Question NW1348 to the Minister of Science, Technology and Innovation
29 October 2024 - NW1348
Ramongalo, Mr TR to ask the Minister of Science, Technology and Innovation
Whether his department has a plan to develop and support innovation start-ups to create robust innovation ecosystems that seek to drive economic growth and technological advancement; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
(1) The Department of Science and Innovation (DSI) is implementing several initiatives or measures to assist innovation start-ups in South Africa. The support instruments can be defined as technological and non-technological innovations, and these include:
- High Impact Seed Fund of Funds (HISFoF): In October 2024, the DSI, in partnership with SASME Fund, Technology Innovation Agency (TIA), and impact investor E Squared Investments launched the Seed Fund of Funds to boost technological commercialisation. This initiative aims to provide seed funding to drive innovation and entrepreneurial growth. In the rapidly evolving landscape of entrepreneurship and innovation, pre-seed funding emerges as a crucial stage in catalysing the development of nascent ideas into viable business ventures. The early stages of startup development often present significant challenges in securing traditional funding. Pre-seed funding addresses this gap and is critical in the ideation and development phases, enabling entrepreneurs to transform abstract ideas into actionable and validated concepts without the pressure of established revenue streams. through experienced fund managers, with a focus on innovation and transformation in South Africa.
- The Technology Acquisition and Deployment Fund (TADF) is another initiative implemented by the DSI to strengthen government procurement and utilisation of locally-developed technologies. This instrument has been successfully piloted in the country with the acquisition and deployment of local technologies to schools in and around the townships to improve teacher-parent communication, improve learning outcomes for physical science, maths and technology and to combat crime in communities.
- Grassroots Innovation Programme: The Grassroots Innovation Programme is one of the DSI instruments to achieve an inclusive system of innovation that can respond to supporting all kinds of innovation. This programme is also intended to contribute towards the DSI targets of using STI in local economic development and improving the standard of living. The Grassroots Innovation Programme is aimed at identifying innovators and inventors who do not have a formal education and/or have access to formal facilities.
- Innovation for Local Economic Development (ILED) is a new approach to Local Economic Development (LED), introduced by the DSI, which is anchored on the notion of organising a local economy around a local system of innovation and placing innovation as a driver of inclusive development. Among the programmes of ILED, the DSI is funding the Living Labs Programme and Mobile Application Labs (mLabs) in the country. Seventeen living labs and mLabs have been established in KZN, Eastern Cape, Free State, North-West, Western Cape, Mpumalanga, Limpopo, Northern Cape and Gauteng. In partnership with municipalities and other LED stakeholders, the labs provide creative spaces comprised of innovation infrastructure and training programmes to support the development of solutions to promote innovation-driven local economies by enabling young innovators, through skills transfer and enterprise development, to create and diffuse solutions for systemic challenges in the local economies.
- Technology Stations Programme provides broad-based technological support to firms (especially SMMEs and potential entrepreneurs) in helping to mature their technology, performing qualification testing, manufacturing small batches, and so forth. The fifteen technology stations are located at 13 Universities across the country and represent different sectors. The support provided to firms (especially SMMEs) is only technological and might not meet the needs of start-ups on, for example, financial management.