GOVERNMENT CAN PLAY A CRITICAL ROLE IN CREATING AN ENVIRONMENT CONDUCIVE TO SUCCESSFUL COMMERCILISATION

GOVERNMENT CAN PLAY A CRITICAL ROLE IN CREATING AN ENVIRONMENT CONDUCIVE TO SUCCESSFUL COMMERCIALIZATION

Government can play a critical role in creating an environment conducive to successful commercialisation of any technology and this has even been recognised by Cabinet on 22 July 2015 This was said by the Chief Director of Innovation and Technology at the Department of Trade and Industry (the dti), Ms Nonkululeko Shinga. She was speaking at the stakeholder engagement workshop on “Factors Contributing to Successful Technology Commercialisation” in Pretoria.

Shinga said that many internal and external factors come into play and influence the outcome of the technology commercialisation process. While some of these factors and their respective effects are not easy to pinpoint, government can play a critical role in the innovation process by assisting in addressing market failures and creating an environment conducive to successful commercialisation of new or significantly improved products and processes.

“Much effort is needed to intensify the translation of innovative ideas into new products, services or processes to be introduced to the market and successfully commercialised. In response, the dti has identified the need to undertake an investigation into advantages and disadvantages of different methods employed in technology commercialisation, and develop guidelines for financial and non-financial instruments to be implemented in the country to facilitate successful implementation and exploitation of innovation by domestic businesses.,” said Shinga.

There is a wide recognition that developed technology itself is not the end-result but technology must create additional value through proliferation and commercialisation and commercialisation policy has taken the core position of industrial policies of many countries. Considering the importance of technology commercialisation in retaining competitiveness and securing jobs, the above suggests that undertaking innovative activities and succeeding in these efforts is integral to the future growth and development of SMMEs, and in turn to the South Africa’s economy. 

Shinga also added that while two thirds of SMMEs engaged in innovative activities, only one out of four succeeded in bringing their innovative products (goods or services) to the market.

She added that the National System of Innovation (NSI) has been in existence for over a decade, to stimulate and support innovation. This NSI comprises of a wide range of innovation stakeholders, institutional structures and relationships, laboratories, advanced facilities and equipment, research support, and expanded international relations.

“This implies that the importance and need to improve collaboration and synergies within government entities and among the public, academia, research institutions and business sectors has been acknowledged,” she said.

Ms Helene Debbari of Urban-Econ Development Economists (Pty) Ltd, the company appointed by the dti to conduct the study on the factors contributing to successful technology commercialisation in South Africa, with a particular focus on SMMEs, said that South Africa’s Industrial Policy Action Plan 2013-2016 identifies innovation as the most important driver of long-term prosperity, business growth and job creation.

“Technology commercialisation is also considered critical in creating new industries, transforming the structure of the economy and supporting industrialisation, it is one of the main priorities of the National Development Plan. The importance of technological advancement in enhancing a country’s competitiveness, wealth and job creation that ensue, has been recognised in most of the economic theories, as well as its contribution to addressing pressing developmental needs” said Debbari.

The findings of this study will be used to inform the dti National Strategy on Technology Commercialisation for Innovative Enterprises to be released in 2016.