CSIR PRESENTATION TO CSIR PRESENTATION TO THE PORTFOLIO COMMITTEE THE PORTFOLIO COMMITTEE ARTS, CULTURE, SCIENCE & ARTS, CULTURE, SCIENCE &

TECHNOLOGYTECHNOLOGY

Dr Sibusiso Sibisi

President and Chief Executive Officer

Dr Anthos YannakouExecutive Vice President: Operations

20 August 2002

and

Overview of PresentationOverview of Presentation

CSIR Background/Impact

National R&D Strategy: Link to CSIR

Follow up on Committees September

2001 visit to CSIR

CSIR Mandate

Constituted as a Science Council by an Act of Parliament:

“In the national interest, the CSIR, through directed and multi-disciplinary research and technological innovation, should foster industrial and scientific

development, either by itself, or in partnership with public or private sector institutions, to contribute to

the improvement of the quality of life of the people in South Africa”.

(Extract from CSIR Act)

Core Funding

Reporting and Funding StructureReporting and Funding StructureParliament

(=100% Shareholder)

Minister of Trade and Industry

CSIR Board

DTIDTI

CSIR Executive Management Board

CSIRStrategic Business

Units/Initiatives

CSIRStrategic Business

Units/Initiatives

DACST(Science Budget)

DACST(Science Budget)

COTIIDTI/CSIR Bilateral

Innovation Fund

Key Projects

Competence Building Relevance and Impact

BU’sInnovation HubAIDCNational Imperatives

Ventures/Equity Partnerships

Contract Income

Royalties

CSIR Business UnitsCSIR Business Units

Bio/ChemtekBoutekDefencetekEnvironmentekicomtekM&MtekMiningtekTransportekCrosscutting initiatives: sustainable

development, SMMEs, sport, NPDC, RRC, energy, Innovation Hub, AIDC

CSIR Organisational Priorities and CSIR Organisational Priorities and InitiativesInitiatives

Strategic management of innovation

(“market-mind-market”)

Strategic relationship management

Diversity and transformation, with excellence

Impact on sustainable development

Leverage Intellectual Capital and knowledge

HR Planning to 2002:HR Planning to 2002:Actual Performance at 31 March Actual Performance at 31 March

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ACTUAL MAR 2001 ACTUAL MAR 2002 PLANNED MAR 2003

CSIR Qualification BreakdownCSIR Qualification BreakdownSeptember 2000 to March 2002September 2000 to March 2002

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Doctoral Masters Honours B-degree Technikon

Sep-2000 Mar-2001 Sep-2001 Mar-2002

CSIR Parliamentary Grant and CSIR Parliamentary Grant and External Contract IncomeExternal Contract Income

0

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96 97 98 99 2000 2001 2002

Financial Year (to end March)

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External Contract Income Parliamentary Grant

CSIR Investment of Core Funding CSIR Investment of Core Funding in Core Competencesin Core Competences

Technological Core Competency

CSIR investment into core competences (%)

2000/01 2001/02 2002/03

Manufacturing 31.5 31 24

Information (ICT) 21.5 22.5 29

Environment 11.5 10.5 9

Biosciences 9.5 11 11

Infrastructure 11 10 12

TOTAL 85 85 85

Enterprise DevelopmentEnterprise DevelopmentSpearheading the growth of the local biotechnology

industry – a joint initiative has led to the establishment of a Bio-incubator aimed at stimulating the economic development of the biotechnology industry in South Africa

Facilitating SMME development – the CSIR has put together a Development Process to assist SMMEs. This model forms an integral part of the CSIR’s overall job creation drive and can be applied to any innovation – several SMMEs have participated in this process and are now established in the mainstream economy

Northern Province Special Craft Project benefits rural crafters – one hundred and forty one rural crafters from seven different groups in the province are the recipients of a special craft project that has enhanced and added value to remarkable traditional skills. DACST facilitated the North Province Special Craft Project, funded by the Department of Environmental Affairs and Tourism Poverty Relief Fund

Enterprise Development (cont.)Enterprise Development (cont.)Boosting entrepreneurial activity in the North West

Province – the North West Department of Economic Development and Tourism SMME Support Services has developed – in partnership with the CSIR – a provincial five-year Strategic SMME Plan. Working in partnership five Entrepreneurial Support Centres have been established in the province

Promoting and Commercialising South Africa’s indigenous foods – the CSIR’s indigenous Foods project, sponsored by the DACST addresses the alleviation of poverty in rural areas by exploiting the rich abundance of indigenous foods. The project aims to stimulate small to medium business enterprises, foster job creation and empower women to contribute to the economic and social development of the country

Information TechnologyInformation Technology

Tsilitwa community crosses the digital divide – this DACST Innovation Fund project (a partnership between the CSIR and the community) is profoundly changing the lives of the community through improved health care and education and sustainable economic development

Integrated Mineworkers Compensation System developed for Department of Health – in partnership with Molepe Consulting the CSIR is developing a compensation system which will improve the efficiency and effectiveness of compensating mineworkers and beneficiaries

Information Technology (cont.)Information Technology (cont.)

Cultureware: enabling Digital Culture – in a DACST Innovation Fund project with the CSIR as main partner the focus is on new media productions technology and processes for the promotional purposes in particular for historically disadvantaged cultural groups

Database to assist in combating child abuse – the CSIR Crime Prevention Centre is leading a team to perform a skills audit and develop a database of volunteers so as to empower them to contribute effectively and appropriately to the prevention of child abuse

Environmental ManagementEnvironmental ManagementTotal Solutions to waste problems – the CSIR Centre for

Integrated Waste Management provides appropriate, innovative and integrated solutions to waste management – recent successes include projects for the Malawian Government, UNESCO and in the field of product development from waste materials and waste disposal systems

State of the Coast Report – on contract from the City of Cape Town this report will assist in the formulation of Coastal Zone Strategy and will inform the next stage in the sectoral planning process

Conservation Plan for the Greater Addo Elephant National Park – this project, in conjunction with the University of Port Elizabeth, has developed the conservation plan for the expansion of the Addo Elephant National Park – the aim of this integrated conservation plan is to support the decision-making processes of South African National Parks

InfrastructureInfrastructure

Integrated freight and logistics database – a joint

venture with the Road Freight Association to support the

transport industry in southern Africa for information sharing

Support for labour-based road construction

and contractor development – the CSIRis involved

in a number of projects supporting labour-based road

construction and contractor development, including a

poverty relief project in the Eastern Cape, which will provide

employment for approximately 800 people

CSIR CommercialisationCSIR CommercialisationCommercialising farm-based essential oils businesses:

essential oils are high-value extracts from plants, which are used for instance, in perfumes and health products. These have been produced in commercial scale, farm-based processing plants developed by the CSIR, currently totalling 35. The CSIR has established a joint venture with Biosys Ltd UK, to develop a South African essential oils and botanical extracts industry from high-value plant extracts used in the perfume, cosmetics, health and food markets

Production and processing of hemp: an Eastern Cape pilot project aimed at the commercial production of low-narcotic (dope-free) hemp has been launched following a pre-feasibility study conducted by the CSIR. The project forms part of a comprehensive programme to establish an SMME-based natural fibre value-added industry in South Africa, to supply the growing local and global demand for natural fibre products

CSIR Commercialisation (cont.)CSIR Commercialisation (cont.)

Fabrics that “breathe”: BreatheTex Corporation (Pty) Ltd,

established as a result of the commercialisation of a CSIR lamination technology, manufactures high-performance breathable fabrics

Small-scale medical waste incinerators: the CSIR has

developed and is optimising a small-scale medical waste incinerator for use in rural clinics to reduce infection risks and improve waste management. Incinerator production will be licensed to a joint venture between a metalworking company and black-owned SMMEs, located close to areas of use

Satellite imagery for precision farming: Agrimage (Pty) Ltd is a spin-off venture of the CSIR’s Satellite Applications Centre. The company provides satellite imagery for precision farming, an area that has experienced rapid growth in South Africa as a result of pressures to cut production costs

CSIR Commercialisation (cont.)CSIR Commercialisation (cont.)Monitoring of foetal development improved by

MRC/CSIR device: a stand-alone device developed by the CSIR

and the MRC is a low-cost, easy-to-use screening tool to diagnose placental function. Widespread application of the technology could improve chances of survival for impaired foetuses from 48% to 80%. This locally developed system has completed a first round of trials at Tygerberg Hospital

P57: a medical plant extraction facility for the production of complex

botanical mixtures for use in human clinical trials, the first of its kind in the world, has been established at the CSIR. The CSIR and Phytopharm, a UK-based phytomedicine company, are jointly developing a novel anti-obesity agent (P57) that has been extracted from an indigenous plant. Pfizer in the USA has taken a license for the final clinical development

CSIR Support to National R&D CSIR Support to National R&D StrategyStrategy

Human Resource in SET to be renewed

Private sector R&D to be increased

Technology missions to be funded

Human Resources in SETHuman Resources in SET

In CSIR require larger pipeline plus more senior scientists for mentoring

7,3% PhD’s of who 70% are over 40; international benchmark 13 to 54%

32% of S&T professionals are Black and 35% are Women

Need to strengthen SET base:

Populate S&T pipeline: bursars, interns, post-docs, scientists from Africa

Develop mentoring capacity

Create networks/alliances

Require to invest R15 million in 1993/1994

Private Sector R&DPrivate Sector R&D In South Africa, business invest only 0,35% of GDP on

R&D

Survey by CSIR in 2001 amongst 20 major business: R&D declined from 0,61% of sales to 0,42% from 1997 to 2001

R&D not expected to increase in next 3 to 5 years

R&D personnel declined by 10% from 1997 to 2001

CSIR Contribution: 40% of contract R&D for private sector in number of sectors

Developing core competences in ICT, Biotech, Infrastructure, Manufacturing, Environment

Partnership/collaboration to build competence/capacity in private sector (Innovation Fund etc.)

CSIR/Government “Centres” to support private sector eg. AIDC, NPDC

Technology MissionsTechnology Missions

1. POVERTY REDUCTION

CSIR involved in 31 projects: cashmere, essential oils,

plant fibre, indigenous foods, leather, mohair, seeds,

weaving, wool, yoghurt

Additional investment needed (R38 million) if want to: Set up centre for managing public funds/building greater

capacity to deliver

Extent pilot projects to other areas

Introduction of integrated programmes into infrastructure,

health

Address indigenous knowledge and technology transfer

issues

Technology Missions (cont.)Technology Missions (cont.)

2. NATIONAL BIOTECHNOLOGY STRATEGY

CSIR investing 11% of Parliamentary Grant in biotech

(5% in 1999)

CSIR with 13 TEI’s, 3 Science Councils, National Health

Lab, 21 Private Sector companies submitted consortia

proposal for DACST’s Biotechnology Regional

Innivation Centres in: animal health, human health,

plant biotech, industry/mining/environment

programmes

Technology Missions (cont.)Technology Missions (cont.)3. ICT

AIICT Business Plan being developed to close academia – industry gap. Mandate includes people development, high-quality research, innovation, local/global impact, effective networks/partnerships

AIICT will: Undertake world-class research

Champion emergent S.A. ICT industry

Decrease reliance on expensive imported technology

Provide networks to solve real problems and develop indigenous offerings

Assess ICT needs into the future

Help develop ICT strategies

Help train researchers

Technology Missions (cont.)Technology Missions (cont.)

4. MANUFACTURING

CSIR invests 31% of Parliamentary Grant in

manufacturing

CSIR coordinating for NACI the development of an

advanced manufacturing and logistics strategy for SA

5. RESOURCE-BASED INDUSTRIES

CSIR developing S&T competence in

Mining

Agroprocessing

infrastructure

Feedback on Some Issues Raised Feedback on Some Issues Raised by Committee at CSIR in 2001by Committee at CSIR in 2001

CSIR views on OPEN-SOURCE

CSIR ENERGY R&D:

Strategic Decision Support

Energy Efficiency

Energy and the Environment

Renewable Energy

Energy for Rural Development

CSIR involvement in NEPAD

CSIR’s NEPAD InvolvementCSIR’s NEPAD Involvement

INFRASTRUCTUREINFRASTRUCTURE – Transportek, Environmentek and Boutek NEPAD are conducting an audit of Africa’s infrastructure, assessing development methodologies, and providing mechanisms for strengthening the African science and technology competence to develop the infrastructural base.

PEACE & SECURITYPEACE & SECURITY – CSIR Defencetek is leading a process to harness CSIR competences to contribute to Africa’s Peace, Security and Reconstruction processes.

MANUFACTURINGMANUFACTURING – With Africa’s recovery heavily resting on value addition and the beneficiation of Africa’s natural resources. CSIR is helping to develop products and services for export, and provide the necessary infrastructural base, including ICT.

ICTICT – CSIR is interacting with all key players responsible for the leadership and management of the NEPAD ICT process including the e-Africa commission.