Search

Research and experimental development (R&D) is an important driver of economic growth and productivity. Gross expenditure on domestic R&D (GERD) is a country's total expenditure on R&D performed by all sectors of the economy. South Africa's GERD as a percentage of its GDP (GERD/GDP) remains below government targets and has stagnated over the past decade, largely due to declining business sector R&D. This paper aims to identify the drivers of firm-level R&D intensity, defined as the firm's R&D expenditure as a percentage of turnover. It is the first South African study to examine both micro- and macro-economic drivers of firm R&D, with a paucity of literature on this topic for middle-income countries. Using the South African National R&D Survey data, the study utilized the Generalized Method of Moments (GMM) model and found that public financial support for firms, smaller firm-size, firm-level collaboration, political stability, foreign direct investment, and public R&D investment are positively associated with firm R&D intensity. The results highlight the importance of public financial support for smaller firms and investments in higher education and research institutions in promoting firm-level R&D, thereby providing useful policy insights for boosting business sector and economy-wide R&D expenditure and reaching national GERD/GDP targets. [ABSTRACT FROM AUTHOR]

Firm-level innovation in sub-Saharan Africa remains under-researched. To address this gap, this paper examines the obstacles to innovation faced by small, micro, and medium-sized enterprises (SMMEs) in South Africa. Using the 2018 Business Innovation Survey, we apply the double-hurdle model to investigate factors determining a firm's decision to invest, and the intensity of innovation. Our results show that cost and institutional obstacles were significantly more important as disincentive factors for medium-sized enterprises while knowledge obstacles were significant disincentive factors for large enterprises. In addition, market obstacles hampered investment among large enterprises. Interestingly, none of these factors was found to deter innovation intensity among small and micro enterprises. The study findings suggest that there is no one-size-fits-all approach to innovation policy and intervention programmes to support innovation within firms of different sizes. [ABSTRACT FROM AUTHOR]

The South African bioeconomy strategy did not clearly articulate the measurement framework to monitor the implementation of the strategy. This paper provides an analysis of bioeconomy patents, the most prolific organizations and citations at the EPO and USPTO for South Africa, BRICS, Egypt and Nigeria during the Ten-Year Innovation Plan 2008–2018. The terms 'biotechnology', 'medical technology', 'pharmaceuticals' and 'selected environment-related technologies' were used to search for patents. The OECD patents by technology, the EPO PATSTAT and the USPTO PatFT databases were used to map patents and citations. The results show that South Africa ranked last in the BRICS group but produced a higher number of patents than Egypt and Nigeria. The number of patents generally decreased for the selected countries except for China. The total citations for the selected countries was generally inconsistent. The important innovators for South Africa in the bioeconomy are mainly universities and public research institutions. A new fiscal approach to encourage knowledge application in bioeconomy in South Africa is required. Incentives from government that encourage collaboration between research institutions and industry to direct research with industry application are required. The study contributes to the development of metrics to monitor the bioeconomy in South Africa. [ABSTRACT FROM AUTHOR]