Gauteng Innovation Strategy

20 April 2010

1
Normal Person

Scientist
2
Table of Contents

§ INTRODUCTION
§
§ OUR UNDERSTANDING OF INNOVATION


§ STRATEGIC AND POLICY OBJECTIVES

§
§ INTERVENTION MECHANISMS
§
§ WAY FORWARD

3
Table of Contents

§ INTRODUCTION
§
§ OUR UNDERSTANDING OF INNOVATION
§
§ STRATEGIC AND POLICY OBJECTIVES
§
§ INTERVENTION MECHANISMS
§
§ WAY FORWARD

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Innovation is the means by which we are able to do more, with
less

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Table of Contents

§ INTRODUCTION
§
§ OUR UNDERSTANDING OF INNOVATION
§
§ STRATEGIC AND POLICY OBJECTIVES
§
§ INTERVENTION MECHANISMS
§
§ WAY FORWARD

6
 Innovation must be thought of as wider than just technology and science

Economic Innovations are “traditional” innovations; they revolve around product, process and marketing of goods and services. Economic innovation addre

Economic Innovation

Social Innovations solve “non-market” problems such as employment, safety and security, delivery of healthcare – basically all of those “social goods

TOTAL INNOVATION

Social Innovation

Public Innovation

Public sector innovation addresses the needs of government; this is different from the needs of the citizen. It also faces unique challenges because of the fiduc

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Open Innovation brings together each member of society to
create commonly owned solutions

Scientists INNOVATORS
Technicians
Researchers
Laboratories

Closed Open
Small group of experts and Massive community
little collaboration involvement
Restricted access to IP Free flow of information
and knowledge
Slow development process Very fast evolution
Challenges

Assumes the ‘experts’ The community itself

know what is needed defines what it wants
FEEDBACK GROUP

SOCIETY
SOCIETY

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Table of Contents

§ INTRODUCTION
§
§ OUR UNDERSTANDING OF INNOVATION
§
§ STRATEGIC AND POLICY OBJECTIVES
§
§ INTERVENTION MECHANISMS
§
§ WAY FORWARD

9
What are the challenges that we need to address?

 Innovation ≠ Science
§ The concept – and support – of innovation must also include social and public innovations


 Society is not a passive recipient

§ The active contribution of society towards innovation must be supported and nurtured
§
 Community innovation builds partnerships and consensus
§ Dialogue with society about what their needs are, and involving them in the development of
solutions, builds ownership and personal responsibility
§
 Innovation supports and accelerates other government objectives
§ By strategically integrating innovation with other strategies, government policies and objectives can
be achieved more efficiently and effectively
§
 Building an Innovative Society
§ Removing the barriers of innovation, and creating a more conducive environment

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 The Strategic objective of catalysing innovation towards particular
outcomes is supported through three broad policy objectives

THE STRATEGIC OBJECTIVE FOR INNOVATION

ts forms, in order to bolster and support the broader strategic objectives of employment creation, and sustainable soc

POLICY OBJECTIVE 1: POLICY OBJECTIVE 2: POLICY OBJECTIVE 3:

ess Communication and Access to information

Promoting strategic industries and sectorsDriving Social and Public Innovation

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Table of Contents

§ INTRODUCTION
§
§ OUR UNDERSTANDING OF INNOVATION
§
§ STRATEGIC AND POLICY OBJECTIVES
§
§ INTERVENTION MECHANISMS
§
§ WAY FORWARD

12
There are 5 initial interventions and projects that can support the
strategy

Innovation
Development
Office

Collaboration Network Innovation IncentivisationCluster and Precinct Management Smart City Support

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Innovation happens because of the interaction of people, in
finding new solutions to their challenges

Physical Network

Face-to-face networking structures which will

ACADEMIA PRIVATE SECTOR
host regular events to exchange knowledge
and innovations. The networks will be
composed of all agents involved, including:

Communities; Private Sector; Academia;

Government Organisations; International
Representatives

COLLABORATION
NETWORKS INNOVATION
Electronic Network

An electronic networking platform that

provides additional functionality to enhance
and support activities that are represented
within the face-to-face networks, such as:

GOVERNMENT COMMUNITY A database of member activities; archived

information; active networking components;
links and connections to relevant information

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 Government Procurement can be used to drive innovation
through competitions, focussed on public service innovation

Open competition approved

2. Open competition
by IDO driven
3. Applications
by strategic received
objectives
from companies and processed

Green Energy Technologies (including wave power, gas turbines, energ

sessment
5. Phase
of projects
1 demonstration
for Phaseof2feasibility
Funding – lasting 6 months
4. Mostand
Interesting
worth R500k
Ideas to
selected
R1m
Social Housing

Health care provision

Defence and Military Applications

Low-emission vehicles
totype development
8. Leads to competitive
lasting multiple
procurement
years, R1by
– department
10m and product to market
Advanced Materials technology

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Government Procurement can be used to drive innovation
through competitions, focussed on public service innovation

§ Stimulate technological innovation

§
§ Utilize small businesses as a mechanism to meet government research and development needs
§
§ Fostering and encouraging participation by socially and economically disadvantaged small business
concerns and women-owned business concerns
§
§ Mitigating risk through phased project delivery
§
§ Enabling departments to appeal for a wide range of ideas and evaluate these through short-term
simplified contracts
§
§ Reducing administrative obligations
§
§ Facilitating engagement with entities that the government would not usually do business
§
§ Creating novel solutions to existing or emerging issues

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Innovation Vouchers can help foster innovation, and improve
access to new ideas

The Innovation Voucher allows you to concentrate on running your

business while knowledge providers come up with a solution

INNOVATION VOUCHERS

Finances
IDEA KNOWLEDGE PROVIDERS
Time
Expertise
Networks
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Innovation Vouchers allow organisations to ‘purchase’ research
for their own ideas

§ Certain entities are registered as Knowledge Providers, including amongst others:

– Private organisations
– Universities and academic institutes
– Private individuals
–
§ Companies or individuals may then purchase “Innovation Vouchers” from the IDO for a certain
amount, say R50k. This can then be redeemed at one of these Knowledge Providers for research
equivalent to R100k
§
§ Companies could purchase Innovation Vouchers, and provide them as CSI to start up companies,
NGOs, Charities, etc.
§
§ Caution needs to be taken to ensure that the voucher system is not abused
§
§ Similar systems have proven exceptionally successfully elsewhere in the world – the challenge is to
develop a system that is appropriate for Gauteng

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Incentivising innovation towards the strategic objectives of
government allows us to fulfil our mandate more effectively

 Individual Incentivisation
§ Existing incentives only focus on organisations and companies
– but people are also driven by a “profit motive” – i.e. Higher
salaries. It may be possible to identify mechanisms by which
individuals are persuaded to move into, or remain within, an
“innovation-oriented” career, by linking them with form of
income-related grant, tax rebate, or refund
§
 Social Innovation Incentivisation
§ Because only scientific and technological innovation is
incentivised, less effort is spent on developing solutions to
social challenges. Creating an appropriate CSI mechanism
for social innovation may quicklyAcross
stimulate
all threethis area
areas, it is noted that Provincial government has no fiscal authority of tax rebates or incentives.

At the same time, cognisance is taken of the responsibility which government must take in spending public funds – i

Although these must be understood, there are sufficient examples worldwide to show that they can be dealt with and

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The development of innovation spaces will help drive sector
focused innovation – with the low-carbon economy first
Impact of Sector Cluster dependent on Size
nNumber of agents available to interact Creation of a network of innovation clusters throughout
nAbility of agents to interact with each other the province, focusing on relevant research areas and
nOptimised
aligned to the development of the strategic industries and
usage of specialised resources, including:
sectors.
nFacilities

nLabour These clusters will be able to innovate faster, because of

nAttraction
the benefits arising from clustering.
of ancillary services at sufficient density
nAbility to induce similar buyers and sellers to the Cluster The first cluster being considered is the Low-Carbon
n Cluster, developed in parallel with, and guided by, the
Green Economy Strategy as well as the Gauteng
Industrial Policy

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Creating a Smart City-Region will help drive an Innovative City-
Region

 Characteristics of a Smart City

§ Advanced information and knowledge infrastructure – which allows for easy and fluid
communication
§ An efficient public service system that uses the communications infrastructure in service delivery
§ Strong levels of communication within, and between, the different members of the community
§ A safe, secure and environmentally friendly location
§ An integrated city environment in which the various components of the city (e.g. infrastructure,
security, utilities, transport) are interfaced and networked to allow real-time monitoring and rapid
response
§ A strong connection between different “Smart Communities” able to respond to the needs and
challenges of the city-region
§

A safe, secure and sustainable

city that supports the needs of
its citizens, and attracts
investment, resources and
human capital as a preferred
destination

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Table of Contents

§ INTRODUCTION
§
§ OUR UNDERSTANDING OF INNOVATION
§
§ STRATEGIC AND POLICY OBJECTIVES
§
§ INTERVENTION MECHANISMS
§
§ WAY FORWARD

22
Ways to contribute

§ Davis Cook – davis.cook@gauteng.gov.za or 082 803 7716

§ An online interactive site developed to provide basic input around the thematic areas of the draft
strategy
§ Currently in a pilot stage
 www.policyforge.co.za
§


 SOUTH AFRICAN INNOVATORS NETWORK

§ SAINe is an online networking platform that promotes the discussion, sharing and learning of
innovation, and innovation related topics
§ There will exist multiple blogs on the site, providing an opportunity to engage on the document’s
contents, and receive feedback on the development process
§
 www.saine.co.za
§

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Key Deadlines

§ 14 May – Feedback process for Strategy Document Ends

§
§ End of May – Submission of Strategy document for provincial adoption
§
§ End of July / August – finalisation of business cases for interventions

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END OF PRESENTATION

THANK YOU

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The fastest growing countries in the world also appear to have
the highest growth in patent production.

Rank Per Capita GDP Growth in Patents per

There is a 1-1 correspondence of the countries that have had Growth 1000
the highest per capita GDP growth between 1985 and 2005, to 1 China China
those who have increased most the number of patents per 1000
2 Rep. of Korea Rep. of Korea
citizens.
 3 Thailand Thailand
Although these figures do not explain the direction of causality, 4 Singapore Singapore
i.e. whether innovation creates economic activity, or the other
way around, they do clearly indicate the close relationship 5 India India
between the two variables.


Source: World International Patent Office, United Nations

Statistics
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South Africa’s knowledge generation is slowing in comparison to
trading partners and competitor nations.

Both in financial terms, and

absolute number of patent
production, South Africa is
losing ground against both
trading partners and other
competitor nations such as
the BRIC countries.

Even the rate of growth,

shown below, is decreasing in
comparison, indicating that
the difference in future will be
even larger.

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Innovation must be thought of as wider than just technology and science

O Economic Innovations are “traditional” innovations; they revolve around product,

Economic
p process and marketing of goods and services. Economic innovation address the
Innovation
e needs of the market, satisfies the demands of consumers.
n
Social Innovations solve “non-market” problems such as employment, safety and
Social
I security, delivery of healthcare – basically all of those “social goods” which the
Innovation
n market generally does not get involved in; they satisfy the demands of citizens
n
o Public sector innovation addresses the needs of government; this is different from
Public Sector
v the needs of the citizen. It also faces unique challenges because of the fiduciary
Innovation
a responsibility of government in spending public funds on inherently risky projects
t
i
Community Innovation
o
Open innovation processes are Public-Private Innovation Partnership
n
revolutionary, in that they include the
community in the innovation process.

While ‘traditional’ innovations may be Ownership B A

successful in the market through
“closed” innovation, social and public
innovation can only be successful
through collaboration and community
participation
D C Public Innovation

Transferability
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An Innovation System is the set of institutions that support and nurture
the innovative process

CONSTITUTION

Minister and Dept Minister and Dept Other Ministers

of Education of Sci & Tech and Departments
Government-driven with no inclusion of market or social f

Policies, Governance and Resourcing

Community and Citizens are passive recipients of innova

Human Capital R&D Innovation

HEIs, PRIs, Business, HEIs, PRIs,

HEIs
Enterprises, NGOs Business etc.

Focus on science and technology

Public and Private Users

No strategic use of innovation in driving provincial governmen

The South African National System of Innovation, NACI, 2006

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 In order to address these challenges of the National System, an adjusted
Regional Innovation System (RIS) is proposed

4
3
Incentives
Colleges

2 Resources
Community
1: Civil Society and Consumers have needs for innovative solutions in all areas – econo
HEIs
1
Academia CIVILSOCIETY Public
& Sector Funding
CONSUMERS

Policy

Private
Sector Governance

Primary
Education
International
Environment

2: Innovation is not a pipeline – it is an integrated process with involvement of all members of the

and entities, along with their end-users, which together are responsible for the development, production, and use of new knowledge whic

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Each set of agents have their own responsibilities, and roles to play
within the Regional Innovation System

One of the traditional areas for ‘innovators’, this remains a core component of the innovation
system. Academic institutions are largely responsible for basic research and development in
Academia virtually every sphere of knowledge, they provide education and skills development that
supports innovation, and act as attractors for people with ideas

Referring not only to large corporations with significant R&D budgets, but more
importantly to the SMME sector. Small companies are able to rapidly respond to disruptive
Private Sector innovations by adapting their business models, services and goods. SMMEs can also
collaborate easier and faster with each other due to their flexibility

It is a national priority for ‘business un-usual’; that we do more, with less. This is the
core principle behind innovation, and the public sector is able to play a role not only in the
Public Sector development of new public service models and social goods, but also in using their own
power and influence to direct innovation towards public goods and services

Largely ignored by traditional innovation strategies, the community itself is a

powerful role-player in the innovation process, as well as community members themselves.
Community Examples include the Open Source software movement, the entire mountain biking industry,
hip-hop / kwaito, automotive manufacturing, Small-scale manufacturing

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The impact of a Science and Technology Park can be measured
simply by an industry comparison

STP Tenants
Increased Economic
Activity leads to
knock-on effects
nGDP Growth
nEmployment

nExport Activity
Industry Average
nSector Composition
nIncrease in Knowledge
Base

Interventions result in increased business activity

nBusiness Development nValue Added

nMarketing and Branding nManagement Support

nNetworking nInteractivity

32
n
The UK’s Small Business Research Initiative helps small, high-
tech companies innovate through procurement

Green Energy Technologies (including wave power, gas turbines, energy effic

Social Housing

Health care provision

Defence and Military Applications

Low-emission vehicles

Advanced Materials technology

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Proposed Advisory Panel
§ Dr Neville Comins
– Independent Consultant
§ Valerie D’Costa
– infoDev Programme Director, The World Bank
§ Dr Paolo von Schirach
– Independent Consultant
§ Prof David Everatt
– Executive Director, Gauteng City Region Observatory
§ Amanda Nair
– CEO, BlueIQ Investment Holdings
§ Matthew Heim
– CEO, NineSigma Open Innovation
§ Rhoda Khadalia
– Executive Director, Impemelelo Foundation
§ Prof Robin Moore
– Vice-rector, University of Witwatersand
§ Prof Michael Pepper
– Director, University of Pretoria

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Stakeholders engaged, and opportunities arising from this
engagements
§ Gauteng City Region Observatory (David §Inclusion of Innovation Strategy into OECD
Evaratt) Territorial Review
§ §
§ The Innovation Hub (Haresh Haricharun) §Engagement between MEC and Executive
§ Council of Uni. Of Witwatersrand
§ Human Sciences Research Council (Julien §
Rumbelow) §Collaboration with World Bank on the
§ development of a Green Technology
§ University of the Witwatersrand (Robin Moore) Industry Cluster and Plan

§
§ Western Cape Provincial Government (Rahima §Involvement of NineSigma Open Innovation
Loghdey) Platform in driving social and public
innovation
§
§
§ COFISA (Neville Comins)
§Adoption of Gauteng strategy concepts in
§ multiple SA Provincial strategies
§ The World Bank (Valerie D’Costa, infoDev §
Programme Director)
§Innov8 community engagement 20 April
§ 2010
§ Other international consultants (Paolo von §
Schirach - Independent)
§

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