Science and Technology Minister Naledi Pandor on Thursday called for more investment in research and development (R&D) and human capital.

Innovation was vital for a country facing the challenges of creating sustainable jobs and improving living standards, she told the National Assembly during debate on her budget vote.

"In this financial year we'll give increased attention to strengthening partnerships among universities, colleges and enterprises that have a positive track record in research and development and in promoting technology and innovation," Pandor said.

"In this regard we'll also promote direct collaboration with innovative private sector leaders in science, technology and innovation."

Awards and recognition for established, new, and aspiring researchers and science and technology workers would be expanded so that talent was found, rewarded, and put to work on making South Africa smarter and more effective.

The department had been given the task of developing a national science and technology spending plan to provide a coherent approach to government science and technology investment.

Early analysis indicated that government spent about R10-billion in scientific and technological activities.

"Our economic success will be shaped by the degree to which we successfully anticipate the future. The future will be shaped and transformed by new technologies," she said.

"We need to ensure that we have a new generation of scientists.

"The departments of science and technology, basic education and higher education will have to work closely together to ensure that we offer quality learning opportunities to future scientists."

It would appear to be true that whenever countries faced economic downturns the first budgets cut were often in research and development.

However, there were well-known examples of countries investing heavily in science and technology during a recession, such as Finland and Korea.

"In the 1990s Finland in particular underwent a savage economic crisis. Most public expenditure was cut across the board. Except for R&D. R&D was raised."

In particular, the Finnish Funding Agency for Technology and Innovation played a central role in laying a strong basis for an economic rebound.

Pandor said that over the past five years government had improved funding to science, technology and innovation, from R2-billion in 2005/06 to R5,1-billion projected for 2011/12. This year the budget was R4,2-billion.

Moreover, in 2006 South Africa's gross spending on R&D was just over R16,5-billion.

"We have to acknowledge that, although this is close to our target of one percent of gross domestic product (GDP), the investment is modest, and that now is the time to increase our target beyond one percent of GDP funding for research."

Other countries were spending much more. China and India, in particular, were investing in their own potential for success.

"Seventeen years ago State-supported institutions led in several areas of science - agriculture, electrical technology and mining engineering -much of this infrastructure has been allowed to deteriorate owing to neglect and the lack of appreciation as to its impact on our scientific world ranking."

A robust effort was now necessary to locate science, technology, and innovation at the centre of development in South Africa, Pandor said.