Transcript The role of the state in the NSI

The role of the state in the
NSI
South Africa
Structure
• Evolution of the current form of State
– Identification of continuities and ruptures in the relation between the
state and market. The specific period of analysis for individual countries
has to be decided by the respective country teams.
• Periodisation and analysis of institutions and policies of the
State concerned with Innovation
– Genealogies of the evolution of the Role of State in the design and
implementation of innovation policies and the connection between these
policies and development policies
• Specificities of the system of innovation in the country and its
relationship with the State
– Major features of the national, regional and local production and
innovation structures
– Main constraints on the viability of the NSI, in terms of:
• Reproduction
• Growth
• Evolution
Structure (contd.)
• Explicit and implicit state policy towards science, technology
and innovation
– Categorisation or conflation implies the narrower or the broader
definition of the NSI, respectively
– Supply-push and demand-pull policies
– National integration of the NSI
– Inter-NSI integration (scale issues)
– Human capital development
• Outcomes of state policy and state institutions on the NSI
– The sets of policies and institutions that are relevant depend on the
definition of the NSI
– Have to be assessed against specified targets
– Identification of causalities from policy to outcome
• Conclusions and recommendations targeting improvements in
the NSI with specific emphasis on the role of the state
Evolution of the current form of the state
The segregation/apartheid heritage
• High degree of intervention:
• establishment of parastatal corporations in energy,
transport, iron and steel
• Industrial Development Corporation
• CSIR
• Strong system of science and technology
• Minerals-energy-complex (endowment driven)
• Military-industrial-complex (strategic imperatives)
Evolution of the current form of the state
The segregation/apartheid heritage
• Weak system of innovation
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Human capital constraint
Small local markets
Relative isolation from global S&T networks
Wasteful state administration structures
Distorted economic geography
• Transitions
• 1916-1948: drive to modernity
• 1948-1994: the apartheid NSI
Evolution of the current form of the state
Post-apartheid
– GEAR (1996)
• Neoliberal
• Structural continuity
– Review of GEAR (2001)
• Sub-target growth, investment, savings and
enduring unemployment
• negative net FDI (excluding M&A investment)
• Unchanged human capital constraint (poverty,
education)
– Post-Polokwane
• Possibility of a third stage
Periodisation of STI policy
• Two STI policy documents
• 1916: empire driven (integrated planning but short lived)
• 1996: explicitly NSI driven (White Paper)
• The White Paper and GEAR
• Institutional build-up (DACST, NRF, NACI, Innovation Fund)
• Policy fragmentation and isolation of STI
• Post-GEAR
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DACST to DST
Transfer of CSIR from DTI to DST
Strategic intervention increased in S&T
Neutral intervention in the broader NSI
Post-apartheid performance of the
system of S&T
• R&D intensity has increased consistently since
2001
• Share of government financed R&D dropped
over 2001-2004 but rose sharply in 2005
• Weak relationship between financing and
performance patterns
• Drop in share of HEI R&D performance
Human Capital
S&T
• An aging and shrinking scientific population
• Black and women scientists, technologists and engineers are not
entering the academic ranks
• In 1990, the percentage of scientific publications produced by
researchers 50 years of age and older was 18% (one in five), but by
1998 this figure had increased to 45% (one in two).
• Between 1990 and 1998 the percentage of publications by black
scientists rose from 3,5% to 8% (less than one in ten). Participation
by women has not changed over the 1990s, with publication output
being about 10% of the total.
• Currently, there is less than one researcher for every thousand
members of the workforce, as compared with five in Australia and
ten in Japan. (NRDS, 2002: 21)
Human Capital
Broad based
• Low numeracy and literacy rates
• HDI dropped consistently over 1995-2005
• Increasing income inequality
– Increasing within racial classifications
– Decreasing between racial classifications
• The integrity of the family unit and the uncertainty of
human capital formation
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High unemployment
Single parent households
HIV/AIDS
Inadequate provision of basic needs
Regional (intra-NSI) disparities
• HDI
• Education
• Migration flows
• STI
STI-specific policies
1996 White Paper
• Starting point
– SANSI designed to meet the requirements of
apartheid
– Badly coordinated STI policy
• Strategy
– Integrating and coordinating STI initiatives across
government departments
– Prepare a government wide science budget
– Management of government SET institutions with
appropriate M&E mechanisms
STI-specific policies
1996 White Paper
Shortcomings
• Low priority indicated by placing within the state architecture
• No interface with other policy areas (trade, industrial, labour, and
primary and secondary education)
• No demand side initiatives to compensate for the erosion of the
military-industrial-complex (lost opportunity with the commitment for
the provision of basic needs)
• Supply side policy limited to direct R&D subsidies
• Coordination was allocated to Ministers’ Committee on S&T; a weak
coordinating mechanism reinforcing “silo” STI planning
STI-specific objectives
2002 NRDS
1. Enhancing innovation
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Address the “innovation chasm”
Development of social sciences to understand the
SANSI
Coordination of funding instruments
Poverty reduction orientation
ICT and biotechnology
SMMEs and BBEE
Agricultural orientation of R&D to establish an
indigenous value chain
Provincial convergence
STI-specific objectives
2002 NRDS
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SET human resources and transformation
• Addresses matriculation rates and maths and science enrolment
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Rationalisation of state S&T system and infrastructure
• Eradication of “silo” policy formulation
• Alignment with the national economic (and social) development
strategies
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Private sector interventions
• Tax incentives for R&D
• Provincial innovation initiatives, such as incubators to be run by the
proposed Foundation for Technological Innovation
• Dedicated funding for global technology sourcing aimed at small and
medium firms complemented by information drives to expose local
firms to new sources of technology
• Venture capital in the form of seed and early-stage venture capital for
high-technology businesses, in conjunction with the DTI
Ten year innovation plan (2007)
Recognised constraints
• Human capital development
• “Human capital pipeline” from post-grad students
to recognised researchers
• Low R&D levels and intensities
• Poor knowledge infrastructure
• sub-optimal levels of ancillary functions, such as
finance, that impede the flow from R&D to
innovation
Ten year innovation plan (2007)
targeted intervention
GRAND CHALLENGES
Cross- cutting enablers
Grand challenges
Enablers
Technology development and innovation
Farmer to Pharma
Space science
Energy
Global change
Human & social
science
Human capital - Centres of excellence, South African research chairs initiative,
professional development programme, etc.
Knowledge infrastructure – Science councils, state-owned enterprises, global projects
Ten year innovation plan (2007)
Technology Innovation Agency
• Provide funding and complementary services to bridge
the “innovation chasm”
• Stimulate development of technology intensive services
and products
• Provide an intellectual property support platform
• Stimulate investment (venture capital, FDI, etc.)
• Promote development of human capital
Broader policy framework
Human Resource Development Strategy (2001)
• Targets
– Improve Human Development Index
• Improve basic social infrastructure
– Reduce income inequality
• Gini coefficient
– Improve international confidence
• International Competitiveness League ranking
Broader policy framework
Industrial policy
• Goals of the Microeconomic Reform
Strategy (2002):
– Growth
– Competitiveness
– Employment
– Small business development
– Black economic empowerment
– Geographic spread of economic activity
Broader policy framework
Macroeconomic Strategy (AsgiSA, 2004)
• AsgiSA identifies the following constraints:
– Currency volatility
– Inefficient national logistics system whose
infrastructure lacks the required capacity for growth
– Shortage of skilled labour
– Market concentration, monopoly power and barriers
to entry
– Limited new investment opportunities
– Regulatory environment which is not appropriate for
the SME sector; labour law was identified as one of
the constraints
– Shortcomings in state organisation, capacity and
management
Broader policy framework
HRD - AsgiSA interventions
• Build a strong foundation in public schooling
• Focus on priority areas in tertiary education and training
• Initiate and improve work-based training programmes
and scarce skills initiatives
• Establish a joint council in government to strengthen and
co-ordinate the activities to address the skills shortage
• The urgent need for skills, which are a necessary input
for AsgiSA programmes, led to the idea of creating a
short- to medium-term troubleshooting approach towards
skills challenges.
Broader policy framework
HRD – JIPSA (2004) interventions
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Five high-profile priority skills areas for immediate attention:
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engineering and planning skills for the ‘network industries’ – transport,
communications, water, energy
city, urban and regional planning and engineering skills
artisanal and technical skills, with priority attention to infrastructure
development, housing and energy, and in other areas identified as being
in strong demand in the labour market
management and planning skills in education and health
Mathematics, Science and language competence in public schooling.
Systematic process of discussion with key ‘project owners’ and
role-players regarding the skills required to underpin AsgiSA
projects
Constraints and inefficiencies in the current frameworks and
institutional arrangements for skills delivery
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analysis of the problem of unemployed graduates
strengthening of the labour market and skills information system
the National Qualifications Framework Review and quality assurance
mechanisms
analysis of artisan training capacity
Broader policy framework
Framework on local development (2006)
• Based on New Institutionalism
• Convergence of economic and social policy
• Conditions for successful local
development
• Human capital
• Institutional networks
• Linkages across municipal, provincial, national,
continental and global systems
Inter-NSI integration
2007 SADC Protocol on STI
• Establish institutional mechanisms in order to strengthen regional
cooperation on and coordination of science, technology and
innovation
• Institute management and coordination structures, with clearly
defined functions, which will facilitate the implementation of regional
STI programmes
• Promote the development and harmonisation of science, technology
and innovation policies in the Region
• Pool resources for scientific research, technological development
within the Region
• Promote public understanding and awareness of and meaningful
participation in these disciplines
• Eliminate restrictions that restrict the free movement of scientists,
technologist and engineers for the purposes of education, research
and participation in joint STI programmes.
Recommendations
• Strengthen the coordinating role of the DST to
eliminate “silo” planning
• Redefine “human capital pipeline” to include
primary and secondary education (planning
integration with Departments of Education and
DoL)
• Poverty eradication
• Build indigenous STI component in all state
construction and infrastructure programmes –
demand side incentives
• LSI convergence
THANK YOU