Technology Innovation Agency (South Africa) An Overview

1. Technology Innovation Agency (South Africa) An Overview DR JANINE CHANTSON

2. TIA established Apr 2010 Innovation Policy Drivers and Milestones • National System of Innovation Challenges: • Existence of innovation “Chasm” • Fragmentation of instruments • Narrow definition of Innovation TIA Act 2008 10 Year Innovation Plan OECD Review Creation of DST R&D Strategy • The “Knowledge Economy”: • Knowledge = basic form of capital • Economic growth driven by innovation Technology Foresight Studies S&T White Paper 1996 2000 2002 2004 2007 2008 2009/10

3. Technology Innovation Value Chain Market accepted Product/Process/ Service/Prototype Proof of Concept Directed Fundamental Research Directed applied research Develop-ment Technology & market validation Market Launch Early Business Operation Product/Process/ Service/Prototype Proof of Principle Trading Business J Chantson Adapted from Doug Sanyahumbi 2010

4. Technology Innovation Value Chain Market accepted Product/Process/ Service/Prototype Proof of Concept Directed Fundamental Research Directed applied research Develop-ment Technology & market validation Market Launch Early Business Operation Proof of Principle Product/Process/ Service/Prototype Trading Business Innovation Chasm Technology-based Products/services €€ €€ €€ IP Local Knowledge Local Industry Adapted from Doug Sanyahumbi 2010.

5. Growth Capital TIA’s Positioning Along The Innovation Value Chain Development Capital Seed & Start-up Capital Pre-Seed High Risk/ Uncertain Return Lowered Risk/ More certain Return IP Value TIA Support Partnerships (e.g. NRF) Partnerships (e.g. IDC, NEF, SEDA) Commercialisation Basic Research Applied Research Tech Development Focus of TIA financial and non-financial offerings: Across the innovation chasm, operating with the required flexibility along the innovation value chain through mobilising and leveraging national, regional and international partnerships

6. Strategic Objectives Promoting a Culture of Innovation Developing Human Capital for Innovation • Collaboration • Cooperative ventures • Follow-on Funding • Technology Transfer • Skills Transfer • Best (Next) practices J Chantson

7. Financial Products Technology Development Fund Industry Matching Fund Start-up / Equity Fund Idea Development Fund Universities; Science Councils; SMEs; Techno-entrepreneurs Royalties; Loans; Convertible Loans, Preference Shares; Equity J Chantson

8. Non-financial Products Enabling Infrastructure Engineering services to technology-based SME’s via TIA Technology Stations Business Support & Advisory Services Human Capital Development Programmes Research support via TIA Technology Platforms e.g. Centre for Proteomic & Genomic Research; Biosafety; Metagenomics e.g. Agro-processing; Chemicals; Tooling ; Electronics; etc J Chantson

9. Business Support & Advisory Services • Within context of typical TIA investment company (market reality): • Many tech start‐ups are started (& often run) by 1st‐time entrepreneurs • Invariably 1st‐time entrepreneurs don’t know what they don’t know.. • And don’t have the resources or ‘operational critical mass’ to cover all business bases or hire for every business function • Within the context of TIA’s business purpose: • The need to enhance the chances of success of TIA’s investments (including managing business risks). • The need (or expectation) to offer a state‐funded nursery/incubation service. J Chantson

10. Business Support & Advisory Services • Primarily through approved external service providers that are able to provide context-specific inputs into technology innovation and commercialisation • Levering resources from partner organisations • Building trust relationships with investees • (proactive vs reactive interventions) • Networking • Up-skilling of staff within Investee companies • Linking investees with follow-on funders J Chantson

11. Examples of SA Incubators (1) • Small Enterprise Development Agency (SEDA) • 27 Incubators • E.g. Chemin, eGoli Bio, Furntech • Broad public mandate • No IPO in past six years • Maxum • Specifically targets high-growth, high-potential businesses with high level of technology usage • 2 IPOs J Chantson

12. Examples of SA Incubators (2) • Raizcorp; Aurik • Private • Virtual & physical • Companies at commercialisation stage • Biotechnology Regional Innovation Centres (now part of TIA) • Government • Virtual • Companies at pre-commercialisation stage J Chantson

13. Discussion points • Philosophies around business support / incubation • Practices and models in use • Alignment of various players • Enabling policies or incentives • Lessons learnt J Chantson

14. MYRIADTM Condition monitoring of Steel Cord Conveyor Belting using Multi-sensor digital magnetic imaging www.ait-sa.com THANK YOU. www.tia.org.za janine.chantson@tia.org.za Blue Cube Mineral Grade Quantification Equipment www.bluecubesystems.com NioPulse an integrated Electronic Design Automation suite for Superconductive Electronics www.niocad.co.za Shimoda Biotech Novel cyclodextrin Drug Delivery platform Acquired by Abraxis Bioscience, wholly owned subsidiary of Celgene Corporation www.celgene.com Disa Vascular Coronory Stents www.disavascular.com J Chantson