FY2018/19 Annual Performance Plan Presentation: Parliamentary Portfolio Committee on Science and Technology

Transcription

1 FY2018/19 Annual Performance Plan Presentation: Parliamentary Portfolio Committee on Science and Technology Mr Barlow Manilal Chief Executive Officer 19 April

2 Contents 2 2

3 1. Overview of the Agency 2. Alignment to National Policies, MTSF outcomes, and DST Priorities. 3. Reflection against FY2015/20 Strategic Plan & Priorities 4. Impetus for the FY 2017/18 Commitments 5. Inputs to the FY2018/19 Annual Performance Plan 6. Performance Targets for FY2018/19 7. MTEF Budget Allocation for FY2018/19 8. Way Forward 9. Questions 3 3

4 Overview of the Agency 4 4

5 The original TIA Business Case developed in 2010 TIA's ultimate goal was "to use South Africa's science and technology base to develop new industries, create sustainable jobs and help diversify the economy away from commodity exports towards knowledge-based industries equipped to address modern global challenges". 5

6 Vision To be a leading technology innovation agency that stimulates and supports technological innovation to improve the quality of life for all South Africans. 6

7 Mission To facilitate the translation of South Africa s knowledge resource into sustainable socioeconomic opportunities. 7

8 Mandate of the Technology Innovation Agency -The mandate of TIA is derived from the provisions of the Technology Innovation Act (Act 26 of 2008), which establishes TIA as an Agency to promote the development and exploitation, in the public interest, of discoveries, inventions, innovations and improvements. -The objective of TIA is to support the State, through the DST, in stimulating and intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by developing and exploiting technological innovations. 8 8

9 TIA Value Proposition 9 9

10 TIA s ROLE Provide access to technical expertise Provide Funding Advisory Capacitate NSI Technology Innovation Agency Provide Innovation Skills Development Facilitate and assist innovators to secure funding Enable access to high-end equipment 10 10

11 ACCERLERATING TECHNOLOGY DEVELOPMENT Hub and Spoke Model A model that positions TIA as a national capability for innovation management and funding management across all government departments. It promotes allocation of funds by government and industry to establish strategic innovation programmes to execute their mandates Repatriate innovation instruments & programmes from DST (IID; AIP; Bioeconomy; FGP; SIF) Consolidate innovation instruments in the NSI Establish government innovation programmes Establish sector-specific innovation programmes with industry 11 11

12 Focus areas to accelerate Technology Development Innovation for Industry Renewal Innovation for enhanced service delivery Innovation for Industry competitiveness Innovation for Inclusive Development 12 12

13 How to Accelerate Technology Development Glass Pipeline Model A partnership programme to promote porous boundaries, a singular view of innovation activity in the NSI and seamless transition of innovations from lab to market through institutional integration and collaboration

14 Funding and Programmes Funding: Seed Fund: HEI Seed Fund SMME Seed Fund Technology Development Fund Commercialisation Support Fund Programmes: Technology Stations Programmes (18) Technology Platforms Programme (10) Innovation Skills Development Youth Technology Innovation Programmes Technology Innovation Cluster Programmes (4) 14 14

15 Technology Areas within our Portfolio Advanced Manufacturing Agricultural Biotechnology Health Biotechnology Energy Information and Communication Technology Natural Resources Industrial Biotechnology * * requires further development within the Bio-economy workplan 15 15

16 Alignment to National Policies, MTSF Outcomes, and DST Priorities 16 16

17 TIA Strategic Operating Model Needs Quality of life Service Delivery Innovative competencies Developing Scientific & Technological capabilities Exploit biodiversity Plan National Policies and priorities Strategic Plan Annual Performance Plan Strategic and Operational Risks Impact New knowledge products New process New services Jobs Contribute to increasing GDP New companies Competitiveness Improve the Balance of Payments 17 17

18 Alignment to National Government Policies and Priorities Industrial Policy Action Plan New Growth Path Applicable RDI Roadmaps Operation Phakisa National Development Plan 2030 Government Nine Point Plan 18 18

19 Alignment to Medium Term Strategic Framework (MTSF) The NDP has been divided into five-year implementation plans, the first of which has been the Medium-Term Strategic Framework (MTSF). The MTSF has 14 Outcomes of which TIA has aligned its initiatives and contributes to the following four outcomes: Outcome 2: A long and healthy life for all South Africans Outcome 4: Decent employment through inclusive economic growth Outcome 5: A skilled and capable workforce to support an inclusive growth path Outcome 10: Protect and enhance our environmental assets and natural resources Sub-Outcome 8: Reduced costs of health care Sub-Outcome 10: Investment in research, development and innovation supports inclusive growth by enhancing productivity of existing and emerging enterprises and supporting the development of new industries. Sub-Outcome 2: Increase access and success in programmes leading to intermediate and high-level learning Sub-Outcome 3: An environmentally sustainable, low-carbon economy resulting from a well-managed transition

20 Reflection against FY2015/20 Strategic Plan and Priorities 20 20

21 CUMULATIVE PERFORMANCE FY2013/14 FY2016/17 (4yrs) 21 21

22 CUMULATIVE PERFORMANCE FY2013/14 FY2016/17 (4yrs) 22 22

23 3 Strategic Outcome Oriented Goals FY2015/16 FY2019/20 Support Commercialisation of Technological Innovations - Over the next 5 years, continue to accelerate the development and deployment of technologies into the market to increase economic competitiveness and socio-economic transformation Increase infrastructure access for technology development- Over the next 5 years, broaden access to advanced technology infrastructure that would enable knowledge and skills transfer to support innovation Stimulate an agile and responsive NSI - Over the next 5 years, encourage synergistic local and international partnerships that connect ideas, resources and funding to individuals, industries, SMMEs and knowledge institutions 23 23

24 Strategic Outcome Oriented Goals FY2015/16 FY2019/20 Support Commercialisation of Technological Innovations - Over the next 5 years, continue to accelerate the development and deployment of technologies into the market to increase economic competitiveness and socio-economic transformation a) Invested more than R465m for various technology development projects. b) In supporting the technology development and precommercialisation activities of its funded technologies, TIA also raised additional income of R110m, which was R43m less than the previous year. c) Facilitated the commercialisation of 21 innovations compared to nine in FY2015/16. This represents a 130% increase, demonstrating the relevance of projects that the agency invests in. d) Of TIA s total portfolio funded in FY2016/17, 31 projects advanced by two or more Technology Readiness Levels (TRLs) with some reaching the demonstration stage. This marks an improvement of four above the 27 projects realised in FY2015/16 with the Seed Fund Programme being the key contributor to this result

25 Strategic Outcome Oriented Goals FY2015/16 FY2019/20 Increase infrastructure access for technology development- Over the next 5 years, broaden access to advanced technology infrastructure that would enable knowledge and skills transfer to support innovation a) TIA provides infrastructure services for technology development through its network of 18 Technology Stations and ten Technology Platforms. b) The 16/17 financial year saw 64 technologies and knowledgeinnovation products such as prototypes, patents, technology demonstrators and technology transfer packages supported from these facilities. c) The Programme has achieved a slight increase in the number of SMMEs accessing technology infrastructure to of which were Previously Disadvantaged Individuals (PDIs). a) The performance from these programmes highlights the continued demand for such services. TIA has thus commissioned studies to evaluate the impact of these programmes to inform how they may be scaled up and repositioned to contribute to technology localisation which unlocks economic development and inclusive 25 growth. 25

26 Strategic Outcome Oriented Goals FY2015/16 FY2019/20 Stimulate an agile and responsive NSI - Over the next 5 years, encourage synergistic local and international partnerships that connect ideas, resources and funding to individuals, industries, SMMEs and knowledge institutions a) TIA portfolio also continued to attract interest from third parties who have invested a total of R182,2m, representing an 86% increase from the previous financial year s R97,9m leveraged to support commercialisation of promising technologies. In addition to funding, TIA continued also to embark on various thought leadership initiatives to inform the national discourse on innovation. b) Over 56 strategic engagements were undertaken in 2016/17 compared to 27 in the previous financial year

27 Strategic Outcome Oriented Goals FY2015/16 FY2019/20 TIA has become more relevant to its stakeholders, delivered greater impact and continues to strengthen its institutional capacity, albeit starting from a low base. The organisation is migrating from transactional to transformative

28 Inputs to the FY2018/19 Annual Performance Plan 28 28

29 Progress in the implementation of the Ministerial and DST Inputs FY2017/18 Demonstrate how we are addressing the mandate TIA should interrogate possible mission drift Greater focus on addressing Government priorities and high impact areas Embark on thought leadership activities through partnerships Value chain approach for greater impact Bio-economy strategy to be clearly articulated Socio-economic impact analysis Closer collaboration with DST s Communications Dept. for greater coverage of success stories Transactional activities to Transformative impact 29 29

30 Progress in the implementation of the Ministerial and DST Inputs FY2017/18 On Strategic Partnerships Backward Integration We have engaged with HEI s such as UKZN, CPUT, TUT, NMMU, WSU,UWC). Science Councils such as ARC, MRC, WRC, SANSA, CSIR, NIMPO and SANEDI. The outcomes of the engagement is that TIA would support downstream innovation activities to integrate these with the current strategic programmes

31 Progress in the implementation of the Ministerial and DST Inputs FY2017/18 On Strategic Partnerships Forward Integration We have engaged Institutional funders such as IDC, PIC, THRIP and SPII. We have also engaged with private sector funders such as Standard Bank, General Electric, Investec through their own Enterprise Development programmes to access their Business Readiness Levels (BRL s) and Market Readiness Levels (MRL s) capabilities. In addition we have engaged with the Venture Capital community in an effort to ensure that there is market traction for TIA investees [Knife Capital]. Our partnership with this community enjoys a special place in TIA s effort to development a effective and effective innovation eco-system. 1. Follow on funding and market traction. 2. Placement of CHUMA candidates with VC entities to develop commercialisation management capacity. 3. Capacity building of TIA Portfolio Managers. 4. Partnership with the Black Business Council

32 Progress in the implementation of the Ministerial and DST Inputs FY2017/18 International Partnerships We have prioritized engagements with Africa. TIA has established the Africa Programme that aims to translate and scale up research outputs from NRF historical investments with Namibia, Tanzania, Tunisia, Egypt and Zambia. We have hosted Botswana, Namibia and Swaziland as part of the capacity building initiatives. Furthermore TIA deployed technical experts to Tanzania to assist with skills transfer. TIA is also partnering with the Finnish government under a MoU with the DST to implement the Southern Innovation Support Programme (SAIS). This is a four-year, R140 million programme with 4 SADC countries to support technology entrepreneurship, institutional capacity building for our innovation intermediaries and supporting social innovation projects and initiatives

33 Performance Targets for FY2018/

34 FY2018/19 Performance Targets STRATEGIC OBJECTIVE 1: To provide technology development funding and support in strategic, high-impact areas. No Performance Indicators 1.1 Number of technologies, processes or services advancing by one or more TRL levels Number of innovation project outputs taken up in the market 1.3 Amount of additional funding attracted into TIA s portfolio 1.4 Amount of income recognised 2 Quarterly targets Reporting FY2017/18 FY2018/19 Quarter Quarter Quarter Quarter period Quarterly Quarterly Quarterly R113m R147m R20.5m R35.5m R40.5m R50.5m Quarterly R141.8m R108.3m R12m R14m R26m R56.3m 1. This KPI was changed from two movements to one 2. This KPI was changed to reflect actual accounting practices i.t.o GRAP

35 FY2018/19 Performance Targets STRATEGIC OBJECTIVE 2: To provide thought leadership and an enabling environment for Technology Innovation in collaboration with other role-players. No Performance Indicators Reporting Quarterly targets period FY2017/18 FY2018/19 Quarter 1 Quarter 2 Quarter 3 Quarter Number of knowledge innovation products produced as a result of TIA funding and support Quarterly programmes, consisting of: 2.1a Prototypes developed Quarterly b Intellectual Property Quarterly

36 FY2018/19 Performance Targets STRATEGIC OBJECTIVE 2: To provide thought leadership and an enabling environment for Technology Innovation in collaboration with other role-players. No Performance Indicators Reporting Quarterly targets FY2017/18 FY2018/19 period Quarter 1 Quarter 2 Quarter 3 Quarter 4 2.1c Technology demonstrators Quarterly developed 2.1d Technology transfer Year-end packages 2.2 Number of knowledge innovation products produced by TIAsupported programmes receiving additional funding 2.3 Number of Small, Medium, and Micro Enterprises receiving technology support Quarterly Quarterly

37 FY2018/19 Performance Targets STRATEGIC OBJECTIVE 2: To provide thought leadership and an enabling environment for Technology Innovation in collaboration with other role-players. No Performance Indicators Reporting Quarterly targets FY2017/18 FY2018/19 period Quarter 1 Quarter 2 Quarter 3 Quarter Number of PDI owned SMMEs assisted as a percentage of total SMMEs supported, receiving funding, and support and/or technology services from TIA Quarterly 65% 67% 10% 17% 20% 20% 2.5 Number of Technology Innovation initiatives undertaken by TIA, consisting of: Quarterly

38 FY2018/19 Performance Targets STRATEGIC OBJECTIVE 2: To provide thought leadership and an enabling environment for Technology Innovation in collaboration with other role-players. No Performance Indicators Reporting Quarterly targets period FY2017/18 FY2018/19 Quarter 1 Quarter 2 Quarter 3 Quarter 4 2.5a Conference papers Year-end b Presentations Quarterly c Policy recommendations Year-end d Panel discussions Quarterly e Position papers Year-end

39 FY2018/19 Performance Targets STRATEGIC OBJECTIVE 3: To develop an effective and efficient internal environment to successfully execute the strategy. 3 No Performance Indicators Reporting period FY2017/18 FY2018/19 Quarterly targets Quarter 1 Quarter 2 Quarter 3 Quarter Investment approval turnaround time 3.2 Amount of funds utilised for projects and programmes as a percentage of the total actual expenditure Quarterly 16 Weeks 15 Weeks 15 Weeks 15 Weeks 15 Weeks 15 Weeks Quarterly 68% 65% 5% 15% 22% 23% 3. Three operational KPIs were removed, namely ISO9001, Vacancy rate and Staff engagement Index 39 39

40 MTEF Budget Allocation for FY2018/

41 Income over MTEF Period 2018/19 R m 2019/20 R m 2020/21 R m MTEF Income 420,3 443,9 468,3 Other income 116,3 153,0 208,0 Total income 536,6 596,9 676,3 Other income as a % of Total income 21,7% 25,6% 30.8% 41 41

42 Expenditure over the MTEF Period Administration and support costs 2018/19 R m 2019/20 R m 2020/21 R m 189,7 201,1 212,4 Project/programme funding 346,9 395,8 463,9 Total expenditure 536,6 596,9 676,3 Admin expenditure as a % of total expenditure 35% 34% 31% Bio-economy

43 MTEF Allocation Letter Reconciliation Total R m Baseline R m 2018/19 Bioeconomy R m TSP R m Allocation letter 420,3 216,3 165,7 38,3 Utilised through: Administration and support cost (189,7) (177,6) (12,1) - IFPCS (102,0) (44,2) (57,8) - IES (136,6) (9,0) (89,3) (38,3) New Initiatives/ Specific Contracted Over-utilisation funded through other income generated (108,3) (65,0) (43,3) - (116,3) (79,5) (36,8)

44 The Control Environment 44 44

45 QUALITY MANAGEMENT SYSTEM 45 45

46 Way Forward 46 46

47 Going forward. Fast track move to a high-performance culture, continue nil roll-overs Position the organisation as a central hub for innovation and technology development nationally in accordance with its mandate, through advancing the Hub-n-Spoke Model Implement the Glass Pipeline concept incorporating backward and forward integration Rapid response funding instruments + impactful non-funding support systems, compressed turn-around times Market Readiness Levels (MRL) and Business Readiness Levels (BRL) to augment the TRL s Enterprise development and continuous post-investment support Move from largely unsolicited applications to Predictive Calls across all units strategic motivation for calls Maintain 3 day payments to SMME vendors. Expand Youth Programmes by overhauling the existing Youth Technology Innovation Programme (YTIP). Grater focus on service delivery innovation, rural & township innovation programmes inclusive development, greater industry engagement Introduction of a BEE & Equity Policy to effect transformation of investment portfolio Move from Transactional to Transformative impact through improved intelligence, improved decision support tools, high yield partnerships and organisational agility. 47

48 Gear up to Transformational focus Move from transactional focus 48 48

49 Planned Transformational Initiatives. 1. Leverage the full capability of the TIA institutional network integration mechanisms to identify synergies. 2. Scaled up water innovation network programme including AMD. 3. Scaled up Energy programme (Hydrogen Economy & Clean Energy) 4. Advanced Manufacturing, Nano-tech and FIR programme integrating all Technology Stations nationally. 5. Ramp up Environmental initiatives. 6. National Service Delivery (NSD) programme diagnostics, think tank, implementation. 7. TIA proactively identifies which Development Finance Institutions (DFIs) to partner with and when and determines the terms of such partnership. 8. Create leading genome-scale Next Generation Sequencing offering in Africa. 9. Build premiere Precision Medicine process-solution and value proposition for research, translational and diagnostics markets in Africa

50 Planned Transformational Initiatives. 10 Boost Genomics capacity in Africa through quality services and collaborative projects. 11 Glass pipeline approach incorporating backward and forward integration for full value chain visibility. 12. TIA to be included into the SARS 11 th Schedule of the Income Tax Act this will enable the entity to benefit from a tax exemption on its grants official letter of support from Minister to follow. 13. Retention of surplus enabled by the TIA Act, Minister of DST and Minister of Finance to support in writing - official letter of support from Minister to follow. 14. Large scale innovation based agri programme for emerging farmers. 15. Regional technology incubation centres and hubs thematic and geographic niche based. 16. Large scale, bold marketing and brand awareness campaign national TV coverage

51 Contact Details: Mr Barlow Manilal Chief Executive Officer Tel:

52 Abbreviations HEI s - Higher Education Institutions UKZN University of Kwa Zulu Natal CPUT - Cape Peninsula University of Technology TUT Tshwane University of Technology NMMU Nelson Mandela Metropolitan University WSU Walter Sisulu University UWC University of Western Cape ARC - Agricultural Research Council MRC - Medical Research Council WRC - Water Research Council SANSA - South African National Space Agency CSIR - Council for Scientific and Industrial Research NIPMO - National Intellectual Property Management Office 52 52

53 Abbreviations SANEDI South Africa National Energy Development Initiative IDC - Industrial Development Corporation PIC Public Investment Co-operation THRIP - Technology Human Resource for Industry Programme SPII Support Programme for Industrial Innovation VC Venture Capital