SOUTH AFRICAS EXPORTS OF HIGH TECHNOLOGY PRODUCTS: A Comparative Perspective And Some Policy Priorit

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SOUTH AFRICAS EXPORTS OF HIGH TECHNOLOGY
PRODUCTS A Comparative Perspective And Some
Policy Priorities.
SCIENCE, TECHNOLOGY AND INNOVATION GLOBAL FORUM

• DAVID KAPLANProfessor Of Business Government
  RelationsUniversity Of Cape Town

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High Technology Products
SITC
PRODUCT GROUP DESCRIPTION
code

High Technology 1 Electronic and Electrical


716

Rotating electric plant and parts

718

Other power generating machinery

751

Office machines

752

Automatic data processing machines

759


Parts of and accessories for ADP and office
machines

761

Television receivers

764

Telecommunications equipment, parts and
accessories

771

Electric power machinery and parts

774

Electric apparatus for medical purposes

776

Thermionic,
cold photo
-
cathode valves, tubes and parts

778

Electrical machinery and apparatus, n.e.s.



High Technology 2 Other
524

Radio
-
active and associated materials

541

Medicinal and pharmaceutical products

712

Steam other vapour power units
, steam engines

792

Aircraft associated equipment and parts

871

Optical instruments and apparatus

874

Measuring, checking, analysing, controlling
instruments

881
Photographic apparatus and equipment, n.e.s.



Source Lall (2000)
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High Technology Growth Rates 1992-2005 (average
annual )
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South Africas Percentage Shares Of Global High
Technology Exports, 1992-2005
5
South Africas Balance Of Trade In High
Technology Products, 1992-2005 (Current US
dollars, millions)
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Global Share Of High Technology Exports China,
Brazil, Argentina And South Africa, 1992-2005 (S)
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Revealed Comparative Advantage in High Tech
Exports Brazil, Argentina and South Africa -
2002
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Patents of South African origin granted by the
United States Patent and Trademark
Office,1994-2006
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Conclusions

• Weak performance in high-tech exports and patent
  activity.
• Share of Global Exports declined growing adverse
  balance of trade
• High tech. low share of exports
• No emerging comparative advantage
• Contrast with Brazil. Similar to Argentina

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Petrochemicals Sasol

• World Technology Leader in area of Global
  Significance
• 10 of BERD in SA
• 100million per annum Large recent K
  investments
• 350FTE Researchers (100 post-doc.)
• Global Footprint Qatar Iran China US India.

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Petrochemicals Sasol

• Technology development locally based
• JV internationalization (Chevron)
• Key role of the State

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Nuclear Energy PBMR

• German technology further developed locally
• Largest locus of development skills
• gt 550 persons
• Very significant state support
• Significant future export potential - 3billion
  per annum

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Software Small Companies

• Innovative reliant on a single innovative
  product
• Some exporters have foreign connections
• Product complexity protects in the home market
• IPR required in global market
• Sell via web portals
• Often to other African countries
• IPR and marketing the key constraints

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Software Medium/Large Companies Thawte

• Global leader in encrypted digital certificates
• Largely web based sales
• Sale to US Company

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The Paradox

• Poor macro performance. Simultaneously, well
  performing innovative firms over a wide range of
  product areas.

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The Constraints

• Institutional IPRs Standards Regulation
• Early stage venture K
• Marketing
• Most importantly limited supply of high level
  skills

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Policy Priorities

• Limit new programmes and financial support for
  Innovation
• Principal focus improve the supply of highly
  skilled
• Education and training
• Relax immigration restrictions actively recruit

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Policy Priorities

• Incentives for foreign investors to train
• Question state support for highly skill-intensive
  projects
• Support growth of private early stage capital
• Support for global marketing and IP registration
  for innovative exports