/ 22 June 2006

SA on track to achieve R&D spending goal

South Africa spent about 0,87% of its gross domestic product (GDP) on research and development (R&D) in 2004/05, the Department of Science and Technology said on Thursday.

It said this amounted to about R12-billion — up from R10,1-billion, or 0,81% of GDP, the previous year.

The figures emerged from a survey commissioned by the department. Minister of Science and Technology Mosibudi Mangena released the survey report in Cape Town.

He said the findings reveal South Africa is on track to achieve the goal of R&D spending of 1% of GDP by 2008.

”However, we must recognise that improved R&D performance is possible only with the participation of additional researchers, and researchers are in short supply globally,” Mangena told reporters. ”We might have the money, the facilities, the equipment, but if we don’t have the people we won’t go any further.”

The European Union has set a target of 3% of GDP on R&D spending by 2010, for which an additional 500 000 researchers will be required, the minister said. ”As a country, we are thus engaged in fierce competition with the rest of the world for knowledge workers.”

An information booklet says the 0,87% is an encouraging figure, ”and the highest level ever reached by our country”.

Gross expenditure on R&D grew by 5% per year in real terms from 2001 to 2004.

Mangena said Minister of Finance Trevor Manuel’s announcement of an increase in the tax deduction, from 100% to 150%, for R&D in the business sector will further improve the figures.

According to the booklet, South Africa had 29 692 research personnel, up from 25 185 the previous year, and 17 910 researchers — up from 14 129.

The business sector accounted for 56,3% of R&D performed in South Africa, followed by the higher-education sector with 21,1% and the government with 20,9%.

The business sector funded 68% of the country’s R&D and the government about 32,1%. About 15% of South Africa’s R&D was financed from abroad.

The largest proportion of R&D in 2004 took place in the engineering sciences, followed by the natural sciences and then the medical and health sciences.

Compared with other developing countries, South Africa spent more on R&D than Argentina (0,44% of GDP) and Greece (0,62%), but less than China (1,44%) and the Russian Federation (1,17%).

Sweden spent 3,98% of its GDP on R&D, Finland 3,48%, the United States 2,68% and European Union countries an average of 1,82%. — Sapa