South Africa has a history of producing world-class research and technologies in a number of niche areas, most recently in the form of the widely publicised digital laser coming out of the CSIR.
The country is also well positioned to tap high growth opportunities on the African continent through the integration of hi-tech knowledge with a relatively strong understanding of the sub-Saharan context.
At the same time, for emerging technology entrepreneurs in South Africa, and Gauteng in particular, it can be a frustrating place; more money and possibilities than anywhere on the continent but no clear starting point. In a province that's the African headquarters for most multinational technology and services companies, competing for clients and key innovation resources (such as skilled labour) is a significant challenge for small start-ups.
The 2011 OECD territorial review for Gauteng affirms what many tech entrepreneurs feel about innovation and entrepreneurship:
Innovation in South Africa is hampered by low levels of entrepreneurial activity, when compared to both advanced and developing countries. The low level of start-up and survival of firms, particularly SMEs, in South Africa stems from a combination of lack of access to commercial finance, high interest rates and under-developed skills. In particular, the highly concentrated market structure dominated by established businesses tends to be associated with lower output and employment and higher prices in the affected sectors (1).
Approximately two-thirds of R&D spend is concentrated in a few large firms; research councils and universities make up the remaining third. While Gauteng's investment in knowledge production far outstrips other provinces, and other countries, the limited accessibility and application of knowledge means that our innovation efficiency is low (2). For the various public and private innovation and entrepreneurship 'enabling' institutions, creating platforms for a culture of innovation and new networks of technology entrepreneurship is challenging but critical for igniting growth in the regional innovation community.
ICT innovation and incubation as key driver
As one of the fastest growing sectors, ICT and ICT-enabled services are broadly regarded as key to future enterprise and job creation. The relative accessibility of the ICT space spawns hundreds of software and hardware resellers, Internet cafes, and IT training academies across the Gauteng region. Further up the curve, BPO providers and systems integrators bring a stronger innovation angle that starts competing with global players. However, fully exploiting the large local opportunity for ICT innovation is vital, and for the growing number of hubs and technology business incubators in the region (3) it's about creating a platform to support emerging ICT entrepreneurs at a number of levels.
At the highest, most direct level of support, incubators may take equity in new enterprises whilst providing one-on-one business guidance and funding, along with access to potential customers and later stage investors. At a level down, tech hubs and incubators provide more generic infrastructure, as well as product and business support services; but also play an increasingly important public role in driving awareness around innovation and entrepreneurship within communities and higher education institutions, and profiling successful entrepreneurs as role models for the sector.
Framework conditions for ICT innovation, entrepreneurship
While these interventions are vital to the growth of innovative entrepreneurs, a number of framework or environmental conditions need to be improved at even lower levels to ensure stronger take-up of innovations and sustainability of ICT enterprises over the longer term, and at a large scale. Technology hubs and incubators have a role to play in this space through their influence in a number of possible areas.
Within government departments:
* Shaping supply chain practices within the public sector to support the procurement of innovation;
* Influencing ICT regulations, institutions and strategies at a provincial and city-level, from by-laws for trenching fibre and installing equipment on municipal buildings, to strategies around e-government; and
* Supporting the development of principles and interfaces for open government data.
At a sector or industry level:
* Driving sector quality accreditation and improvement programmes for growing enterprises;
* Conducting sector research and aggregating sector information to increase awareness of technology and market trends;
* Representing the entrepreneur community at a policy and regulatory level;
* Developing collective branding/identity to raise the visibility of a region or high potential sub-sector; and
* Supporting the development and acquisition of scarce skills by running shared training programmes, and advising on the use of international skills.
From a technology development perspective:
* Building neutral open innovation platforms to accelerate the search, acquisition and contracting of technology from other organisations, locally and internationally;
* Advising on alternative models for intellectual property (IP) management, such as open hardware/software and creative commons; and
* Developing models for entrepreneurs to access or license technology developed at public research institutes and universities.
Share