The South African Innovation Landscape 2010 – Henra Mayer

It always seems impossible until it’s done – Nelson Mandela

Innovation and its role in the business environment is not new. Despite many pitfalls, initial slow starts and spectacular failures, organisations are now seriously planning and strategically implementing innovation policies, processes and other relevant action plans on the topic, harnessing creative potential and building competitive advantage in doing so.

This means that as organisations are becoming more innovation savvy the country as a whole should benefit as new opportunities lead to the creation of new jobs, possibly new SMME’s and ultimately new industries, right? The truth is that innovation success hardly manifests itself by means of a silo approach, be that internal or external to the organisation. True innovation success and real impact often comes in the form of collaboration, networks, co-creation and teamwork, but how good are we at this? Internal matters aside, what does innovation mean on a national level and if we are starting to successfully manage innovation from an organisational perspective, surely we must ultimately contribute to building a national innovation capability, that should translate into more business deals and more benefit for all.

The question then is do we as South Africans use innovation in the true sense of the word to make a difference in the business world, impact on service delivery in the public sector and address our own socio-economic issues? This issue recently came up at various innovation related gatherings, functions and networking events. In short, what does the South African innovation landscape look like, are we an innovative country, can we collaborate on the levels required for successful implementation and advancement, how do we capitalise on the power of our diversity and knowledge capital. Are we doing the right things to enable innovation on an organisational and national level?

A good starting point for discussion is probably an understanding of the term innovation landscape and the context to which it is applied. Loosely defined the term “SA innovation landscape” in my view, refers to elements in the South African environment impacting on, enabling or hindering innovation in the country on a national level. These elements may include a national culture, the political landscape, government bodies and institutions or programmes, business initiatives, academic institutions and activities, the role of industries or specific sectors, leadership capability, funding opportunities, collaboration and any other related issues that can contribute, support or on the contrary detract, disable or negate innovation potential.

Considering the above and the possible potential of innovation in South Africa, The Research Institute for Innovation and Sustainability (RIIS) decided to do a mini-study in this regard and explore the responses received as a starting point for discussion. This study is by no means deemed conclusive or elaborate but is anticipated to provide feedback and food for thought. The purpose of this article is to briefly summarise the information received in this regard.

A wide variety of industries/sectors took part in the survey and responses were received from the Business Development/consultancy sector (24%) Science, Technology and Engineering sectors (15%) Education (11%), Finance (11%) Food and Agriculture (4%), to the Energy sector (2%). See Figure 1 below for a more detailed analysis.

Figure 1: Participation per sector

Fifty two (52%) percent of the respondents that completed the questionnaire represented top level management, while 30% represented middle management in their respective organisations. ( See Figure 2). This level of analysis indicates that the data received reflects the opinions of several leaders in their respective industries.

Figure 2: Management level of respondents

South Africa was perceived as an innovative country by an overwhelming majority of the respondents (81%), see Figure 3, a reflection of the traditional “we will make a plan” culture and an appreciation of South African resilience.

Figure 3: SA perceived as an innovative country

More than half of the respondents, however, felt that the country in general is not supportive of innovative behaviour and 58% answered that the South African landscape does not support innovation well. See Figure 4.

External factors most beneficial to innovation activities in the country were seen as national innovation initiatives (43%) although 32% was neutral on the subject. Government programmes in support of innovation was valued (41%) while the country’s geographical location was also viewed as positive. Interestingly enough, although existing government initiatives are highly rated and viewed as impactful on innovation in the county the underlying political landscape was a major concern for most respondents as 68% indicated that politics negatively impacted on potential innovation success while broadband/technology access was also firmly highlighted as an inhibiting factor (48%).

Figure 4: External business factors impacting on innovation in SA

According to Figure 5 other external business factors positively impacting on innovation in South Africa was viewed to be leadership (65%) and suitable infrastructure (61%) while the availability of funding and skills was considered weaknesses in this regard.

Figure 5 : Other external factors impacting on innovation in SA

Role players most beneficial to South African innovation were viewed as business (75%) while government was seen as having a negative impact on national innovation efforts (42%). One can argue that the result is to be expected as the response rate overwhelmingly represented the business sector but it can also reflect and reiterate the previous response that indicated a positive impact of government initiatives on innovation but a perception that prevails that the value thereof is negated due to a lack of trust in the political landscape.

Figure 6: Impact of role players on innovation in SA.

Additional comments received in this regard stated that although government is making the right noises, it does not completely understand the fundamental role it should be playing in supporting innovation. A lack of accountability, politicking and often a lack of capacity to see things through were further mentioned as hurdles to overcome.

Open Innovation (OI) in South Africa it seems, still has a long way to go. A small percentage of respondents viewed open innovation in a negative light (9%). Most (34%) did not know what the concept means while 29% view OI as new, but holding great potential for the country. See Figure 7 below.

Figure 7: Open Innovation (OI) and its role in SA innovation efforts

On the topic of IP legislation and its effect on innovation in the country 50.6% of respondents stated that they believe IT legislation in SA impacts negatively on innovation. Some did say that IP legislation is strengthening foreign direct investment but others commented that it inhibits collaboration, that it is too expensive and that it is too conservative in its application.

Positive influences on innovation efforts listed by respondents included access to international investors and business incubators, organisational innovation management, leadership and personal skills, networking and the close co-ordination of international activities. Negative influences mentioned included faulty or absent innovation strategies, structures and processes, the lack of knowledge sharing and slow decision-making. The fear of failure and risk taking and a general lack of vision for the greater good of the country were also mentioned.

It seems that South Africa is viewed as holding enormous innovative potential and that the important role played by government in this regard is recognised and appreciated. Concerns are however raised that political agendas and a lack of governmental capacity and accountability may be detrimental to SA innovativeness while tighter triple helix collaboration and funding opportunities in support of innovation efforts are necessary. South African leadership, local talent and infrastructure are strengths that should be capitalised upon while general skills should be enhanced and innovation in general be made more visible.

That South Africans are willing and able to impact on the country’s competiveness by means of innovation is not to be disputed, the ways and means to achieve this feat, however, deserves more serious thought, attention and more importantly the correct contextual application.

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Henra Mayer is Director and co-owner at The Research Institute for Innovation and Sustainability. (RIIS) (http://www.riis.co.za) offers a total business solution for planning, managing and sustaining innovation. Innovation enablement, including innovation strategies, impacting on a culture for innovation, innovation training and innovation measurement, innovation processes and open innovation planning and embedment, are some of the services offered.

Henra can be contacted on (012) 844 0671/082 323 7447
E-mail: henra@riis.co.za

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