CSIR PRESENTATION TO THE PORTFOLIO COMMITTEE TRADE and INDUSTRY

29 MAY 2002

Dr Anthos Yannakou Executive Vice President

CSIR Business Development

CSIR mandateConstituted as a Science Council by an Act of

Parliament:

“In the national interest, the CSIR, through directed and multi-disciplinary research and technological innovation, should foster industrial and scientific

development, either by itself, or in partnership with public or private sector institutions, to contribute to the improvement of the quality of life of the people

in South Africa”.

(Extract from CSIR Act)

Reporting and Funding Structure

Core Funding

Parliament(=100% Shareholder)

Minister of Trade and Industry (Proxy)

CSIR Board

DTIDTI

CSIR Executive Management Board

CSIR Strategic Business

Units/Initiatives

CSIR Strategic Business

Units/Initiatives

DACST(Science Budget)

DACST(Science Budget)

COTIIDTI/CSIR Bilateral

Innovation Fund

Key Projects

Competence Building Relevance and Impact

BU’sInnovation HubAIDCNational Imperatives

Ventures/Equity Partnerships

Contract Income

Royalties

CSIR Business Units• Bio/Chemtek• Boutek• Defencetek• Environmentek• icomtek• M&Mtek• Miningtek• Transportek• Crosscutting initiatives: sustainable development,

SMMEs, sport, NPDC, RRC, energy, Innovation Hub, AIDC

Performance Measures

• Needs of CSIR stakeholders:– CSIR Board (good governance, mandate,

national priorities)– Government: DACST, DTI (contribution to

NSI and policy, organisational efficacy and effectiveness)

– Auditor General (PFMA)

• Regular reporting

CSIR• CSIR to evolve to Knowledge Intensive

Technology Organisation• Develop value-added and knowledge-

intensive offerings• Locally relevant and internationally

competitive• Priority is South Africa, also emphasis

on region and continent (Africa Renaissance, NePAD)

Customer relationships• Customer feedback monitored continuously

– External: Customer Satisfaction Index (every two years) and ad hoc surveys

– Internal: Moment of Truth

• Measures:– Service delivery, relationship management,

technology management, contract management, value for money

• Reviews or benchmarks of each business unit or cross-cutting initiative every three years

HR PLANNING TO 2002:ACTUAL PERFORMANCE AS AT 31 MARCH 2002

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Doctoral Masters Honours B-degree Technikon

CSIR QUALIFICATION BREAKDOWNSEPTEMBER 2000 TO MARCH 2002

Sep-2000 Mar-2001 Sep-2001 Mar-2002

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Private Public Nat Safety Foreign Innovation

Technological Core Competency

CSIR investment into core competences (%)

2000/01 2001/02 2002/03

Manufacturing 31.5 31 24

Information (ICT) 21.5 22.5 29

Environment 11.5 10.5 9

Biosciences 9.5 11 11

Infrastructure 11 10 12

TOTAL 85 85 85

CSIR INVESTMENT OF CORE FUNDING IN CORE COMPETENCES

Core activityTechnological Core Competences

Manufacturing Information Environmental Biosciences Infrastructural

Bio/Chemtek 3 1 5

Boutek 2 5

Defencetek 5 4

Environmentek 1 3 5 1 2

icomtek 1 5 1

M&Mtek 5 2 1 2

Miningtek 4 3 1

Transportek 3 5

INVESTMENT OF CSIR PARLIAMENTARY GRANT IN TECHNOLOGICAL CORE COMPETENCES, INDICATED PER CORE ACTIVITY

(Investment priority is indicated using a scale of 1-5 (5 indicating the highest priority of investment)

Increasing the Number & Opportunities to Grow & Expand the SMME Sector

• Micro-encapsulation– Polymer coating of UV, light, O2 and heat sensitive

materials, e.g. vaccines– Environmentally friendly process– CSIR and IDC establish Ellipsoid (Pty) Ltd,

exclusive licensee

• Bio-incubator– South African start-up ventures in biotechnology– Aim: support 20 tenants, employ 60 people– Funded through DACST Godisa Programme

Increasing the Number & Opportunities to Grow & Expand the SMME Sector

• Food technology projects– Two new EC (INCO-DEV DGXII) funded research

projects• New drying technique for high quality shelf-stable

fruits• Technology for high-quality fermented products from

cassava, soybean, palm oil

– Collaboration of six European and five African partners in total (excluding CSIR)

– Development of SMMEs

Providing Opportunities for Economic Empowerment of Historically

Disadvantaged Individuals• Indigenous foods commercialisation

– Provincial Indigenous Food Fairs– Identify products for commercialisation– Foster job creation and empowerment of women

in sustainable SMMEs

• Wild silk spinning– Silk from Mopani worms– Ganyesa Dikwena Trust (NW) & partners– Communities gather cocoons, spinning by CSIR,

communities weave material, trust sells products

Providing Opportunities for Economic Empowerment of Historically

Disadvantaged Individuals• Essential oils

– Cultivation and processing of crops with high essential oil content

– Geranium, spearmint, peppermint, chamomile– Northern Province (e.g. Giyani), Mpumalanga (e.g.

Ermelo Tholuwaye womens clubs), Western Cape (e.g. Pacaltsdorp)

Reducing Levels of Inequality and Poverty in South Africa

• Accessibility for people with disabilities– Cooperative DFID project: India, Malawi,

Mozambique, Mexico, South Africa– Guidelines for planners on low-cost methods to

improve accessibility

• Northern province Arts and Crafts projects– Minceka traditional: handbags, scarves– Ngove Leathery and beadwork– Tawanani Textiles: lino blocks to print on fabrics

Contributing to the Competitiveness of South African Enterprises

• Creating safer living environments– Manuals to improve local level crime prevention– Facilitation of people-driven environmental crime

prevention

• Space observation– Image of Southern Africa: high resolution of 1.8m– Two students obtained MSc in remote sensing– Global space industry contracts with Boeing Satellite

Systems (Spaceway Satellite Tracking Station), Lockheed Martin (ground support for NASA), Eutelsat (satellite monitoring)

Contributing to the Competitiveness of South African Enterprises

• Innovative air cooler– Cooling critical for mine worker safety– In-stope air cooler developed– Features: increased cooler duty:mass ratio, more

compact design

• Zinc alloy for automotive applications– Limits to alloys for under-bonnet components i.t.o.

increased operating temperatures– Development of more creep-resistant zinc alloy– Involves network of local and international

partners

Contributing to Economic Development of Africa and specifically SADC

• Combating illegal vehicle trafficking– Used by Southern African Regional Police Chiefs

Cooperation Organisation (12 member countries)– Standardisation of Vehicle Clearance certificates

to reduce international vehicle theft

• Environmental Impact Assessment for Mozal– EIAs as part of Phases 1 and 2 of aluminium

smelter and port terminal developments– Public consultations, impact on regional economy,

emissions, storm water release, traffic, noise, dredging operations, etc

Increasing Economic Growth and Number of Sustainable Economic

Opportunities available to all South Africans

• Integrated freight and logistics database– Iflo: web-based integrated freight and

logistics product– Contains freight information, forecasts,

logistical tools, decision support

Increasing Economic Growth and Number of Sustainable Economic

Opportunities available to all South Africans

• Product development portal– National Product Development Centre– Assistance to local product developers and inventors– Contains information on development process of

new products– Contains password protected collaboration platform

Thank-you

For additional information please contact:Dr Anthos Yannakou

Executive Vice PresidentCSIR Business Development

Tel. +27 12 841 3225/6Fax. +27 12 841 3670

E-mail. Ayannako@csir.co.za

Additional slides for information

CSIR: Facts & FiguresAnnual turnover of over R810 million per annumApproaching external funding of 60%Staff complement of 2 583 including over 692 post-

graduate qualified (PhD/MSc), 1076 graduates and over 422 Technikon-qualified staff

Eight major operating Business Units, active in fields ranging from aeronautics, bio/chemical technologies, materials, mining, information and communications, clothing and textiles, manufacturing, through to housing, transport, food processing and the environment

Major laboratories in Pretoria, Johannesburg, Cape Town, Stellenbosch, Port Elizabeth and Durban, representation in all provinces

CSIR: Facts & Figures (cont)Approximately 150 000 visitors per year, including clients,

international visitors, stakeholders, students, scholars and suppliers

More than 7 000 clients are served each year Internationally, we:

have cooperation agreements with major overseas R&D organisations and companies;

have grown our international contract income by over 20% per annum in the last three financial years;

are currently working with 18 African countries.

International public funds benchmark

CRO Fin year

Revenue (US$ mill)

Public grants (%)

No employees

VTT 1999 206 30 3005

Fraunhofer 1999 603 37 9000

TNO 2000 457 32 5100

CSIRO 1999 585 69 6636

KIST (Korea)

1999 86 42 n.a.

CSIR India 1998 220 77 n.a.

CSIR SA 1999 127 42 2788

The CSIR/DTI Bilateral Purpose

The Institutional Framework for Cooperation aims at aligning and enhancing interaction between the CSIR and DTI in support of national priorities.

Areas of cooperation

The CSIR and the DTI have identified and agreed upon a number of medium-term objectives, which will be implemented within the institutional co-operation framework to contribute to the African Renaissance. These objectives are summarized as follows:

Science and technology contributions to the development of industrial technology policy

Raising awareness in industry of the role of technological innovation and knowledge management in improving the competitiveness of the economy

The CSIR/DTI Bilateral (cont.)

• Areas of cooperation

Building national, regional and international alliances and partnerships to strengthen core competences and develop new competences.

Development of SMMEs

Promotion of black economic empowerment

Facilitation of access to technology by women through implementation of the Technology for Women in Business (TWIB project

DTI/CSIR Institutional Framework for CooperationCSIR/DTI Bilateral Approved Projects

Project Name

1. Website for Chemical Industry to develop an Internet-based portal for the SA chemical industry

2. IT Re-engineering of DTI

3. Ntsika Project Export Readiness Assessment of SMME’s / Ntsika Programme Manager of Trade and Investment Development Programme

4. Trade & Investment Development Programme Khula Guarantee Technology Transfer

5. Ceramics Export Council (kick start fund)

6. Establishment of National Plant Fibre Technology Centre (NPFTC)

7. Evaluation of Supply-side proposals

8. CSIR Support to the ICT Directoreate of DTI

9. Information and Decision support system for the Millennium Partnership for the African Recovery Programme (MAP) on Internet and CD ROM

10. DTI Searching and Examination System for South African Patent and Trade Marks Office (SAPTO), DTI

DTI/CSIR Institutional Framework for CooperationCSIR/DTI Bilateral Approved Projects

Project Name

11. Regulatory and Enabling Aspects of the Intellectual Property (IP) System

12. SAPTO Information Strategy

13. Intellectual property and its use in the SMME sector of the South African economy

14. Indigenous Knowledge Systems (IKS)

15. Textile Technology Audit Survey of technology drivers, age & nature in the industry

16. Venture Capital Seed Fund

17. Technology for Women in Business

18. Optimising modal choice for freight land transport to improve South Africa’s international trade competitiveness

19. Development of high-value agricultural products clusters: Pilot Project 1. Makhatini Flats, KZN

Customer feedback• CSI (Nov 1999): “The CSIR is a unique

institution and recognised as such. It has important strengths and vast potential. It commands much goodwill from its clients”

• Survey of past & potential clients (2001/02): CSIR is relevant and technically competent; service delivery, relationship and contract management need attention

• MOT (2000-2002): “On Brief, On Budget, On Time and Quality” measures have increased

Reviews• Reviews or benchmarks of each business unit

or cross-cutting initiative every three years• 2000: Building and Construction Technology;

Water, Environment and Forestry Technology, International Business activities; Metrology

• 2001: Transport Technology, Satellite Applications Centre

• 2002 planned: Defencetek, CSIR (SETI)

0.0%

10.0%

20.0%

30.0%

Black Male Black Female White Female

PROFESSIONAL STAFF (EXCL WHITE MALES)SEPTEMBER 2000 TO MARCH 2002

Sep-2000 Mar-2001 Sep-2001 Mar-2002

Contributing to the Competitiveness of South African Enterprises

• Sustainable construction in developing countries– Agenda 21 for Sustainable Construction in

Developing Countries (International Council for Research and Innovation project)

– Identified barriers to sustainable construction and actions for government, research, NGOs and private sector

Contributing to the Competitiveness of South African Enterprises

• Empowerment of mine workers through IT– Software streamlines data capturing done

by frontline supervisor– Applications in faster management

decisions and better communication for effective hazard control

– Utilizes PDA and web

Increasing the Number & Opportunities to Grow & Expand the SMME Sector

• Solutions to waste problems– CSIR Centre for Integrated Waste Management

projects• Green Buildings for Africa Programme• Malawi: immunisation waste management• Product development from hemp, building rubble,

road construction materials wastes• Ethanol and biofuel from food and agricultural waste• UNESCO: impact of industrial waste in receiving

environments in Swaziland

Contributing to the Economic Development of Africa and Specifically the SADC

CSIR is involved in at least 18 African countries, including SADC; many projects in environmental, food, ICT and mining sectors,

Projects funded under SADC Regional S&T project, involving, Botswana, Namibia, Lesotho, Tanzania, Malawi, Swaziland, Zimbabwe, Zambia

Increasing Economic Growth and the Number of Sustainable Economic Opportunities

Available to All South Africans SAFARI 2000: CSIR, University of the Witwatersrand,

NASA and University of Virginia study of southern Africa’s ecosystems, air quality and land use to understand the sustainability of the region’s sensitive and pressured ecosystems,

Satour and CSIR joint venture: integrated tourism package on CD (VEZA) to plan tours, package products and market tourism in the country; and

I-port: unique transportation support product to provide a focused, well-researched public transport database.

CSIR’s NEPAD InvolvementINFRASTRUCTUREINFRASTRUCTURE – Transportek, Environmentek and Boutek NEPAD are conducting an audit of Africa’s infrastructure, assessing development methodologies, and providing mechanisms for strengthening the African science and technology competence to develop the infrastructural base.

PEACE & SECURITYPEACE & SECURITY – CSIR Defencetek is leading a process to harness CSIR competences to contribute to Africa’s Peace, Security and Reconstruction processes.

MANUFACTURINGMANUFACTURING – With Africa’s recovery heavily resting on value addition and the beneficiation of Africa’s natural resources. CSIR is helping to develop products and services for export, and provide the necessary infrastructural base, including ICT.

ICTICT – CSIR is interacting with all key players responsible for the leadership and management of the NEPAD ICT process including the e-Africa commission.

CSIR Involvement in the World Summit on Sustainable Development

CSIR has identified the following areas for involvementin WSSD:

Assisting SA National Departments to meet SA obligations (DFA, DEAT, DACST),

Involvement in the scientific components of the Summit,

Showcasing CSIR at the summit; and Assisting other stakeholders prepare input for the

Summit (e.g. SACOB, DANCED).

Private Company R&D Spend

• R&D expenditure decreased on average from 0.61% of turnover in 1997 to 0.42% in 2001

• Outsourcing of R&D on average increased from 7% in 1997 to 26% in 2001.

• 69% use offshore resources and of these 42% indicated that use of offshore resources will increase in the future

•  81% respondents indicated knowledge of government initiatives such as THRIP and SPII

• Prediction was that R&D spending would remain at constant levels in the coming 3 to 5 years