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South Africa spent just over R14.1 billion, or 0.92% of GDP, on research and experimental development (R&D) in 2005/06. This is according to the national survey of financial and human resource inputs into R&D, undertaken by the Centre for Science, Technology and Innovation Indicators (CeSTII) of the HSRC Knowledge Systems unit based in Cape Town. The Survey was commissioned by the Department of Science and Technology (DST) and the results represent an improvement on the situation reported in the 2004/05 R&D survey, which recorded R&D expenditure as R12.0 billion, or 0.87% of GDP. The Survey was carried out according to the guidelines provided by the Organisation for Economic Co-operation and Development (OECD) Frascati Manual and in consultation with national and international experts in the field. The intensity of R&D expenditure (measured as the percentage of GDP spent on R&D) is a good indication of the competitiveness of a country’s economy. The OECD country with the highest R&D intensity is Sweden (3.89% of GDP), followed by Finland (3.48%). R&D expenditure in the United States measured 2.68% of GDP and the average for the 27 European Union (expanded) member states was 1.74%. The European Union has set a goal of achieving an average R&D expenditure of 3% of GDP by the year 2010. South Africa has set a goal of achieving R&D expenditure equivalent to 1% of GDP by the survey year 2008/09. In comparison with some other middle and lower-middle income countries that provide R&D data to the OECD, South Africa spends proportionately more on R&D than Argentina (0.46%) and Portugal (0.80%) but less than China (1.34%) and Russia (1.07%). The R&D Survey involved comprehensive surveys of business, government (including the nine science councils such as the CSIR, HSRC and MRC), higher education and the non-profit sectors. Survey coverage of the business sector was significantly improved especially in the services sector and for small and medium sized companies. As from 2003 the Survey has been conducted annually, which is in line with OECD practice. The Department of Science and Technology sincerely thanks all the organisations that took the time and effort to provide CeSTII with the information requested for this important Survey. The results of the South African R&D Surveys are now published twice yearly in the internationally authoritative OECD Main Science and Technology Indicators. In July 2005, Statistics South Africa accredited the results of the R&D Survey from 2001/02 onwards. This process of accreditation has resulted in R&D Survey results being recognised as official statistics of the National Statistics System as is the practice in OECD countries. The R&D Survey figures presented here are the main results for the survey. The final more detailed reports on the 2005/06 Survey will be hosted at www.dst.gov.za/publications/r&dsurveys.php or www.hsrc.ac.za/CCUP-RnD-7.phtml , where the reports for previous R&D Surveys are already available. South Africa has a total of 28 798 full time equivalent (FTE) R&D personnel, comprising researchers, technicians and other support staff. About 60% of these personnel comprise the 17 303 FTE researchers or academically qualified people who perform, manage and guide the process of undertaking research that leads to new knowledge and novel research findings. While South Africa’s R&D expenditure is fairly high compared to that of other emerging economies, the total number of researchers expressed as the number of researchers per thousand total employment at 1.5 researchers per thousand total employment is low. Comparative figures are Argentina 2.3, Russia 6.8 and China 1.5 researchers per thousand total employment. The demographic profile of researchers in South Africa is changing. Women researchers now comprise 39.2% of the total researchers compared to 11.9% in Japan, and 31.7% in Norway. In developing countries Argentina leads the way with 50.5% women researchers. Most South African R&D is performed in the research field of the natural sciences (comprising 21.2% of total R&D), followed by the engineering sciences (20.8%) and the medical and health sciences (14.8%). The local business sector is the major performer and financer of R&D in the country and performs 58% of all R&D undertaken, while financing 44% of total R&D. The higher education sector undertakes 19.3% of national R&D while government (including the science councils) performs 20.8% of the total but finances 38.2% of R&D. About 13.6% of South Africa’s R&D is financed from abroad. Altogether about 18.7% of total R&D performed in the country comprised basic research representing an expenditure on basic research of about 0.17% of GDP. Japan spends 0.40% of GDP on basic research and the figure for Korea is 0.46%. The US spends 0.49% of GDP on basic research. It is important to have a strong basic research component in a country’s national system of innovation in order to challenge and train new researchers. Basic research is also important in that it provides the inputs to applied research and experimental development for which there are several important funding sources in South Africa such as the Innovation Fund, THRIP, the Competitiveness Fund, the Support Programme for Industrial Innovation, and other national funding programmes and international sources such as the EU 7th Framework Programme for Research. Applied research and experimental development contribute to economic development by providing new R&D based products and processes with potential for introduction to the market. The strengthening of the R&D system through national policies and mechanisms including special support for cooperation across what is termed the ‘triple helix’ of business, government and higher education sectors can only lead to a more competitive international position through R&D based innovation and there is now sufficient empirical evidence in the world to support this notion. The GERD:GDP ratio for 2005/06 of 0.92% is the highest level yet recorded for South Africa. The South African R&D Strategy target for GERD:GDP is to reach 1% by the 2008/09 survey year. All things being equal, we are on track to attain the 1% target. Download the High-level Key Results document. For further information, contact Prof. Michael Kahn at mkahn@hsrc.ac.za or Mr William Blankley at wblankley@hsrc.ac.za.
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