The Department of Science and Technology (DST) has officially launched the long-awaited Technology Innovation Agency (TIA).
The DST says the TIA has been set up to help stimulate technological innovation to improve economic growth in SA.
“To achieve its mandate, the agency will provide and mobilise financial and non-financial support across broad technology areas in various sectors of the economy.
The agency adds that the services it will provide include innovation financing, which incorporates seed, first and second stage funding for the commercialisation of technology-based products and services; promotion of domestic and foreign investment linkages; technology development, including technical and advisory services; technological and enterprise expertise; and capacity-building, institutional and human capital development.
The TIA's budget for the current financial year was set at R720 million.
Worthwhile risk
“Recent reports on our investment in research and development (R&D) and on the outcomes of this investment clearly point to the tasks we must confront,” said science and technology minister Naledi Pandor at the launch.
She said the reports indicate that R&D investments to secure increased innovation are not being fully exploited.
“Given the pioneering role assigned to the TIA, it must review innovation in SA and provide advice to government on how we should strengthen our ability to expand innovation and commercialisation.”
“It is important for the TIA to fully understand the terrain of innovation opportunity, before initiating projects that might not lead to the outcomes we seek to achieve.”
“Our researchers have fantastic ideas, but they can't find funding. The TIA will do due diligence on all proposals. They must not only be good ideas, they must be fundable ideas, bankable ideas. Initial funding may come from us, but, as the product matures, it becomes more attractive to private sector funding. The idea is that the TIA will act as a bridge between government funding and private sector funding,” says chairperson of the board Ramphele Mamphele.
Pandor also said the TIA exists in a difficult economic environment. “We believe TIA can lay the basis for convincing SA that innovation is a worthwhile risk.”
Innovation chasm
Our researchers have fantastic ideas, but they can't find funding.
Ramphele Mamphele, chairperson, the TIA board
CEO Simphiwe Duma says SA's research papers are cited in many international publications, indicating world class researchers in the country.
“However, international benchmarks indicate that our country is not meeting its potential for innovation.”
He adds that in this context innovation must be linked to a market opportunity for an invention.
“However, most of our great ideas reach the proof of concept stage and vanish in the graveyard of inventions, referred to as the “Valley of Death” or the innovation chasm.”
Duma says in other cases SA's inventions or proof of concepts are purchased for a minimum amount by foreign entities. “These entities commercialise them successfully and realise a great return.”
“Such a loss is not only detrimental to the individuals concerned, but to the country as a whole in terms of potential earnings and job creation.”
For this reason he says the TIA is a key public entity that will intervene within the national system of innovation to bridge the innovation chasm.
Pandor added that the agency would ensure local research and development was turned into commercial products and services.
ICT focus
“It is important for the TIA to ensure that the resources used in the pursuit of innovation have a positive social impact on the people of this country,” says Duma.
“Within TIA there is a wealth of human and knowledge resources that will enable us to deliver on our mandate.”
The agency has highlighted ICTs as one of its main focus areas.
“The TIA seeks to establish international networks and partnerships to promote access to international science, technology and innovation resources and leverage these to enhance South African human capital, knowledge, access to international research networks and attract global research facilities to benefit the National System of Innovation.”
The agency was formed from a merger of seven DST-funded organisations, namely, Advanced Manufacturing Technology Strategy, BioPAD, Cape Biotech, Innovation Fund, LIFElab, PlantBio and Tshumisano.
It currently operates in Gauteng, KwaZulu-Natal, Western Cape and, as of recently, the Eastern Cape. “It is envisaged that as TIA grows, there will be regional presence in the rest of the country.”
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