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Cape Higher Education Consortium

THE DEVELOPMENT OF A CONCEPTUAL

MODEL FOR DRIVING INNOVATION

IN THE WESTERN CAPE

Research Report 3: Land and building issues

9 December 2010

Prepared by ODA and Allan Taylor Consulting

Allan Taylor Consulting

© CHEC, 2010

Contact details:

ODA (Pty) Ltd

Contact Martin Nicol

Practice Leader: Economic Policy and Research, ODA

Postal address PO Box 16526, Vlaeberg, 8018

Physical address Unit F3, 155 Loop Street, Cape Town.

Telephone 021 4222 970

Facsimile 021 4222 934

Cell phone 082 554 9880

E-mail [email protected]

Web www.oda.co.za

Allan Taylor Consulting

Contact Allan Taylor

Telephone 021.685.4304

Facsimile 086.671.7437

Cell phone 072.200.5900

E-mail [email protected]

Third Report: Land and Building Issues

Contents

Background – explaining where the report fits in ..................................................................... 5

Part 1: Science park issues .................................................................................................. 7

The Science Park Landscape in the Western Cape .............................................................................. 7

Part 2: The Bellville science park proposal ........................................................................... 12

Cape Town, space and innovation ...................................................................................................... 14

Current Cape Town Practice ............................................................................................................... 16

Bellville ................................................................................................................................................ 17

The area and its parts ......................................................................................................................... 20

Vacant and underutilised land ........................................................................................................... 21

Linking key “installations” ................................................................................................................. 22

Start “at home” ................................................................................................................................... 23

Belcon edges as a future opportunity ................................................................................................ 24

A Long-Term Vision ........................................................................................................................... 25

Instruments of Governance ............................................................................................................... 25

Bibliography ............................................................................................................................. 29

Appendix: Interviews and documents on the Bellville Science Park....................................... 31

CHEC document on the Bellville science park (2009) ...................................................................... 31

Interview with Ms Jo Ann Johnston, Chief Director: Trade and Sector Development, DEDT ...... 31

Interview Mr David Gretton, Executive Support Officer to the Mayoral Committee Member for Economic Development and Tourism, City of Cape Town .............................................................. 33

City of Cape Town (2009) “Transnet Marshalling Yards (Bellcon)” (extract from the Executive summary of the Tygerberg District planning document), August 2009 ......................................... 34


List of Abbreviations and Acronyms

BIZ Bellville Innovation Zone

CBD Central Business District

CEO Chief Executive Officer

CHEC Cape Higher Education Consortium

CHTP Cape Health Technology Park

COFISA Cooperation Framework on Innovation Systems between Finland and SA

CPUT Cape Peninsula University of Technology

CSIR Council for Scientific and Industrial Research

DEDT Department of Economic Development & Tourism, Western Cape Provincial

Government

DST Department of Science and Technology

the dti Department of Trade and Industry

ECDI East City Design Initiative

EMF Environmental Management Framework

HEI Higher Education Institution

IASP International Association of Science Parks

ICT information and communications technology

IDP Integrated Development Plan

INTELI Inteligência em Inovação, Lisbon

IP Intellectual Property

MRC Medical Research Council of South Africa

NACI National Advisory Council on Innovation

NRF National Research Foundation

OECD Organisation for Economic Cooperation and Development

PGWC Provincial Government of the Western Cape

PPP Public Private Partnership

PSC Project Steering Committee

R&D Research and Development

SARChI South African Research Chairs Initiative

SDP Spatial Development Plan

SP science park

SPV Special Purpose Vehicle

SRA Special Rating Area

SU Stellenbosch University

TIA Technology Innovation Agency

TTO Technology Transfer Office

UCT University of Cape Town

URP university research park

UWC University of the Western Cape

VC venture capital


Background – explaining where the report fits in

ODA and Allan Taylor Consulting were appointed by the University of the Western Cape

(UWC) (on behalf of CHEC) in July 2010 to undertake a six month research assignment on

Developing a Conceptual Model for Driving Innovation in the Western Cape.

The study is to support CHEC discussions and decision making on science parks and other

interventions to maximise the role of universities in innovation in the Western Cape.

The original proposal for the project which was approved by the DST focused specifically on

a science park in Bellville and the intention is that the research process will allow a decision

about this matter to be taken. The current proposal takes a broader view and considers the

demand for physical infrastructure to promote innovation in the context of a strategy for or

an analysis of “innovation culture”. The study will consider the best set of regional initiatives

(which may or may not include a science park) for the Western Cape, prioritising the role

that can be played by HEIs.

The project programme specifies the following activity schedule:

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Project Initiation Situation Analysis in the Western Cape Careful review of COFISA report

Review of other documentation

Targeted interviews – W Cape

Targeted interviews – Gauteng Research Report 1

International lessons and examples

Review of literature Research Report 2

Land and building issues Issues related to the Bellville site Other possible site issues Research Report 3 (including insights from R1&R2) Consultations with PSC Workshop with Provincial Stakeholders Final reports


A service level agreement was entered into between UWC and ODA Pty (Ltd) in July 2010

which includes the terms of reference for the project.

This third report focuses on development considerations for the “Bellville Precinct”. This is

approached from the perspective of CHECs wish to help to chart a way forward in which the

innovation work of the four universities can best be facilitated and the benefits maximised.


Part 1: Science park issues

The original proposal for this project focused specifically on a science park in Bellville. UWC

initially secured funding from the DST to develop a “business plan” for the Bellville Science

Park. CHEC’s view was that this was premature and that, in the first instance, a study needed

to be undertaken to explore how best universities could contribute to promoting innovation

in the Western Cape. A revised proposal was submitted to the DST and the consultants were

appointed to undertake the current study

The first two research streams (which have been reported upon in Reports 1 and 2)

presented a situation analysis, a reflection on international experiences and a case study on

The Innovation Hub as a local example of a science park.

The third research stream has looked at land and building issues and its specific task is to

provide information that will allow the Project Steering Committee to recommend to CHEC

whether the Bellville science park possibility should be pursued and also to consider whether

to authorise further research into other sites for a science park in the Western Cape.

The Bellville issue is discussed in detail below. On the general issue of a science park, the

research argues against CHEC (or the Regional Innovation Forum, for that matter) making

the pursuit of “a” science park a particular goal. There are already several science park

initiatives under way. The recommended conceptual model for driving innovation (as

outlined in Report 2, page 38 et seq.) recommends that universities should support regional

initiatives to drive innovation both individually and collectively, where this is useful.

The Science Park Landscape in the Western Cape

There are at least six Science Park – type developments/initiatives in the Western Cape in

2010. None are officially recognised as science parks, by virtue of membership or associate

membership of the International Association of Science Parks. Two are business parks that

were initially launched as science parks. Two are proposals that are actively promoted by the

City and province and have varying levels of HEI involvement. One is at a conceptual stage.

One is a general proposal for a science park that has, as yet, no site in mind.


Table 1: Science Park – type developments/initiatives in the Western Cape

“Science Park” Location/size Stage of development

Relevance for driving innovation

in the Western Cape Impressionistic scale: 1 negligible, 10 overwhelming

Stellenbosch Technopark

Stellenbosch In existence since 1986 - cautionary example

3

Capricorn 68ha in Muizenburg In existence since 1998 - negative example

2

Cape Health Technology Park

Pinelands or Oude Molen area, less than 5ha

Seeking access to land, strong national drive, with Provincial and City support

8

East City Design Initiative

Cape Town CBD - estimated 10ha area

Seeking real commitment from partners

8

“Bellville Science Park”:

Belcon site is ±233 ha; Bellville precinct 3-5 km2

Conceptual stage ?

Science park with Tsinghua University

Undecided General idea for a science park

?

Stellenbosch Technopark: now effectively a “business park”, it has several high-tech

tenants who are linked to Stellenbosch University (and/or InnovUS) and there have

been efforts to strengthen university linkages and provide incubation facilities.1 The

park was established by the Municipality and Stellenbosch University as a science

park in the 1980’s.

Capricorn: now purely a property development, the Capricorn Technology and Industrial

Park was launched in 1997 and marketed by Wesgro. It was described as the

"Western Cape's technology innovation hub", a "world class location" which provides

"an opportunity for companies to locate their manufacturing, office, research and

distribution activities on one fully integrated site" (Capricorn Foundation, 1999,

quoted in Rogerson, 2000).

Cape Health Technology Park: a project of the TIA, this has been included as one of five

mega-infrastucture projects of the Cape Catalyst Unit of the Western Cape Provincial

Department of Economic Development and Tourism (DEDT, 2010c). It also has the

1 Interviews with InnovUS and Pieter van Heyningen.


support of the City of Cape Town. The CHTP is seeking confirmation of land

availability adjacent to the Biovac Institute in Observatory/Pinelands. It will

concentrate on supporting the development of a cluster of enterprises that relate to

the Biovac Institute and vaccine production, in particular. The project is driven by a

national policy decision to improve the security of South Africa’s access to vaccines. If

feasibility studies are positive, the anticipated investment in new assets is of the order

of R300-m.2

East City Design Initiative: a project of the City of Cape Town (through the Cape Town

Partnership, of which CHEC is a member), with CPUT playing a leading role. It is

“aimed at creating an inner city hub for design innovation, creativity and

entrepreneurship in Cape Town” (Creative Cape Town website). The ECDI, which will

be physically located across areas to the east of the CBD, already has the support of

the CHEC Board and has also been recently included as one of the Cape Catalyst

Unit’s five “mega-infrastructure projects… to unlock the economic growth of … the

region” (DEDT, 2010c). The ECDI is promoted as a “science park” – its founding

document proposes “that the Design Precinct be configured as a Design Park, akin to

the sector clusters to be found in tradition science parks but with some fundamental

differences”3. The ECDI has many partners and a strong vision, but it has yet to

secure the strong financial and political support that would be needed for rapid

progress. The lack of resources means that the ECDI relies on limited incremental

advances.

“Bellville Science Park”: There are ambitious proposals to transform the Transnet-owned

Belcon site and surroundings into a modern urban centre, a nodal “smart city” that is

hospitable to innovation and would include a science park. (Chec, 2009 and Ridge,

2010) The proposals stem from the proximity of a number of university, health,

science and business facilities in the Bellville area and the advantages for regional

and social development that would flow if they were able to collaborate better. The

proposals to date envision the substantial re-development of the 233 ha Belcon site,

which “forms a constraint to the southern extension of the Bellville CBD and spatially

reinforces the barrier effect of the rail line by preventing access to and from the south

2 Department of Economic Development and Tourism (2010) Request for price quotation for “Consultants/Project Manager(s) to develop Conceptual Business Cases to explore the viability of establishing a Health Technology Park in the Pinelands/Oude Molen area”, Ref: ECON2390.... /2, 6/8/2010 – Trade World Notice plus scope document 3 “East City Design Initiative, July 23 2009” – project proposal downloaded from the Creative Cape Town website: http://www.creativecapetown.net, pp.54


of Bellville Station” (City of Cape Town 2009)4. The Belcon site is owned by Transnet

and while Transnet may not need all of it, it has not finalised important decisions on

how the site may figure in its long term planning for freight management in the Cape

Town area.

Science park with Tsinghua University: The City of Cape Town has been in talks with

Tsinghua University in Beijing on its experience in running a university science park

and intends to “provide the enabling platform for the creation of a science park in

Cape Town”5 City officials say that the site for the science park has yet to be decided.

Science parks vary greatly in their scale and scope and do not follow a single model for

success. The interviews suggested that a successful science park in the Western Cape would

need:

To be strongly and ably led;

To have committed political, HEI and private sector backing;

To have strong anchor tenants;

To have a clear idea of its purpose and why those particular companies would benefit

from being together in a science park;

To have a business model that addressed the need of start-up companies for

reasonable rental costs.

To have a financing model that allows for the “animation services” that define a

successful science park to be supported and developed in the long term.

Overall however, the research assembled a great deal of evidence that cautioned against a

‘top-down’ decision to establish a science park.

First, the 2009 Cofisa report on innovation networks in the Western Cape did not favour a

concentration on science parks. It found that while “science parks may be a good idea in the

long term” they are probably not a useful focus in the short term. The report said that “there

are fundamental issues that need to be addressed in the short to medium term before a

science park can succeed e.g. promoting a culture where learning and innovation are

prioritised by the majority of triple helix players, building trust across the triple helix, and

generating a sufficient volume of innovation activity to sustain a science park” (p. 57) (see

4 City of Cape Town (2009) “Transnet Marshalling Yards (Bellcon)” (from the Executive summary of the Tygerberg District planning document, August 2009) 5 “City in talks with China to establish Science and Technology Park in Cape Town”, City of Cape Town media release: 13 October 2010


Second Report, page 61). The Cofisa report includes a useful assessment of critical success

factors for a Western Cape science park.

Second, international literature (see Second Report, page 62) does not find evidence that

science parks are an essential element of a region’s innovation system. A national innovation

system “includes competitive firms and a competitive environment, an effective educational

system, strong university research, a legal system with property rights, and a capital market

that includes venture capital”. “Successful two-way knowledge flow between universities and

industry is a key ingredient for a national innovation system, and we do have evidence that

University Research Parks (URPs) play a role in that knowledge flow. However, URPs are not

a sine qua non of the knowledge flow”. Networks and knowledge-sharing do not require the

infrastructure of a science park.

Third, the case for establishing a science park in the Western Cape as an immediate strategy

is weakened by the experiences of two unsuccessful science park efforts in the Western Cape

– those of the Stellenbosch Technopark and Capricorn. While both developments house

successful companies and are positive contributors to the regional economy as business

venues, neither have sustained linkages between higher education institutions (HEIs) and

firms, the key criterion by which to judge the success of the science-park phenomenon (see

Second Report, page 28).

Fourth, the ten-year experience of The Innovation Hub, South Africa’s only accredited

science park, shows the great difficulties and costs of launching a science park in the SA

context. The lessons for the Western Cape are explored in a chapter specifically researched

for the present study (see Second Report, page Error! Bookmark not defined. et seq.)

The conclusion echoes the cautionary messages of the Western Cape Cofisa report. The

Innovation Hub, despite lingering value-added elements, is increasingly a renter-out of

existing space, rather than a dynamic science park. The Innovation Hub has served

sometimes as an effective advertisement for the Gauteng province, but five years after the

last building was completed it has shown little in terms of jobs, growth or impact.

There certainly are conditions under which a science park initiative in the Western Cape

should be supported. Some of these conditions are present for the East City Design Initiative

and for the Cape Health Technology Park (concern: that HEI involvement is a secondary

consideration). CHEC is already involved as a participant in the ECDI and it should favour

the CHTP, while seeking a wide role for the HEIs in both projects. While the two projects are

already both nominally supported by the Province and the City, CHEC should be willing to


act as a lobbyist and ‘problem-solver’ where this is helpful. Both projects are highly relevant

for improving the innovation ecosystem in Cape Town.

Part 2: The Bellville science park proposal

There are a number of science park initiatives in the Western Cape already and the question

on ‘whether we should have a science park’ is not well phrased6. CHEC should support and

encourage all these initiatives. It should help to deal with conflicts where these arise and find

ways to draw all the HEIs into projects that build bridges between academia and business

and society.

With regard to the Belcon site, this is located at a place of huge significance for the future

development of the City of Cape Town. Its future use, given its size and position, will have a

gravitational impact in the nature of transformation of the City as a whole.

There are three public HEIs represented in the area, along with hospitals (private and

public) and the MRC. These institutions have the ability and the responsibility to direct their

energies and capabilities towards the Bellville precinct – both for their own, individual future

development and for the better development of the area as a whole, for the people who live

and work there.

Our work suggests a phased approach to doing this. A science park may emerge as a useful

component of this future development, but it should not be isolated as a specific goal. Our

work argues against any immediate, direct ‘play’ for the Belcon land, which is privately

owned by Transnet.

Our work sees a role for CHEC as an organiser of a common position amongst the four VC’s

on the Bellville precinct and as a lobbyist (with province and the City). The role of leadership

must be assumed by UWC/CPUT/SU as the HEIs directly part of the precinct at present

With regard to “the Bellville science park” the research has come up with clear

recommendations:

6 The question posed for the CHEC stakeholder workshop on 23 November was “Is a Western Cape Science Park possible and feasible and, if so, where?”


1. Do not pursue a project that has, as its central element, a science park on

the Belcon site

The idea of a science park on the Belcon site could possibly be realized in the long

term, but it is not a realistic immediate or even medium-term objective and there is

no point in conducting a feasibility study for the creation of “a science park” in

Bellville.

Our recommendation is that neither CHEC, nor any of the other stakeholders, should

pursue or advocate for a science park on the Belcon site.

2. Pursue the concept of the “Bellville Innovation Zone” – an area of

innovation with distinct but interdependent components (that could

include a science park in the future)

We recommend the UWC, in close concert with CPUT and SU, pursues the concept of

a “Bellville Innovation Zone” that links their current facilities in the Bellville area,

involves local businesses (including Sanlam, Transnet and other significant

companies such as Peninsula Beverages) and improves the quality of the regional

environment for residents, workers, commuters, students and citizens generally. The

Bellville Innovation Zone associates innovation with urban renewal, institutional

strengthening and co-ordination. It adopts the objectives set out by CHEC in its 2009

‘planning document’ but without relying upon a science park on the Belcon site as the

central element.

The Bellville Innovation Zone recognizes the extraordinary achievement –

particularly of UWC – in building an ‘oasis’ on the Cape Flats over the last 50 years.

Trees, gardens and an attractively diverse built environment – already directly

adjacent to the developing Bellville Campus of CPUT – provide an anchor point for

expanding urban renewal in an area that is at the geographical centre of Cape Town.

It is important to stress that our recommendation is not based on the present

unavailability of the Belcon site (which is owned by Transnet) and the uncertain

future use of the site. The recommendation is based on the evident strengths of the

public education and research institutions in the Bellville area and their ability, if

they work collaboratively, to influence both City and Transnet decisions on the use of

the Belcon site (which is undecided at present.) The recommendation is based on the

contribution that the HEIs, health and research institutions in Bellville can make to

urban renewal through the promotion of an innovative environment.


This is the conclusion of the argument that we set out below. The starting point for any

consideration of the geography of innovation in Bellville should not be the control of the

Belcon site.

Cape Town, space and innovation

“Innovation is an economic and social phenomenon that at first sight has no

necessary relationship to space. But empirical studies have increasingly shown that

there is a distinctive geography of innovation.”

James Simmie, (2005) “Innovation and Space: a critical review of the

literature”, Regional Studies 39, p.789

“There are no examples of successful urbanised regions which have unsuccessful

cities at their core.”

INTELI – Inteligência em Inovação, Lisbon (2007) “Creative Urban

Regeneration”, quoting Parkinson (2005)

The land and buildings component of this research project addresses physical space,

infrastructure and associated processes needed to support innovation. But this is only one

aspect of innovation, which relies on people, their relationships and networks and on the

innovation ecosystem which they inhabit. We have applied general concepts on space,

infrastructure and associated processes to the “Bellville Precinct” (and to the Belcon site) as a

“stage” for driving innovation. People come together in cities. They build institutions to

channel and co-ordinate and order their interaction. Innovation – cities – institutions: a

triangle of forces to build sustainability and promote development.

A broad view of the area shows that it already comprises interdependent components

(facilities and infrastructure) . One available course of action is to build incrementally from

this base, rather than to focus on the creation of a single facility (a Science Park) on a

particular area within the precinct that is perceived to have potential. The choice would not

exist if the Belcon site were a lake or a wetland, yet the institutions and businesses and living

areas that surround the site would be the same.

Knowledge, innovation, learning and creativity are increasingly becoming a hall-mark for

city success. Thus, innovation, science, technology, design, the arts, and culture have become

driving forces for urban regeneration. In a sense, we are looking at establishing “cities

within cities” as places of experimentation.


INTELI is the Portuguese lead partner of the “Intelligent Cities” project funded by the

European Union. This has to deal with existing cities and urban regions that exhibit

symptoms of decay and need to divert their course from decline to recovery. The intention of

the programme, richly funded until recently, is to contribute to a more creative, innovative

society aimed at sustainable economic and social development. INTELI (2007) states that:

“The main idea behind innovative urban regeneration strategies is ‘integration’:

integration of dimensions of intervention, integration of urban functions and

integration of partners and resources.”

Critically, it appears that success in establishing a space or area which fosters innovation also

requires innovation in urban planning, development and management. The “dimensions” of

such innovation are illustrated in Table 2, below:

Table 2: “Dimensions” of innovative areas7

DIMENSION SUCCESS FACTOR

Governance • Strong leadership

• Public private partnership

• Long-term and non-continuous development

• Innovative urban policies and redevelopment

strategies

Connectivity • Good physical accessibility (-ies)

• First-class digital infrastructure

• Seamless connectivity

• Bridging elements

Clustering

environment

• Economic specialization

• Knowledge and creative industries

• Entrepreneurship culture

• Proximity to knowledge infrastructure

• Institutional cooperation

Talent and social

environment

• Qualified human resources

• Knowledge and creative workers

• Diverse and multicultural environment

• Foreign students, workers and residents

• Social networks

7 INTELI (Inteligência em Inovação, Lisbon, Portugal) (2007) “Creative Urban Regeneration: The Case of ‘Innovation Hubs’”


DIMENSION SUCCESS FACTOR

Built environment • Mixed-use environment

• Iconic and dynamic spatial concept

• Distinctive architecture

• Open public spaces

Cultural environment • Distinctiveness and unique identity (‘Genius loci’)

• Cultural and entertainment facilities

• Vibrant and inspiring life

Natural environment • Environmental quality

• Distinctive landscape

• Renewable energy

Until the recent recession, European cites and urban regions, particularly those under stress,

were able to count upon access to European Union development funds that made it possible

to plan progress across many of these dimensions. Lacking both this access to public funds

and the base of a vibrant and expanding economy, Cape Town needs to be both realistic and

measured in considering the prospects for constructing such innovative environments.

Current Cape Town Practice

When we look at the current “innovation” initiatives in Cape Town and in the wider region

(as described above) we notice that

• There is little spatial relationship between them (a direct spatial relationship is not

needed arguably; relationships are through other networks).While some are located

in proximity to supportive activities (and to HEI campuses), this is not the case with

all.

• Not all are linked to urban renewal.

• Not all are “broad” in scope or inclusive – (the“home-grown” approach to innovation

advocated by the research study – which includes social innovation – requires linking

innovation to urban renewal. The area of “innovation” should therefore include all

the challenges to be addressed through urban renewal, including poor and

marginalised communities. The ECDI for example, while it is located in a ‘run down’

part of the City, remains closely tied to the Cape Town CBD, an area that has

progressively excluded poor people. The CHTP is a product specific initiative which

has no evident intention to connect with the local environment, beyond the Biovac

Institute next door.)


Bellville

As a site for urban renewal, Bellville holds strong advantages, but also faces major

challenges.

Bellville: Advantages

• Accessibility within the metropolitan region – connected by road, rail, bus and taxi

and less congested than the central Cape Town area.

• Current concentration of infrastructure, activities — public and private, institutional

and commercial — and people. (Includes proximity to the airport.)

• Current concentration of scientific capacity (Stellenbosch University Health Sciences

and Business School, CPUT Science and Engineering Campus, UWC Main Campus

and Oral Health, Medical Research Council, Tygerberg Hospital, 6 other hospitals).

• Significant tracts of vacant and under-utilised land.

• An area in obvious need of “rationalisation” and direction.

• Pockets of environmental excellence (UWC campus environment)

Bellville: Challenges

• “Flight” from the CBD. The Bellville CBD has been abandoned to lower order

activities and is a “Hillbrow in the making.” Former occupants have moved north to

Tygerberg or to the CBD or Century City. It is an area presently in decline

• Large tracts of “lost” space. (Roads with fences and hard edges, making streets into

ways for vehicles not places for people to walk along and interact.)

• Infrastructure barriers.

• Low density.

• Poorly integrated facilities.

• Poor environmental quality.

Bellville: Emerging Policy Positions

City planning has long recognised the significance of the Bellville as the geographical centre

of the metro region:


Figure 1: Concept for Draft Muni-SDF, 1999

Bellville is located at the centre of the larger metropolitan area. The argument could be made

that should Cape Town be “restructured” in a manner which facilitates equitable access to

opportunity for all citizens, higher order facilities shouls ideally be located at the centre of

the metropolitan area. This does not mean that existing facilities are negatively impacted

upon. It means that new major development should pursue more “equitable” locations.


Figure 2: Planning Logic: Cape Town 2030 (2008)

In terms of the long-term development of the city, it could be expected that more high order

uses will locate in a broad area between dominant north-south movement routes.


The area and its parts

A huge amount of energy generated in the City flows through and around Bellville – the N1

and N2 highways, the route from the airport to Tygerberg.


Vacant and underutilised land

There is a great amount of vacant and underutilised land outsite the Belcon area. The area to

the south of UWC – sold by the Province for ‘low cost housing’ has yet to be developed.


Linking key “installations”

There is a need to have better ways of people moving easily between the different areas. This

could include a regional public transport system, possibly based on a variant of UCT’s

Jammie Shuttle.


Start “at home”

There are pockets of excellence all over the area – these include public spaces, places of

business and places of education and research. These can be used as nodes to expand

improvements and widen areas of quality. The area as a whole shows a desperate need for

regeneration. This can be approached incrementally.


Belcon edges as a future opportunity

Over the longer term, developments on small areas at the edges of the Belcon site can be

used to strengthen links between the key installations and to begin to soften the

environment.


A Long-Term Vision

The long term vision for the Bellville Innovation Zone could unfold in different ways.

Influential businesses and institutions in the area will have the incentive to adjust their long

term planning to benefit from the initiative, while not being threatened by ‘take-over bids’ or

hidden agendas.


Instruments of Governance8

While it is necessary that the Bellville Innovation Zone concept is promoted through strong

and committed leadership (which has yet to define itself), its realisation will depend upon

much wider support. This will have to be marshalled, motivated and channelled with care

and flexibility.

All spheres of government have a range of tools available to achieve objectives and maintain

relationships with stakeholders – citizens, the private sector, other government

organisations, and the community sector.

The complexity and interconnectedness associated with achieving desired outcomes in

today’s settlement context demand the use of a wide range of tools. This differs from the

past, where settlement management focused on infrastructure investment for growth,

regulating land subdivision, and land use and building development management. There is a

need for an interdisciplinary and multi-faceted approach – one in which universities are well

suited to participating in, because of the variety of skills they have access to (if not yet

because of their effectiveness in networking!)

The classic formulation is that government must provide the environment for

growth/business /development/progress to occur. This can be approached in a formulaic

manner – setting the rules of the game and enforcing them. It can also be approached

organically, linking expectations of performance to capacity and assisting people and

institutions to achieve their own objectives by learning and sharing experiences. Government

does not have to be a blunt instrument. But active management, consultation evaluation and

re-direction has to be institutionally possible. This is part of the challenge for the Bellville

Innovation Zone. It will only find life if it accommodates the agendas of others. It will only be

able to influence these agendas if it provides scope for people and institutions to innovate

and to experiment.

The following indicative list of ‘tools’ (from and Australasian example) can be used to shape a

multi-faceted approach to the Bellville Innovation Zone Concept.

8 Neilson, L. (2003) “Instruments of governance & the Triple Bottom Line: An Approach to Urban Management”, Occasional Paper published by the Institute of Public Management, Australia, August 2003, pp.16, downloaded 2010 from www.vic.ipaa.org.au/document/item/71


Table 3: Instruments of Governance (from Neilson 2003)

“Tool” Explanation

Policy Defining/ framing the position of government and direction for action in

relation to issues where clear choices exist (for example, to focus on

private or public transport, to grow a settlement outwards or contain it

inwards).

Plan making Indicating where resources should focus functionally or spatially, in what

form, and when.

Legislation Directing, constraining and rewarding (potentially) the behaviour of

different actors in society (in the interest of all citizens).

Regulation Elaborating on behaviour outlined in legislation through guidelines,

standards, and so on.

Fiscal Fees, charges and taxes for services as a means for raising government

revenue, and directing action in support of policy and legislation (through

fiscal “incentives”).

Financial The priorities and areas of government spending, including investments in

infrastructure, facilities and programmes to support spatial and sectoral/

functional area policy and plans.

Institutional Arrangements for decision-making, the allocation of powers,

responsibilities, agreements and relationships between government and

other actors, human resource capacity/ competency, and measurement

systems within government and between government and other actors.

Asset

management

The approach taken to the management of government assets (land, public

facilities, and so on).

Knowledge/

information

management

The government’s investment in and dissemination of knowledge about

existing/ anticipated conditions which require management.

Advocacy The positions that government take on issues, “positive” and “negative”.

This could be through the media, public meetings/ engagements, at

events, and so on.

South Africa has a rich (and complex!) set of laws, regulations and institutions that will give

a local meaning to each of these tools.

In summary, the Bellville Innovation Zone concept includes the following aspects

1. Defined (but alterable) borders;

2. A space that can accommodate all agendas related to innovation - a

knowledge economy, information sharing, collaborative projects, social

engagement towards a fairer city, and so on.


3. The concentration of energy that is presently dissipated or never assembled

(especially from township areas in Bellville, Khayalitsha, Mitchells Plain and

the south);

4. The attraction of participation from other parts of the City. (Something new,

something extra, something special – but embodying the spirit of constructive

competition);

5. Possible regulation through City measures that provide for Special Rating

Areas9 and through a Charter that ‘inhabitants’ can contribute to writing and

then subscribe to;

6. A framework for collaboration that will allow the universities, colleges,

research facilities and hospitals in the identified area to begin to live now in

an “innovation zone” that includes them all and the character of which they

can begin to define. This could include:

i. a green building, sustainability theme.

ii. a common branding and signage for buildings.

iii. a public transport system

iv. networking arrangements with local businesses of different sizes, with

communities and with government.

The Bellville Innovation Zone will be a defined place to illustrate new ways of living and

doing and which draws on the universities and other institutions to provide leadership and

content. The universities (individually and collectively) have a choice on how they will

participate and the amount of effort they dedicate. They will have the opportunity to shape a

new relationship between learning and research, business and community, innovation and

institution.

9 SRAs are used by communities to provide top-up services when those provided by councils are seen as inferior to their needs. More than half of a community's members have to agree to the imposition of the extra rates involved. The expenditure is in terms of an approved business plan and is ring-fenced within the community's area. The total of all SRA income in Cape Town at present is R81 million. The SRA for the Cape Town CBD, the Cape Town Partnership, has the largest budget. For the other 21 SRA's in existence, the average budget is just short of R200 000 a month. (Cape Times September 30, 2010)


Bibliography

All of the items listed here are referenced and copied or summarised in the Annotated Bibliography files assembled by ODA during the research.

Reports Submitted by ODA and Allan Taylor Consulting

“CHEC Stakeholder workshop, 23 November 2010”, 62 PowerPoint slides

“Dossier on the City of Cape Town’s proposals for collaboration between Tsinghua University and the four Western Cape HEIs”, informal assembly for CHEC by Martin Nicol, ODA, 9/11/2010

“Informal Briefing Note: Recent “research” indicators for Western Cape HEIs - Rated Researchers; THRIP participation; SA Research Chairs; PhDs”, Prepared by Martin Nicol, ODA, 14 November 2010

(2010f) “Research Report 2: International lessons and examples”, 26 October pp.77 (Revised 22 November 2010)

(2010e) “Background Paper for the CHEC workshop on 23 November 2010”, 25 October, pp.30

(2010d) “Research Report 1: Situation Analysis”, 4 October 2010, pp.107 (Revised 22 November 2010)

Items by author

“East City Design Initiative, July 23 2009” – project proposal downloaded from the Creative Cape Town website: http://www.creativecapetown.net, pp.54

Cape Higher Education Consortium (2009) “Planning to make the best use of Universities in promoting economic and social development”, pp.4 – approved by the CHEC Board at its meeting held on 24 February 2009; submitted to Dr Martin van der Merwe, Director: IDP and Business Planning, City of Cape Town on 25 March 2009

Cape Town Partnership (2010) Creative Cape Town Annual 2010, The World Design Capital Bid 2014 Issue, edited by Zayd Minty, pp.80

Cape Town Partnership (2010b) “Business feasibility study on the East City Design Initiative: Interim report, December 2010”, Prepared by Kaiser Associates EDP, pp.42

City of Cape Town (2009) “Transnet Marshalling Yards (Bellcon)” (from the Executive summary of the Tygerberg District planning document- Draft Technical Report 1: SDP / EMF Tygerberg District D - For comment - August 2009)

COFISA (2009b) “Mapping triple helix innovation networks in the Western Cape - October 2009 : Final report”, Prepared by Kaiser Associates Economic Development Practice, pp.89

DEDT (2010c) “Cape Catalyst 2010 Project Portfolio”, September 2010, pp.37 plus annexures

Horváth, T.M. (2009) “Methods of governance across any framework: City-Region as “Marble Cake””, The URBACT Tribune downloaded from http://urbact.eu/

Inteli (2007) “Creative Urban Regeneration: The case of ‘Innovation Hubs’”, pp.4 downloaded from www.inteli.pt


Invitation to Seminar: The East City Design Initiative, African Centre for Cities, 13/10/2010

Neilson, L. (2003) “Instruments of governance & the Triple Bottom Line: An Approach to Urban Management”, Occasional Paper published by the Institute of Public Management, Australia, August 2003, pp.16, downloaded 2010 from www.vic.ipaa.org.au/document/item/71

OECD (2009) “Investing for Growth: Building Innovative Regions - Policy Report” for the Meeting of the Territorial Development Policy Committee (TDPC) at Ministerial Level, 31 March 2009, pp.9

Ribeiro, J.F. et al (2007) “Competitive and Innovative Cities for the Sustainable Development”, published by the The Department of Foresight and Planning and International Affairs (DPP), Ministry of Environment, Spatial Planning and Regional Development (Portugal), pp.95, downloaded from http://www.dpp.pt/pages/files/WP3_EN.pdf

Ridge, S. (2010) “Belleville and the Knowledge Economy”, 40 PowerPoint slides

Rogerson, C. (2000) “Knowledge-based or smart regions of SA” January 2000 - Paper Prepared for the Research Programme on the Spatial Implications of Development and Infrastructure (NSDP), September 1999 [Capricorn Foundation]

Selada, C. “’ Innovation Hubs' as Instruments of Urban and Regional Policy: Work-in-progress”, presentation 22-24 February 2007 to 1st International Seminar on Regional Innovation, downloaded from http://www.intelligentcities.net

Thorp, H. and Goldstein, B. (2010) Engines of Innovation: The Entrepreneurial University in the Twenty-First Century (University of North Carolina Press), pp.184

Timmins, N (1995) The Five Giants: A Biography of the Welfare State (London , HarperCollins)

Van Heyningen, P. and Brent, A. (2010) “Potentials and Advantages in shifting towards Sustainability Oriented Innovation Systems in South Africa”, Paper prepared for the Knowledge Collaboration & Learning for Sustainable Innovation ERSCP-EMSU conference, Delft, The Netherlands and Cape Town, South Africa, October 25-29, 2010

Articles from newspapers, magazines and websites

“City in talks with China to establish Science and Technology Park in Cape Town”, City of Cape Town media release: 13 October 2010

“Venture capital - tech startups: Brave new world”, “Legislation: intellectual property - The right to claim”, “Venture Capital Industry: Fortune favours the bold”, Financial Mail 11 Nov 2010, Larry Claasen

Websites

City of Cape Town website: http://www.capetown.gov.za/

East City Design Initiative web site: http://www.creativecapetown.net/the-ecdi-symposium/

INTELI – Inteligência em Inovação, Lisbon – Portugal website: www.inteli.pt

Intelligent Cities Project website http://www.intelligentcities.net/index.php

International Urban Development Association Website: http://www.inta-aivn.org/

OECD website for TDPC at ministerial level 2009: www.oecd.org/regional/min2009

URBACT website : http://urbact.eu/


Appendix: Interviews and documents on the Bellville Science Park

CHEC document on the Bellville science park (2009)

The CHEC document “Planning to make the best use of Universities in promoting economic

and social development” (2009), which deals specifically with a science park on the Belcon

site is essential background material for the Third Report. It was attached to the Second

Report and to the Background Paper for the Workshop on 23 November 2010 so it has not

been reproduced again.

Extracts from the interviews with one Provincial and one City official dealing specifically

with the Bellville Science Park proposal are given below, along with an extract from the City

of Cape Town Spatial Development Framework which deals with the Belcon site.

Interview with Ms Jo Ann Johnston, Chief Director: Trade and Sector Development, DEDT

Discussion with Martin Nicol and Jane Muhia, ODA, 1 October 2010

Jo Ann Johnston is the Chief Director: Trade and Sector Development at the DEDT and

responsible for the Cape Catalyst initiative, “a set of mega-infrastructure projects… to unlock

the economic growth of … the region”10. Jo Ann interacts with business, the City and many

agencies related to economic development and has had close involvement with CHEC and

the universities.

On the Bellville Science Park

The Province has received presentations on the issue11 but has taken no decisions as yet. The

feasibility of what is being proposed for the Bellville Science Park needs to be better

demonstrated before it could, for example, claim a place in the project portfolio of the

DEDT’s Cape Catalyst. There are two immediate and significant obstacles here:

First: the land

It will be extremely difficult to secure land from Transnet. There are competing opinions

within Transnet itself on the exact use of the land. It is plain, however, that Transnet intends

10 DEDT (2010) “Cape Catalyst 2010 Project Portfolio”, September 2010, pp.37 plus annexures 11 Larry Pokpas of UWC has provided a lot of documentation. This is strong on ‘vision’ – as in Dubai, building something new where there was before only desert – but the details of who the science park will bring together, in terms of tenants, is not clear.


it to be part of the solution it is seeking to freight congestion in the Cape Town area.

Decisions are likely to be slow because of other considerations.

The Transnet national strategy on rail is pending

Plans for the Culemborg site next to the port have still to be finalized. There is a need

to reduce the number of container movements to improve efficiency and reduce

freight costs. The Belcon site is presently used for containers.

The pressures on Cape Town also depend on decisions regarding the future roles of

the Saldanha and Cape Town ports

Second: the lack of business involvement (no anchor tenant)

There appears to be no committed involvement by business. “They need to get industry on

board”. It also appears to include a real estate business model rather than one which is based

on collaborative projects in particular sectors. (I said this is not the intention, which is much

broader than a science park.)

Jo Ann contrasted the Bellville Science park proposal with the for the Cape Health

Technology Park in Pinelands, which is one of the five Cape Catalyst projects.

The CHTP is demand led. They have an anchor tenant with an established business

who wants to bring its suppliers closer to its operations. The pre-feasibility study will

be completed by November and will be used to secure a land commitment from the

provincial cabinet.

The project is led by industry and government, not by the universities. The

universities will be approached if the bid to secure land is successful and once a

project manager is appointed.

The motivation for the CHTP flows from national considerations related to health

security. South Africa has to be able to produce its own vaccines and not rely on

overseas supplies, which might be diverted by emergencies elsewhere. The SA

pharmaceutical industry has lost a lot of its manufacturing capability following

governments negotiation of parallel imports. This allowed generic drugs to be

imported at low cost from other countries. Research undertaken for the CHTP shows

that pharmaceuticals are the 6th largest import item nationally. The dti and the DST

are strong supporters and funders of the move to rebuild the manufacturing

capability of the industry and to manufacture vaccines in Cape Town.

The CHTP is not seen as an alternative to the Bellville Science Park, as its intention is to

develop a value chain for a specific industry, which is already established in Pinelands.

Jo Ann said that while there is a lot of discussion about science parks, is not clear that you

need a physical space as a base from which to drive innovation. Virtual incubators and

effective networks can be the catalyst – as has been the case with Silicon Valley.


Comment

The DEDT has a broad interest in improved business-university relationships. At present,

their point of entry is more on the skills side than on that of innovation. Discussions have

taken place with universities on, for example, undergraduate courses in entrepreneurship;

SETA financing for curricula that reflect expressed industry needs; engineering courses that

expose students to the technology actually used in the oil and gas sector; swaps and

exchanges that allow academics to understand the training needs of business better and

which expose students to the real world of work before they graduate.

Interview Mr David Gretton, Executive Support Officer to the Mayoral Committee Member

for Economic Development and Tourism, City of Cape Town

Summarized extracts from the interview, which is given in full in the First Report

Interviewed by Martin Nicol, Allan Taylor and Jane Muhia

The Science/Incubator Park in Belville which is promoted by Professor Ridge will

concentrate on medical nano-technology and health. But the land is highly problematic, as it

is entirely owned by Transnet and part of their planning for the development of the freight

logistics system in the region.

On the Belcon site and innovation infrastucture

City planners are keen on the idea to develop the Belcon site appropriately – all or part of it –

rather than so much of it lying unused. But there are major obstacles that need to be

addressed because of the ownership of the site by Transnet. The City has regular meetings

with Transnet, which has many operations in the City that are critical to its proper

functioning – port, rail and road issues combine with those related to land use. There are

many opportunities for the alternative use of Transnet land (including student

accommodation!).

The Belcon site belongs to Transnet

Transnet is not clear on their plans for the use of the site.

They need to retain it, in part, to provide themselves with options related to the Cape

Town port.

At present, it is a major freight yard for their operations in the Western Cape.

Transnet have told the City that they do not need to use the entire site and are open

to discussions on new uses.


The Belcon Science Park

Driven by: (no-one besides Prof Ridge) <the lack of a champion is a significant

disadvantage>

The City does not own the land and will apply its planning rules even-handedly – the City is

formally aware of the proposal, but is not taking any specific action related to it.

City of Cape Town (2009) “Transnet Marshalling Yards (Bellcon)” (extract from the

Executive summary of the Tygerberg District planning document), August 2009

Transnet Marshalling Yards (Bellcon) Map ref 30

The Bellcon precinct is ±233 ha in extent. Historically utilised as a marshalling yard, diesel

depot and a civil maintenance department, the precinct represents a significant investment

in rail infrastructure and comprises the central hub of Transnet operations which have

recently relocated from Culemborg. Bellcon is currently being investigated by Transnet to

determine its future use. It is regarded as a “strategic site” due to the development potential.

The following contextual information is provided:

The precinct has a position of good locality at the convergence of a number of significant

routes, including the Voortrekker Road corridor, Modderdam Road, Durban Road and the

Cape Town-Bellville and Monte Vista rail lines. The Bellcon site derives considerable

exposure and accessibility from its location.

The precinct currently acts as a substantial “mono-functional” buffer. It forms a constraint

to the southern extension of the Bellville CBD and spatially reinforces the barrier effect of the

rail line by preventing access to and from the south of Bellville Station.

The surrounding local and regional context includes important district-level community

facilities such as Tygerberg Hospital and the University of the Western Cape (UWC).

The UWC propose/envisage the development of a science park in the precinct.

The Elsieskraal River drains along the northern portion of the site. Although land is

currently leased for industrial purposes on the eastern extent of the property adjacent to


Modderdam Road, the area is largely underutilised given its location adjacent to Voortrekker

Road, Modderdam Road and the Bellville CBD. Previous policy documents have identified

the site as having significant potential for redevelopment. However, Transnet has shown

reluctance to relinquish control/ownership of the property. Recent on-site activities have

related strongly to linkage with the Port of Cape Town, and Transnet has indicated the

possibility/intention to utilise the bulk of the land for container stacking/storage as part of

the port container terminal operations. In view of the above, Transnet may not be relocating

the Marshalling Yard since the area is regarded as having long-term strategic

significance/potential. However, the possibility exists that limited portions of the precinct

could be released for development within the short to medium term. It is anticipated that

development opportunities would be limited to edge-related development in the area

adjacent to Modderdam Road. As the future use of the Bellcon is currently undecided, any

development proposals, even conceptual in nature, should take a long-term approach.

Should portions of the precinct become available for (re)development, suitable development

opportunities can be regarded as a combination of the proposals mentioned below:

Transit-oriented development, which supports the proposed BRT system, structurally

reinforces the Symphony Way-Modderdam Road as a development route and

enhances the functionality of the Bellville CBD metropolitan node.

Establishing a mixed-use affordable medium to high-density residential and

commercial development incorporating service industrial/commercial/office uses

and regional public facilities.

Investing in institutional development to support the UWC. Complementary land

uses to UWC include the development of a precinct for student accommodation,

sports facilities, environmental conservation and education.

Developing a science park.

Maintaining a protected open space that supports a continuous link from the Elsieskraal

River system to the UWC nature reserve. Draft Technical Report 1: SDP / EMF Tygerberg

District D - Exec Summary - For comment - August 2009 10 The regional impact of the

Voortrekker Road corridor, Bellville CBD, UWC, Cape Peninsula University of Technology

(CPUT), Tygerberg Hospital, industrial area and Cape Town International Airport is an ideal

starting point for establishing an enlarged node of mixed-use development to the south of

Bellville Station.

the development of a conceptual model … third report 091210.pdfdeveloping a conceptual model for...

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