Sensitivity of GERD/GDP to time academics spend on R&D in South Africa, 2022/2023

Abstract

This short communication estimates the impact of the time academics spend on research and development (R&D) on the research intensity of South Africa. Research intensity is indicated by the R&D expenditure as a percentage of the gross domestic product (GDP). A country’s research intensity is indicative of technological progress and global competitiveness, which arises from improved productivity and efficiency across various industries. Furthermore, the indicator is used for the attraction of foreign investments. Research intensity is of particular importance in South Africa as it is used by the country’s government as a target to propagate the country’s socio-economic development. The Science, Technology and innovation Decadal Plan 2022–2032 (South African Department of Science and Innovation, 2022) identifies the research intensity of various sectors as targets, and political authorities have reported that the ratio of the gross expenditure on research and development (GERD) to GDP should be 1.5%. However, the current value of the indicator is 0.61%. The higher education sector is a main contributor to research intensity in the country and the time that academics spend on R&D is the major factor in the sector’s intensity. In undertaking the R&D Survey in South Africa, the Human Sciences Research Council estimates a research coefficient for academics of 22%. However, other surveys estimate a much lower ratio. The current investigation has identified that if the research ratio of academics is 7%, the country’s research intensity is 0.48%. This is substantially lower than the current estimate and requires the urgent attention of government authorities. SIGNIFICANCE: • Research intensity is the most cherished indicator among the set of indicators in the context of science, technology and innovation in a country. In South Africa, the issue is of critical importance as the political authorities use the indicator for policy targets and the administrative system appears to overestimate the size of the indicator. • The current intensity of 0.61 appears to political authorities to be adequate and so they reduce the budgets related to research and development. However, this article identifies that South Africa’s intensity may be closer to 0.48. South Africa has not seen such indicators for more than 20 years.