Annual Performance Plan 2013/14
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1 Annual Performance Plan 2013/14 TIA PRESENTATION TO THE PORTFOLIO COMMITTEE ON SCIENCE AND TECHNOLOGY 18 April 2013 Page 1 of 69
2 Annual Performance Plan 2013/14 TIA MANDATE Page 2 of 69
3 Bridging the Innovation Chasm The TIA Act [No 26 of 2008] The object of the Agency is to support the State in stimulating and intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by [supporting*] the development and exploitation of technological innovations Page 3 of 69
4 Vision and Mission Our Vision & 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 socioeconomic value.
5 Context Invention Innovation + Market Page 5 of 69
6 Annual Performance Plan 2013/14 KEY INFLUENCES Page 6 of 69
7 Who is a TIA customer? Technology Innovators Where do you find them? Higher Education Institutions Science Councils State Owned Entities Private Companies Community Page 7 of 69
8 The TIA Stakeholders INNOVATOR INVESTOR TIA CITIZEN TIA is at the confluence of the needs and aspirations of these stakeholders Page 8 of 69
9 Stakeholder Needs (1) The Innovator - Higher Education Institutions; Science Councils; State Owned Entities and Private Companies Commercial & technical expertise Responsiveness and reliability Customer centric products & services Supporting infrastructure INNOVATOR Access to technology innovation eco-system Sound advice Page 9 of 69
10 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 Page 10 of 69
11 Stakeholder Needs (3) Communities- Entrepreneurs, inventors and youth Technology solutions to humanity s problems Security Education Employment opportunities CITIZENS Systems level planning Improved quality of life Page 11 of 69
12 Annual Performance Plan 2013/14 ALIGNING TIA TO GOVERNMENT OUTCOMES AND DST POLICY MANDATES Page 12 of 69
13 Link to government outcomes Government Outcomes Description TIA s role Outcome 2 A long and healthy life for all South Africans Stimulation of PPP s in drug development of priority diseases and investments in projects aimed at improved healthcare Outcome 4 Decent employment through inclusive economic growth Investments in 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 initiatives aimed at developing skills for innovation Outcome 7 A vibrant, equitable and sustainable rural communities and food security Investment in projects aimed at improved cattle farming, crop production, agric exports, knowledge transfer Page 13 of 69
14 Link to DST s Ten-Year Innovation Plan Innovation as a national competence From farmer to pharma Innovation culture Innovation Skills Development Venture Capital Fund Youth Technology Innovation Fund BioPharming, Biosafety, Bioprospecting and Drug Development and the Omics platforms Tshwane Animal Health Cluster Energy Security Bio-energy Renewable Energy Energy Storage Science & Technology in response to global change EV Innovation Programme Advanced manufacturing focusing on biomaterials Page 14 of 69
15 Annual Performance Plan 2013/14 TIA SECTORS TIA support cuts across all technologies and sectors of the economy indiscriminately Page 15 of 69
16 Choice of TIA Sectors The choice of sectors is influenced by drivers and hurdles that are encountered economically, socially and environmentally ECONOMIC Drivers - Productivity and competitiveness Hurdles encountered - Technology development, investment and ISD SOCIAL Drivers - Knowledge base Hurdles encountered - poor quality public education Technology Innovation ENVIRONMENTAL Drivers - Resource optimisation Hurdles encountered - Technology development Page 16 of 69
17 Industry/Economic Sectors Agri Sector Health Sector Energy Sector Mining Sector TIA Sectors Cross-Cutting Technology Sectors Industrial Biotech Advanced Manufacturing ICT Special Projects Page 17 of 69
18 Annual Performance Plan 2013/14 OFFERINGS THROUGH THE TECHNOLOGY INNOVATION VALUE CHAIN Page 18 of 69
19 TIA Offerings 1. Funding Instruments 2. Business Support & Strategic Partnerships 3. Technology Development Infrastructure 4. Innovation Skills Development Page 19 of 69
20 Funding Instruments The six funding instruments of TIA IP Fund Seed Fund Technology Development Fund Royalty-grants Loans, Equity Youth Technology Innovation Fund Industry Matching Fund Venture Capital Fund CUSTOMER CENTRIC SOLUTIONS ALONG THE INNOVATION VALUE CHAIN Page 20 of 69
21 IP Fund A modest royalty instrument to enable innovators to protect their Intellectual Property IP Fund Seed Fund Technology Development Fund Royalty-grants Loans, Equity Youth Technology Innovation Fund Industry Matching Fund Venture Capital Fund CUSTOMER CENTRIC SOLUTIONS ALONG THE INNOVATION VALUE CHAIN Page 21 of 69
22 Seed Fund 1. A fund from which HEIs and Science Councils can access initial funding to enable them to develop their ideas into fundable applications. 2. R25 million in the first year IP Fund Seed Fund Technology Development Fund Royalty-grants Loans, Equity Youth Technology Innovation Fund Industry Matching Fund Venture Capital Fund CUSTOMER CENTRIC SOLUTIONS ALONG THE INNOVATION VALUE CHAIN Page 22 of 69
23 Technology Development Fund Royalty/ grant funding to Platforms and Technology Stations, Consortia of HEI s and Science Councils IP Fund Seed Fund Technology Development Fund Royalty-grants Loans, Equity Youth Technology Innovation Fund Industry Matching Fund Venture Capital Fund CUSTOMER CENTRIC SOLUTIONS ALONG THE INNOVATION VALUE CHAIN Page 23 of 69
24 Youth Technology Innovation Fund 1. Applicants years 2. Assistance is in the form of vouchers to access services/ resources e.g. SABS testing, incubation, etc IP Fund Seed Fund Technology Development Fund Royalty-grants Loans, Equity Youth Technology Innovation Fund Industry Matching Fund Venture Capital Fund CUSTOMER CENTRIC SOLUTIONS ALONG THE INNOVATION VALUE CHAIN Page 24 of 69
25 Industry Matching Fund 1. Match funding to companies where partnership with small companies, HEIs and Science councils is incentivised 2. Royalties & loan structures on a ratchet scale IP Fund Seed Fund Technology Development Fund Royalty-grants Loans, Equity Youth Technology Innovation Fund Industry Matching Fund Venture Capital Fund CUSTOMER CENTRIC SOLUTIONS ALONG THE INNOVATION VALUE CHAIN Page 25 of 69
26 Venture Capital Fund 1. Co-invest with privately managed VC Funds 2. R100 million per annum over 5 years 3. Targeted at 2 nd and 3 rd round funding needs IP Fund Seed Fund Technology Development Fund Royalty-grants Loans, Equity Youth Technology Innovation Fund Industry Matching Fund Venture Capital Fund CUSTOMER CENTRIC SOLUTIONS ALONG THE INNOVATION VALUE CHAIN Page 26 of 69
27 Business Support IP Management Financial management Legal Services Marketing Business Plan Development Governance Networking Internationalisation Page 27 of 69
28 Page 28 of 69 Strategic Partnerships To leverage local and international partnerships To develop Strategic Capital to enhance the organization s capacity to execute its mandate and meet its strategic objectives To generate stakeholder buy-in and support for TIA s strategy
29 Technology Development Infrastructure Technology Platforms Technology Stations Technology Innovation Clusters Page 29 of 69
30 Innovation Skills Development Increasing the Capacity and Skill within the Innovation System Page 30 of 69
31 Stimulating Economic Growth through Techno Entrepreneurial Innovation Skills The Wilburforce Community College Summer School Page 31 of 69
32 Annual Performance Plan 2013/14 STRATEGIC INITIATIVES FOR THE YEAR AHEAD Page 32 of 69
33 Annual Performance Plan 2013/14 UNLOCKING THE POTENTIAL OF SMMEs (Intensive Use of Technology Stations) Page 33 of 69
34 State of SMMEs in European Union EUs SMEs continue to be the backbone of the EU economy. According to a report 1 by the European Commission, in 2012 SME s accounted for: 98% of all enterprises (92.2% less than 10 employees) 67% of total employment (87million people) 58% per cent of gross value added 1. EU SMEs in 2012: at the crossroads. Annual report on small and medium-sized enterprises in the EU, 2011/12. September Available: Page 34 of 69
35 State of SMEs in SA Large industry contribution to the economy: A total of firms operate in South Africa yet large firms constitute only 0.7% (6000) of business of the total Large industry contributes 50% to GDP Numerical contribution is disproportionate SME contribution to the economy: SMEs contribute 50% to GDP Employs 60% of the labour force 2 SME suffer from poor management skills due to inadequate training and education 3 This results in high rates of business failure SA has one of the lowest SMEs survival rates in the world 2. National Treasury report on SME Access to Finance in South Africa-A supply side regulatory review. (2010). Available: Side%20Regulatory%20Review.pdf 3. Global Entrepreneurship Monitor: South Africa Report ( ). Available: Page 35 of 69
36 Global competitiveness report on SA Ranking out South Africa out of 143 countries: FDI and technology transfer - 95 Individuals using internet 95 Quality of the education system 140 Quality of maths and science education 143 Number of procedures to start a business - 80 Page 36 of 69
37 Technology Stations as an intervention to assist SMEs Key R&D Expertise for SMEs Improved SME competitiveness Enhance R&D at HEIs Increased Interaction between SMEs and HEIs Technology Stations Page 37 of 69
38 Technology Stations: Unlocking the potential of SMEs TIA intends to recapitalise technology stations by re-investing in SME clients who are doing well, to assist in commercialisation, expansion and internationalisation Technology stations are becoming a magnet of external funding e.g. Limpopo Economic Development, Environment and Tourism (LEDET) has provided R1million per annum for the next 3 year to assist SMEs in Limpopo with Agroprocessing Page 38 of 69
39 Finger Print Scanner Client: OUCH Pty Ltd Service Offered: Manufacturing /Prototyping Applied Engineering, Design and Development Product or Process Development Description of Work: Cast Moulds and Manufacture few parts 39
40 Hydroponic Irrigation system Client: Moosa Sedibe Service Offered: Applied engineering, design and development Description of Work: Design and manufacture a Hydroponic Irrigation test bed 40
41 Keybord Cover Client: Tswellang School Service Offered: Manufacturing /Prototyping Applied Engineering, Design and Development Description of Work: Design Keyboard cover for Disabled persons and manufacture 5 off Page 41 of 69
42 Vaseline Pot Client: Connie Bonokwane Service Offered: Applied Engineering, Design and Development Description of Work: Design and manufacture of a Gas Pot for vaseline and floor polish Page 42 of 69 42
43 Profile Roller Client: M Steyn Service Offered: Manufacturing/Prototyping Description of Work: Design and manufacture of a machine which is able to form a sheet of metal into a certain profile Page 43 of 69 43
44 Kneeling Chair Client: Carlo Luus Service Offered: Product or Process Development Applied Engineering, Design and Development Description of Work: Chair concept developments, renderings in 3D, material source and selection, manufacture of chair with adjustable mechanisms. Page 44 of 69
45 Design of prosthetic knee (community project) Client: DUT Dental dept Summary: This project is a major project to assist in the design of a prosthetic knee for SA patients. Page 45 of 69
46 INGWE Radar cross section (RCS) model Client: Summary: Denel Aerospace Systems The TS was contracted by Denel Aerospace Systems to machine plugs and manufacture glass-fibre tooling and manufacture a model of the Ingwe using carbon fibre for radar signature testing Page 46 of 69
47 Chair Ladder Client: Terrence Miles Service Offered: Cad design and prototype Short Description: Client requested the IAT to design and develop the idea of a chair ladder Page 47 of 69
48 Atchaar Manufacturing Client: Emonate Food Service Offered: Product development and Improvement. Short Description: Atchaar Manufacturing Page 48 of 69
49 Cosmetic Products Client: Authentica Beauty Paurlor Service Offered: Development of Cosmetics Products Short Description: The Client requested TSC to develop 9 cosmetics products for maternity range; namely: Stretch Mark & massage Oil; Anti-cellulite Gel; Shower Gel; Pedicure Milk Soak(pre-pedicure); Foot Cream (post-pedicure); Pigmentation Control Cream; Body butter; Body Toning Lotion & Body Wrap Musk.
50 Annual Performance Plan 2013/14 CLUSTERS Page 50 of 69
51 Cluster Definition By definition a cluster is a geographic concentration of interconnected companies, specialized suppliers, services providers, firms in related industries and associated institutions in particular fields that competes but also co-operate where, the value of the system as a whole is greater than the sum of its parts. The key drivers of the biotechnology clusters are: Biotechnology research base (research organizations, human capital, adequacy of funding for basic and applied research) Biotechnology industry base (existence of SMEs, large companies, industry associations) Page 51 of 69
52 Clusters: Unlocking Publicly Funded R&D In 2012/13 TIA launched Tshwane Animal Health Cluster Received 63 applications from ARC, UP, CSIR & OBP (R130million) during 2012/13FY Currently 42 have been approved for funding at R93 million In TIA will launch KZN Bio-processing and Limpopo Agro-processing Cluster Remarks by Prof DelaRay of University of Pretoria Page 52 of 69
53 UYilo e-mobility Programme Opportunities for South Africa South Africa s IP is scattered across the value chain This program will serve to bring all expertise, research outputs and ideas to develop a sustainable infrastructure support for the emerging electric vehicle market Page 53 of 69
54 South African Mining Technology Innovation Programme (MTIP) Page 54 of 69
55 TIA Mining Sector Objectives Support technology development for: Efficient, Safe and Competitive Production Environmental and Health Management Minerals upgrading and value addition Lateral migration Innovation skills for technology innovation and commercialisation Page 55 of 69
56 Mining and Minerals as a Sector Page 56 of 69
57 Annual Performance Plan 2013/14 STRATEGIC OBJECTIVES Page 57 of 69
58 Financial Perspective SO1: To stimulate the development and demonstration of technology based products, processes and services Indicator Annual Target 1.1 Number of High Impact Investments Number of Technology Based Products/Processes developed through investments Number of technology based products/processes developed or improved through technology stations Number of products/processes developed or improved through technology platforms Number of green technologies supported Number of Small and Medium Enterprises receiving technology support from Technology Stations and Institutes of Advanced Tooling 1.7 Number of knowledge innovation products: patents, prototypes, technology demonstrators and technology transfer packages
59 SO2:To support the commercialisation of technology innovations Indicator Annual Target 2.1 Number of investments commercialised Number of technology based companies established Percentage of co-investment attracted 15% 2.4 Percentage of investments attracting second round funding from external sources 5% Page 59 of 69
60 Stakeholder Perspective SO3: To develop an enabling environment for technology innovation and commercialisation in South Africa Indicator Annual Target 3.1 Number of new industry clusters established 1 Page 60 of 69
61 Internal Process Perspective SO4: To develop an enabling internal environment for TIA to successfully execute its strategy Indicator Annual Target 4.1 To put in place an IT architecture that enables investment & portfolio management 4.2 Efficient investment monitoring & evaluation system The TIA Enterprise Architecture document. Master System Plan and Architechure. End application and investment process that is fully embedded in the system. IT infrastructure & delivery optimisation, IT Operations Management, Systems implementation plan, IT Business continuity, Investments system security, Investment management reporting 4.3 Compliance with all relevant legislation Continuous monitoring and process improvement for sustained compliance, unqualified audit 4.4 Alignment of TIA s critical positions with organisational design & relevant competencies, including retention of skills 100% Staff trained based on IDPs, Ensure staff turnover below 10%, Ensure turnover of core staff below 10% 4.5 Development of a desired organisational culture 5% improvement on previous year based on culture survey results, Average performance management rating of 110%, Average leadership rating of 5 across all competencies 61
62 Learning and Growth Perspective SO5: To facilitate the development of innovation skills to support technology innovation and commercialisation Indicator Annual Target 5.1 Number of learners on STEMI programmes 500 learners, 200 students, 50 educators 5.2 Number of learners trained in foundational engineering skills 5.3 Number of FET learners placed on a learnership Number of interns placed on an accredited programme for workplace exposure 5.5 Number of candidates trained through Technical Skills Programme at TIA Technology Stations or industry partners through TIA funding 5.6 Number of Candidates trained through Chuma Management Development Programme 5.7 Number of candidates trained though Technoentrepreneurship Programme 5.8 Number of participants in the Step Up Technology Innovation Competition
63 SO6: To become a schedule 3B entity in terms of the Public Finance Management Act Indicator 6.1 Amount of funds raised by TIA as a percentage of MTEF allocation Annual Target 20% 6.2 Number of Initial Public Offerings of TIA investments 0 this FY Page 63 of 69
64 Annual Performance Plan 2013/14 BUDGET 2013/14 Page 64 of 69
65 MTEF Allocation TIA Allocation 2013/14 R /15 R /16 R 000 Baseline Grant Ring-fenced allocations Technology Stations Institute for Advanced Tooling Bio-economy projects Ring fenced allocation Economic Competitiveness Programme (additional grant) Total 2013 MTEF Allocation Page 65 of 69
66 MTEF Budget Audited Adjusted Appropriation MTEF Estimate 2011/ / / / /2016 R 000 R 000 R 000 R 000 R 000 Operations Human Resources ISD Investments Marketing & Branding Capital Expenditure Total TSP ring fenced allocation Total allocation from DST Page 66 of 69
67 MTEF Budget 2013/14 1% 1% 8% 18% 70% 2% Operations Human Resources ISD Investments Marketing & Branding Capital Expenditure The investment figure has increased to 70% from 65% of total MTEF of 2012/2013. Page 67 of 69
68 Relationship Between Expenditure Trends and Strategic Goals MTEF FY13/14 R m Human Resources R m Operations R m Investments R m ISD R m Marketing & Branding R m Capex R m 481 * SO SO SO SO SO SO *Inclusive of R2.8 million for the Improvement in service Conditions from DST Page 68 of 69
69 Thank You! Page 69 of 69
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