Science and technology minister Naledi Pandor has questioned investments in research and development (R&D), saying spending is not matching the country's aims to increase competitiveness.
The Department of Science and Technology (DST) reports that SA spent just over R18.6 billion on R&D in 2007/8, which represents an increase of R2.1 billion of the gross expenditure on R&D, from R16.5 billion in 2006/7.
The department's 2005/6 R&D survey found gross expenditure on R&D stood at R14 billion, a rise of R2 billion on the year before. At the time, the department noted that if the level of growth of R&D expenditure in relation to GDP was maintained, the target of attaining a national level of R&D expenditure equivalent to 1% of GDP by 2008/9 would be attainable.
However, the latest survey results also reveal a drop in spending as a proportion of GDP, from 0.95% in 2006/7, to 0.93% in 2007/8 - raising doubts as to whether the country can meet its deadline.
“Clearly, the results indicate that investment in R&D grew much slower than GDP. This observation needs to be carefully analysed to identify any emerging trends and to inform appropriate policy responses, especially if the country is to attain the target of 1% of GDP by 2008/9,” says Pandor.
Increasing competitiveness
In 2008, former science and technology minister Mosibudi Mangena stated the country was on track to spend at least 1% of its GDP on R&D. Last year, the department spent R3.7 billion on R&D and a further R195 million on strengthening the scientific capacity of higher education institutions.
Pandor has, however, questioned the drop and increasing spend, saying SA's competitiveness is at stake if investments in R&D fail to match GDP growth.
Increased expenditure on R&D in relation to GDP is a generally accepted as a good indication of the competitiveness of a country's economy.
The department says highly competitive countries spend more on R&D, with Sweden recording the highest R&D intensity, with 3.6% of GDP. This is followed by Korea with 3.47%, Japan with 3.44% and the US with 2.68%.
Skills concerns
The survey also revealed that most R&D is performed in the research field of the engineering sciences, which accounts for 22.5% of the total spend. This was followed by the natural sciences with 20.4%, and the medical and health sciences and ICT, both at 14%
The contribution from the business sector to R&D has grown from 55.9% to 57.7%, and is still the major performer of R&D in the country. The government, which includes the science councils, performs 21.7% of the total R&D, followed by the higher education sector with 19.4% and the non-profit sector with 1.2%. About 10.7% of SA's R&D is financed internationally.
Skills are still one of the biggest concerns. With a total of 31 352 full-time equivalent R&D personnel, the survey states there “is a marginal growth to an already small quantity”.
Only 62% of personnel are academically qualified people who perform, manage and guide the process of undertaking research. While this number has grown by 4%, from 18 527 in 2006/7, the DST says more still needs to be done to improve the numbers.
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