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Date : 23/10/2006
Source: Department of Science and Technology
Title: Mangena: Innovation Fund Annual Report


Address by the Honourable Minister of Science and Technology, Mr Mosibudi Mangena, at the Handover Ceremony of the Innovation Fund 2005/2006 Annual Report, Cape Town

The Executive Officer of the Innovation Fund, Dr Eugene Lottering
Representatives from the National Research Foundation
Distinguished guests
Ladies and gentlemen

Innovation is one of the cornerstones of the National Research and Development Strategy. The establishment of the Innovation Fund in 1999 pre-dated the strategy, and anticipated the critical focus on innovation. Now more than 170 projects are supported by the Innovation Fund. By the end of next year, more than R1 billion would have been invested in this programme. Sectors such as health, agriculture, manufacturing, mining, education, safety and security, energy, tourism, information and communications technology (ICT) and biotechnology have been supported in this process.

From its early years as a "closed call" fund in the then Department of Arts, Culture, Science and Technology, the Innovation Fund has deepened and broadened its activities to include the protection of intellectual property, seed financing of technology ventures, and the creation of science and technology platforms in partnership with industry.

This year we are increasing investment in developing the next generation of patent attorneys by providing a new learnership programme. We are already reaping benefits from the focus on innovation management, and insisting on partnerships between higher education institutions, research councils and businesses in the main funding programmes.

Francis Bacon, the English essayist and statesman claims: "The births of living creatures, at first, are ill-shapen: so are all innovations, which are the births of time." This quotation neatly reveals the challenge of innovation; only those close to the process will see clearly what the innovation could become. It is a risky process as Woody Allen says, "If you are not failing every now and again, it is a sign that you are not doing anything very innovative." The strange marriage of successes and failures in innovation is not going to change. What can change is the rate and intensity of innovation arising from research.

These changes have been greatest in science and technology settings where a few key factors can be observed:

* Firstly, multidisciplinary research is actively promoted and supported with the requisite infrastructure in place
* Secondly, it is a level playing field, the quality of the proposal is evaluated on its merits, not the history, however eminent, of the proposer
* Thirdly, research proposals are subjected to peer review, business proposals are subject to business scrutiny
* Fourthly, progress is actively reviewed and measured.

The Innovation Fund has been at the forefront of developing these four characteristics. Retaining these disciplines will stand the Fund in good stead in years to come.

In addition to these essential elements, the leadership in the Innovation Fund has had an uncompromising approach to excellence. They won a top competition last year for the quality of their annual report.

The 2005/2006 Annual Report highlights some of the key milestones that the Innovation Fund has achieved. I always enjoy the focus on the projects and people who are involved in the Innovation Fund. It is not only a celebration of focus and commitment by the team, but it is also a partnership in which the innovation community is mobilised and strives for higher things.

It is noted in the Research and Development (R&D) Strategy that new technologies have created new challenges with regard to intellectual property. In 2005, the Intellectual Property Management Office of the Innovation Fund officially launched the Patent Support Fund and Patent Incentive Funds. The Patent Support Fund for Small to Medium Enterprises aims to support patenting costs up to a maximum of R250 000, particularly for Black Empowered Small Medium and Micro Enterprises (SMMEs). During 2005/06, investments of up to R750 000 were concluded under this instrument. There is an ongoing challenge to ensure that we make the most of the intellectual property developed by our researchers and small enterprises. This remains a significant challenge. We still patent at a fraction of the rate of the international community we benchmark ourselves against. At a time when we are asking publicly funded institutions to do more in this regard, there is some evidence that some are doing less well than we had hoped.

I strongly believe that science and technology should be at the forefront of poverty reduction. South Africa and the region face considerable challenges of poverty.

The globally agreed Millennium Development Goals, which range from halving extreme poverty to halting the spread of HIV and AIDS, and providing universal primary education by 2015, form a blueprint agreed to by the world's countries, including leading development institutions. But evidence points to the difficulties faced by countries in attaining these goals.

The outgoing United Nations Secretary-General, Kofi Annan claims that the world will take time to reach the Millennium Development Goals unless it breaks with the convention of doing business as usual. "It takes time to train the teachers, nurses and engineers, to build the roads, schools and hospitals, to grow the small and large businesses able to create the jobs and income needed. We must more than double global development assistance over the next few years. Nothing less will help to achieve the Goals."

Ladies and Gentlemen, South Africa cannot ignore two major technology developments taking place globally. These are ICT and biotechnology. ICT seems to be pervasive in the country; however, it is clear that the vast majority of ICT spending is on imported technologies (to a level of some 98%). South Africa does not have a strong R&D capacity in ICT in the public sector. The innovation potential is high, but the results have been patchy. It is therefore necessary to invest in a number of ICT domains that have unique characteristics that would favour local development and globalisation.

Publishing an Annual Report ushers a time to review what was achieved the previous year against set objectives. It also provides a time to congratulate each other on a job well done, and an opportunity to review the innovation priorities of our country to determine whether they are still in line with global trends.

With that in mind, ladies and gentlemen, allow me to congratulate Dr Lottering and his team on achieving yet another milestone. Tangible results are important. To break the cycle of poverty, people need to see demonstrable changes in their quality of life. Our citizens, especially the poor, will not thank us if we squander these scarce resources available for innovation. No one can dispute that innovation is central to economic prosperity.

The capacity to innovate in our society is directly proportional to the capacity to defeat poverty. Deliberate actions to bring more people into our system of innovation will not be wasted. A single failing school fails not only its learners; it fails its community and sets the next generation up for failure.

There is no time for compromise; we must increase our focus on excellence and creativity; we must ensure our institutions desire the best and demand the best from staff, students, researchers and innovators. After all, the Innovation Fund depends for its success on all the variegated layers of the system.

I thank you.

Issued by: Department of Science and Technology
23 October 2006
Source: Department of Science and Technology (http://www.dst.gov.za)

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