Why are skills and innovation important for South Africa

South Africa benefits from a dynamic and diversified economy but suffers from high levels of youth unemployment and inequality. A collaborative effort to build public-private partnerships that improve the innovation ecosystem and provide increased access to resources and knowledge-sharing will create the conditions for a more dynamic business sector and an expanded labour force.

Overview

South Africa's hybrid Skills-Innovation Accelerator was initiated in January 2020 thanks to the the impulse of the Department of Trade, Industry and Competition (DTIC) of South Africa. The Accelerator was coordinated by Trade and Industrial Policy Strategies (TIPS), an economic research institution which aims to support economic policy development in South Africa, in collaboration with DTIC, the Department of Employment and Labour and the Department of Higher Education, Science and Innovation.

The Accelerator convened key stakeholders to discuss measures to prepare the workforce for the changes brought on by the COVID-19 pandemic and ensure that green and technological transitions would be more inclusive and digital skills more pervasive among South African youth.

South Africa Skills – Innovation Accelerator

In order to improve labour market foresight and awareness about changes brought by the pandemic and the digital transformation, the Accelerator supported the collection of the Future of Jobs Survey among local businesses and the publication of a dedicated country scorecard as part of the Future of Jobs Report 2020.

It also conducted a situational analysis of innovation in the South African business sector. The report assessed innovation inputs and outcomes with a focus on the development of innovation in the bio-economy, aligning and supporting key governmental strategies on the sector. The report found while there has been no pronounced increase in global patents and the share of the bioeconomy in output, employment and exports, since the advent of the Bioeconomy Strategy in 2014, there is considerable venture capital investment activities and new technology-based start-ups in the broad bio-economy. The assessment laid the foundation for businesses and government to discuss strategies and policies to address the problems identified. As a result, the Accelerator identified and fostered the need to support the creation of new innovation funding schemes, focusing on the bio-economy.

The Accelerator also identified the need to highlight success stories and promising trends from the South African economy showcasing technological change to foster changing narratives around the status quo and future prospects for business in South Africa. A series of case studies have been developed, as part of the work undertaken by TIPS with the Department of Trade, Industry and Competition and in partnership with the World Economic Forum to showcase the benefits and importance of technological change by South African companies. The cases studies, documented in the Technological change and Innovation System Observatory TIPS highlight examples of companies which are making strides in adopting new technologies and digitizing their operations to enhance innovation and productivity.

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Accelerator Impact