledges the important role of technology and innovation in transforming the economy, and we are proud of the Department of Science and Technology's significant contribution to the development of new cutting-edge industries in South Africa through programmes such as the Advanced Manufacturing Technology Strategy.
You will remember that the key aim of the AMTS, adopted in 2003, is to support the development of competencies in key technologies to allow the South African manufacturing sector to become more innovative by strengthening its technological base. Emphasis was placed on developing technologies with strategic value to the country, and those in which South Africa could develop a competitive advantage. I am confident that this symposium will showcase the material progress that is being made.
It is pleasing to note the successes already achieved by the AMTS.
* The Smart factory project is offering our small, medium enterprises (SMEs) a low-cost measurement and reporting system that will improve the efficiency of their manufacturing processes and lead to improved quality.
* Good progress has also been made in developing the capability to produce high-quality castings in titanium alloys for aerospace applications.
* We have registered 25 PhD and 60 MSc students, and one PhD and 14 MSc students have already graduated.
* We have conducted two external reviews of the projects in the Advanced Production Technologies Programme and in fibre-reinforced composites. Both these reviews have reported positively on the quality of the work and focus areas of the projects.
This meeting is the second symposium aimed at showcasing Advanced Manufacturing Technology Strategy (AMTS) achievements by creating an information-sharing opportunity; highlighting the impact of the AMTS since its inception; reporting on the progress of technical and human capital development projects; sharing information on new strategic developments such as the centres of competence; presenting project progress and successes to the AMTS network and encouraging cooperation and learning; exhibiting technical work, through presentations and posters; and, perhaps most importantly, generating new ideas.
The Symposium is intended to be a sharing experience; a forum in which people working in areas of interest to the AMTS (at universities, research councils and industry) come together to share their research initiatives and development ideas. We should make good use of the opportunity, not only to listen, but to network, to expand our horizons, and to seek common ground in order to drive South Africa's growth faster and more effectively.
A number of South African institutions and companies are going to be making presentations on joint projects, which include:
* Work on uncooled sensors by Denel-Detek, the Cape Peninsula University of Technology and Solid State Technology.
* Work on high performance machining for titanium alloys by the Universities of Johannesburg, Cape Town and Stellenbosch, and Germany's Fraunhofer Institute in Chemnitz.
* Work on reconfigurable manufacturing systems by the Council for Scientific and Industrial Research, the University of KwaZulu-Natal, and the Tshwane and Durban Universities of Technology.
* Work on continuous fibre reinforced thermoplastics by Aerosud, Stellenbosch University and the companies AMT and Epsilon.
There are many more exciting applications showcased at this symposium.
This is a good opportunity to highlight some of the other mechanisms the Department of Science and Technology is using to strengthen our nation's technological capability. Industry and innovation are like breathing and living – the absence of innovation spells a certain death for industry both creativity and innovation is needed to keep industry vibrant and alive. Creativity, as Theodore Levitt explains, is thinking up new things, while innovation is all about doing new things. It's about turning ideas into manufacturable and marketable form. We need to align our research programmes with the needs of industry so that they can contribute to the economic development of South Africa.
It is in this context that the department is establishing centres of competence aimed at enhancing the innovation capability of specific industry groups to respond to major economic opportunities across the value chain.
Investigations into establishing a centre of competence in micro sensors and bio composites are ongoing and a decision on these will be made shortly. The work to establish such centres is a direct outcome of the endeavours of the participants in our flagship programmes, and clear evidence of the appropriateness of our choice of research and development focus areas for the AMTS.
Micro sensors have considerable potential in many different areas, such as night vision systems, security sensors and medical sensor systems. The possibility of developing the technology further and linking it with nanotechnology, especially in the field of biomedical applications, offers exciting opportunities.
Bio composites, specifically composites derived from natural fibres, offer the possibility of using a high-tech composite plastic product used for commercial aircraft interiors. Our joint project with Airbus on technology development in this area is progressing well, although the first results you see may be more down to earth products, such as bakkie canopies.
The topics covered here indicate that there is considerable activity in advanced manufacturing.Your participation in this conference is further evidence that there are substantial opportunities to be had. Manufacturing is a global industry, and the need to innovate continuously is vitally important to maintaining and enhancing global competitiveness. International linkages are a crucial ingredient to making South African technology accessible to the rest of the world and enabling South Africa to participate in the global economy. The AMTS is making good progress with project partners at Fraunhofer and Airbus, which is particularly important in the light of the recession's effect on the manufacturing sector.
South Africa has yet to mobilise innovation effectively in support of economic growth across the board. This absence of a culture of innovation is a major weakness in our system, and a serious impediment to our economic growth. This problem is highlighted by the inadequate links between the local market for medium to high-technology products and services, on the one hand, and local research, on the other. Inevitably, this leads to the extensive importation of technology and intellectual property, resulting in a skewed technology balance of payments.
One major obstacle to the commercialisation of technological innovations is financing, due to the high risk and complexity of research and development investments. New funding mechanisms involving public and private capital that could help address this problem need to be found. Such partnerships have the potential to help close the financing gap and to become effective financing vehicles for medium and high-tech innovations.
To further address the fragmentation of funding instruments, the Department has recently launched the Technology Innovation Agency. A board of impressive individuals, led by Professor Mamphela Ramphela, has been appointed to oversee the establishment of the Agency, which is a significant new initiative to address the innovation gap in our country.
We are very excited about the launch tomorrow of our micro satellite from Baikonur in Kazakhstan. SumbandilaSat represents an important step in South Africa's progress to obtain information that will assist in the effective management of disasters (floods and fires), food security (crop yield estimation), health (prediction of outbreaks), safety and security, water resources and energy security. SumbandilaSat is a shining example of the capabilities and strengths of what the South African manufacturing sector is capable of achieving.
Indeed, the next few years will be challenging for us. They hold the excitement of opportunities for South Africa to develop a more diversified and dynamic manufacturing sector through the development of strategic partnerships and the assimilation of world-class technologies. However, if we are to make our interventions succeed, collaboration, careful planning, mobilisation of resources, and efficient and effective delivery will be needed.
The government recognises that scientific and technological innovation and development are important for industrial competitiveness and sustaining growth, and we will therefore be building on the range of strategies and programmes already supporting innovation in firms, and research and development in the private and public sectors.
To conclude, the work in which you are involved is important. In the words of Harvey Firestone – although I might just disagree with him on what he says about capital – "Capital isn't so important to business. Experience isn't so important. What is important is ideas. If you have ideas, you have the main asset you need, and there isn’t any limit to what you can do with your business and your life." The Department of Science and Technology will do whatever it can to support the generation and implementation of good ideas.
Distinguished guests, ladies and gentlemen, it gives me great pleasure to declare this symposium officially open.
Thank you.
Issued by: Department of Science and Technology
14 September 2009
Source: Department of Science and Technology (http://www.dst.gov.za)
