| IntroductionSouth Africa is facing
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| | incremental innovations. It can
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| structural problems in strengthening its
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| | therefore be concluded that knowledge
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| research and innovation capacity in order
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| | resources do not meet the competitive
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| to become and remain competitive in the
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| | needs of South Africa especially in high
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| global business environment. Although
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| | technology innovations.Table 2: Sources
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| greater emphasis is given to strengthen
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| | of Competitive Technologies
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| Research and Development efforts in the
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| | Source Percentage
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| country and to translate it into
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| | In-house 57
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| commercialization of products, South
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| | Local 24
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| Africa are lagging behind its competitors
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| | Foreign 22Further, whilst South African
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| on four critical domains of:· The level
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| | inventors secure around 100 United States
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| of technological exports;
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| | patents per year, this represents only
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| · Funds invested in Research and
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| | 2.5 patents per million of the population
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| Innovation activities;
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| | per annum. In comparison Japan secured
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| · Capability to transform relevant
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| | 776 patents per million of the population
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| scientific knowledge and technological
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| | per annum (Department of Arts, culture,
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| inventions into commercial applications;
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| | Science and Technology, 2002). Conclusion
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| and
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| | and RecommendationsThe results reveal
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| · Sourcing for competitive
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| | that South Africa performed poorly and
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| technologies.Although it is realised that
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| | insignificantly low in the export of
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| South Africa as a developing country
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| | high, medium and low levels technologies.
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| cannot match the R&D spending of
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| | The country is therefore poorly
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| developed countries, the assumption is
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| | positioned globally to compete
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| made that if South Africa can carry out
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| | successfully due to a lack in ability to
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| R&I activity levels comparable to that of
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| | commercialise the results of R&I in the
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| principle trading partners and
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| | international markets. This can be
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| competitors, it will be able to sustain
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| | partially be attributed to the fact that
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| its relative competitiveness in the
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| | not sufficient funds are allocated for
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| world.Complicating the situation further
| |
| | R&D as indicated by the gross expenditure
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| is the fact that South Africa is
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| | on R&D. In order to sustain its
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| considered an innovation environment in
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| | competitive position South Africa needs
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| which medium to low technology
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| | to follow a three-tier approach. Import
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| innovations dominate. Therefore, it is
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| | the technology it requires to fulfil in
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| not a strong competitor for attracting
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| | its trading needs by securing access to
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| research exports from foreign companies.
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| | external sources of technology, establish
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| This is due to the fact that this
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| | strong links with the global production
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| priviledge belongs to environments
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| | system and seek co-operation agreements
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| classified as at the forefront of
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| | with international expertise to ensure
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| research efforts, high technology
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| | technology transfer to South Africa.In
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| oriented, huge market opportunities and
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| | order to strengthen the research and SET
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| dynamic in nature. Typical countries
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| | capacity in South Africa, the throughput
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| adhering to these requirements include
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| | at university level should at least be
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| amongst others China, India, the United
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| | doubled to come in line with developed
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| States of America, Hungary and Romania
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| | and developing countries in the European
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| (RTDinfo, 2006).PurposeThe purpose of
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| | union and to contribute significantly to
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| this article is to describe the
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| | the formation of SET human capital and
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| vulnerable research and innovation base
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| | technological innovations. South Africa
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| of South Africa in terms of the three
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| | has also embarked on a process of
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| domains mentioned in the
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| | embarking on an incentive approach that
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| introduction.Technology exports of South
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| | provides funding sources to different
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| Africa as percentage of world
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| | stages for commercialisation of research
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| exportsAccording to statistics provided
| |
| | innovations.Due to the fact that South
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| by Kaplan (2005) high technology export
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| | Africa is not performing well in the area
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| of South Africa, 0.3% in 2002, as a
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| | of patenting, a better approach could be
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| percentage of global exports represents
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| | to focus on trademarks, rather than
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| indeed a very small proportion of world
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| | patents based on the argument that final
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| exports in technology. How poor is only
| |
| | consumers are less concerned on whether a
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| conceived when compared to 2002 figures
| |
| | product has been manufactured solely on
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| of other European countries such as
| |
| | the basis of imported or self-develop
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| Turkey (1.6%), United Kingdom (1.25%),
| |
| | technology that buying the right product
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| Sweden (13.7%), Switzerland (21.6%),
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| | that would satisfy their needs.
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| Spain (5.7%), Slovenia (4.9%), Portugal
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| | Trademarks better address the latter
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| (6.8%), Norway (4.6%) and the Netherlands
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| | component and are focussing more on the
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| (18.7%).Sufficiency of funding for R&I in
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| | licensing of technology as opposed to
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| South AfricaWhilst the aim of the South
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| | protecting industrially applicable
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| African Government is to spend at least
| |
| | inventions as in the case of patenting.
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| 1% of its GDP on R&D this objective has
| |
| | Whilst patenting is focussing on the
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| never been reaches since 1983 (No survey
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| | supply side of the market to prevent
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| was done in 1995 and 1999). With a
| |
| | competitors from copying the innovation,
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| median of 0.76 and currently at 0.806
| |
| | trademarks is focussing on the demand
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| GERD:GDP too little emphasis is given to
| |
| | side of the market by influencing
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| R&D activities. Currently only R10.1
| |
| | consumers, which trademark to buy. South
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| billion (+/- US$1.6 billion) is spend on
| |
| | Africa therefore could benefit to focus
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| R&D in comparison to a 2005 GDP of R1 250
| |
| | on establishing preferred trademarks in
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| billion (+/- US$208.33) comparing
| |
| | the marketplace in order to grow its
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| favourably with levels experienced in a
| |
| | competitive base in the global world
|
| country lie Portugal. However in
| |
| | especially in the field of indigenous
|
| comparison with other countries in Europe
| |
| | technology applications.From a global
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| like Switzerland, Sweden, United Kingdom
| |
| | perspective South Africa is also
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| and the Netherlands which spend two
| |
| | performing poorly to attract R&D funds
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| percent and more of their GDP on R&D,
| |
| | from Transnational Corporations. Funding
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| South Africa are lagging far behind.
| |
| | obtained is primarily intended for the
|
| Further, of the R10.1 billion available
| |
| | auto industry. The funds invested,
|
| for R&D, only 13% is spend on the
| |
| | represents a very narrow base on which to
|
| advancement of knowledge, whilst the most
| |
| | build the competitive edge through R&I.It
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| (60%) is spend on economic development.
| |
| | can therefore be concluded that South
|
| This indicates that too little is
| |
| | Africa founds itself on the periphery of
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| invested on human factors, which is
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| | global knowledge creation and innovation
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| considered a critical element for a
| |
| | as well as in sourcing for technological
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| successful knowledge based economy. The
| |
| | innovations. If South Africa intends to
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| conclusion is thus that not sufficient
| |
| | maintain and grow its global
|
| funds are allotted for R&I activities in
| |
| | competitiveness greater emphasis should
|
| South Africa.Capability of South Africa
| |
| | be given to:· Increase the budget for
|
| to transform scientific and technological
| |
| | Research and innovation dramatically;
|
| inventions into commercial applicationThe
| |
| | · Provide stronger support to
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| first consideration in determining the
| |
| | universities to engage in knowledge
|
| capability of South Africa to transform
| |
| | transfer and commercialisation of
|
| R&D activities into commercial
| |
| | inventions;
|
| application demands an analysis of human
| |
| | · Direct the preferred choice of
|
| resources availability in the scientific
| |
| | students in the direction of science,
|
| community. The Department of Arts,
| |
| | engineering and technology education; and
|
| Culture, Science and Technology (2002)
| |
| | · Form strong partnerships with
|
| has made a comparison between four
| |
| | international organisations known for R&I
|
| countries, South Korea, Malaysia, South
| |
| | and with reputable scientists in R&I.All
|
| Africa and Australia regarding the
| |
| | this should be done in the realisation
|
| development of human capital as expressed
| |
| | that that the precise returns in R&I
|
| by number of researchers per 1000 of the
| |
| | investments cannot be determined and that
|
| population as indicated by Table 1.
| |
| | the real benefits may only be reaped
|
| Although performing better than Malaysia
| |
| | years later.BIBLIOGRAPHYADAIR, J. 1990.
|
| on this component, South Africa are
| |
| | The challenge of innovation. Great
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| performing weak on the broadening of
| |
| | Britain: Biddles Ltd, Guilford and
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| research literacy in the general
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| | King's Lynn.Baumol, W.J. 2002. The
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| population. It is a further disturbing
| |
| | Free-Market Innovation Machine. Princeton
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| fact that South Africa has an aging
| |
| | University Press: Princeton.Bessant, J.,
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| research workforce. The Department also
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| | Lamming,R., Noke, H. & Philips, W. 2005.
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| indicated that the number of science,
| |
| | Managing innovation beyond the steady
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| engineering and technology (SET)
| |
| | state. Technovation. 25:
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| practitioners, will vary between 7 and 11
| |
| | 1366-1376.CALOGHIROU,Y., Kastelli, I. &
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| per 1000 of the population in the years
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| | Tsakanikas, A. 2004. Internal
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| 2002 to 2012 and a university throughput
| |
| | capabilities and external knowledge
|
| in SET of only 2.7% to 3% during the same
| |
| | sources: complements or substitutes for
|
| time frame. The latter figures compare
| |
| | innovative performance?, Technovation,
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| extremely unfavourable with SET graduate
| |
| | 24:29-39.Chesbrough H. 2003. Open
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| throughput in some of the European
| |
| | innovation - The new imperative for
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| countries like the United Kingdom (19.5%
| |
| | creating and profiting from technology.
|
| - 21.0%), Turkey (5.2%), Switzerland
| |
| | Boston, Massachusets: Harvard business
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| (7.0% - 7.7%), Sweden (13.3% - 13.9%),
| |
| | school press. (pg110;pg157;read chapter
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| Spain (12% - 12.6%), Slovenia (8.7% -
| |
| | 8)Cooke, P. 2005. Regionally asymmetric
|
| 9.0%), Portugal (7.4% - 8.2%), Poland
| |
| | knowledge capabilities and open
|
| (8.3% - 9.0%), Norway (7.7% - 9.3%) and
| |
| | innovation: Exploring "Globalisation 2" -
|
| the Netherlands (6.6% - 7.3%) for the
| |
| | A new model of industry organisation.
|
| same period.Table 1: Researchers per 1000
| |
| | Research Policy. 34: 1128-1149.Department
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| of population
| |
| | of Arts, Culture, Science and Technology.
|
| Researchers per 1000 of Population
| |
| | 2002. South Africas National R&D
|
| Australia 4.843
| |
| | Strategy: The changing face of R&D within
|
| South Africa 0.71
| |
| | South African public sector research.
|
| Malaysia 0.3
| |
| | June. Government Printers: Pretoria.DTI.
|
| South Korea 2.771Secondly, of the top
| |
| | 2004. Science &Innovation investment
|
| 700 firms, by R&D expenditure in the
| |
| | framework 2004-2014. HM Treasury:
|
| world, only one namely Sasol is located
| |
| | Norwich.Kahn, M. & Blankley, W. 2005. The
|
| in South Africa with a US$91 million
| |
| | state of research and experimental
|
| spending during 2003, whilst more than
| |
| | development:
|
| 80% of these firms come from only five
| |
| |
|
| countries, spending more than 82.5% of
| |
| | Accessed: 24/02/2006.Kaplan, D. 2005.
|
| R&D: the United States (42.3%), Japan
| |
| | Technology and the growth of manufactured
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| (22.0%), Germany (7.6%), the United
| |
| | exports: Assessing South Africa's
|
| Kingdom (5.6%) and France (5.0%). The
| |
| | performance and policy. Paper presented
|
| remaining 20% comes from Finland (0.9%),
| |
| | at DRUID Summer Conference on Industrial
|
| Sweden (2.1%), Switzerland (2.9%),
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| | Dynamics, Innovation and Development,
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| Republic of Korea (1.4%), Taiwan (1.1%),
| |
| | Elsinore, Denmark, 14-16.06.04Kar. 2004.
|
| China (0.1%), Bermuda (0.4%), Brazil
| |
| | Constructing a logical framework. 7 July.
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| (0.3%), Croatia (0.1%) and South Africa
| |
| |
|
| (0.1%). Of these firms more than 50%
| |
| | Accessed: 25/02/06Lechter, M.A. 2001.
|
| operates in the high and medium
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| | Protecting your #1 Asset: Creating
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| technology environments of information
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| | fortunes from your ideas. New York:
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| technology, pharmaceuticals,
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| | Warner Books.Lorentzen, J. 2004. The
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| biotechnology and automotive. In essence
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| | noledge of numbers: S&T, R&D, and
|
| Transnational Corporations dominate the
| |
| | Innovation indicators in South Africa.
|
| global business R&D and in all of this
| |
| | School of Development Studies: University
|
| South Africa plays a relative
| |
| | of Kwazulu-Natal.McCalman, P. 2005.
|
| insignificant role in participation.
| |
| | International diffusion and intellectual
|
| However, as internationalisation of R&D
| |
| | property rights: An empirical analysis.
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| by Transnational Corporations increased,
| |
| | Journal of International Economics.
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| South Africa benefited from this approach
| |
| | 67:353-372.MRC Innovation Centre. 2006.
|
| and the amount of US$67 billion spent in
| |
| | Section H: Funding for commercialisation
|
| 2002 of which US$24 million was allotted
| |
| | of research.
|
| to South Africa. This benefit however,
| |
| |
|
| does not reveal the fact that other
| |
| | Accessed: 24/02/06NSTF. 2001. SET
|
| developing countries like China,
| |
| | Awareness - Growth and Innovation Study.
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| Singapore, Hong Kong, Malaysia and the
| |
| |
|
| Republic of Korea are the main gainers in
| |
| | Accessed: 25/02/06RTDinfo. 2006. When
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| the internationalisation of R&D worldwide
| |
| | R&D relocates. RTDinfo. January.
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| (World Investment Report, 2005).Sourcing
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| | 47:29.Sajeva, M., Gatelli, D., Tarantola,
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| of competitive technologies in South
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| | S. and Hollanders, H. 2005. Methodology
|
| AfricaThe history of South Africa and its
| |
| | report on European Innovation Scoreboard
|
| political dispensation of Apartheid till
| |
| | 2005. European Trend Chart on Innovation.
|
| 1994 led to international isolation
| |
| | 1-146.Schneider, P.H. 2005. International
|
| causing the country to adopt an internal
| |
| | trade, economic growth and intellectual
|
| innovation approach. Since 1994 however,
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| | property rights: A panel data study of
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| the country began to participate actively
| |
| | developed and developing countries.
|
| in the global economy and a need exist to
| |
| | Journal of Development Economics.
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| source new technologies locally as well
| |
| | 78:529-547.U.S. Patent and Trademark
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| as from elsewhere (NSTF, 2001).
| |
| | Office (PTO). 2000. Types of Patents.
|
| Lorentzen (2004) provided the following
| |
| | Technology Assessment and Forecast data
|
| statistics regarding to the sourcing of
| |
| | base. 1 June.
|
| competitive technologies in South Africa
| |
| |
|
| over the period 1999-2001 as indicated by
| |
| | Accessed: 21/02/06UTTERBACK J.M. 1996.
|
| Table 2. According to Lorentzen, the 22%
| |
| | Mastering the Dynamics of Innovation.
|
| foreign sourcing is primarily for radical
| |
| | Boston, Massachusetts: Harvard business
|
| innovations, whilst local technological
| |
| | school press.World Investment Report.
|
| sourcing happens within the domain of
| |
| | 2005.
|
