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OECD Reviews of Innovation Policy: South Africa 2007

image of OECD Reviews of Innovation Policy: South Africa 2007
A comprehensive assessment of the innovation system of South Africa, focusing on the role of government, and providing concrete recommendations on how to improve policies which impact on innovation performance, including R&D policies.

Post-apartheid South Africa has succeeded in swiftly opening its economy to international trade and capital flows, and in stabilising the economy while achieving reasonably good growth performance, mainly driven by productivity gains. However, important socio-economic problems persist, especially unemployment, poverty and the exclusion of a large fraction of the population from the formal economy. The country is now in the middle of two more specifically economic transitions: i) responding to globalisation and ii) transforming the structure of the economy away from its former heavy dependence on primary resource production and associated commodity-based industries. In this context, enhancing innovation capabilities is key to a sustained improvement of living standards based on productivity-driven growth. This review assesses the national innovation system of South Africa from this perspective, identifying areas and means for improvement with an emphasis on the role of public research organisations and policies.

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Economic Performance and Structural Adjustment

South Africa is one of the largest countries as well as the largest economy on the African continent. The country’s history, including its economic and social development, is exceptional in many respects. Since the watershed of 1994, marked by the end of apartheid and the beginning of democratisation, South Africa has undergone fundamental changes in political, economic and social terms. In the following years, South Africa’s new government implemented far-reaching reforms, liberalising domestic markets and foreign trade and thus creating a more open, market-oriented economy.

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