ANNUAL REPORT PRESENTATION TO PARLIAMENTARY …pmg-assets.s3-website-eu-west-1.amazonaws.com/151015tia.pdf · SMALL MEDIUM ENTERPRISE (SME) TECHNOLOGY PLATFORMS OVER THE LAST TWO

ANNUAL REPORT PRESENTATION

TO PARLIAMENTARY PORTFOLIO COMMITTEE

MR BARLOW MANILAL • CHIEF EXECUTIVE OFFICER

OUTLINE

2 Technology Innovation Agency • Annual Report 2015

1. Overview

2. Achieving National Development Programme (NDP) goals

3. Operational Performance

4. Financial Performance and Governance

OUTLINE


OVERVIEW


The National Development Plan, 2012A Country Vision: 2030

‘Innovation is the primary driver of technological growth and drives higher

living standards…. and brings about economic growth, we propose a larger,

more effective innovation system, closely aligned with firms’


A national agency that supports the commercialisation of technology ideas for:

• Economic growth

• Improved quality of life

Idea Impact

THE TECHNOLOGY INNOVATION AGENCY (TIA)

Technology Innovation Agency • Annual Report 2015

TIATaking Innovation Further

Innovation Realisation

6

VISIONTo be a world-class leading technology

innovation agency that stimulates and supports technological innovation to improve the quality

of life for all South Africans

MISSIONTo facilitate the translation of South Africa’s knowledge resource into sustainable socio-

economic opportunities

OUR VISION AND MISSION


OUR MANDATE

The mandate of TIA is derived from the provisions of the Technology Innovation

Act (Act 26 of 2008), which establishes TIA as an Agency to promote the

development and exploitation, in the public interest, of discoveries, inventions, innovations and improvements.

The objective of TIA is to support the State, through the DST, in stimulatingand intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by developing and exploiting technological innovations.

In addition, the Public Finance Management Act (Act No. 1 of 1999) (PFMA)

classifies TIA as a Schedule 3A public entity. Chapters 5 and 30 of the National

Treasury Regulations provide a framework upon which TIA must prepare a

Strategic Plan that is consistent with the period covered by the Medium-Term

Expenditure Framework for approval by the relevant Executive Authority.


Strategic impact• Contribution towards an innovation economy

• Stimulating and intensifying technology innovation resulting in a vibrant eco-system

• Socio-economic impact of technology innovations

• Growth in the number of skilled jobs

• Increasing revenues e.g. taxes, improved trade balance

• Increase in knowledge intensity of businesses and industries

DELIVERING ON OUR 5-YEAR PLAN


TIA’S ORGANISATIONAL FRAMEWORK


• Ministerial review

• Board approved strategy

Two critical objectives were to be achieved by the organizational re-

design:

• Improve efficiency and effectiveness (core and support business

areas)

• Reduce cost

The objectives necessitated:

• Restructuring of the organisational structure and reducing positions.

• Appointment of the leadership that will direct the orgainsation

towards the new strategic direction

ORGANISATIONAL RE-DESIGN


ORGANISATIONAL RE-DESIGN

Reduction in number of positions in the organizational structure was

achieved through natural attrition, re-design and offering Voluntary

Severance Packages (VSPs)


Section 189 Process completed

with nil forced retrenchments

TIA BOARD


TIA EXECUTIVES


DELIVERING ON THE NDP & TIA’S MANDATE


• Outcome 2: A long and healthy life for all South Africans

• Outcome 4: Decent employment through inclusive economic growth

• Outcome 5 : Skilled and capable workforce to support an inclusive growth path

• Outcome 7: Vibrant, equitable and sustainable rural communities with food security for all

• Outcome 10: Protect and enhance our environmental assets and natural resources

• Outcome 11: Create a better South Africa and contribute to a better Africa and a better world

GOVERNMENT OUTCOME/ NDP ALIGNMENT


EXCITING PROJECTS, INNOVATIONS AND PROGRAMMES - ALIGNED TO

GOVERNMENT OUTCOMES AND THE NDP


OUR MANDATE:Improving economic

growth

Innovation Technology: Silicon nanoparticle thermistor which can be printed on

almost any material including paper, fabric and polymer film

Highlights: Produced 14 patent families (271 individual) for product and 6 patent

families (69 individual) for manufacturing

• Joint development agreements in Europe as well as a supply and license

agreement (SLA)

• Spotted by NASA for the printable space ship programme

PST SENSORS (PTY) LTD


• Innovation: Discovery, optimisation and commercialisation of novel protein-based

products

• Highlights: Primary market - North America. Recently expanded into Europe -

purchased by Roche

• Significant: 50% Growth year-on-year for the past 3-4 years

• Increased staff compliment: 2012 (50 employees); 2014 (110 employees) with 86%

of its workforce based in Cape Town

• TIA successfully exited the investment. R57million was recovered and re-invested

into projects

KAPA BIOSYSTEMS (PTY) LTDOUR

MANDATE:Improving

quality of life


SME SUPPORTSMALL MEDIUM ENTERPRISE (SME) TECHNOLOGY PLATFORMS OVER THE LAST TWO YEARS OUR

MANDATE:Stimulating

and intensifying

technological innovation


169 Students supported of which 60% are Masters and PhD

1 US patent and 1 PCT application

145 Client projects supported by Platforms in the last 2-years

40 Technologies and services developed and/or improved due to Platform support

R92 million co-funding in the last 2-years

SME SUPPORTTECHNOLOGY STATIONS PROGRAMME (TSP)


Prototypes completed

515 SETA accredited

training and Short

Learning Programmes

offered

91 Interns in the * SETIIP

with industry partners

*Science Engineering

and Technology Internship

Programme

At least 4821testing, quality

assurance, analytical

services and engineering

support provided to enterprises

38Prototypes completed

TSP determined to meet SME needs with a

positive impact on technical skills; quality

improvements on products

and prototypes; time and cost

saving

OUR MANDATE:Stimulating

and intensifying

technological innovation

OUR MANDATE:Improving

quality of life

SEEDING IDEAS

OUR MANDATE:Developing

and exploiting

technological innovations


Higher Education Institutions (HEI): 2 New companies incorporated from HEIs

9 Projects completed in HEIs

23 Patents registered for projects supported through the Seed Fund

HEIs: 6 Innovation outputs: market reports, prototypes

HEI Seed Fund: 173 Applications approved

Regional Seed Fund (RSF) – 74 SMMEs funded

NDPOUTCOME 5:Skilled and

capable workforce

INNOVATION SKILLS DEVELOPMENT (ISD)


R16 million leveraged

from partners

541 Interns placed in the

NSI

(65% placement)

10 CHUMA learners graduate

(9 placed in NSI)

15 UK Newton

candidates attending Leaders in Innovation Programme

Tech roadmaps developed

for 35winners in the

Step-Up Technology Innovation

competition with Sasol

GAP Bio-Science: 81Candidates

trained with top 3 winners

incubated

NDPOUTCOME 5:Skilled and

capable workforce

• Innovation: production of maggot-based animal feed protein as an alternative to

fish meal

• Highlights: 30 jobs at demonstration & ramping to 80 at commercialisation

(December 2015)

• Key milestone: R90 million in commercialisation funding secured from local &

foreign investors to build three production factories in South Africa

AGRIPROTEIN (PTY) LTD



and exploiting



growth

• Innovation: Technology: technology used for monitoring damages in conveyor belts,

applying electromagnetic waves. This technology thus prevents costly downtime by

allowing the belt users to better manage their conveyor belts to determine when

maintenance is required.

• Highlights: Exporting products worldwide through an exclusive supplier-agreement

with ContiTech, a division of Continental

o Estimated Annual Turnover for 2014 / 2015 financial year is R16.9 million

o Paid royalties of R2.4 million to date

ADVANCED IMAGING TECHNOLOGIES



and exploiting


YOUTH DEVELOPMENTOUR

MANDATE:Innovation in

the public interest


14 Business enterprises developed

1 Full South African

patent filed

17 Fully functional prototypes completed

40 Projects currently at

Tech Stations for

prototyping

57Applications approved for

funding

9 Youth Technology Innovation Programme (YTIP) calls

for proposals to date

Youth Technology Innovation Fund (YTIF) launched

August 2012

Equity Investments & Programmes

2014/15

Revenue R1.8 billion

Profits R 298 million

Direct tax paid 22 million

Number of jobs (permanent &temporary)

506

Jobs at Tech Stations / Platforms 326

INVESTMENTS: IMPACT NUMBERS

NDPOUTCOME 4:

Decent Employment

NDPOUTCOME 5: Skilled and

capable workforce

NDPOUTCOME 11: Create a better

South AfricaRiver Hydro Product Development: An Applied Engineering & Development with a Prototype model to demonstrate the functional capability of the idea.


THOUGHT LEADERSHIP & STAKEHOLDER ENGAGEMENTS/PARTNERSHIPS


GLOBAL PARTNERSHIPS (GCIP)


3 GCIP winners – 2 global business interests; 1 local business partner

20 training webinar sessions and 10 training workshops; 4 regional and 1 global networking activity

51 Entrepreneurs developed and validated Business Models through the Business Accelerator

2 GCIP-SA Calls for application to date

Global Cleantech Innovation Programme South Africa (GCIP-SA) launched in May 2014

A joint DST/TIA/NIPMO & SARIMA technology showcasing event that showcased37 new technologies universities and technology SMMEs in South Africa

Total of 37 Organisations exhibited new technologies

o 16 universities

o 6 science councils

o 14 TIA supported companies

o SANSA

Three TIA Supported Companies received Awards of R100K each

• Sliek – Best Pitch

• Enzyme Technologies – Best Prototype

• Mabu Soil Casings –Best Exhibitor

THE INNOVATION BRIDGE2-3 FEBRARY 2015, CSIR CONVENTION CENTER


OUR MANDATE:

Innovation in the public

interest


and exploiting



growth

Key partnership activities agreed for implementation include:

a) Institutional Capacity Development through knowledge exchanges on Intellectual Property management; technology and commercialization and M&E ;

b) Collaborative technology development initiatives from joint research projects undertaken with the NRF;

a) Market access opportunities for the technical services provided by the Technology Stations;

b) Technical Cooperation on replication of the Technology Stations business model in various African partners

The TUT Technology Station visited the Technical University of Kenya and trained 12 students to use CNC Machines supplied by China

SUPPORTING THE AFRICAN AGENDA


Ministers highlighted the importance of building strong research and institutional capacity in Africa as a priority in strengthening S&T cooperation

SUPPORTING THE AFRICAN AGENDA


TIA hosted H.E. Sudan’s Minister of Science & Communication, DrTahani Abdalla on her visit to TIA in March 2015

TIA hosted 5 African delegations in 2014/15:

Angola ₒ Kenya ₒ Namibia ₒ Sudan ₒ Zimbabwe

Professor Martin Fransman

Professor of Economics and Founder-Director of the Institute for Japanese-European Technology Studies at the University of Edinburgh.

An international expert and advisor on innovation and global competitiveness who advised big corporations such as AT&T, BT, Caterpillar; Governments of Brazil, China, Japan, Korea, South Africa, Thailand, UK, and Vietnam; and International organisations such as the European Commission, ILO, OECD, UNECLA, UNIDO, and the World Bank.

“Re-thinking the role of innovation in companies” –

Thought leadership Seminar - attended by 50 participants from Government, policy makers, industry and technology funding partners where Prof. Fransman challenged today’s assumptions about the notion of innovation

THOUGHT LEADERSHIP INITIATIVES


BUSINESS PERFORMANCE



OUR MANDATE:

PFMA Compliance

and good governane

OVERALL BUSINESS PERFORMANCE


Overall KPI performance

SO 1: To provide customer-centric technology development, funding and support

SO 2: To provide and enabling environment for technology innovation in collaboration with other role players

SO 3: To develop an effective and efficient internal environment to successfully execute the strategy

73%

100%

100%

40%

63% Exceeded targets

OUR MANDATE:

PFMA Compliance

and good governane

PERFORMANCE HIGHLIGHTS


R200 million attracted in TIA’s portfolio from 3rd

parties

38 Knowledge innovation products

supported

8 Knowledge innovation products receiving follow-on

funding

6 Technologies taken up by the

market

8 Technologies reaching

demonstration

2188 SME’s Receiving support from Tech Stations

and the Institute for Advanced Tooling

FINANCIAL PERFORMANCE AND GOVERNANCE


• Unqualified audit opinion

• Clean audit

2014/15 2013/14 2012/13 2011/12

Number of audit findings 7 16 33 56

Matters effecting the audit report

- 1 2 7

2014/15 AUDIT RESULTS


Consolidated results include

• 7 Subsidiaries (Control and > 50% shareholding)

• 30 Associates (Less than 50% and > 20%)

• One minor investment of R 40 million

Group TIA

Total Assets R259 million R244 million

Total Liabilities R206 million R191 million

Deficit R81 million R62 million

TIA GROUP RESULTS


• Audit committee tasked management to validate all legacy contracts with future commitments.

• Result was Irregular expenditure R 42 m (Total : R56m) where contracts not approved according to delegation.

• All legacy items were dealt with, SCM contracts cancelled and disciplinary action in progress.

• Controls and awareness raised to prevent future duplication

• Fruitless and wasteful expenditure: R865 related to Telkom interest.

GOVERNANCE


MTEF AND DST CONTRACTED


OTHER INCOME


PROJECT FUNDING


ADMIN AND EMPLOYEE COSTS


SURPLUS/(DEFICIT)


THANK YOU

47 Technology Innovation Agency • Annual Report 2015 Photo credit: Google images

Documents

ANNUAL REPORT PRESENTATION TO PARLIAMENTARY …pmg-assets.s3-website-eu-west-1.amazonaws.com/151015tia.pdf · SMALL MEDIUM ENTERPRISE (SME) TECHNOLOGY PLATFORMS OVER THE LAST TWO