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Dpt. of Science and Technology: Minister Naledi Pandor on 2012/13 Research and Experimental Development survey results

Naledi Pandor
Photo by Duane Daws
Naledi Pandor

3rd December 2014

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Research and development outlook in South Africa improving, but more needed

The latest Research and Experimental Development (R&D) survey shows that South Africa spent R23,871 billion on research and development (R&D) in 2012/13. In nominal terms, this is 7,5% more than the R22, 209 billion reported in 2011/12.

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The survey covers the R&D performed within South Africa by the government, the science councils, higher education institutions, business enterprises, and not-for-profit organisations. The survey is conducted by the Centre for Science, Technology and Innovation Indicators at the Human Sciences Research Council.

The 2012/13 survey shows that the outlook for R&D investment in the country is improving (following the contraction in the two consecutive years, 2009/10 and 2010/11). Gross domestic expenditure on R & D (GERD) amounted R23,871 billion, representing an increase of R1,662 billion (9,7%) on the R22,209 billion reported in 2011/12. It has increased in both nominal and real terms.

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There are a number of trends to observe. First, the higher education sector is the biggest contributor to the increase. Second, spending on experimental development declined between 2008 and 2012. Third, R&D spending on medical and health sciences has overtaken the spending on engineering sciences.  Fourth, for the second year the R&D business expenditure in the financial intermediation, real estate and business services sector is higher than in the manufacturing sector. Fifth, Government remains the largest funder of R&D in the country, while the business sector remains the largest performer of R&D.

The additional R&D spending maintained the level of GERD at 0,76% of GDP in 2012/13, the same as in the 2010/11 and 2011/12 survey years. This indicator remains below 1% of GDP, which means that we need to encourage greater levels of R&D investment to enhance South Africa's competitiveness.

Viewed over a 16-year period (1997/98-2012/13), South Africa's efforts in R&D have expanded. The expansion can be attributed to the implementation of strategic plans informed by the 1996 White Paper on Science and Technology, the 2002 National Research and Development Strategy, and the Ten-Year Innovation Plan for South Africa (2008-2018). The government has purposefully and steadily increased its funding for R&D over time, understanding that achieving substantive technical progress requires long-term government commitment. This is consistent with the National Development Plan and should send important signals about government's commitment to making South Africa a competitive nation.

The trend before 2009 indicates that the average annual increases in GERD in that period outpaced increases in GDP. This slowed down between 2009 and 2010 owing to the impact of the global economic crisis, which affected R&D investments, notably in the business sector, which is yet to show a solid recovery.

There has been an overall increase in the total R&D personnel headcount, driven largely by the increase in the number of researchers in the higher education sector. The total headcount on R&D personnel grew by 9,1 to 64 917 in 2012/13. The higher education sector contributed the most (37,7%) to the recorded increase in R&D personnel in 2012/13, and the bulk of its contribution consisted of researchers, including doctoral students and postdoctoral fellows.

Researchers have always accounted for the bulk of R&D personnel.  In 2012/13 researchers accounted for 66,0% (or 42 828) of total R&D personnel. The ratio of full-time equivalent researchers per 1 000 employed has remained between 1,4 and 1,5 since 2005/06, owing largely to a slower increase in researcher employment than in total employment in the economy.

The growth in the headcount of women researchers has been impressive and reinforces South Africa's position as one of the global leaders in terms of the proportion of women in the total researcher workforce.

International comparisons indicate that South Africa seems to have followed the general global pattern for recovering R&D expenditure.  South Africa's real increase of 2,6% in GERD between 2011 and 2012 is comparable to the real increase of 2,7% reported for the Organisation for Economic Cooperation and Development (OECD) members for the year 2012 (latest available estimates) and is better than the 0,6% average for the 27 European Union members over the same period. Different economic contexts must be taken into account when interpreting these international comparisons.

The information provided by the R&D Survey is important in assessing the impact of science, technology and innovation policies and in informing national planning.

The Medium Term Strategic Framework (2014-2019), therefore, includes a policy target that GERD be increased to 1,5% of GDP in order to support growth and development. To achieve this, three progressive phases and scenarios under which the contribution of R&D and innovation are expected to grow in importance over time have been identified and are being used to inform the review and align current strategies.

 

Issued by Department of Science and Technology

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