Difficulty finding venture capital is one of the main reasons local research companies battle to develop their inventions commercially, members of Parliament's science and technology portfolio committee heard on Tuesday.
Speaking at the start of public hearings on the Technology Innovation Agency Bill, science and technology director-general Phil Mjwara told MPs that South Africa had also not been "100 percent up to speed" in the way it managed intellectual property rights.
The draft legislation provides for the establishment of a Technology Innovation Agency (TIA), aimed, among other things, at creating an environment in which home-grown inventions can be commercialised locally.
"What we find in South Africa is that most research gets exploited overseas, in terms of converting the research results into technology development and production, and then we have technology transfer back from overseas into local industry.
"We end up with this innovation chasm, which we are now trying to address," Mjwara said.
It was envisaged that the TIA would become a player in the venture capital market, but focused on the high-risk end of the spectrum, providing "seed" capital and start-up funds.
"The motivation for the TIA is to establish a public institution that, together with private sector partners, where appropriate... will develop the country's capacity towards translating a greater proportion of local research and development into commercial products and services."
Private funders appeared to be "extremely delighted" that government was prepared to establish an agency such as the TIA, and would come on board.
According to Mjarwa's briefing document, handed out to MPs, funding for the agency will come from, among other sources, the national budget and money raised or borrowed by the TIA itself.
Responding to MPs' questions, he said there was little chance of the agency "crowding out" the private sector in the venture capital markets.
"If we look at research at the moment, there is very, very little funding in this area ... we have not seen anybody coming with venture funds in this space."
The TIA would be a public entity, reporting to Parliament through the minister, Mjarwa said.
Submission documents tabled at Tuesday's hearing highlight the "innovation chasm" referred to by Mjwara.
Referring to the field of biotechnology, the University of Pretoria's Centre for International Political Studies notes South Africa's innovation output "has all but stagnated, while that of our peer nations, such as South Korea, India and China, has sky-rocketed".
The Industrial Designers Association of SA, in its submission, said there was no design culture in South Africa, and no government structures to support industrial design.
The NGO AfricaBio also said innovation outputs in South Africa's biotech companies "have stagnated". - Sapa
Speaking at the start of public hearings on the Technology Innovation Agency Bill, science and technology director-general Phil Mjwara told MPs that South Africa had also not been "100 percent up to speed" in the way it managed intellectual property rights.
The draft legislation provides for the establishment of a Technology Innovation Agency (TIA), aimed, among other things, at creating an environment in which home-grown inventions can be commercialised locally.
"What we find in South Africa is that most research gets exploited overseas, in terms of converting the research results into technology development and production, and then we have technology transfer back from overseas into local industry.
| 'most research gets exploited overseas' |
"We end up with this innovation chasm, which we are now trying to address," Mjwara said.86 Countries in 2007 Showed intrest in building appropriate affordable 'green' Cannabrick homes. Countries with less of a housing crisis have already started building green.
It was envisaged that the TIA would become a player in the venture capital market, but focused on the high-risk end of the spectrum, providing "seed" capital and start-up funds.
"The motivation for the TIA is to establish a public institution that, together with private sector partners, where appropriate... will develop the country's capacity towards translating a greater proportion of local research and development into commercial products and services."
Private funders appeared to be "extremely delighted" that government was prepared to establish an agency such as the TIA, and would come on board.
According to Mjarwa's briefing document, handed out to MPs, funding for the agency will come from, among other sources, the national budget and money raised or borrowed by the TIA itself.
Responding to MPs' questions, he said there was little chance of the agency "crowding out" the private sector in the venture capital markets.
"If we look at research at the moment, there is very, very little funding in this area ... we have not seen anybody coming with venture funds in this space."
The TIA would be a public entity, reporting to Parliament through the minister, Mjarwa said.
Submission documents tabled at Tuesday's hearing highlight the "innovation chasm" referred to by Mjwara.
Referring to the field of biotechnology, the University of Pretoria's Centre for International Political Studies notes South Africa's innovation output "has all but stagnated, while that of our peer nations, such as South Korea, India and China, has sky-rocketed".
The Industrial Designers Association of SA, in its submission, said there was no design culture in South Africa, and no government structures to support industrial design.
The NGO AfricaBio also said innovation outputs in South Africa's biotech companies "have stagnated". - Sapa
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