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South Africa spent just over R16.5 billion, or 0.95% of GDP, on research and experimental development (R&D) in 2006/07. The results of the 2006/07 survey represent an improvement on the situation for 2005/06, where R&D expenditure of R14.1 billion, or 0.92% of GDP was recorded. This is according to the latest national survey of R&D activities, undertaken by the Centre for Science, Technology and Innovation Indicators (CeSTII) of the HSRC Knowledge Systems Group based in Cape Town. The Survey was commissioned by the Department of Science and Technology (DST) and is the fifth in the series of surveys already completed by CeSTII. The purpose of the survey is to collect data which are used to produce indicators of R&D activities within South Africa's borders for use by analysts and other interested parties, both nationally and internationally. This information on R&D is critical to my department's forward planning as for example in specifying the targets for the Ten Year Plan "Innovation Towards a Knowledge-Based Economy". 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 authorities, including Statistics South Africa, and international experts in the field. 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 improved especially for small and medium sized companies. 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 (3.73% of GDP in 2006), followed by Finland (3.45%). R&D expenditure in the United States measured 2.62% of GDP and the average for the 27 European Union member states was 1.76% in 2006. 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 (0.49%) and Chile (0.67%) but less than China (1.42%) and the Russian Federation (1.08%). South Africa has a total of 30 986 full time equivalent (FTE) R&D personnel, comprising researchers, technicians and other support staff. About 60% of these personnel comprise the 18 572 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 and has remained almost static. Comparative figures are 2.5 researchers per 1000 total employment for Argentina; the Russian Federation has 6.8 and China 1.6 researchers per thousand total employment. The demographic profile of researchers in South Africa is changing. Women researchers now comprise 39.7% of the total researchers compared to 12.4% 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 engineering sciences (comprising 20.9% of total R&D), followed by the natural sciences (20.3%) and the medical and health sciences (15.1%). The local business sector is the major performer and financer of R&D in the country and performs 55.9% of all R&D undertaken, while financing 51.3% of total R&D. The higher education sector undertakes 20.0% of national R&D while government (including the science councils) performs 22.8% of the total but finances 33.9% of R&D. About 10.6% of South Africa's R&D is financed from abroad. Altogether about 18.6% of total R&D performed in the country comprised basic research representing an expenditure on basic research of about 0.18% of GDP. Japan spends 0.40% of GDP on basic research and the figure for Korea is 0.49%. The United States spends 0.48% 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. Our support for the South African Research Chairs Initiative reflects our commitment to the pursuit of basic and applied research in the universities. 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 2006/07 of 0.95% 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 that target. The R&D Survey figures presented here are the main results for the survey. The final more detailed reports on the 2006/07 Survey will be hosted on the DST and HSRC websites http://www.dst.gov.za/publications-policies/r-d-reports and http://www.hsrc.ac.za/CESTII.phtml where the reports for previous R&D Surveys are already available. 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 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. Briefing notes  ENDS
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