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Annual Performance Plan 2013/14
TIA PRESENTATION
TO THE PORTFOLIO COMMITTEE ON
SCIENCE AND TECHNOLOGY
18 April 2013
Page 1 of 69
Annual Performance Plan 2013/14
TIA MANDATE
Page 2 of 69
Bridging the Innovation Chasm
The TIA Act [No 26 of 2008]
“The object of the Agency is to support the State in
stimulating and intensifying technological
innovation in order to improve economic growth
and the quality of life of all South Africans by
[supporting*] the development and exploitation of
technological innovations”
Page 3 of 69
Our Vision & Mission
Our Vision
To be a world class innovation agency that supports
and enables technological innovation to achieve
socio-economic benefits for South Africa.
Vision and Mission
Our Mission
To support technology innovators to unlock South
Africa’s global competitiveness and deliver socio-
economic value.
Innovation
Invention
+
Market
Context
Page 5 of 69
Annual Performance Plan 2013/14
KEY INFLUENCES
Page 6 of 69
Who is a TIA customer ?
Where do you find them?
• Technology Innovators
• Higher Education Institutions
• Science Councils
• State Owned Entities
• Private Companies
• Community
Page 7 of 69
The TIA Stakeholders
INNOVATOR INVESTOR
CITIZEN
TIA
TIA is at the confluence of the needs and aspirations of these stakeholders
Page 8 of 69
Stakeholder Needs (1)
The Innovator - Higher Education Institutions; Science Councils; State
Owned Entities and Private Companies
• Commercial & technical expertise
• Responsiveness and reliability
• Customer centric products & services
• Supporting infrastructure
• Access to technology innovation eco-system
• Sound advice
INNOVATOR
Page 9 of 69
Stakeholder Needs (2)
Investor - DST, Government Departments and Agencies; Provincial and
Local Government & Industry
• Technical acumen
• Commercial acumen
• Sound governance
• Risk mitigation
• Return on investment
• Rigorous ongoing monitoring & evaluation
INVESTOR
Page 10 of 69
Stakeholder Needs (3)
• Technology solutions to humanity’s problems
• Security
• Education
• Employment opportunities
• Systems level planning
• Improved quality of life
CITIZENS
Communities- Entrepreneurs, inventors and youth
Page 11 of 69
Annual Performance Plan 2013/14
ALIGNING TIA TO GOVERNMENT
OUTCOMES AND DST POLICY
MANDATES
Page 12 of 69
Link to government outcomes
Government Outcomes Description TIA’s role
Outcome 2 A long and healthy life for
all South Africans
Stimulation of PPP’s in drug development
of priority diseases and investments in
projects aimed at improved healthcare
Outcome 4 Decent employment
through inclusive economic
growth
Investments in projects in economic
sectors identified in NGP (Agric value
chain, Mining value chain, Manufacturing,
Tourism and High-level Services)
Outcome 5 A skilled and capable
workforce
Though TIA’s ISD initiatives aimed at
developing skills for innovation
Outcome 7 A vibrant, equitable and
sustainable rural
communities and food
security
Investment in projects aimed at improved
cattle farming, crop production, agric
exports, knowledge transfer
Page 13 of 69
Link to DST’s Ten-Year Innovation Plan
Innovation as a national competence
From farmer to pharma
Energy Security
Science & Technology in response to global
change
• Innovation culture
• Innovation Skills Development
• Venture Capital Fund
• Youth Technology Innovation Fund
• Bio-energy
• Renewable Energy
• Energy Storage
• EV Innovation Programme
• Advanced manufacturing focusing on biomaterials
• BioPharming , Biosafety , Bioprospecting and Drug
Development and the Omics platforms
• Tshwane Animal Health Cluster
Page 14 of 69
Annual Performance Plan 2013/14
TIA SECTORS
TIA support cuts across all technologies and
sectors of the economy indiscriminately
Page 15 of 69
Choice of TIA Sectors
ECONOMIC
Drivers - Productivity and competitiveness
Hurdles encountered - Technology development, investment and ISD
SOCIAL
Drivers - Knowledge base
Hurdles encountered - poor quality public education
ENVIRONMENTAL
Drivers - Resource optimisation
Hurdles encountered - Technology development
Technology
Innovation
The choice of sectors is influenced by drivers and hurdles that are
encountered economically, socially and environmentally
Page 16 of 69
TIA Sectors
ICT
Advanced Manufacturing
Ind
us
try/E
co
no
mic
Se
cto
rs
Cross-Cutting Technology Sectors
Ag
ri S
ec
tor
He
alt
h S
ecto
r
En
erg
y S
ec
tor
Min
ing
Se
cto
r
Industrial Biotech
Special Projects
Page 17 of 69
Annual Performance Plan 2013/14
OFFERINGS THROUGH THE
TECHNOLOGY INNOVATION VALUE
CHAIN
Page 18 of 69
TIA Offerings
1. Funding Instruments
2. Business Support & Strategic Partnerships
3. Technology Development Infrastructure
4. Innovation Skills Development
Page 19 of 69
Funding Instruments
The six funding instruments of TIA
Royalty-grants
Loans, Equity IP Fund
Technology
Development
Fund
Youth
Technology
Innovation
Fund
Venture Capital
Fund
Industry
Matching
Fund
CUSTOMER CENTRIC SOLUTIONS
ALONG THE INNOVATION VALUE CHAIN
Seed Fund
Page 20 of 69
IP Fund
Royalty-grants
Loans, Equity IP Fund
Technology
Development
Fund
Youth
Technology
Innovation
Fund
Venture
Capital
Fund
Industry
Matching
Fund
CUSTOMER CENTRIC SOLUTIONS
ALONG THE INNOVATION VALUE CHAIN
Seed Fund
A modest royalty instrument to enable innovators
to protect their Intellectual Property
Page 21 of 69
Seed Fund
Royalty-grants
Loans, Equity IP Fund
Technology
Development
Fund
Youth
Technology
Innovation
Fund
Venture
Capital
Fund
Industry
Matching
Fund
CUSTOMER CENTRIC SOLUTIONS
ALONG THE INNOVATION VALUE CHAIN
Seed Fund
1. A fund from which HEIs and Science Councils
can access initial funding to enable them to
develop their ideas into fundable applications.
2. R25 million in the first year
Page 22 of 69
Technology Development Fund
Royalty-grants
Loans, Equity IP Fund
Technology
Development
Fund
Youth
Technology
Innovation
Fund
Venture
Capital
Fund
Industry
Matching
Fund
CUSTOMER CENTRIC SOLUTIONS
ALONG THE INNOVATION VALUE CHAIN
Seed Fund
Royalty/ grant funding to Platforms and
Technology Stations, Consortia of HEI’s and
Science Councils
Page 23 of 69
Youth Technology Innovation Fund
Royalty-grants
Loans, Equity IP Fund
Technology
Development
Fund
Youth
Technology
Innovation
Fund
Venture
Capital Fund
Industry
Matching
Fund
CUSTOMER CENTRIC SOLUTIONS
ALONG THE INNOVATION VALUE CHAIN
Seed Fund
1. Applicants 18-30 years
2. Assistance is in the form of vouchers to access
services/ resources e.g. SABS testing, incubation, etc
Page 24 of 69
Industry Matching Fund
Royalty-grants
Loans, Equity IP Fund
Technology
Development
Fund
Youth
Technology
Innovation
Fund
Venture
Capital
Fund
Industry
Matching
Fund
CUSTOMER CENTRIC SOLUTIONS
ALONG THE INNOVATION VALUE CHAIN
Seed Fund
1. Match funding to companies where partnership with small
companies, HEIs and Science councils is incentivised
2. Royalties & loan structures on a ratchet scale
Page 25 of 69
Venture Capital Fund
Royalty-grants
Loans, Equity IP Fund
Technology
Development
Fund
Youth
Technology
Innovation
Fund
Venture
Capital Fund
Industry
Matching
Fund
CUSTOMER CENTRIC SOLUTIONS
ALONG THE INNOVATION VALUE CHAIN
Seed Fund
1. Co-invest with privately managed VC Funds
2. R100 million per annum over 5 years
3. Targeted at 2nd and 3rd round funding needs
Page 26 of 69
Business Support
• IP Management
• Financial management
• Legal Services
• Marketing
• Business Plan Development
• Governance
• Networking
• Internationalisation
Page 27 of 69
Strategic Partnerships
• To leverage local and international partnerships
• To develop “Strategic Capital” to enhance the organization’s capacity to
execute its mandate and meet its strategic objectives
• To generate stakeholder buy-in and support for TIA’s strategy
Page 28 of 69
Technology Development Infrastructure
Technology
Platforms
Technology
Stations
Technology
Innovation
Clusters
Page 29 of 69
Innovation Skills Development
Increasing the Capacity and Skill within the Innovation System
Page 30 of 69
Stimulating Economic Growth through Techno
Entrepreneurial Innovation Skills
The Wilburforce Community College Summer School
Page 31 of 69
Annual Performance Plan 2013/14
STRATEGIC INITIATIVES FOR THE YEAR
AHEAD
Page 32 of 69
Annual Performance Plan 2013/14
UNLOCKING THE POTENTIAL OF SMMEs
(Intensive Use of Technology Stations)
Page 33 of 69
State of SMMEs in European Union
EUs SMEs continue to be the backbone of the EU
economy. According to a report1 by the European
Commission, in 2012 SME’s accounted for:
• 98% of all enterprises (92.2% less than 10
employees)
• 67% of total employment (87million people)
• 58% per cent of gross value added
1. EU SMEs in 2012: at the crossroads. Annual report on small and medium-sized enterprises in the EU, 2011/12.
September 2012. Available:http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/performance-
review/files/supporting-documents/2012/annual-report_en.pdf
Page 34 of 69
State of SMEs in SA
Large industry contribution to the economy:
A total of 906 700 firms operate in South Africa yet large firms constitute only 0.7%
(6000) of business of the total
Large industry contributes 50% to GDP
Numerical contribution is disproportionate
SME contribution to the economy:
SMEs contribute 50% to GDP
Employs 60% of the labour force2
SME suffer from poor management skills due to inadequate training and
education3
This results in high rates of business failure
SA has one of the lowest SMEs survival rates in the world
2. National Treasury report on SME Access to Finance in South Africa-A supply side regulatory review. (2010).
Available:http://www.treasury.gov.za/publications/other/Access%20to%20Finance%20in%20South%20Africa%20-%20A%20Supply-
Side%20Regulatory%20Review.pdf
3. Global Entrepreneurship Monitor: South Africa Report (2001-2012). Available: http://www.gemconsortium.org/
Page 35 of 69
Global competitiveness report on SA
Ranking out South Africa out of 143 countries:
• FDI and technology transfer - 95
• Individuals using internet – 95
• Quality of the education system – 140
• Quality of maths and science education – 143
• Number of procedures to start a business - 80
Page 36 of 69
Technology Stations as an
intervention to assist SMEs
Technology Stations
Increased Interaction between
SMEs and HEIs
Key R&D Expertise for SMEs
Improved SME
competitive-ness
Enhance R&D at HEIs
Page 37 of 69
Technology Stations: Unlocking the potential
of SMEs
• TIA intends to recapitalise technology stations by re-investing
in SME clients who are doing well, to assist in
commercialisation, expansion and internationalisation
• Technology stations are becoming a magnet of external
funding e.g. Limpopo Economic Development, Environment
and Tourism (LEDET) has provided R1million per annum for
the next 3 year to assist SMEs in Limpopo with Agro-
processing
Page 38 of 69
Finger Print Scanner
Client: OUCH Pty Ltd
Service Offered:
• Manufacturing /Prototyping
• Applied Engineering, Design and
Development
• Product or Process Development
Description of Work: Cast Moulds and
Manufacture few parts
39
Hydroponic Irrigation system
Client: Moosa Sedibe
Service Offered: Applied
engineering, design and
development
Description of Work: Design and
manufacture a Hydroponic
Irrigation test bed
40
Keybord Cover
Client: Tswellang School
Service Offered:
•Manufacturing /Prototyping
•Applied Engineering, Design and
Development
Description of Work: Design
Keyboard cover for Disabled
persons and manufacture 5 off
Page 41 of 69
Vaseline Pot
Client: Connie Bonokwane
Service Offered:
•Applied Engineering, Design
and Development
Description of Work:
Design and manufacture of a
Gas Pot for vaseline and
floor polish
42 Page 42 of 69
Profile Roller
Client: M Steyn
Service Offered:
Manufacturing/Prototyping
Description of Work: Design and
manufacture of a machine which is
able to form a sheet of metal into a
certain profile
43
Page 43 of 69
Kneeling Chair
Client: Carlo Luus
Service Offered:
•Product or Process Development
•Applied Engineering, Design and
Development
Description of Work: Chair concept
developments, renderings in 3D,
material source and selection,
manufacture of chair with adjustable
mechanisms.
Page 44 of 69
Client: DUT Dental dept
Summary: This project is a major project to
assist in the design of a prosthetic knee for SA
patients.
Design of prosthetic knee
(community project)
Page 45 of 69
Client: Denel Aerospace Systems
Summary: The TS was contracted by Denel Aerospace Systems to machine plugs
and manufacture glass-fibre tooling and manufacture a model of the
Ingwe using carbon fibre for radar signature testing
INGWE – Radar cross section (RCS) model
Page 46 of 69
Chair Ladder
Client: Terrence Miles
Service Offered: Cad design and
prototype
Short Description: Client
requested the IAT to design and
develop the idea of a chair ladder
Page 47 of 69
Atchaar Manufacturing
Client: Emonate Food
Service Offered: Product
development and
Improvement.
Short Description: Atchaar
Manufacturing
Page 48 of 69
Cosmetic Products
Client: Authentica Beauty Paurlor
Service Offered: Development of
Cosmetics Products
Short Description: The Client
requested TSC to develop 9
cosmetics products for maternity
range; namely: Stretch Mark &
massage Oil; Anti-cellulite Gel;
Shower Gel; Pedicure Milk
Soak(pre-pedicure); Foot Cream
(post-pedicure); Pigmentation
Control Cream; Body butter; Body
Toning Lotion & Body Wrap Musk.
Page 49 of 69
Annual Performance Plan 2013/14
CLUSTERS
Page 50 of 69
Cluster Definition
By definition a cluster is “a geographic concentration of
interconnected companies, specialized suppliers, services
providers, firms in related industries and associated institutions
in particular fields that competes but also co-operate where, the
value of the system as a whole is greater than the sum of its
parts”.
• The key drivers of the biotechnology clusters are:
• Biotechnology research base (research organizations, human
capital, adequacy of funding for basic and applied research)
• Biotechnology industry base (existence of SMEs, large companies, industry associations)
Page 51 of 69
Clusters: Unlocking Publicly Funded R&D
In 2012/13 TIA launched Tshwane Animal Health Cluster
Received 63 applications from ARC, UP, CSIR & OBP
(R130million) during 2012/13FY
Currently 42 have been approved for funding at R93 million
In 2013-2015 TIA will launch KZN Bio-processing and
Limpopo Agro-processing Cluster
Remarks by Prof DelaRay of University of Pretoria
Page 52 of 69
UYilo e-Mobility Programme Opportunities
for South Africa
• South Africa’s IP is
scattered across the
value chain
• This program will serve
to bring all expertise,
research outputs and
ideas to develop a
sustainable
infrastructure support for
the emerging electric
vehicle market
Page 53 of 69
South African Mining Technology
Innovation Programme (MTIP)
Page 54 of 69
TIA Mining Sector Objectives
• Support technology development for:
– Efficient, Safe and Competitive Production
– Environmental and Health Management
– Minerals upgrading and value addition
– Lateral migration
– Innovation skills for technology innovation and commercialisation
Page 55 of 69
Mining and Minerals as a Sector…
Page 56 of 69
Annual Performance Plan 2013/14
STRATEGIC OBJECTIVES
Page 57 of 69
SO1: To stimulate the development and demonstration of technology
based products, processes and services
Indicator
Annual Target
1.1 Number of High Impact Investments 1
1.2 Number of Technology Based Products/Processes developed through
investments
30
1.3 Number of technology based products/processes developed or
improved through technology stations.
550
1.4 Number of products/processes developed or improved through
technology platforms
10
1.5 Number of green technologies supported
1
1.6 Number of Small and Medium Enterprises receiving technology support
from Technology Stations and Institutes of Advanced Tooling
2400
1.7 Number of knowledge innovation products: patents, prototypes, technology
demonstrators and technology transfer packages
15
Financial Perspective
SO2:To support the commercialisation of technology innovations
Indicator
Annual Target
2.1 Number of investments commercialised 12
2.2 Number of technology based companies established 4
2.3 Percentage of co-investment attracted 15%
2.4 Percentage of investments attracting second round
funding from external sources
5%
Page 59 of 69
SO3: To develop an enabling environment for technology
innovation and commercialisation in South Africa
Indicator
Annual Target
3.1 Number of new industry clusters established 1
Stakeholder Perspective
Page 60 of 69
SO4: To develop an enabling internal environment for TIA to successfully
execute its strategy
Indicator
Annual Target
4.1 To put in place an IT architecture that
enables investment & portfolio management
The TIA Enterprise Architecture document. Master System Plan
and Architechure.
End application and investment process that is fully embedded
in the system.
4.2 Efficient investment monitoring &
evaluation system
IT infrastructure & delivery optimisation, IT Operations
Management, Systems implementation plan, IT Business
continuity, Investments system security, Investment
management reporting
4.3 Compliance with all relevant legislation
Continuous monitoring and process improvement for sustained
compliance, unqualified audit
4.4 Alignment of TIA’s critical positions
with organisational design & relevant
competencies, including retention of skills
100% Staff trained based on IDPs, Ensure staff turnover below
10%, Ensure turnover of core staff below 10%
4.5 Development of a desired
organisational culture
5% improvement on previous year based on culture survey
results, Average performance management rating of 110%,
Average leadership rating of 5 across all competencies
Internal Process Perspective
61
SO5: To facilitate the development of innovation skills to support technology
innovation and commercialisation
Indicator
Annual Target
5.1 Number of learners on STEMI programmes 500 learners, 200 students, 50
educators
5.2 Number of learners trained in foundational engineering
skills
100
5.3 Number of FET learners placed on a learnership 20
5.4 Number of interns placed on an accredited programme for
workplace exposure
220
5.5 Number of candidates trained through Technical Skills
Programme at TIA Technology Stations or industry partners
through TIA funding
20
5.6 Number of Candidates trained through Chuma
Management Development Programme
10
5.7 Number of candidates trained though Techno-
entrepreneurship Programme
60
5.8 Number of participants in the Step Up Technology
Innovation Competition
50
Learning and Growth Perspective
62
SO6: To become a schedule 3B entity in terms of the Public Finance
Management Act
Indicator
Annual Target
6.1 Amount of funds raised by TIA as
a percentage of MTEF allocation
20%
6.2 Number of Initial Public
Offerings of TIA investments
0 this FY
Page 63 of 69
Annual Performance Plan 2013/14
BUDGET 2013/14
Page 64 of 69
MTEF Allocation
TIA Allocation 2013/14
R’000
2014/15
R’000
2015/16
R’000
Baseline Grant 240 760 256 717 268 743
Ring-fenced allocations 240 321 254 000 266 445
Technology Stations 35 045 37500 39 340
Institute for Advanced Tooling 7 500
Bio-economy projects 197 776 208 500 218 715
Ring fenced allocation Economic
Competitiveness Programme
(additional grant)
40 000 45 000 75 000
Total 2013 MTEF Allocation 521 081 555 717 610 188
Page 65 of 69
MTEF Budget
Audited Adjusted
Appropriation
MTEF Estimate
2011/2012 2012/2013 2013/2014 2014/2015 2015/2016
R 000 R 000 R 000 R 000 R 000
Operations 30 238
41 279 42 732 46 038 48 294
Human Resources 101 107
87 616 93 725
100
119 106 649
ISD 12 111
9 104 9 564 10 138 10 635
Investments 284 520
307 118 322 930 341 647 352 210
Marketing & Branding 6 180
6 656 7 348 7 707 8 085
Capital Expenditure 8 777
4 552 4 782 5 068 5 316
Total 442 933 456 325 481 081 510 717 537 188
TSP ring fenced
allocation 40 000 45 000 75 000
Total allocation from
DST 521 081 555 717 612 188
Page 66 of 69
MTEF Budget 2013/14
8%
18%
2%
70%
1% 1%
Operations
Human Resources
ISD
Investments
Marketing & Branding
Capital Expenditure
The investment figure has increased to 70% from 65% of total MTEF of 2012/2013.
Page 67 of 69
Relationship Between Expenditure Trends
and Strategic Goals
MTEF
FY13/14
R’m
Human
Resources
R’m
Operations
R’m
Investments
R’m
ISD
R’m
Marketing
&
Branding
R’m
Capex
R’m
481 *93.7 42.7 322.9 9.5 7.3 4.7
SO1
320.91
52.00
18.36
248.47
-
1.56
0.52
SO2
99.08
23.97
12.77
61.30
-
1.04
-
SO3
35.14
10.90
7.98
13.13
-
1.56
1.57
SO4
12.67
7.63
1.60
-
-
0.83
2.61
SO5
15.76
2.18
2.00
-
9.50
2.09
-
SO6
0.21
-
-
-
-
0.21
-
*Inclusive of R2.8 million for the Improvement in service Conditions from DST
Page 68 of 69
Thank You!
Page 69 of 69
