Considerable effort has gone into analysing the portfolio of R&D conducted on behalf of the private sector and the CSIR is revitalising relationships with existing private sector stakeholders. The business sector is the major performer and financier of R&D in the country and performs 56% of all R&D undertaken, while financing 45% of the total R&D effort. The tertiary education sector performs 20% of national R&D, while government (including the science councils) performs 23% of the total, and finances 40% of R&D undertaken. About 10% of South Africa’s R&D is financed from abroad. Read more on the stats
Announcements of tax incentives translate into a corporate tax rate of 36%, where government will forego 18 cents of tax revenue for each rand spent on R&D. The private sector now has real incentives to spend more on research in support of its own business objectives.
Given that the private sector expenditure on R&D currently amounts to about 0,45% of GDP, this tax credit could translate to a further R1 billion allocated to R&D. The CSIR has a renewed focus on performing contract R&D with the private sector, assisted by the tax incentives, it is developing a revised valve proposition with the private sector.