Panel Highlights the Need for South African Industrial Policy to Prioritise Innovation and Capabilities
The BRG Institute, an independent nonprofit corporation founded by Berkeley Research Group (BRG) to advance knowledge in policy and management through research, publication and public engagement, cohosted a seminar and expert panel at the Council for Scientific and Industrial Research (CSIR) in Pretoria, South Africa, alongside the Technology Innovation Agency (TIA) and Trade & Industrial Policy Strategies (TIPS).
The seminar explored dynamic capabilities for innovation and sustained competitive advantage in South Africa and featured a keynote address from BRG Chairman and Cofounder Dr David Teece. Kieran Brown, a BRG senior managing consultant, chaired an expert panel with Dr Teece and Dr Daniel Visser (CSIR), Tanya Cohen (Public-Private Growth Initiative), Saul Levin (TIPS), Prof David Kaplan (University of Cape Town) and Prof Rasigan Maharajh (Stellenbosch University).
The discussion focussed on the importance of shifting policy focus and resources toward encouraging innovation and competitiveness at the firm level and developing both the ordinary and dynamic capabilities of South African firms and public-sector organisations. This resonated with an audience comprising representatives from South Africa’s central government, public science and technology (S&T) institutions, academia and industry.
Panellists noted that there has been little focus traditionally on the importance of strategic and entrepreneurial management with regard to industrial and economic policy. The panel concluded that this should be updated in line with contemporary economic theories that give primacy to firm-level capabilities as being the core driver of sustained competitive advantage.
In support of this aim, the BRG Institute has developed four primary policy initiatives for South Africa that require further development:
Energise entrepreneurship and spread ‘startup culture’ across sectors by lowering entry barriers to starting and running businesses; and by creating an outreach program that identifies and offers support and services to early stage entrepreneurs.
Generate multinational enterprise (MNE) investment, particularly in renewable energy and other emerging industries; and provide opportunities for employment and training.
Utilise policy to identify and calibrate existing and niche opportunities, targeting the subsector level. Upstream opportunities exist in mining, agriculture, energy and manufacturing; South Africa’s relatively minor involvement to date in global value chains should be developed further.
Develop a global outlook regarding science and technology by helping firms identify opportunities for international collaboration and providing grants exclusively for this purpose to researchers and universities.
Speaking after the discussion, Phil Alves, a senior managing consultant in BRG’s Johannesburg office, commented: “South Africa is receptive to new ideas, and Dr Teece provided plenty of those today. In light of the budget announcement earlier this week, and with the government searching for new ideas and approaches to combat low growth and rising unemployment, this discussion could not be more timely. We are looking forward to further participating in the conversation about South Africa’s economic future.”