Technology And Human Resources For Industry Programme

The Technology and Human Resources for Industry Programme (THRIP) is a partnership programme which challenges companies to match Government funding for innovative research and development in South Africa.

Managed by the National Research Foundation (NRF), on behalf of the Department of Trade & Industry (dti), THRIP affords local industry the means to obtain specific responses to its technology needs, by unleashing the potential of its students, researchers and science and technology experts.

THRIP's objectives and priorities ensure that projects not only result in competitive, world-class technologies, but also support the growth and transformation of South Africa. It focuses on projects which specifically promote and facilitate scientific research, technology development and technology diffusion, or any combination of these. THRIP-funded projects must include human resource development, but the choice of technological focus is the prerogative of the industrial participants and their partners.

The participating industry and the dti share the costs and, therefore, the risk of developing commercial technology on a R2 to R1 basis (industry: the dti). However, the dti's support may be doubled should a project support certain THRIP priorities.

Support Programme For Industrial Innovation

The Support Programme for Industrial Innovation (SPII), is a dti innovation support programme which is administered by the Industrial Development Corporation (IDC). In terms of policy implications for the administration of SPII, the following changes have been introduced:

Matching Scheme (Maximum Grant R1,5 Million):
Only small and medium-sized companies (SMEs: as determined by the Small Business Act) may qualify in terms of the Matching Scheme, which makes provision for a 50% grant, with no pay-back, for the innovative development of new products and processes;

Partnership Scheme (Pii) (Grants Larger Than R1,5 Million): This Scheme is open to all companies and makes provision for a 50% grant, and a pay-back mechanism based on sales from the new product or process. A nominal internal rate of return (IRR) of 19% to the Partnership Scheme is aimed at in order to reduce the strain on the fiscus in terms of the annual requirement for funds in the budget. In considering support for a project(s), under Pii, there should be a clear indication of the causality (additionality) which will follow the support. In essence, support should not be dedicated to projects which would have happened anyway and without support;

Product Process Development Scheme: The dti has in place a Product Process Development Scheme (PPD). This scheme is specifically designed for small enterprises, in line with the definition for the manufacturing sector in the National Small Business Amendment Act, 2003.
Financial assistance under the PPD scheme takes the form of a taxable non-repayable grant of between 65% and 85% of the total qualifying costs incurred in pre-competitive development activity associated with specific development project, up to a maximum grant amount of R500 000 per project; and

National Technology Transfer Centre: The National Technology Transfer Centre (NTTC) is an initiative of the dti which aims to facilitate technology transfer and diffusion to Small, Medium and Micro Enterprises, with a specific focus on the Second Economy.

National Technology Transfer Centre (NTTC)

Vision

To be a Centre of Technology Transfer Excellence for South African industry, focusing primarily on Small, Medium and Micro Enterprises contributing to growth, equity and employment.

Mission

The NTTC promotes and facilitates the transfer of technology, which is appropriate, effective and competitive through the provision of:

• Specialist services and advice through its networks to industry and;
• Bridging finance on favourable terms to Small, Medium and Micro Enterprises.

The NTTC works to assist business enterprises to acquire appropriate technologies through national and international networks and provides further support in terms of negotiating technology transfer agreements.

NTTC Services

NTTC services include the following:

• Technology assessment;
• Technology sourcing and evaluation;
• Technology selection;
• Agreement negotiation and drafting;
• Technology transfer education;
• Technology transfer;
• Project management.

GODISA Trust

The GODISA Trust is partnered by the Department of Science and Technology and the Department of Trade & Industry.

The Trust's name derives from the Setswana word meaning 'nurturing or helping to grow' and the Trust works to incubate and nurtures Small, Medium and Micro Enterprises in order that they might play an increasingly more important role in the development of sustainable employment creation and the advancement of essential skills and technologies.

The GODISA Trust assists South Africans to cultivate their innovations and business ideas and, in so doing, to play a role in the process of uplifting and empowering individuals and their communities.

GODISA Objectives

The business objectives of GODISA include:

• The establishment of technology business centres, such as incubators, innovation centres, demonstration centres or hybrid centres with the intention of accelerating the development of technology-driven enterprises;
• The provision of funding to qualifying technology centres;
• The enhancement of entrepreneurial and innovative thinking through effective and efficient centre processes;
• The provision of sector-focused Small, Medium and Micro Enterprise clusters, with access to up-to-date technology and management support;
• The improvement of the business performance, profitability and survival rate of newly established technology-based Small, Medium and Micro Enterprises;
• The promotion of competitiveness and the assimilation of best practice production technologies;
• The promotion of economic growth and employment creation opportunities through the enhancement of technological innovation;
• The continual improvement of the GODISA Trust through effective benchmarking and research;
• The promotion of technology transfer/diffusion within the Small, Medium and Micro Enterprise sector of the local economy;
• The facilitation of the transfer of effective and efficient technologies, business skills and expertise through various centres.

The Down Stream Aluminium Centre For Technology

The Down Stream Aluminium Centre for Technology (DACT) is a dti-funded project gaining stature in the casting industry for sound financial, social and environmental management. It offers a sound training and incubating facility for the establishment of successful small businesses to benefit the community in which it operates.

DACT offers a number of services to incubator participants and businesses in the area. The incubator boasts exceptional technical expertise and state-of-the-art equipment which clients are able to utilise.

DACT Objectives

DACT endeavours to provide services and infrastructure in order that trainees might effectively be exposed to every aspect of aluminium casting operations and associated management and business activities in training them to successfully establish business ventures as entrepreneurs.

DACT delivers mentorship and both managerial and technical assistance to incubated and other aluminium casting businesses in the area so as to ensure their success.

FURNTECH

The Government, through its National Skills Development Strategy (NSDS), has identified training and skills development as significant drivers of international competitiveness and organisational development.

In response, the dti funded the establishment and operationalisation of FURNTECH as a world-class service provider to South Africa's wood product and furniture industries in the fields of incubation, training, technology transfer and technology demonstration.

FURNTECH Objectives

FURNTECH sets out to ensure globally competitive furniture production through:

• Skills development;
• Technology demonstration; and
• Technology transfer.

The company strives to create employment opportunities through:

• Business technology incubation;
• Up-skilling and placement of unemployed individuals; and
• Creation of centres of excellence.

National Fibre, Textile And Clothing Centre

As a technology partner to industry, the National Fibre, Textile and Clothing Centre (NFTCC) of the CSIR Manufacturing and Materials Technology, actively promotes the growth and global competitiveness of the South African textile pipeline.

By creating widespread awareness of relevant technological developments globally and the acquisition or development of technologies, the centre sets out to be the top provider of knowledge and innovative solutions to the textile pipeline in Southern Africa.

The centre's primary focus is to assist the textile and clothing industry to beneficiate local raw materials and to achieve considerable growth across the textile pipeline. By way of various cluster-related and other initiatives for wool, mohair, indigenous plant fibres, additional local industries are established. The centre is an initiative of the CSIR and the dti and is funded by the dti through its technology funding. The centre's active leadership role in this context is underpinned by its strong scientific and technological expertise.

The centre also develops knowledge-rich technologies and solutions for the textile pipeline through electronic databases and knowledge-based software (expert) systems, covering the processing of local natural fibres, as well as technology demonstration for local textile industries.

The NFTCC Provisions

The NFTCC provides the following:

• The introduction of new fibre manufacturing technology to industry by means of technology;
  
• The establishment of links and agreements with international fibre-based centres of excellence so as to incorporate fibre technologies and promote the transfer of know-how and skills;
• The provision of entrepreneurial training and guidance and the offer of advice to the industry;
• Assistance to the industry in upgrading technology to increase productivity and exports, and becoming globally competitive;
• The demonstration of fibre technologies so as to assist the industry in acquiring more efficient technologies and machines;
• Assistance with regard to the incubation of fibre technologies by providing facilities, advice, equipment and mentoring, so increasing the number of start-up Small, Medium and Micro Enterprises;
• The development of value-chain strategies linked to the integrated manufacturing platform; and
• The development of high-quality value-added products, exploiting the spectrum of fibre beneficiation and to make best use of the market.

Venture Capital

The Venture Capital fund is an initiative which primarily focuses on financing the first two stages of the development of new technology-based firms, being the seed stage (which involves concept development, prototyping and product development) and early stage (which involves marketing, production of goods and/or services), with some investment in later stages.

Venture Capital is regarded as funds invested in a venture at high risk to the investor, normally in situations where the venture is unable to secure the required funds from traditional lending sources, such as via a commercial loan from a bank or via the public equity market.

The commercialisation of new technologies which emerge from Government-funded research and development programmes, science councils, academic research institutions, technology business incubators and private sector research facilities are regarded as being the primary candidates for support by the Fund.

The dti co-invests in the South African Intellectual Property (SAIP) Fund to roll-out this programme. Other investors in the SAIP Fund include Sanlam Investment Management, the CSIR, the University of Pretoria, the Industrial Development Corporation (IDC) and Triumph Venture Capital, as the Fund Manager.

Technology Linkages

The objective behind the programme is to facilitate the establishment of industrial sector needs and to offer support, as required by the dti sectors. The Unit (Innovation & Technology), together with Trade and Investment South Africa (TISA), interacts with industry with regard to integrated manufacturing strategies and technology issues, such as:

• Industrial Sector Strategy;
• Technology Strategy, following sector processes;
• Technology Profiles;
• Potential areas for Innovation;
• Potential support from Technology Programmes; and
• Technology Balance of Trade.

The programme manager interacts with role-players both within and outside the dti in terms of industrial sector development and technology strategies for sectors, where areas of support in this regard are being determined.

The programme strives to keep industry well-informed about global technology development trends, where studies in this regard are conducted to determine the key technologies which would influence the competitiveness, sustainability and future development of South African industries. A technology strategy to react to such technologies which pose a threat or opportunity to South African industry should be established, based on the results of the study and ongoing global development trends. This includes research on the dependency of South African industries on foreign technology. Within the programme is the Technology Advisory Centre (TAC), established to cater for advisory services to Small, Medium and Micro Enterprises which would like to participate in the dti's Innovation and Technology programmes, as well as the provision of information about other technology service providers outside the dti, be they in the public or private sectors. Advice is also provided, based on current technology development trends. Feedback to programme managers aims to improve current programmes or establish new ones capable of catering for the development of the second economy.

Innovation and technology

Vision

To provide technology leadership in supporting sustainable growth, equity and employment.

Mission

To enhance industrial development and competitiveness through technology support measures to improve the lives of all South Africans.

Objectives include:

Enhancing technology leadership;

Developing technology policy and strategy;

Contributing to building technology platforms;

Supporting innovation in industry;

Facilitating technology transfer and diffusion;

Supporting technology-based Small, Medium and Micro Enterprises;

Promoting Broad-Based Black Economic Empowerment and gender equity;

Addressing the technology needs of the second economy; and

Supporting the development of skills for science, engineering and technology.

Programmes

Programmes include:

Technology and Human Resources for Industry Programme (THRIP);

Support Programme for Industrial Innovation (SPII);

The Down Stream Aluminium Centre For Technology (DACT);

National Technology Transfer Centre (NTTC);

Godisa;

Mpumalanga Stainless Initiative (MSI);

FURNTECH;

National Fibre, Textile And Clothing Centre (NFTCC);

Venture Capital; and

Technology Linkages.

SEDA Technology Programme (stp)

As part of Government's national strategy of consolidating small enterprise support interventions across various Government Departments and agencies, the dti is streamlining its own small enterprise support interventions.

As part of this process, the dti and the Department of Science and Technology (DST) agreed to merge the Godisa Trust with the National Transfer Centre (NTTC) and the Technology Advisory Centre (TAC). The three dti incubators, being the Mpumalanga Stainless Steel Initiative (MSI), the Downstream Aluminium Centre for Technology (DACT) and FURNTECH, were also incorporated into the SEDA Technology Programme (STP).

The STP was created in order to provide technology and business development support services to small enterprises and to drive the national technology and business incubation agenda. The STP contributes to South Africa's economic development through the creation of and support for technology business centres, inclusive of incubators and technology demonstration centres. These centres offer a wide variety of business support services and office infrastructure solutions to small enterprises. The programme also provides a range of services enabling industry and, especially, small enterprises in the second economy to access and transfer technology.

The two primary areas in which the STP provides support include:

Technology Transfer Division:

The Technology Transfer Division (TTD) manages the Technology Transfer Fund (TTF). It strives to facilitate technology transfer and diffusion to Small, Medium and Micro Enterprises, with a specific focus on the second economy. The TTD assists businesses in acquiring appropriate technologies through national and international networks and in negotiating technology transfer agreements.

The programme offers the following services:

Technology assessment;

Technology sourcing and evaluation;

Technology selection;

Negotiating and drafting of agreements;

Technology transfer education;

Technology transfer;

Project management; and

Advice through a Technology Advisory centre.

The TTD provides finance by way of the TTF, the main purpose of which is to specifically fund defined components of the process of transferring available technology to entrepreneurs, communities and existing South African businesses, focusing on the second economy. It provides funding to enable technology transfer for the second economy as a grant, with no pay-back, to a maximum of R500 000 per project.

Technology Business Incubation:

Incubation aims to assist in growing small, medium and micro-sized enterprises in South Africa. It is designed to strengthen technology diffusion and to harness the entrepreneurship of the science and technology community in this country.

Incubation also provides support to such enterprises. Such support directly aids inventors and new enterprises in the optimal use of technology, so improving the competitiveness of their products and services. In addition, it improves business infrastructure, offers strategic guidance, financial and legal advice, whilst also creating an environment conducive to learning and sharing; an environment in which information, experience and ideas are freely exchanged.

Incubation also assists enterprises to develop skills, knowledge and markets. These improvements are intended to lead to increased profitability and growth, enabling increased employment creation opportunities and the ability to enter new markets with cutting-edge products and services.

Currently the STP provides financial, strategic, technological and management support to the following incubators:

Mpumalanga Stainless Initiative (MSI);

The Down Stream Aluminium Centre for Technology (DACT);

Furniture Technology Centre (FURNTECH);

Acorn Technologies;

Chemin;

EGoli Bio Life Sciences;

Embizeni Innovation Support Centre;

Softstart - Bodibeng Technology (SoftStartBTI);

Timbali Technology;

Zenzele Technology;

AIDC;

Ekurhuleni Base Metal Incubator;

Platinum Incubator;

Bio-diesel Incubator; and

Essential Oils Incubation Centre;

Science Industry Relations And The South African Innovation Chasm

The dti has undertaken a study to investigate the existence of the innovation chasm in general and the transfer of technologies, supported by public funds, abroad in particular.