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SA's R&D going nowhere slowly

By Sarah Wild, ITWeb contributor.
Johannesburg, 27 May 2016
In 2014, science and technology minister Naledi Pandor announced a new R&D target of 1.5% of GDP by 2019.
In 2014, science and technology minister Naledi Pandor announced a new R&D target of 1.5% of GDP by 2019.

South Africa's percentage spend on research and development (R&D) continues to stagnate, despite ambitious government targets.

The latest annual R&D survey, conducted by the Centre for Science, Technology and Innovation Indicators at the Human Sciences Research Council, found that in 2013-14, SA spent 0.73% of its gross domestic product (GDP) on R&D, the same percentage as 2012-13 and 2011-12.

This put the total R&D spend at R25.7 billion, based on 2013-14 rand values. At constant 2010 rand values, this was a 1.4% increase on 2012-13.

The percentage of GDP spent on R&D is considered an important metric of a country's global and economic competitiveness, but SA has consistently failed to pass the 1% threshold. The average for countries within the Organisation for Economic Co-operation and Development is 2.4%. These countries also have substantially larger GDPs.

This means that in tangible terms, SA cannot compete on equal footing with these countries, which are funding the development of products and services that we will ultimately end up buying from them.

"It is clear the country needs to significantly increase investment and growth in R&D," the Department of Science and Technology said in a statement, following the release of the report.

The department is responsible for driving science and technology - and thus R&D - in the country. "This means we need to maintain or scale-up aspects of the current policy approach that are helping in this regard."

More than a decade ago, the target for R&D was set at 1% of GDP by 2008, but the global financial crisis saw all economies tighten their belts. In 2014, science and technology minister Naledi Pandor announced a new target: 1.5% by 2019.

However, the country would have to more than double its current spend. The financial year 2012-13 marked a watershed for the R&D space: it was the first time government spending outstripped business. Industry usually leads R&D, with governments funding basic research.

This trend continued in 2013-14, although business increased its share of R&D spend relative to GDP. "This is the first year since 2008-09 that the business sector has shown a positive year-on-year change in R&D expenditure... The largest increase in business-funded R&D since before 2009-10 also occurred in 2013-14," the report's authors write.

In 2013-14, government accounted for 42.9% and business 41.4%. Government spend includes universities and research councils, meaning business remains the single largest performer of R&D.

The latest figures show a 6% increase in the number of R&D personnel working in the country, from 64 917 in 2012-13 to 68 838 in 2013-14.

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