SCIENCE AND TECHNOLOGY WHITE PAPER

'Preparing for the 21st Century'

Department of Arts, Culture, Science And Technology

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Table of Contents

LETTER FROM MINISTER B.S. NGUBANE

Science and Technology (S&T) are essential components of the government's strategy for creating the South Africa of the future. The importance of S&T is recognised outside government as well, by other political parties, by business, the higher education sector, the science councils, labour, NGOs and civil society.

The vision for South African Science and Technology presented in this White Paper has been developed by a consensus process between all these sectors. This vision is one where, on the one hand, South Africa uses S&T to become economically competitive on a global scale, and on the other hand to provide essential services, infrastructure and effective health care for all South Africans. We believe that this is best done by embedding our S&T strategies within a larger drive towards achieving a winning National System of Innovation. In such a System, institutions such as universities, technikons, science councils, private sector research laboratories and market intelligence divisions would cooperate in a nationally optimal way towards solving real problems, whether these occur in industry, agriculture, defence or basic research.

The changes proposed in this White Paper follow two broad themes. Firstly, they serve the need to promote cohesion between South African S&T institutions and the programmes they form part of, in the interests of our National System of Innovation. Secondly, they support the creation of a system of output measurements for these institutions, so that the taxpayer can demonstrably be given value for money.

I would like to thank all those who contributed to the production of this White Paper, whether by participating on the task team, by responding to the Green Paper, or by consulting with my Department during the drafting process. We received well over a hundred substantial responses to the Green Paper, and we have taken considerable care in ensuring that the 83 issues raised in the Green Paper are addressed in this White Paper.

Yours sincerely,
B.S. Ngubane

LETTER FROM DEPUTY MINISTER B. MABANDLA

Technology has been a determining factor in human history since time immemorial and in the 21st Century this will be so to an even greater extent. It is imperative that South Africa makes the right choices, sometimes difficult, to enhance our adoption and mastery of the technologies which will assist us in becoming a competitive nation. Basic science also has a crucial role to play in our country, not just because it is the platform on which applied science and technology are based, but because it has cultural and intellectual foundations as profound as those underpinning music, literature and other products of the human mind.

This White Paper endeavours to promote the full spectrum of science and technology within the context of problem solving in service of national needs, currently best expressed by the Growth and Development Strategy (GDS) of the government. To achieve an optimal configuration of science and technology institutions, it is proposed that the Ministers Committee on Science and Technology embarks on a major study of the missions and governance structures of these institutions. Also absolutely essential in the implementation of the GDS are human resources and skills in science and technology. Currently the race and gender disparities in S&T are unacceptably high. We need to address this imbalance pro-actively, not just because it is right to do so, but because if we do not we will simply not have adequate human resources to deal with our problems.

I have every confidence that the White Paper on Science and Technology puts South Africa on a firm course to enable us to make better use of our national resources and capabilities. This is the first policy document of its kind in the history of our country, and even the processes which led to its completion have served to focus debate on the importance of science, technology and innovation for our future.

Yours sincerely,
Brigitte Mabandla

Preface

My Government's commitment to create a people-centred society of liberty binds us to the pursuit of the goals of freedom from want, freedom from hunger, freedom from deprivation, freedom from ignorance, freedom from suppression and freedom from fear. These freedoms are fundamental to the guarantee of human dignity. They will therefore constitute part of the centrepiece of what the government will seek to achieve........

President Nelson Mandela in his Inaugural Address to a Joint Sitting of Parliament, 24 May 1994.

South Africa has begun, for the first time in its history, to undertake the task of the equitable development of the life opportunities of all its citizens. It has a unique opportunity at this time to transform the means and the methods [of] through which its social goals are to be achieved.

RDP White Paper, 23 November 1994

PART ONE - CONTEXT AND SUMMARY

Chapter 1 - The Context

Preamble - Vision and Goals for an Innovation Policy for South Africa

The White Paper is based on a view of the future where all South Africans will

In order to attain this vision, the following three goals pertinent to the creative use and efficient management of innovation will have to be achieved :

The establishment of an efficient, well co-ordinated and integrated system of technological and social innovation within which

The development of a culture within which the advancement of knowledge is valued as an important component of national development.

Improved support for all kinds of innovation which is fundamental to sustainable economic growth, employment creation, equity through redress and social development.

This White Paper is built upon the twin concepts of "innovation" and "national system of innovation" (NSI). As an introduction to these concepts, we quote below a series of extracts from a discussion on innovation in the 1994 Report of the Auditor General of Canada, which captures a particular spirit which we would like to see suffuse through the proposed policy:

Innovation has become a crucial survival issue. A society that pursues well-being and prosperity for its members can no longer treat it as an option.

Innovation tends not to arise by itself; it is generated and sustained through the efforts of people: innovation is where the spirit is. It cannot be legislated, or brought about by edict. It comes from individual and from creative and interactive communities. Like happiness, innovations wilts in a climate of criticism and repression yet thrives in an environment of encouragement and support.

Government therefore needs to work hard at creating an environment that is supportive of innovation. Otherwise innovators will either not innovate - they will "play safe" - or they will leave for more encouraging societies.

in an innovative society, individuals, groups, organisations, government and Parliament recognize that they are partners, rather than opponents, controllers or contenders. The ideas of community, networking, collaboration and common purpose, of playfulness, fun and excitement, but also of healthy competition, openness and accountability need to be guiding principles.

An important element of innovation is resolving dilemmas, that is, reconciling apparently competing values. Truly innovative societies can, at the same time, meet real needs and control costs, address individual choices and satisfy societal priorities, considering both economics and compassion.

To survive and prosper, that is, to achieve and maintain a high standard of living for its members, a society must do four things well:

  • First, it must build and sustain in social, legal and economic structures and processes that support innovation, that are competitive while sustaining the natural environment, and that lead to well-being for the greatest number of people
  • Second, it must ensure that its members develop and continually update the knowledge, competencies, abilities and skills that are required to produce innovative products and services
  • Third, it must nourish and support the effective potential of its members [and their] commitment to a common purpose, trust, collaboration, enthusiasm, caring and loyalty; this includes defining meaningful roles for those whoa are outside conventional work structures
  • Fourth, it must build and sustain relationships, within itself and with other societies, that enable it to interact productively, both for its own and fro mutual benefit; and it must do so with a long-term vie, considering span of generation

Furthermore, an innovative society is willing and able to discuss and examine openly all issues, even controversial matters and "sacred cows"; it retains the suppleness to explore and experiment; and it has the wisdom and persistence to pursue selected options in the quest for desirable results. it is able to envision a desired future, examine its possibilities, select preferred results, and pursue its choice vigorously.

1.1 Introduction

The development and application of science and technology within a national system of innovation (NSI)(1) in South Africa will be central to the success of the Growth and Development Strategy (GDS) of the Government as it seeks to address the needs of all South Africans. In keeping with a variety of political, constitutional, social and economic changes introduced by the government, the NSI as an enabling framework for science and technology is intended to support the six pillars of the Growth and Development Strategy.

The stimulation of a national system of innovation will be central to the empowerment of all South Africans as they seek to achieve social, political, economic and environmental goals. The development of innovative ideas, products, institutional arrangements and processes will enable the country to address more effectively the needs and aspirations of its citizens This is particularly important within the context of the demands of global economic competitiveness, sustainable development and equity considerations related to the legacies of our past. A well-managed and properly functioning national system of innovation will make it possible for all South Africans to enjoy the economic, socio-political and intellectual benefits of science and technology.

1.2 The Global Context

The setting and realisation of national goals cannot be undertaken without due regard to the implications of global imperatives. Social and economic systems "globalised" by world market forces, the information revolution and new communications technologies require constant innovative planning and monitoring in order to function optimally in the interests of their constituencies. The political transition in South Africa has projected us into the global arena, exposing us to pressures and challenges that require innovative and flexible responses to a rapidly changing global environment. The major challenge will be to integrate successfully into global systems and communities while addressing the local needs and aspirations of South Africans.

Some of the dominant trends and developments at a global level that will affect planning and resource allocation in South Africa are:

1.3 The White Paper in the Government Context

Science and technology (S&T) are considered to be central to creating wealth and improving the quality of life in contemporary society. To facilitate this function it is accepted that government has a prime responsibility in creating an enabling policy environment in terms of regulatory and funding mechanisms. This White Paper presents government's vision for S&T within the overall framework of the Reconstruction and Development Programme (RDP) , its later and more detailed specification through the Growth and Development Strategy (GDS) and the Macroeconomic Strategy presented by the Ministry of Finance.

The core vision of the White Paper is the conceptualisation of a national system of innovation which seeks to harness the diverse aspects of S&T through the various institutions where they are developed, practised or utilised. No government can order innovation to take place, but government can ensure that a competent pool of expertise from which innovation can spring is grown and maintained. This is where the White Paper strongly addresses one of the pillars of the National Strategic Vision in recognising the need to invest in people at all skill levels. The policy thrusts of this White Paper are in harmony with the White Paper on Education and Training in its identification of investment in mathematics, science and technology as a fundamental goal.

More widely, the White Paper addresses another of the strategic pillars in stressing the role of technology in meeting basic needs as set out in the White Paper on Urban Strategy, and that on Rural Strategy. In essence, this document seeks to highlight the relationships between the different mechanisms of delivery of services to our people, and to outline the way the Department of Art, Culture, Science and Technology (DACST) can play a co-ordinating role in effective and efficient implementation of interventions.

The need for transformation has given rise to a series of policy initiatives which have both explicit and implicit impacts on what this White Paper refers to as "the national system of innovation". Given the many initiatives currently being pursued, there is a clear need for an ongoing "conversation" among those initiatives. Other White Papers with obvious interests in and implications for our national investments in S&T include those on the Small Businesses Support Strategy, Education, and Telecommunications. The lead departments responsible for each of these areas will have to work together closely in the implementation of these policies in order to make the most efficient, effective and economic use of the available resources.

1.4 Promotion of Technological Change

There is a need to define a sustainable path for South African social and economic development and the relationship between this path and technology investment. In order to do so, we must be aware of relevant global trends. In recent years, industrialised countries have devoted considerable attention to improve their understanding of the economic implications of rapid technological change. Of importance, at the political level, was the Declaration issued at the conclusion of the Organisation for Economic Co-operation and Development (OECD) Ministerial meeting(2)

in June of 1990. The assembled Ministers had agreed that technological change was a fundamental source of economic growth in the OECD economies. The acceptance of the contribution of technological change to economic growth underlies the attempts of many industrialised countries to develop policy frameworks for the promotion of innovation as a primary route to drive continuous processes of technical change throughout their economies. This drive to master the effects of technological change has also been the key element of the policies pursued by the newly-industrialising countries of South East Asia. As international trade becomes increasingly free and more globalised, South African firms are going to face mounting competition, both at home and abroad, from firms whose home countries have espoused these new theories. Much work remains to be done in South Africa, however, to make the promotion of technological change a central tenet of national policy.

Chapter 2 - Requirements underlying South Africa's Science and Technology Policy.

2.1 Introduction

In this chapter the basic requirements for a S&T policy, which is consistent with a vision of innovation in South Africa, are laid down. This vision embodies a co-ordinated effort to achieve excellence in serving the national goals. It is a broad vision in that it focuses simultaneously on maintaining cutting edge global competitiveness and on addressing the urgent needs of those of our citizens who are less able to assert themselves in the market. These requirements will be treated under the following five broad interrelated themes which are regarded as fundamental to the expression of a sound S&T policy:

In addition to these crucial areas for government involvement, there are three important dimensions of science and technology which inform our strategies in South Africa :

2.2 Promoting Competitiveness and Employment Creation

The most important requirements for promoting competitiveness and employment creation are listed below:

In the face of the growing globalisation of the world economy, technological innovation and support for South African enterprises need to be encouraged as central to the above goal. Recognising that business is the driving force behind the economy, government must provide the leadership, incentives and support that the business sector needs to meet the new challenges posed by highly competitive markets. This will involve developing a shared vision of South African innovation.

South Africa's support structure for creating and sustaining micro-enterprises and small businesses will require a strong technology component.

Public investment in R&D needs to be redistributed away from the support of activities within the government's own facilities and towards more comprehensive support of R&D executed in the private sector. Nevertheless, this long-term need must be seen in the light of the government's current responsibilities, namely to take a lead

A prime objective of the NSI is to enhance the rate and quality of technology transfer and diffusion from the science, engineering and technology (SET) sector by the provision of quality human resources, effective hard technology transfer mechanisms and the creation of more effective and efficient users of technology in the business and governmental sectors.

The development of entrepreneurship needs to be fostered throughout South African society, particularly among those historically excluded from the formal economic sector, and this entrepreneurship needs to be linked to the promotion of innovation.

Government, via the Growth and Development Strategy and the Macroeconomic Strategy, is seeking to achieve an annual economic growth rate of 6%. In a country which is currently underinvesting in S&T and innovation, this target will require a greater than 6% per annum growth rate in the national investment in these activities. In particular, those sectors destined for export growth will not achieve their targets if this investment does not occur.

2.3 Enhancing Quality of Life

The means to ensure that the governmental research portfolio gives due attention to those areas of R&D with the capacity to affect quality of life must be established, and specifically in domains where market failure is high such as the following :

The government has a duty to ensure that an appropriate portion of the money it spends on science is utilised in these areas.

Urban and rural communities need to be assisted and encouraged to adopt social and technological innovations to assist them in decision-making and to enhance their ability to make informed choices.

2.4 Developing Human Resources

In step with a dynamic vision for innovation-assisted economic growth, greater equalisation of income and economic opportunities needs to be facilitated and the legacy of apartheid-based disempowerment of individuals and institutions needs to be addressed within a national system of innovation.

The lifelong processes of scientific and technical education, training and learning among the workforce and among South Africans in general need to be promoted as an essential response to the forces created by the dynamic changes of the global economy. This is a necessary response to enable those made redundant in one circumstance by these changes to continue making an active and creative contribution to the economy, their own well-being and that of society.

New approaches to education and training need to be developed that will equip researchers to work more effectively in an innovative society. This will require new curricula and training programmes that are comprehensive, holistic and flexible, rather than narrowly discipline-based. Education and training in an innovative society should not trap people within constraining specialities, but enable them to participate and adopt a problem-solving approach to social and economic issues within and across discipline boundaries.

2.5 Working towards Environmental Sustainability

Growth of the South African economy must be reconciled with considerations of environmental impact, resource constraints and conservation, and must further be determined by human needs and safety.

Sound regulatory mechanisms need to be implemented to ensure that the positive aspects of technology introduction, transfer and diffusion are maximised and the negative aspects minimised.

Environmental research, monitoring and control require ongoing support and encouragement, as do the development and improved availability of environmental technologies. Economic and environmental efficiencies are interrelated, thus innovative practice must include environmental management. It is important that South African enterprises are able to adopt and implement best-practice technologies for environmental management and waste minimisation.

A national strategy is required to implement the terms of agreement on environmental sustainability adopted at the United Nations Conference on Environment and Development in Rio de Janeiro in 1994 (Agenda 21), and specifically to develop an understanding of the problems of climatic change, desertification and loss of biodiversity.

2.6 Promoting an Information Society

The development of a South African vision of the information society is urgently required, one serving our own needs rather than echoing those of other nations.

A South African vision of the information society should seek to ensure that the advantages offered by the information revolution reach down to every level of society and achieve as best a balance between individuals and social groups, communities and societies as is practically possible. In developed countries, even where social issues are taken into account, the bias tends toward individual advancement via personal universal access and, at a public level, toward competition between firms and nations. This vision would seek to ensure the creation of an equitable information order nationally, regionally and internationally. It would therefore take into account the undoubted potential of communities at various levels to co-operate, to bridge differences, to work for mutual upliftment and the meeting of basic needs, and to redress the social imbalances of underdevelopment. The development of such a perspective would aim to ensure that the information revolution benefits society as a whole.

The potential of information technology (IT) needs to be captured to serve people issues such as supporting education, providing household services and enabling social development. As a developing country, South Africa needs to ask certain questions with respect to the information revolution:

What should we do to prevent being marginalised by the accelerating rate of innovation in information technology in the world?

How can we participate globally without merely throwing open our markets to foreign products, thus increasing our dependency on the developed world?

How can we empower ourselves with a capacity for IT innovation?

2.7 The Importance of Knowledge Generation

The well-being of scientific activity in South Africa is intimately linked to material factors. World-wide there is a clear trend for curiosity-driven research to increase as a function of national per capita income. Nevertheless, there is a danger of adopting too economistic a viewpoint. Even at our current stage of development, there is a need to recognise the importance of the knowledge-generating function of research, particularly in the higher education sector. Human wonder and curiosity and the ability to recognise serendipitous discovery account for much of scientific progress. Basic enquiry, as opposed to a formula-driven approach, is absolutely essential, particularly at the universities and technikons, which deal with young minds. It is important that fundamental research activity not be regarded as impractical, because it is the preserver of standards without which, in the long term, the applied sciences will also die.

Scientific endeavour is not purely utilitarian in its objectives and has important associated cultural and social values. It is also important to maintain a basic competence in "flagship" sciences such as physics and astronomy for cultural reasons. Not to offer them would be to take a negative view of our future the view that we are a second class nation, chained forever to the treadmill of feeding and clothing ourselves.

2.8 The Role of the Human Sciences in Innovation

The importance of the human sciences in South African society need to be recognised. Four of its important roles in the context of innovation need to be highlighted:

2.9 Finance, Management and Performance

The limitations imposed on research, technology development and technology transfer by the fiscal problems of the day need to be overcome. This will require a carefully co-ordinated approach, which recognises in general the less wasteful nature of a simpler fiscal policy, while appreciating the absolute necessity of encouraging innovation in the private sector.

Frameworks to promote linkages between universities, science, engineering and technology institutions (SETIs) and the private sector are needed with a view to sharing risks, resources and insights with respect to pre-competitive research.

Finally, there is a need to meet the internal challenges of governing a healthy S&T system. This includes managing the problems of big science, fundamental research and service-oriented science and their relationship with technology development, infrastructure, basic needs provision and human resource development. It also includes the comprehensive measurement of the inputs and outputs of S&T research and development, and its impact on the goals of national policy objectives, both in S&T and other fields.

Chapter 3 - A National System of Innovation for South Africa

3.1 Innovation and National Systems of Innovation

Innovation is the application in practice of creative new ideas, which in many cases involves the introduction of inventions into the marketplace. In contrast, creativity is the generating and articulating of new ideas.

It follows that people can be creative without being innovative. They may have ideas or produce inventions, but may not try to win broad acceptance for them, put them to use, or exploit them by turning their ideas into products and services that other people will buy or use.

Similarly, people can be innovative without being creative. For example, if they apply or implement ideas or inventions that were made elsewhere, they are being innovative, even though the inventions or creative ideas were not their own.

Some innovations are truly revolutionary, while most represent modest improvements in the way we do things. Competitive companies, for example, are continually introducing incremental innovations to improve the products they sell or the processes they use in production. Only rarely will they introduce something radically new into the market place.

The aim of this White Paper is to try to create the conditions that will support both creativity and innovativeness throughout our society. For the purpose of this Paper, such an environment would consist of all individuals and organisations involved in creating and using a knowledge base in order to build a better South Africa and would thus constitute a national system of innovation. Such a system, in its broadest conception, is the means through which a country seeks to create, acquire, diffuse and put into practice new knowledge that will help that country and its people achieve their individual and collective goals.

One submission in response to the Green Paper on Science and Technology(3) cogently argued that

"Science creates conditions for economic and national development, and raises the prestige of a country in the modern world. The most important goal of SET policy is to achieve results which in the near future will support the process of social and economic transformation, and in the long run will ensure economic growth and social development of the country, by making the most of resources set aside for scientific research and development. To reach this goal, it will be essential to link science effectively with other areas of social and economic activity, and with education in particular."

The Green Paper distinguished between a strategy for science and technology and a strategy for strengthening a national system of innovation in the following way:

"A national S&T system focuses attention on the outputs of that system; that is new knowledge and new technologies. A strategy for S&T is aimed at ensuring that there is a sufficient supply of these outputs. A strategy based on a national system of innovation includes, but goes beyond that, seeking in addition to promote changing the ways in which society and the economy do things. It is specifically concerned with supporting and promoting the attainment of national objectives by the creative use of the outputs of the S&T system".

Thus, a national system of innovation can only be judged as healthy if the knowledge, technologies, products and processes produced by the national system of science, engineering and technology have been converted into increased wealth, by industry and business, and into an improved quality of life for all members of society.

Both the Green Paper and the White Paper are based on the analysis of how well South Africa ensures the fulfilment of six sets of functions of its national system of innovation, the first two sets of which are the exclusive domain of government, while all of the others are the domain of activity of many stakeholders.

The six sets of functions are:

Government functions

Shared functions

The use of the concept of a national system of innovation as a framework for policy is an attempt to signal a radical departure from the current situation and understanding in South Africa, introducing a new view of the role and status of the sciences, engineering and technology in national development. The acceptance by many countries that technological change is the primary source of economic growth means that economic and S&T policies have to recognise as central concerns the two processes innovation and technology diffusion which are the agents driving that technological change.

The rate of technological change in a country depends not only on the amount of R&D done in the country, but also on important factors such as the ways in which available resources (including skills) are organised, at both the company and firm level, and the availability of technologies from both domestic and foreign sources. In this context the process of technology diffusion is of cardinal importance. The policies set out in this White Paper see the promotion of the effective distribution of available knowledge as a critical function of a national system of innovation. A well-functioning process of technology diffusion could boost progress in South Africa through appropriate combinations of domestic and imported technologies, but this in turn will be highly dependent on the ability of South African firms to absorb such technologies.

To summarise, a national system of innovation can be thought of as a set of functioning institutions, organisations and policies which interact constructively in the pursuit of a common set of social and economic goals and objectives.

Government's three key interests, then, can be thought of as being:

We have adopted the concept of a South African national system of innovation as the basic framework for policy analysis within this White Paper for three principal reasons:

It affords an opportunity to think of means for the promotion of coherence and integration among national activities, two factors which have been sorely neglected in the South African S&T system of the past.

It offers a means of identifying what needs to be done without automatically tying the necessary functions to any particular institution or organisation which is currently in place.

It focuses attention on innovation on doing new things in new ways rather than simply on the production of knowledge.

In South Africa the Growth and Development Strategy, enunciated in November 1995, provides government's goals and objectives and the Macroeconomic Strategy of June 1996 the associated modalities. This White Paper attempts to ensure that there are in position the institutions, organisations and policies and an environment in which the necessary "constructive interactions" between them can flourish in order to promote the successful implementation of the broader policies referred to.

While much of the emphasis in this White Paper is on technological innovation and on its role in promoting industrial competitiveness, the concept of innovation is a much wider one. At this point in South Africa's history it will be particularly important to recognise the great national need for social innovation, as our country tries to redefine itself and to create a brighter future for all of its citizens. Innovation in the design of South Africa's social and economic institutions, and in its system of governance, is needed equally as much as innovation in the products and production processes of its economy.

3.2 Research for Innovation

The White Paper proceeds from the view that innovation is an encompassing notion that is based on the continuous production of new knowledge and its creative applications in a number of spheres. This viewpoint holds that the promotion of research, both applied and basic, in the natural sciences and in the social sciences, is crucial to innovation and hence to both social and economic development.

Applied research

Applied research, particularly in the natural sciences, has time and again proved its worth in ultimately delivering goods, services and conditions which improve the lives of individuals and societies. This is generally accepted despite the unwise choices research has made possible for humanity, particularly during the 20th century.

The provision of clean drinking water, electricity, houses and water-borne sewerage all depend to an extent on ongoing scientific research. Research is also critical for a healthy industrial environment. Here, even if the breakthroughs are not made in South Africa, a research mindset is essential in order to optimise the benefits of technology transfer from abroad.

Basic research

The important role of basic scientific research in knowledge generation and in maintaining educational standards has been mentioned in section 2.7. South Africa has a proud record of quality basic research and it is important to sustain this. In particular, the bridge that such research provides to the international scientific environment must be preserved. It is the quality of our science rather than the number of international agreements we are party to which will ensure this. Therefore our scientists must be given incentives to continue publishing in high impact journals and testing their ideas against international best practice by presenting their ideas in international fora. This tested process of bench-marking against the best in a field is no less important for South African science and technology than it is for our sport.

The skills and respect for rigour learned in service of cutting edge basic research are transferrable to almost any environment where high level analytical and problem solving competence is required. It should not be forgotten that the World Wide Web was developed by particle physicists at CERN in Geneva, as a by-product of the Nobel prize-winning scientific programmes undertaken there. Similar equally productive transfers of skills have occurred in the field of financial risk management. The ability to make leaps such as these lies at the heart of an innovative culture and it would be short sighted to underestimate the role of basic research in achieving this culture.

Social Science research

The dramatic political changes in South Africa over the last few years provide a unique opportunity for social renewal in respect of our value systems, the role of the individual in society and with respect to the state. We will need new knowledge to assist us consolidating democracy, the protection of human rights and the accountability of public authorities in South Africa. Ongoing policy research in areas such as health care, education and employment creation, which are central to improving the quality of life of millions of poor South Africans will also require the active and continuing involvement of social scientists. South Africa needs to clarify the relationship between central and provincial levels of government in practice. Resolving the inherent tensions in any such system will require creative thinking about mechanisms and processes for which there are few, if any, existing models. Human and social scientists play a vital role in providing critical analyses of national goals, choices about development policies and strategies, and other national issues pertaining to the transformation of South African society. Their involvement is crucial to a deeper understanding of social issues and to stimulating public debate that could lead to a reconsideration of chosen paths. Equally important to any society that seeks to be innovative in its response to the demands of global change is social research that identifies and explains global trends and their implications in areas of political and economic life, communications and lifestyle changes. Research in the social sciences is therefore of fundamental importance particularly at this point in our history.

Research activity also strengthens the national system of innovation through the general production and transmission of knowledge, and the training of new generations of academics and researchers. Scientists engaging in basic research contribute to the intellectual vibrancy of society as part of a strong R&D base needed not only for understanding and applying new technologies but also for participating in, and in some areas leading, a global scientific community. It is important to assert, in this climate of pressing social and material needs, that research, which generates long term benefits should not be downplayed. The corollary of this is that researchers and research managers need to think very fundamentally about what their aims are and to articulate these clearly to decision makers and to the public at large.

3.3 Stakeholders in South Africa's National System of Innovation

South Africa's national system of innovation "consists of all individuals and organisations involved in creating and using a knowledge base in order to build a better South Africa". The Green Paper enumerated a wide range of stakeholders in government, business, education and training institutions, in multipartite bodies and in organised civil society, even including a number of interested outsiders. The principal institutional stakeholders in government and their respective roles are described below.

Central policy departments

The central policy departments are those departments which have a cross-cutting function, that is they are responsible for determining policy across all or many government departments and do not have a specific line management function. The President's Office and the Department of State Expenditure are examples of such departments. Some functions of DACST are also of a central policy nature. In many national systems, such departments play a crucial role in determining policy, establishing priorities and allocating resources from government coffers to the line departments and SETIs (see Section 4.1).

Government line departments

The line departments are those government departments which manage a specific portfolio within government, such as the Department of Education and the Department of Defence. These departments do not have a cross-cutting function, but are often subject to policies determined in other departments, such as the Department of Public Service and Administration. Very often, their SET requirements are fulfilled by outsourcing to performers who are better equipped to handle the research. This outsourcing of performance by line departments follows the international trend. The practice of outsourcing is however not followed in cases where government accountability is politically desirable. The crucial requirement of the line department is that they retain the capacity for "intelligent buying" of R&D and SET services.

Agencies

The agencies are those government bodies which are tasked to allocate funds from central government to performers of R&D within all sectors of the economy, and especially within those sectors where government has a line responsibility such as water affairs and national education. There are two types of agencies:

General agencies, whose main function is capacity building and human resources development within the higher education sector (such as the Foundation for Research Development).

Specialised domain agencies, whose task is to fund long-term R&D aimed at knowledge generation (as opposed to short-term contract research) and whose finances are exclusively derived from industry levies (such as the Water Research Commission).

SET institutions (SETIs)

For the purposes of the White Paper, the term SET institutions refers to all the dedicated institutions performing R&D or related scientific activities, including those that are incorporated in the directorates and subdirectorates of a government department where a clear mandate to perform SET is a core function.

SETIs are an important component of the overall R&D framework. They have played a powerful role in enhancing the competitive technological strengths of our industry. They are crucial in generating results that lead to innovation in those areas which are not easily or appropriately undertaken in the private sector, for instance, in the areas of pre-competitive research, support of small, medium and micro enterprises (SMMEs), development of high-risk technology, the provision of a national innovation infrastructure, and the support of innovation in the public sector which leads to improvements in professionalism, efficiency and effectiveness.

State Corporations

State corporations developed as part of a general model of government initiatives for various mission-oriented or policy-related reasons. This was consistent with the post-colonial and international political trends, prevalent in the 1950s to 1970s, of retaining high government involvement in this domain. They are usually constituted by an Act of Parliament and operate as autonomous institutions within their mandates.

There are also many other stakeholders in the NSI such as

Business

Firms, enterprises, industries, the private sector, business of whatever description, there is general agreement that the collective organisations in the private sector are fundamental to the financing and implementation of innovation in society. The prime engine for economic growth is located in a countrys firms a nation's competitiveness depends upon the ability of its firms to innovate, and thereby provide sustainable output and employment growth.

However, innovation is not a trivial process. It is costly, often high risk, and generally operates on a longer time frame in years than the traditional quarterly periods or annual periods over which a companys performance is evaluated. Investors in innovation programmes require vision, strategic thinking and confidence. Very often they require to be driven by external competitive pressures and threats. Amongst other factors, to innovate successfully often means that a nation must be prepared to probe the unknown and to take calculated risks.

Government has an important role to play in the sharing of this risk and in its attempts to provide an enabling environment for innovation. Mechanisms for this are discussed in Section 8.3.

Higher education sector (HES)

The higher education sector is characteristically only a recipient of funds for R&D, with which it is required to provide talented human resources, meet local needs in knowledge generation related to scientific progress, create and sustain centres of excellence in the social and physical sciences and engineering, and participate in consortia and other joint research programmes.

With some notable exceptions, the HES is poorly connected to the business sector and the government SETIs. This Paper proposes mechanisms to improve this linkage (see Section 8.3). A further problem is the comparative absence of multi-disciplinary and problem-oriented institutes. Some specific proposals have been made to fund larger scale projects of a multi-disciplinary nature which are intended to address problems of national concern.

Non-government organisations (NGOs)

There are a large number of S&T-oriented NGOs in South Africa, ranging from those performing research (for example S&T policy centres) to those providing scientific services and others involved in education and training. Traditionally, NGOs have been left out of national S&T planning and policy making in South Africa. The introduction of the Innovation Fund, which is intended to reach beyond those institutions eligible for parliamentary funding, will hopefully better enable this group to contribute to the NSI.

These stakeholders all play a variety of roles in the system they may be policy makers or advisors, financiers, regulators, performers of R&D or other related scientific activities, educators or trainers, or providers of infrastructure. Some will play single roles while others will be engaged in more than one way. Each may be the dominant participant in some sector of economic life. In particular, government recognises that enterprises are the primary sources of industrial innovation while our institutions of higher education are the dominant actors in education and training. Government plays many roles in the national system of innovation, but is the dominant player only in those areas described in the Green Paper as the "core functions" of government, that is in policy setting, resource allocation at the national level, and in legislating regulatory frameworks.

Since the White Paper is a statement of government policy, it can contain only commitments and initiatives on behalf of government. The fact that specific initiatives which should be taken by, for example, enterprises or universities are not mentioned, does not mean that such initiatives would be unimportant in fact, the opposite is true. The White Paper, however, deals exclusively with policies and initiatives of government.

This chapter deals with the functions of a national system of innovation as listed in Chapter 3 as well as in the Green Paper and discusses initiatives in the areas of:

These principal policy initiatives are summarised and specific references are made to the location in Part II of this White Paper in which individual initiatives are spelled out in greater detail.

4.1 Government Functions

4.2 Shared Functions

The matters discussed above represent the core functions of a government in a national system of innovation; they are functions about which government alone is empowered to take final decisions. All of the other crucial functions of a national system of innovation are shared, often among many stakeholders, and stakeholders may act either alone or in many different combinations. In fact, one of the most important features of a system of innovation is that the participants should interact positively and creatively.

In what follows, the White Paper concentrates on government's intentions with respect to its participation in these "shared functions".

PART TWO - SPECIFIC INITIATIVES

In the light of the proposals contained in this White Paper, government has decided that the terms of reference of DACST shall be:

The Council will

5.2 Inputs to Policy Making

5.3 Interaction with Other Policies

5.4 Resource Allocation

Chapter 6 - Regulatory Policy

6.1 Aligning Patenting Regulations with International Norms

One of the issues brought to the fore by treating innovation as a national priority is that of intellectual property rights. Intellectual property is a collective term for four types of intangible property, namely patents, trademarks, copyrights and trade secrets. The awarding, recording and protection of intellectual property refers to the set of systems and laws designed to administer and regulate the registration and copying of all forms of intellectual property, including inventions, unique symbols and creative expressions. The current trend world-wide is towards harmonising the relevant laws, although such property is protected on a national basis. Clearly, the aim behind this trend is to give the inventor protection in a globalised world economy.

Although no specific legislation will be proposed here, the DACST will work with the department of Trade and Industry (DTI) to establish how South African patenting regulations should be revised to best promote innovation.

Issues to consider in establishing or modifying patenting regulations are:

The value to the inventor of the patenting system. Adequate protection fosters investment and stimulates innovation. The rights of South African inventors need to be rigorously protected.

The issue of not being a patent examining country. This can be addressed by doing the examining in South Africa, which is costly. A much less costly alternative is to permit provisional registration of patents pending confirmation by the patenting system of a country which does examine patents. This approach has been adopted by Saudi Arabia.

The basic approach should be to align our intellectual property regulations with international norms, rather than opt for a regional or purely national system.

6.2 Promoting the Protection of Safety, Health and the Environment (SHE)

As economic development proceeds, it becomes more imperative to provide for the protection of people and the environment in the face of new stresses and demands. In the area of SHE, the whole nation is a stakeholder. Thus human and environmental health must be seen as essential partners in development. Development decisions should not be taken before the whole range of impacts, including employment opportunities, health and environmental implications, have been taken into account. To fulfill this requirement without generating expensive and time-consuming litigation, the regulatory framework needs to be relatively simple and consolidated. A tendency exists for SHE regulations to be dispersed through a multiplicity of Acts, probably because SHE has often been a legislative afterthought rather than a primary concern. Future SHE legislation must therefore take the following principles into account:

In this regard, initiatives by the Departments of Labour, Environmental Affairs and Tourism, Health and Mineral and Energy Affairs need to be supported. DACST will initiate discussions with these departments to establish in what way the National Advisory Council on Innovation (NACI) could contribute.

Chapter 7 - Financing (at the Performance Level)

7.1 Financing and Innovation

In chapters 5 and 6, detail was provided about core government functions vis-a-vis the national system of innovation (NSI). A separate component of the NSI are those functions which are essentially shared functions, comprising the implementation functions such as financing, performance, human resource development and infrastructure provision. Financing of innovation at the performance level and the subsequent management of that performance are clearly crucial to the effective functioning of the NSI. These two aspects of the NSI are covered in this and the following chapter.

Throughout the White Paper, the theme of innovation, as opposed to S&T itself, has been made central to the determination of policy and strategy. This is a crucial focus excellence in S&T does not necessarily translate into innovation. The transformation of new ideas into commercial successes, which are so important to the nations ability to achieve economic growth, employment creation and competitiveness, requires that attention be given not only to R&D and the technological factors of innovation, but also the social, institutional and market factors such as adoption, diffusion and transfer. In some cases, these non-R&D costs may account for as much as 60% of the total innovation cost. In the past, policies designed to improve the S&T output of a nation have not recognised the importance of non-technological factors to the innovation cycle. As a result S&T initiatives have often failed to deliver consistently and coherently against promises of economic growth and employment creation.

In order to incorporate the new demands of innovation, firms and government must make an organisational effort to adopt new methods of production, management and distribution. Government, in its efforts to provide infrastructure and health care, and to guide sustainable development and environmental management, must pursue new approaches to technology management. In this respect, many firms and enterprises are already leading the way. Market intelligence capacity within R&D departments is now more the rule than the exception. Product development takes place within small, flexible, multi-disciplinary teams, which are able to speed up the introduction of new ideas to the market place. In the forthcoming sections, many of the functions of government, industry associations and firms connected to the implementation of innovation programmes, and strategies for improving the efficiency and extent thereof, are discussed.

The Green Paper defined the "financing functions" of the NSI as the "management of financing systems appropriate to the implementation of the other functions of the system", and the "use of Governments purchasing power as a stimulus to innovation in the production of goods and services which it requires". Within each of these functions, the White Paper is proposing several initiatives which are outlined in the sections below.

7.2 The Innovation Fund

Throughout the White Paper, the proposed policy initiatives have emphasised the need for measures to give effect to the concept of innovation, as opposed to S&T or R&D and wherever it may be taking place. This is especially true of the proposed Innovation Fund, which will offer a new lead in encouraging and enabling longer-term, large innovation projects in the higher education sector (HES), government SETIs, civil society or the private sector.

The Innovation Fund will initially obtain its income from reprioritisation of the science allocations across government. Final details of the procedures for raising revenue from the Fund, receiving applications, determining criteria for eligibility and monitoring progress of supported programmes, will be developed by DACST in consultation with NACI. The guiding criteria for the Innovation Fund are:

Initially, at least 50% of the funding will be allocated to projects directly dealing with the needs of disadvantaged populations.

Preference will be given to larger and longer-term proposals. This will allow for significant initiatives to be undertaken by larger groups or consortia and to reduce the overheads associated with processing and managing the funding of many small projects.

Applications will be considered from groups whose members may be drawn from any combination of government SETIs, HES, private sector, public sector or civil society.

Particular priority will be given to applications which indicate close relationships between those conducting the activities foreseen and those who would be expected to diffuse and make practical use of the results of those activities.

A common framework for proposals, costing and output measurement will be provided in view of the different cost structures in the organisations from which the applications will be received. The Innovation Fund will not finance the salaries of principal researchers.

The programme created to administer the Fund will be mandated to define a mechanism for developing and updating thematic priorities on a biennial basis. Ideally this process should also be supplemented and updated by a technology foresighting exercise. NACI will also advise on the setting of these priorities.

DACST will create a mechanism to administer the Innovation Fund. To make the Fund a useful and credible programme, it is essential that it establish a process of assessment of proposals capable of evaluating the technical, economic and social implications of proposals. This will involve the use of qualified external reviewers. The management of the Fund should draw on the experience of the Support Programme for Industrial Innovation (SPII), the Water Research Commission, the Safety in Mines Research Advisory Committee and the Energy Policy Projects (both supported by the Department of Mineral and Energy Affairs), and the Directorate of Technology Development of the SANDF in designing appropriate processes of review and follow-up.

In view of the potential for overlap between SPII and the Innovation Fund, DACST and DTI have agreed to work together to manage these two programmes optimally.

7.3 Principles for Funding R&D in the HES

Government has decided that a co-ordinated system of grant financing of research in institutions of higher education will be instituted. The principles on which the system will operate will be the following:

All areas of research will be eligible for support, as will basic and applied research and activities of technological development.

The system will pay particular attention to the introduction of processes to facilitate the financing of problem-oriented research involving participants from many disciplines.

The system will develop and implement a policy of peer review for all areas of research which will incorporate the following procedures:

A progressive effort will be made to achieve economies through sharing of support facilities among the organisations involved in allocating this support. The support to research in higher education will be allied to the government's primary support for human resource development in this sector.

The system will be responsible for promoting individual and institutional capacity for research within tertiary education.

In general, the organisations providing this support (that is, the agencies) will not themselves engage in the performance of research. The intention of this proscription is to avoid potential conflicts of interest between granting and performance responsibilities and to ensure that all research meeting agreed standards has the possibility of being funded. Nevertheless, this principle is not intended to impede the implementation of other government-funded research programmes if it is deemed inappropriate for these programmes.

The primary criteria for support will continue to be the quality of the research proposed, the relevance of that research to the goals and objectives of South Africa's vision for the future, and the contribution the activity will make to redressing the human and institutional imbalances of the past.

A regular schedule of evaluations will be instituted for all programmes.

The principal institutional system initially engaged in delivering this support will have the following structure:

There will be four Agency Divisions:

The NRF will also be responsible for administering the National Facilities for Research (NFs), such as the National Accelerator Centre. This White Paper proposes that experiment time at the NFs be allocated according to the same principles as those outlined for grant funding. This will ensure that these facilities become truly national in character. A more detailed exposition of the role of the NFs is given in section 10.4.

The four Divisions will be co-ordinated through the National Research Foundation (NRF), which will have the following structure:

It is intended that the new system for grant funding be a flexible one and that it should develop the capacity to adjust the array of programmes which it supports in a timely manner. In addition, the National Research Foundation should keep under review both the number and terms of reference of the Divisions. The Minister may request that new Divisions be added to the NRF, or existing ones be amalgamated. Any additional Divisions will carry with them one additional Board member with appropriate professional experience. Adjustments at this level, although infrequent, should certainly be possible, in the light of experience.

The dispensation for the administration of grant funding presented in this White Paper represents an important departure from the present arrangement in that

The NRF is intended to replace and augment current granting mechanisms in the FRD, the HSRC and the MRC, but its existence will not in any way proscribe the operations of specialised domain agencies (see section 3.3) such as the Water Research Commission and the Department of Defence's Directorate for Technology Development. However, the emphasis placed on economies of scale and multidisciplinary work in this White Paper is considered to be valid, even in respect of the specialised domain agencies.

Each Division of the NRF will have its own Advisory Panel, which will assist in promoting synergy between the programmes of the Division and the research and human resources needs of the relevant sector. In the case of the Division for Health Sciences, for example, the Essential National Health Programme now being established by the Department of Health would provide an important reference system.

The primary functions of the NRF will be to ensure the support of research and research capacity building within the HES. The terms of reference, to be drawn up by DACST in consultation with line departments, will contain detailed objectives, to be spelled out in legislation, and will include, among others

The NRF should create an ongoing dialogue with its stakeholders in the tertiary education sector on the issues of research support and capacity building.

The Department of Education is an important source of financing of research in tertiary education institutions; it provides this support both through funds included in its general formula for financing tertiary education and it operates a grant programme based on publications in peer reviewed journals.

DACST will enter into discussions with the Department of Education to seek means of ensuring that the general formula financing of research is supporting the objectives set out in this White Paper. The present 15% allocated by the Department of Education from the subsidy received for each full time equivalent student in order to support research represents an amount of money substantially larger than that currently made available by government for grant funding via the FRD, the HSRC and the MRC. The Universities must be able to account that this money is spent on research.

As far as the research funding based on peer reviewed publications is concerned, a new policy is being developed by the Department of Education, in consultation with stakeholders.

7.4 Private Sector Funding

The private sector is able to raise funds for its R&D activities from five main areas:

In addition to the above, careful attention must be given to the needs of SMMEs, which are typically at the cutting edge of commercialising novel products or processes (that is, the products of innovation), but have limited resources both for financing internal R&D and for transferring technology to or from SETIs and international technology vendors. Government policy in this regard has already been stated in a separate White Paper.


Chapter 8 - Performance

8.1 Management and Financing of Government SET Institutions

The current management and financing system for SETIs in South Africa has some desirable features which should be retained or extended. Nevertheless, it does not meet many important criteria and needs to be amended in such a way that the new mechanisms do not obstruct their effective functioning. Such mechanisms, as they relate to management and financing, are now discussed.

The answers to these questions will be of great use in integrating SET planning into general development planning at government level.

8.2 Operational Issues of Government Funded SETIs

8.3 Promoting linkages between sectors and between stakeholders

8.4 International Agreements

Since the April 1994 elections, and following the re-entry of South Africa into the international community, several bilateral technology agreements have been signed with our main trading partners. At the international level, these agreements are intended to facilitate joint R&D; at the regional level South Africa has a special responsibility to facilitate innovation within our neighbouring countries.

These agreements all entail some commitment in terms of resources. In some cases, the costs can be considerable. These costs may not be significant in view of the net benefits to the economy when participation results in successful technology transfer or collaborative development.

In view of the government's responsibility to fulfil the role outlined above and the limitations on its resources, it is proposed that technology trade or collaborative agreements be considered individually and evaluated according to predetermined criteria. The following factors must be borne in mind when developing these criteria:

The possible prevention of institutional co-operation between nationals from the two countries in the absence of a bilateral agreement.

The degree of synergy between the two countries which will promote the productive outcome of collaborative programmes.

Science and Technology attachés deployed by DACST could play an important role in the evaluation of government's and the private sector's requirements for scientific research and for technology acquisition. Nevertheless, a cost-benefit analysis is essential and use must be made wherever possible of existing government infrastructure abroad, for example the network of offices run by the Department of Trade and Industry.

Chapter 9 - Human Resource Development and Capacity Building

9.1 Human Resources as a National Asset

The Green Paper identified people as South Africa's most basic asset. This position was supported by the comments received in response to the Green Paper. The concepts of human resource development (HRD) and capacity building for the purpose of this White Paper are defined more closely below.

In its most general usage HRD refers to the process whereby people, either individually or collectively, acquire the knowledge and skills necessary for specific occupational tasks as well as for other social, cultural, intellectual or political roles associated with a vibrant democratic society. It also refers to the ability to access and utilise information resources, to give expression to theoretical concepts and their innovative application.

HRD is dependent on a comprehensive strategy outlining coherent and integrated policies in a wide range of related areas, including economic, labour, education and training, and science and technology policy. Central to this approach is the belief that attempts at reforming an element of the system, for example, education and training, in isolation of developments in other policy areas and social institutions will not generate the desired outcomes.

The concept of capacity building covers both institutional capacity and individual capacity. Institutional capacity building in South Africa will involve significant investments in infrastructure development. Such investment would focus on key resources and facilities needed to support the R&D environment such as education infrastructure, science parks, museums and libraries, as well as on "soft" infrastructure such as the facilitation of information flow, intellectual property issues, and other crucial elements in the utilisation of R&D products. However, tending to these needs alone will not provide well-functioning institutions. Developing modern and flexible management systems, geared to the mandate of the institution, and evolving strategic plans for the development of staff skills and competencies are just as important.

Individual capacity involves the development of high-level skills, competencies, values and attitudes required for S&T development. Referred as HRD, individual capacity building addresses training, but also includes curricula and reward systems for a research career and fostering a supportive research culture.

Science and technology performs a dual function in the process of HRD. On the one hand, it provides the knowledge and skills content of HRD programmes - S&T covers a spectrum of subject disciplines from basic numeracy to quantum mechanics. On the other hand, S&T also acts as the medium whereby knowledge and skills are transferred - an example is the introduction of computer literacy which has positive spin-offs for a range of other knowledge domains.

9.2 Links with the Growth and Development Strategy

The Growth and Development Strategy is premised on six pillars. The first of these argue that growth and development must be based on "Investing in people as the productive and creative core of the economy". The government intends to create the following outputs related to HRD through the GDS:

A human resource development investment strategy which would be an integrated and affordable five-year HRD plan.

A training strategy which details sectoral investment programmes for the National Training Strategy, with a priority on immediate investment strategies.

Restructuring education through improving the quality of education within the prevailing fiscal constraints with the priority on skills for employment, growth and democracy and a plan for effective backlog provision.

Social partnerships in human resource development with specific reference to partnerships with the private sector on education, health and training. This also proposes a training investment target of five per cent of the salary bill.

DACST will be responsible for bringing the perspective of S&T to each of these programmes.

As HRD is a developmental strategy which requires a considerable amount of investment in time and hence finance, it can only be successful if based on effective social partnerships. The effective participation in such co-operative ventures is dependent on the constituents being properly organised. On the part of the public sector, this requires co-ordination across departments. Government recognises the need to improve this co-ordination, and has designated specific roles to individual departments within the framework of the GDS.

The most significant social element of HRD is its contribution towards the social emancipation of individuals and to the collective upliftment of society. Individual members' general well-being is improved through their acquiring the skills to deal with the day-to-day challenges of society and also through their personal involvement in the social, political and economic spheres of life.

The projected economic goal is a qualitatively enhanced production process with highly skilled labour and management co-operatively contributing towards growth. Such an achievement, in the context of the new GDS, should promote the institutional basis for co-operation and the required investment.

9.3 Equity through Redress

The most pervasive effect of the system of apartheid is the legacy of inequalities generated by decades of policy interventions specifically designed to exclude the majority of South Africans from participation in social, political and economic spheres of life. Programmes need to redress the inequalities which have excluded black women and men from the mainstream of South African society.

An effective HRD programme in science, engineering and technology is therefore vital to redress this imbalance, to improve our economic performance and to ensure the proper functioning of the NSI. Such a programme will have to address the consequences of past deliberate policies and practices that promoted racial and gender discrimination in HRD. Apart from the human rights issue, there is also the imperative for South Africa to optimise its productivity and economic performance to succeed in the global marketplace. To achieve this goal, South Africa will have to maximise the utilisation of ideas, creativity, ingenuity and innovation from the entire population.

By establishing appropriate enabling S&T policies in South Africa, we could move toward equity. This expectation is rooted in our belief in human rights and the belief that sustainable human development will occur faster where equity exists. Deliberate and affirmative actions need to be implemented. Aggressive promotion of the principle of lifelong learning gives South Africa the best chance, in the long term, of redressing SET-related skills, where the imbalances were most pronounced.

In the short term, DACST is collaborating with the Department of Education in the Students and Youth into Science, Technology, Engineering and Mathematics (SYSTEM) programme, a student recovery programme linked to teacher development. Consultations between government and the stakeholders, including teacher organisations, will be undertaken to promote the success of this strategy. DACST will also network with the Department of Education regarding the Technology 2005 programme.

9.4 Research Capacity Development at HDIs

Historically disadvantaged institutions (HDIs) have very limited research capacity, mainly because these institutions had been created to serve the homelands as part of apartheid policies. The emphasis of their original mission was on teaching and militated against their developing a research focus. Government is committed to improving the HDI's capacity to perform R&D. To facilitate this objective, DACST has a programme to obtain Official Development Assistance funding to establish or strengthen centres of excellence in research in HDIs. The objectives of this programme are

Awarding of grants will be based on

9.5 HRD and Capacity Building at the National Level

9.6 Adult Basic Education and Training

For any HRD strategy to be meaningful in the South African context, a comprehensive and affordable adult basic education and training (ABET) programme must receive high priority to ensure the furthering of the skills and career prospects of workers and the unemployed. Adult basic education and training must therefore be provided to redress discrimination and inequality imposed under apartheid as well as to redress the exclusive "youth" focus of schooling.

The future system must therefore make provision for lifelong-learning opportunities to serve a wide range of learners through structures that will be readily accessible and affordable. Concerted interventions in the field of ABET will contribute greatly toward achieving the objective of human resource development through massive expansion and qualitative improvements in the provision of education and training.

ABET is aimed at providing adults with education and training programmes equivalent to exit level in the formal school system, with an emphasis on literacy, numeracy and technological skills. It constitutes a fundamental and crucial step in the GDS. The provision of ABET can be accelerated and expanded by building partnerships between the state, employers, labour, communities, funders and non-government organisations (NGOs). Such collaboration would also assist in establishing a process for funding support of national ABET programmes in S&T, which should be managed at provincial and local levels by relevant stakeholders. DACST will, through engagement with SAQA, contribute to the development of an effective ABET curriculum and policy relating to S&T.

9.7 Technology Education

Based on the general acceptance that technological capability is central to contemporary society, many advanced and developing countries have introduced technology education into the school curriculum. There is considerable debate as to whether technology is a discipline in its own right, whether it should be taught as part of science, or spread across the curriculum. In many countries the implementation of technology as a subject has been undermined by a shortage of resources and teachers, inadequate support, and confusion about its philosophical underpinnings. Currently a national technology education pilot project is being implemented in the General Education phase of schooling with the aim of evaluating the curriculum implications.

Based on the overwhelming support received in responses to the Green Paper for introducing technology education across the General Education system, DACST will assist the Department of Education in developing a technology education programme for schools.

9.8 Public Awareness of S&T

Access to information is empowering, enabling people to monitor policy, lobby, learn, collaborate, campaign and react to proposed legislation. It is also one of the most powerful mechanisms through which social and economic progress can be achieved. The democratisation of society and elimination of poverty can only occur if people have equal access to the services and resources they need to perform their productive tasks. Democracy implies being aware of choices and making decisions. The extent to which this is possible depends largely on how much information is available to the people and how accessible it is.

For the national system of innovation to become effective and successful all South Africans should participate. This requires a society which understands and values science, engineering and technology and their critical role in ensuring national prosperity and a sustainable environment. This, in turn, requires that S&T information be disseminated as widely as possible in ways that are understood and appreciated by the general public.

Recent history has demonstrated the potential of technology to improve the quality of people's lives. Yet disadvantaged populations in general and women in particular, especially those in rural areas, have little access to information about these technologies. To date, a combination of factors have prevented them from gaining equitable access to the information they need and have thus limited their ability to participate more fully in the transformation process in South Africa.

A campaign to promote awareness and understanding of S&T and of its importance will have two key elements, namely promoting S&T literacy on the one hand, and promoting the power of S&T on the other. These programmes would include

The deficiencies of the current system are multifaceted. The solution of this problem requires an innovative approach in itself. All available SET institutions in South Africa should be actively involved in such an initiative.

Government will institute via DACST the delivery of S&T public awareness programmes in collaboration with consortia of institutions, including societies for the advancement of science, professional associations, academies of science, science museums and libraries, media (printed and electronic), educational institutions and private business.

In this White Paper the term "science and technology infrastructure" refers to national research facilities and services, to libraries and to regulatory frameworks, as well as to extended physical structures such as telecommunications networks. These systems are part of the overall public investment programme in infrastructure recently outlined in the government's Macroeconomic Strategy document.

10.1 Establishment, Operation and Maintenance of Information Services

10.2 Establishment, Operation and Maintenance of Technical Services (e.g. metrology, standardisation, calibration)

By and large, measurement and calibration activities, from minerals assaying to the determination of blood sugar, are conducted outside government. Nevertheless, government must provide the legislative framework for the national measurement system. There are five basic types of technical service which should be maintained at a national level:

Measurement standards. Measurement standards must be maintained according to international requirements in association with the International Bureau for Weights and Measures. The national measuring standards represent the highest authority in the country's measurement chain and provide the connection to the rest of the world. They have impact on trade and trade policy and are therefore strategic to government.

Calibration. The next link in the chain is the process of calibration in terms of the measures mentioned above. Calibration laboratories need to be accredited to ensure traceability in measurement and to ensure competent testing. This operates as a specialised service and therefore not at the level of government strategy.

Product and service standards. Some of these, particularly those involving products whose failure could be detrimental to health and safety, are compulsory. The majority, however, are voluntary, and their adoption is seen merely as a mark of quality. The WTO Agreement on the Technical Barriers to Trade is moving the world towards harmonisation of standards.

Quality and environmental management standards. Examples are the ISO 9000 and ISO 14000 series. These standards are closely allied to product and service standards and can enhance the competitiveness of a firm, particularly an SMME, which does not have a trade name of note. Increasingly, the application of these standards is a prerequisite for trade with European Union countries.

Accreditation. A national accreditation system has to be in place to provide for national and international recognition for calibration and testing laboratories and product and system certifiers.

To promote competitiveness in the international arena, South Africa has no choice but to remain with or adopt international systems of standards and conformity certification. To do otherwise would jeopardise the acceptability of our exports in world markets. Nevertheless, there are strong arguments in favour of abridging mechanism to address the lack of technological expertise or infrastructure, the level of which is pegged to international standards.

All government-funded organisations involved in maintaining standards and in calibration services, such as the South African Bureau of Standards, the National Calibration Service and the National Metrology Laboratory of the CSIR, will be subject to the review system for SETIs.

10.3 Operation and Maintenance of a System of Awarding, Recording and Protecting Intellectual Property

Whatever regulatory system South Africa adopts for awarding, recording and protecting intellectual property (see section 6.1), there are certain requirements of the system administering the patents. In particular, search and retrieval capabilities should utilise modern information technology to reduce management costs and to promote compliance with international standards.

10.4 Establishment, Operation and Maintenance of Major National Facilities for Research

Research laboratories or facilities may be established at a national rather than an institutional level for reasons of cost. Traditionally, the national facilities (NFs) cater for "big science", and draw in researchers from institutions across the country. Currently there are three NFs in South Africa:

The National Accelerator Centre performs three functions, namely nuclear structure research, radioisotope production and treatment of cancer patients by means of neutron and proton therapy. Its multidisciplinary character serves as a model for other similar institutions world-wide.

The two astronomical facilities each have sound research records and are able to take advantage of the desire of northern hemisphere researchers to access quality data from the southern skies.

All three existing NFs could benefit human resource development and the scientific community as well as the wider public's perception of them by being involved in the formal tuition programmes of local universities.

In general, the future establishment of NFs must be motivated by national needs because such facilities consume substantial government resources. The government should also be satisfied that proposals for new NFs have the broad support of the SET community. The main criteria for the establishment or the evaluation of NFs should be:

Quality, quantity and diversity of scientific output in the context of clear national benefit.

Potential to attract international collaborators. This will be greatly enhanced if local South African conditions are seen to offer scientific advantages to a sector of the international scientific community.

Educational output, in terms of quality and quantity of higher degrees produced.

Strength of interaction with universities and technikons, particularly HDIs and success achieved in encouraging a research culture.

Partnerships with industry.

Access to the NFs will be determined according to the same principles as have been outlined for grant funding (see section 7.3), although proposals from outside the higher education sector will also be considered. Proposals will be evaluated on merit, with preference being given to larger projects which form part of broad scientific thrusts determined by the Advisory Board.

This White Paper has proposed (see section 8.2.6) that the SAFARI research reactor at the Atomic Energy Corporation site at Pelindaba be declared a National Facility. A recommendation made in submissions to the Green Paper was the establishment of a SET computing and general network infrastructure (encompassing the existing network for universities and technikons - UNINET) which would give South African researchers access to world-class computing facilities. The feasibility of establishing this network as a NF with its own budget should be investigated.

The NFs will be administered by the National Research Foundation (see section 7.3).

10.5 Scientific Equipment

Provision should be made for purchase and maintenance of costly items of research equipment not at the national facility level, for example, mass spectrometers, electron microscopes or DNA sequencers. These should be allocated by the NRF, taking into account the following principles:

Conclusion

There is a broad perception in South Africa, which was confirmed by the Green Paper and by many of the submissions to the Green Paper, that we have in place an ailing national system of innovation. It is fragmented and is neither co-ordinated within itself nor with national goals; innovation capacity is not being built but is being eroded; national investment in R&D is not increasing relative to GDP, but falling. This decline is taking place at a time when we can ill afford it. We have embarked upon huge programmes of redressing the imbalances and inequities of the past, but are less able to meet the challenges with new and innovative solutions. We have committed ourselves to regional development but lack the resources to honour our commitments. We have opened our markets to international competition, but we are becoming less competitive.

Whilst it must be the concern of the whole nation to breathe new life and vitality into the NSI, there are several areas where government must play its part, either exclusively or with its partners and at several levels. This is the focus of the policies contained in the White Paper. The policies have not been proposed in isolation of other developments in government. Wherever possible, the White Paper has attempted to align the proposed policies and actions with the stated policies of other government departments. It has taken cognisance of the National Strategic Vision, the recently published Macroeconomic Strategy of the Government, other White Papers and the submissions to the Green Paper itself in order to prepare a policy agenda for government which will take the country into the 21st century. Many of these policies are specifically attempting not only to sweep aside the deficiencies of the past, but also to set new standards and goals by which scientists of all types, engineers, technologists and innovators can achieve new heights of national and international respectability.

Within the NSI, the White Paper has proposed policies :

Government's prerogatives include the establishment of laws and regulations, the allocation of public resources according to its priorities, and the initiation and implementation of programmes of activity relating to these functions. The White Paper has defined a policy agenda which covers all three areas.

It is our firm conviction that, by addressing the agenda set in this White Paper, we can turn a fragmented and inefficient NSI into a system that will increase the output of products, processes and organisations which are truly and remarkably innovative, and thereby help to build the new South Africa which we are all seeking.

List of Abbreviations

AET - Adult basic education and training

AEC - Atomic Energy Corporation

CSIR - Council for Scientific and Industrial Research

DACST - Department of Art, Culture, Science and Technology

DBI - Department-based institutes

DG - Director General

DTI- Department of Trade and Industry

FA - Framework autonomy

FRD - Foundation for Research Development

GDP - Gross Domestic Product

GDS - Growth and development strategy

GEIS - General Export Incentive Scheme

HDI - Historically disadvantaged institution

HES - Higher education sector

HRD - Human resource development

IDC - Industrial Development Corporation

IPR - Intellectual property rights

ISO - International Standards Organisation

IT - Information technology

LBSC- Local Business Service Centre

MA - Maximum averages

MCST - Ministers Committee for Science and Technology

MTC - Manufacturing Technology Centre

NACI -National Advisory Council on Innovation

NF -National facility

NGO- Non-government organisation

NQF - National Qualifications Framework

NRF - National Research Foundation

NSI - National system of innovation

NSTF - National Science and Technology Forum

NSV National Strategic Vision

OECD Organisation for Economic Co-operation and Development

R&D - Research and development

SADC - Southern African Development Community

SANDF -South African National Defence Force

SAQA - South African Qualifications Authority

SC - Science council

SET - Science, engineering and technology

SETI Science, engineering and technology institutions

SHE Safety, Health and the Environment

SMME Small, medium and micro enterprises

SOC State-owned corporations

SPII - Support Programme for Industrial Innovation

S&T - Science and technology

SYSTEM - Students and Youth into Science, Technology, Engineering and Mathematics

THRIP - Technological Human Resources for Industry Programme

WTO - World Trade Organisation

Notes:

1. The National System of Innovation is defined and discussed more comprehensively in Chapter 3.

2. This is the annual meeting of Foreign and Finance Ministers of OECD Countries.

3. Henceforth referred to as "The Green Paper"