PRESENTATION TO THE PORTFOLIO COMMITTEE ON SCIENCE AND TECHNOLOGY 19 APRIL 2012

Transcription

1 PRESENTATION TO THE PORTFOLIO COMMITTEE ON SCIENCE AND TECHNOLOGY 19 APRIL 2012

2 THE INNOVATION CHALLENGE

3 Context Invention Innovation + Market S. Duma 3

4 The innovation chasm THE IDEAS, RESEARC H AND DEVELOPMENT COMMERCIAL INDUSTRIES AND MANUFACTURING VALLEY OF DEATH 4

5 THE TIA MANDATE BRIDGING THE INNOVATION CHASM

6 The TIA Act [No 26 of 2008] The object of the Agency is to support the State in stimulating and intensifying technological innovationin order to improve economic growth and the quality of life of all South Africans by [supporting*] the development and exploitation of technological innovations 6

7 Bridging the innovation chasm TIA THE IDEAS, RESEARC H AND DEVELOPMENT COMMERCIAL INDUSTRIALISTRIES AND MANUFACTURING 7

8 Vision Our Vision and Mission & Mission Our Vision To be a world class innovation agency that supports and enables technological innovation to achieve socio-economic benefits for South Africa. Our Mission To support technology innovators to unlock South Africa s global competitiveness and deliver socio-economic value.

9 TIA geared towards addressing market failure and building bridges and institutional linkages along the innovation value chain: Private Equity IP Value Partnerships (e.g. NRF) High Risk/ Uncertain Return Proposed TIA Support Low Risk/ High Return Partnerships (e.g. IDC, NEF) PPP s Basic Research Applied Research Tech Development Manufacturing The TIA will focus its financial and non-financial offerings along the innovation chasm, and will operate with the required flexibility across the innovation value chain through mobilising and leveraging national, regional and international partnerships 9

10 Offerings across the value chain Investment Risk Accumulative Investment Non-financial Services Fin nancial Products Market Analysis Tech Transfer Brokering Basic research Mini-grants Applied research & development Matching grants/ loans Technology Platforms IP Rights Technology Stations Business Support Commercialization Equity Financing Internationalization Entrepreneurial Networks Production 10

11 Funding Value Chain Phase 1 Phase 2 Seed Phase 3 Start-up Early expansion Phase 4 Expansion Basic research Idea Generation & Development Proof of concept technical development / commercial planning Product & business development Business start-up (science Based) Business growth Universities Science Councils Industry DST, DoE & NRF TIA Support IDC Other

12 KEY INFLUENCES

13 Technology Innovators Where do you find them? HEI Science Councils State Owned Entities Private Companies Community Who is a TIA customer? S. Duma 13

14 The TIA Stakeholders INNOVATOR INVESTOR TIA CITIZEN TIA is at the confluence of the needs and aspirations of these stakeholders S. Duma 14

15 Stakeholder needs (1) The Innovator - Higher Education Institutions; Science Councils; State Owned Entities & Private companies Commercial & technical expertise Responsiveness and reliability Customer centric products & services Supporting infrastructure INNOVATOR Access to technology innovation eco-system Sound advice S. Duma 15

16 Stakeholder needs (2) Investor - DST, Government Departments and Agencies; Provincial and Local Government & Industry Technical acumen Commercial acumen Sound governance Risk mitigation INVESTOR Return on investment Rigorous ongoing monitoring & evaluation S. Duma 16

17 Stakeholder needs (3) Communities Technology solutions to humanity s problems Security Education Employment opportunities CITIZENS Systems level planning Improved quality of life S. Duma 17

18 ALIGNING TIA TO THE STAKEHOLDER S NEEDS

19 TIA Strategic objectives (1) The Balanced Scorecard Approach Financial 1. To support the development and demonstration of technology based products, processes and services 2. To support the commercialisation of technology innovations. Stakeholder 3. To develop an enabling environment for technology innovation and commercialisation in South Africa S. Duma 19

20 TIA Strategic objectives (2) The Balanced Scorecard Approach Internal Business Processes 4. To develop an enabling environment within TIA to successfully execute its strategy. Learning and Growth 5. To facilitate the development of technology innovation skills to support technology innovation and commercialisation. 6. To become a schedule 3B entity in terms of the Public Finance Management Act S. Duma 20

21 ALIGNING TIA TO THE GOVERNMENT S OUTCOMES AND DST POLICY MANDATES

22 Link to government outcomes Government Outcomes Description TIA s role Outcome 2 Outcome 4 A long and healthy life for all South Africans Decent employment through inclusive economic growth Stimulation of PPP s in drug development of priority diseases and investments in projects aimed at improved healthcare Investmentsin projects in economic sectors identified in NGP (Agric value chain, Mining value chain, Manufacturing, Tourism and High-level Services) Outcome 5 A skilled and capable workforce Though TIA s ISD initiativesaimed at developing skills for innovation Outcome 7 A vibrant,equitable and sustainable rural communities and food security Investment in projects aimed at improved cattlefarming, crop production, agric exports, knowledge transfer S. Duma 22

23 Link to DST s Ten-Year Innovation Plan Strengthening the Bio-economy Tia will facilitate Health Sector collaborations with HEI s and SC s TIA hosting South African HIV/AIDS Platform (SHARP); South African TB Research Initiative and SA Malaria Initiatives BioPharming Platform; Biosafety Platform and the Omics platforms New Animal Health Cluster Energy Security Among the sectors that TIA intends to focus on is Energy. The main focus being clean and renewable energy Climate change TIA will assess projects that are supportive of the Climate Change programme. New Electric Vehicle Platform S. Duma 23

24 THE TIA SECTORS

25 Choice of TIA Sectors ECONOMIC Drivers - Productivity and competitiveness Hurdles encountered - Technology development, investment and HCD SOCIAL Drivers - Knowledge base Hurdles encountered - poor quality public education Technology Innovation ENVIRONMENTAL Drivers - Resource optimisation Hurdles encountered - Technology development S. Duma 25

26 TIA Sectors (1) TIA evaluates technology applications from all sectors indiscriminately The following sectors have been identified for emphasis from an inherited portfolio and South Africa s economic influence/ priorities S. Duma 26

27 TIA Sectors (2) Cross-Cutting Technology Sectors Industry/Economic Sectors Agro Sector Health Sector Energy Sector Mining Sector Industrial Biotech Advanced Manufacturing ICT S. Duma 27

28 OFFERINGS THROUGHOUT THE VALUE CHAIN

29 TIA offerings 1. Funding 2. Business Support & Strategic Partnerships 3. Technology Development Infrastructure 4. Innovation Skills Development S. Duma 29

30 Funding Technology & Development Youth Technology Innovation Industry Matching Idea Development Royalty-grants Loans, Equity Venture Capital CUSTOMER CENTRIC SOLUTIONS ALONG THE INNOVATION VALUE CHAIN The five funding instruments of TIA S. Duma 30

31 Technology infrastructure Technology Platforms Technology Stations Industry Clusters S. Duma 31

32 Technology infrastructure Technology location Stations

33 Sectors and infrastructure clusters Biotechnology Sectors Industrial Sectors Health Foundries Technology, Light metals & Tooling (4) Agriculture Chemistry & Cosmetics (2) Industrial Biotech Agro Food and Processing (2) Energy Innoveton/Down Stream Chemicals Mining Advanced Manufacturing Electronics Design & Mnf(Incl. ICT) Product Design & Development (2) General Engineering, Composites and Reinforced Plastics (2) ICT Database of Technology Infrastructure, Services and Experts S. Duma 33

34 Impact on TIA and Funded Projects PRODUCT DEVELOPMENT Time and cost to commercialise R E D U C E D TECHNOLOGY & TOOLING DEVELOPMENT MANUFACTURE QUALITY CONTROL CONCEPT ANALYSIS VERIFICATION DESIGN ANALYSIS NC PROGRAM MACHINING MEASURING Exceptional Skills Development & SET Capacity Building for a locally based Knowledge Economy and Exploitation of inbound Technology

35 The Free State station at CUT Bed for bedridden patients to reduce bed sores 35

36 Car for the disabled The client is a disabled entrepreneur/ innovator who is supported by TIA/TSP in the design and development of a Car for the disabled The Technology Station at CUT in Bloemfontein conducted a Product Design and Technology Development with objective to reduce the current cost of making disabled individuals mobile without assistance Graduates from university are exposed to design & fabrication technologies. The local manufacture of car will results in job creation/employments No. graduates involved: 25

37 Automatic Pill Press Machine Scientific SUPER-KILL is a local enterprise in the pest control and scientific health care sector that was supported by CUT technology station to automate their products range manufacturing process for Rat poison pill The Technology Station offered: Applied Engineering, Design and Development and Engineering Project management. Benefits to enterprise: improved unit cost of production and increased volumes To be competitive in pricing for international markets

38 Platform activities (1) Platform Bioprocessing Institute of Diagnostic Research (IDR) National Genomics Platform (NGP) Metagenomics Metabolomics Bioinformatics OBJECTIVES Provides infrastructure to enterprises requiring downstream production of various bioproducts Develops components for cost-effective, rapid diagnostic kits A modern and high throughput sequencing facility Discovers and develops products and processes from South Africa s extreme biomes for industrial applications. Employs metabolite analyses to develop solutions for the diagnosis of infectious diseases and inherited disorders. Supports the data management and analysis for the omics platforms CPGR Provides genomics and proteomics research service for academic and industry clients S. Duma 38

39 Platform activities (2) Platform Drug Delivery Systems OBJECTIVES Designs and developsintelligent systems to improve the delivery and efficacy of new and existing drugs Drug Discovery Vaccine Delivery System Protein Expression System Biosafety Bioprospecting Establish thecapability to develop and optimize new drug candidates for clinical tests Develop a system to improve safety and efficacy of animal vaccines. Develop a yeast-based expression system to produce therapeutic peptides Facilitates access to strategic information about biosafety risk assessment in biotech development Identifies anti-hiv activityfrom plant extracts based on indigenous knowledge in Limpopo S. Duma 39

40 Business support Financial Management Contract Negotiation Marketing Business Plan Development Governance Networking Internationalisation IP Management S. Duma 40

41 Innovation Skills Development Enabling education through accessible technology Fast tracking skills development through technology innovation in a value based manner Programmes aimed at addressing skills shortage in manufacturing & other industrial processes S. Duma 41

42 INTERNAL DELIVERY MECHANISMS

43 TIA delivery mechanisms Access Online Application Intelligent Systems Strong Regions Key Skills Cross Functional Teams Collaborative Approach S. Duma 43

44 TIA Business Development (strong regions) TIA National & Regional Finance Sectors TSP Platforms etc Regional BDM s BDO s Investor Client Provincial Dev Agencies Municipalities Private companies SOEs Others Inventor Client HEIs Science Councils Innovators S. Duma 44

45 The capabilities that TIA will need in order to deliver on mandate Technology innovation expertise Deal making / portfolio management Leadership Business development and support Cross functional teamwork and collaboration Expert services Finance S. Duma 45

46 THE MTEF ALLOCATION

47 MTEF Allocation (1) Adjusted Medium Term Expenditure Estimates R thousand Appropriation 2011/ / / /2015 Operations Human Resources Innovation Skills Development Investments Marketing and Business Development Capital Expenditure Total S. Duma 47

48 MTEF Allocation (2) 1%1% As a percentage of allocation 12% Operations 19% Human Resources Skills Development for Innovation 65% Investments 2% Marketing and Business Development Capital Expenditure S. Duma 48

49 Leveraged Funds Number of co-funded projects in sectors Co-funding Agriculture 2 Projects Advanced Manufacturing 2 Projects ICT 1 Project Health 2 Projects Energy 1 Project TOTAL

50 THE NEW INITIATIVES

51 Youth Technology Innovation Fund 1. Criteria South African Citizens of ages years not already funded through the normal TIA process. 2. Offerings Voucher for use of SABS services for product certification up to R Vouchers for Business Coaching services up to 160 hours. Voucher for use of TIA s technology platforms and stations up to R for rapid prototyping. Voucher for incubation services at a recognised TIA partner for up to 2 years. Voucher for IP protection for no more than R R per annum stipend for inventors for no more than 2 yrs and up to four people. 3. Administration To be administered by the GM: Special Projects S. Duma 51

52 TIA Index for Technology Innovation 1. Criteria Higher Education Institutions Individual Companies 2. Higher Education Institutions Index measures how many technology innovation companies have been spun out. Index measures how many technology innovation products and services have been spun out 3. Individual Companies Index measures how many technology innovation companies have been spun out. Index measures how many technology innovation products and services have been spun out 4. Administration To be administered by an Independent Panel set up by TIA with local and international experts. The secretariat to be established within TIA and administered by Business Planning Manager in the CEO s office S. Duma 52

53 The Animal Health Bio-cluster Project in Tshwane Flagship project for catalysingeconomic development through biotechnology Revitaliseanimal vaccine manufacturing in the region Accelerate the commercialisationof biotechnology products and facilitate transfer to industry Diversify regional economy towards knowledge intensive industries Leverage regional knowledge based in animal health research and commercialisation S. Duma 53

54 Tshwane Animal Health Bio-cluster

55 What is a bio-cluster? Definition of a cluster: Geographic concentration of different players such interconnected companies, suppliers, institutions which compete and cooperate in industry Cluster development is complex and involves: Government departments Economic development agencies Universities Research centers Companies Financial institutions S. Duma 55

56 Why is bio-clustering is important? Firms tend to cluster around research centres, knowledge intensive industry e.g. France Genopole, Cambridge Biocluster (UK), Boston Route 128 bio clusters (USA), Turku Biocluster(Finland) Firms also need access to specialisedfacilities e.g. testing labs, fermentation, cgmp& cglp facilties etc. Clustering promotes innovation and networking Cluster approach promotes triple helix concept (industry - academic government co-operation) S. Duma 56

57 Animal Health Industry Prevention Vaccines Nutraceuticals Probiotics Medicinal feed additives Treatment Animal Health Diagnosis Therapeutic Proteins Biopharmaceuticals Bioengineering Medical devices Tissue and cell engineering Anti-infectives and parasiticides Molecular Diagnostics Monoclonal Antibodies

58

59 Why Tshwane Metropolitan Area? One of the leading animal health research environment in South Africa (UPTA, ARC, TUT and ACGT) produces 80% of research publications in South Africa (from NACI Reports) Onderstepoort corridor tradition area of strength in animal health and biosciences -OBP, ARC-OVI, UPTA Veterinary Sciences Presence of 15 local companies e.g. Avimune, Afrivert, Virbac, Onderstepoort Biological Products and multinationals in the province (Bayer, Merial, Pfizer, Novartis) Vaccine manufacturing infrastructure at OBP and ARC (FMD), animal testing facilities, Biosafety facility (level 3), OIE reference laboratory status It has been shown that trying to seed a cluster from scratch is generally not successful- Tshwane has some of the infrastructure and assets that are required S. Duma 59

60 Concept of Tshwane Animal Health Care Biocluster-Actors and linkages Knowledge Use Intermediary Organisations Knowledge Generation Large (Pfizer, Bayer, Merial) Local firms (OBP, Avimune, Afrivet, etc) Suppliers (manufacturing, marketing and distribution ) TIA (Funding, commercialisation, facilitation & coordination ) UPTA, Vet Dept. ARC-OVI ARC-API ACGT (scientific infrastructure, research programmes, skills and expertise) National Depts. DST, DAFF,DTI Provincial and Local Gauteng Department of Agriculture Gauteng Department of Economic Affairs Tshwane Metro. Local Economic Development Agencies Industry Association African Horse Sickness Trust South African Animal Health Association Meat Industry Association a system of innovation approach

61 What are the expected outcomes? Development and commercialisationof new products for animal disease control Creation of viable start ups to commercialisenew products Uptake of products by existing companies Address diseases that are unique to South Africa and SADC region Create an world class cluster in animal health and contribution to regional economic growth S. Duma 61

62 What is TIA s role? Host/lead organisationfor the cluster development process Get industry participation and involvement Ensure that innovation supports and builds on existing strengths Leverage funds from stakeholders Facilitate collaboration and networking S. Duma 62

63 THE ART NGUNI CATTLE PROJECT SCIENTIFIC OUTPUT COMING ALIVE

64 The ART Nguni Cattle project launch (1 st February 2012) 64

65 Vuvha, Kefiloe and Bongi 65

66 The Electric Vehicle Platform

67 Why the Electric Vehicle Platform? There are five (5) critical areas that offer ideal opportunities for technology development to support the EV industry: I. Charging infrastructure II. Cars themselves III. Battery management systems IV. Battery technologies V. Human capacity development S. Duma 67

68 The EV value chain S. Duma 68

69 The TIA Role S. Duma 69

70 SA SYSTEMS INTERVENTION

71 Using TIA position in support of the technology innovation in the ecosystems Easing access to IDC Easing access to SABS Easing access to the MCC Easing other relevant Institutions S. Duma 71

72 The TIA Executive Structure

73 TIA Board Chief Executive Officer Chief Financial Officer Chief Operating Officer Group Executive : Biotechnology Sectors Group Executive : Industrial Sectors Group Executive : Corporate Affairs General Counsel

74 TIA s KPIs 2012/13

75 Strategic objective 1 Performance Indicator Annual Target 1. To stimulate the development and demonstration of technology based products, processes and services 1.1 Number of high impact investments Number of technology based products/ processes developed through 25 investments 1.3 Number of technology based products/processes developed or 450 improved through Technology Stations 1.4 Number of products/processes developed or improved through 5 Technology Platforms 1.5 Number of new green technologies supported S. Duma 75

76 Strategic objective 2 Performance Indicator Annual Target 2. To support the commercialisation of technology innovations 2.1 Number of investments commercialised Number of technology based companies established Percentage of co-investment attracted 10% 2.4 Percentage of investments attracting second round funding from external sources 5% S. Duma 76

77 Strategic objective 3 Performance Indicator Annual Target 3. To develop an enabling environment for technology innovation and commercialisation in South Africa 3.1 Number of new TIA regional offices established Number of new industry clusters established Number of new technology stations or new technology platforms established S. Duma 77

78 Strategic objective 4 (1) Performance Indicator Annual Target 4. To develop an enabling internal environment within TIA to successfully execute its strategy 4.1 To put in place an IT architecture that enables investment & portfolio management 4.2 Efficient investment monitoring & evaluation system 4.3 Compliance with all relevant legislation Identified tool aligned with approved processes Online system database for all approved applications with clear pipeline measures approved per project on the system Approved IT policies pertaining to IT Security, Operations and service continuity Awareness campaigns TIA wide for adoption Unqualified audit opinion S. Duma 78

79 Strategic objective 4 (2) Performance Indicator Annual Target 4. To develop an enabling internal environment within TIA to successfully execute its strategy 4.4 Alignment of TIA s critical positions with organisational design & relevant competencies, including retention of skills 4.5 Development of a desired organisational culture Development of core skills through training Staff turnover below the national benchmark Staff turnover of core skills below 10% 5% improvement on previous year Based on culture survey results Average performance management rating of 100% Average leadership rating of 5 across all competencies S. Duma 79

80 Strategic objective 5 Performance Indicator Annual Target 5. To facilitate the development of innovation skills to support technology innovation and commercialisation 5.1 Number of learners / educators on webinar 900/ Number of candidates trained through mobile technology Number of interns trained through TSP programme/platforms Number of FET interns trained to develop industry skills Number of NRF interns trained Number of unemployed graduates trained Number of candidates trained through CNC machining skills programme 5.8 Number of candidates trained in Design & Simulation Number of candidates trained in Rapid Prototyping S. Duma 80

81 Strategic objective 5 (continued) Performance Indicator Annual Target 5. To facilitate the development of innovation skills to support technology innovation and commercialisation 5.10 Number of schools participating in Technology Innovation 25 Week 5.11 Number of schools adopted by Tech stations /platforms Number of Business Plans resulting from exploitation of offshelf IP 5.13 Number of solutions implemented from the Idea Development Programme 5.14 Number of candidates trained through Swiss Bio Entrepreneur / Innovation Management Programme 5.15 Number of Candidates trained through Chuma Management Development Programme S. Duma

82 Strategic objective 6 Performance Indicator Annual Target 6. To become a schedule 3B entity in terms of the Public Finance Management Act 6.1 Amount of funds raised by TIA as a percentage of MTEF allocation 6.2 Number of Initial Public Offerings of TIA investments 10% of current MTEF 0 this year S. Duma 82

83 Thank You...