Creating a platform for enhancedindustry-science relationships

Adi Paterson,CSIR/University of Pretoria,South Africa

Outline

� South African R&D� Convergence of mandates of research

universities and research organisations� Limitations in the “contract model” for

knowledge transfer� A template for enhanced innovation: New

partners� The specific case of CSIR/UP strategic

convergence

The South African system� Major players:

– Private sector– Government

• Arts, Culture, Science and Technology,• Trade and Industry,• Agriculture,• Health,• Minerals and Energy

– Research Universities– Research Councils– Parastatals

The South African system� Approach:

– System of innovation,– re-direction post-apartheid,– Utility-efficiency,– Relevance

� Current challenges:– Knowledge economy,– People and demographic representivity,– demonstrable contributions,– linkages and networks,– IP and venturing

The South African System� GERD/GDP 0.69% (R4.1billion [$0.59billion])� FTE R&D Personnel 19 500 (8600

researchers)� Performance

– Research Organisations/Government 33.6%– Higher Education 12.1%– Business Sector 53.9%

� Financing– SA Private Sector 50%– Private Sector in Higher Education 47%

Source: DACST, South Africa

Gross Domestic Expenditure on R&D R4.103 billion

GERD/GDP 0.69%

International comparisons -- GERD/GDP (%)

0.31

0.38

0.69

0.76

0.84

0.98

1.40

1.61

1.62

2.28

2.31

2.68

2.98

1.85

2.15

2.29

2.55

Mexico

Turkey

South Africa

Brazil

Spain

New Zealand

Ireland

Canada

Australia

Germany

France

Korea

Japan

European Union

Total OECD

North America

Nordic Countries

Source:OECD/DACST

Total R&D Performed in SA (GERD) andFinancing

GovernmentR1,607

(39%)

Non-GovernmentR2,496

(61%)

Financing (Rmillion)

GovernmentRO/GRO

R1,379

Higher EducationR496

Business SectorR2,214

Performing (Rmillion)

R2,038(82%)

R178(11%)

R1,158(72%)

R268(17%)

R221(9%) R237

(9%)

Source: DACST, South Africa

Researchers per 1000 of labour force

7.00

5.90

5.50

4.60

10.10

6.40

6.00

5.90

5.80

5.30

4.80

3.50

3.00

0.72

0.70

0.60

0.00 2.00 4.00 6.00 8.00 10.00 12.00

Nordic Countries

North America

OECD

EU

Japan

Austrailia

France

Ireland

Germany

Canada

Korea

New Zealand

Spain

South Africa

Turkey

Mexico

Source: OECD/DACST

Convergence of mandates ofuniversities and researchorganisations� A fourth “domain of action” for Universities

� Research councils/organisations in “missioncrisis”

� “Systems” policies emphasise linkages and“institutional porosity”

� “Climate and conditions” policies replace“input-output” policies

� The demographic crunch,� And…. knowledge and the new economy

�������������� ������������������� ��������� ����

PeopleDevelopment

KnowledgeGeneration

Market -FacingActivities

Venturing

Source: CSIR/UP Alliance

PD

KG

M-FA

V

ResearchUniversity

ResearchOrganisation

Currentlocus ofactivities

RO

RU

Source: CSIR/UP Alliance

PD

KG

M-FA

V

ResearchUniversity

ResearchOrganisation

Currentlocus ofactivities

Expected migrationover time

RU

RO

Source:CSIR/UP Alliance

TECH VENTURES:Application of

Technology

FUNDAMENTAL &KNOWLEDGE GENERATING

RESEARCH• HR Development

POST-GRADUATEEDUCATION

CONTRACTING & CONSULTING

FUNCTION:Application of

Specialist Knowledge/Facilities

UNDERGRADUATE/TERTIARY

EDUCATION

STRATEGIC MANAGEMENT• System Optimisation• Coherence with National System of Innovation

LEVERAGING IP/VENTURES:

Application of New/Specialist

Knowledge

Market for HR withTertiaryQualifications

Market forPost-graduates

Market for• New Science• Specialists

WhiteSpaces

Development &Economic growth

EnablingEnterprises

Productiveprofessionalsfor Industry

Marketfor adult education &professionalmaintenance

CONTINUING EDUCATION:Professional &

Life Skills

STANDARDSAND

CERTIFICATION:Application of

Specialist Knowledge/Facilities(Quality &

Productivity)

POST-TERTIA

RY

DISCIP

LINARY

TRAININ

G:

Pract

ical A

pplicat

ion

of Theo

retic

al

Knowledge

(LIN

K TO

INDUSTRY)

Source: CSIR/UP Alliance

Limitations of the “contract model” forResearch Organisations

� Does not recognise new modes of knowledgetransfer

� Focuses on what can go wrong rather thanon partnerships

� Weak intellectual property position for theknowledge organisation

� Multi-party contracting looks for “lowestcommon denominator”

� Hollowing-out

The CSIR-University ofPretoria Alliance� Strategic Convergence (not a merger or a

“partnership”)� Key focus areas:

– The Innovation Hub (with the GautengGovernment)

– Knowledge Platforms: ICT, Biotechnology– Opening the “student pipeline”– IPR, venturing and non-traditional education– Efficiencies in all support functions

CSIR: facts and figures� Good analogies: TNO (Netherlands), VTT

(Finland)� 500 post-graduates (PhD/MSc), 600

graduates and 400 technically qualifiedstaff

� 7000 clients served annually� 8 start-ups in 14 months� 62% of revenue funded by clients� Misson: “…provide technology solutions,

license intellectual property and establishventures.”

UP: facts and figures

� Student enrollment growing– 26 700 contact tuition– 28 000 distance education

� Highest number of post-graduates in SA� 5400 science and engineering

undergraduates� Research outputs highest in SA (since 1997)� Science, engineering, health, management

and commerce dominate

Gauteng:The “Smart Province….”

� The mutual attraction of conurbationsand knowledge

� Often “accidentally” accumulatedknowledge resources

� Key nodes of planning� Cities and provinces: win-win� Cities, provinces and nations win-win

win

Gauteng – ingredients of a‘Smart Province’Gauteng economy :

– 38% of SA’s economic activity– Over 80% of high-tech employment in SA– High demand for new economy services– Well developed tertiary education sector

• 40% of all university enrolments• 40% of graduates in natural and medical

sciences, and engineering(44% of post-graduate qualifications)

– Concentration of Research Infrastructure

Strategic Triggers

GautengProvincial

Government

CSIR/UPAlliance

Smart Province Globally effective scienceand technology flagship

Skilled people and know-howStimulate new-economyjob creation and careers

High-techbusiness

attraction,stimulationand growth

THE GOAL

Historical Background toInnovation Hub

� 1997 – Gauteng Government published theirEconomic Strategy, where emphasis was placed onbecoming the “Smart Province”

� 1998 – CSIR, and later Deloitte & Touche, completedresearch reports on potential projects and sectors

� 1999 – Innovation Hub project designed� October 1999 - UP/CSIR proposal to establish the IH

on UP Research Farm� December 1999 – GPG accepted concept and

location

Vision

To create a unique space wherehigh-tech entrepreneurs, worldclass businesses, education,research, and venture capitalwill meet, network and prosperand thus enhance theinnovative capacity andeconomic development ofGauteng and South Africa

������������������ ��

“Space”Virtual

Networking

Facilities

Bandwidth GovernmentIncentives

Education-Industry

Interfaces TheInnovation

Hub

Enabling Environment

Technology transfer

Business

Incubation

Venture Capital

Anchor Tenants

RelevantR&D

Pub@Hub

Source: Hub management company

Protected IP

Key Initiatives on the Hub

� Business incubation� Education-industry interfacing� Venture Capital� World-class tenants� Professional services� Knowledge brokering & networking� Land and infrastructure development

Detailed View of Natural Innovation and Knowledge Hub, Showing Linkages, Access Routes, Existing and Proposed Infrastructure

What could be …

Early wins

� Automotive Industry DevelopmentCentre

� VC interest� 2 provisional and 3 “interested” anchor

tenants� 1 start-up per fortnight� Rapid change in IP “culture”� Industry “early adopters” increased

Endnotes

� Berlin 17 October 2000� OECD/BMBF Conference� Source material:

– DACST (Rob Adam)– CSIR/UP Alliance (Adi Paterson)

– The Innovation Hub (Neville Comins)

Contact: apaterso@csir.co.za