Abstract:
Based on data from South Africa’s research and development (R&D) surveys, the country’s R&D expenditure
has grown in real terms by 52% over the period 2001 to 2012. This growth has been driven by government
funding, which rose from 34% of the total funding in 2003 to 45% by 2012. Much of the additional funding
has been granted to universities, with government support of R&D in this sector rising 450% in nominal
terms, or 250% in real terms, over the same period. This funding focus, indicative of a growing role for
universities as R&D performers within the national system of innovation, follows a pattern set earlier in
many developed countries and reflects a revision in the state’s steering of knowledge creation. The R&D
Survey also revealed a decline in the average cost of research, as expressed by expenditure per full-time
equivalent researcher. This finding suggests that the researcher labour market is being better supplied and
the constraints identified by earlier reviews are slowly being overcome. Both trends are highly positive for
the research system. However, the 34% decline in business R&D expenditure since its peak in 2008 is a
matter of concern and needs to be addressed. In particular, the level of state-industry embeddedness must
be increased to encourage private investment and to overcome South Africa’s present growth constraints in
respect of developing competitive medium- to high-technology sectors.
