INNOVATION CONFERENCE, CAPE BIOTECH TRUST, HUMAN CAPITAL

DEVELOPMENT AND SAINE

“The wealth of nations and the

well being of individuals now

depends on having artists in

the room”

Fresh thinking on innovation: East meets West on Innovation

THE STORY We all came out of Africa Innovation drove us out We are the cradle of humankind Where are the ideas now? What is driving them? Why africa must look east for Innovation? How do we leverage this? How do we make this sustainable? So whats the model for innovation in

AfricaI think that designers are the alchemists of the future – Richard Koshalek, President of the Art Centre college of design

WHAT DROVE US OUT OF AFRICA? Innovation—not climate change—may have triggered early humans'

migration out of Africa, a new study suggests. For early Homo sapiens, periods of population movement coincided with

social advances and tool-making innovation, the work found. By contrast, human movements didn't match as closely with changes in

Africa's climate, such as rainfall variation or other weather issues "We see bursts of migration during a period with technological advances, so

technology might have led to the migration," said Zenobia Jacobs, lead researcher from the University of Wollongong in Australia.

Alternatively, migration may have spread new ideas and skills throughout various populations.

"It's like the chicken-and-egg argument—did migration lead to innovation or did innovation stimulate migration?" Jacobs said.

Archeologists believe that modern humans inhabited Africa about 200,000 to 150,000 years ago. Recent evidence suggests that human ancestors may have harnessed naturally lit fires as far back as 790,000 years ago.

Humans were making their own fire about 100,000 years ago, and by 60,000 years ago fire-making and tool-making skills as well as sophisticated communication were flourishing.

This coincides with the first human migrations out of Africa, genetic evidence suggests.

IS THIS THE OBJECTIVE? “When I see the Maasai installing Cisco

equipment in the bush, it makes me a believer.”

— Waseem Sheikh, Director of the Internet Business Solutions Group, Cisco

WAVES OF INNOVATION

A DESIGNER KNOWS THAT HE HAS ACHIEVED PERFECTION NOT WHEN THERE IS NOTHING LEFT TO ADD, BUT WHEN THERE IS NOTHING LEFT TO TAKE AWAY – (ANTOINE DE ST-EXPUREY)

Design's ultimate purpose is to Change the world

INNOVATION DRIVES ECONOMIES

WHAT INNOVATION IS HAPPENING IN AFRICA NOWA Malawian boy creates a windmill from old bicycle parts and sheet metal.

A Kenyan man fabricates welding machines from scrap metal, wood and copper wire.

An Ethiopian entrepreneur makes coffee machines from old mortar shells.

A Malawian scientist invents a new micro-power plant that uses sugar and yeast.

A South African youth makes a working paraglider from plastic bags, rope and bailing wire.

That's the story with most of the innovation coming out of Africa.  In the United States or Europe everything is modularised and ready-made, and the market is saturated with available solutions to fit every need.  If something breaks, you just run out to the shop and buy a new one.  Stories of innovation don't end with recycled hardware and hand-fabricated machines of multiple varieties.

AFRIGADGET You only have to look through sites like

Afrigadget, which proudly showcases African ingenuity, to see the kinds of things that are possible, even in resource-strapped environments.

Things like Pascal Katana's "Fish Detector" which, with the aid of a mobile phone, is able to acoustically detect shawls of fish and alert nearby fishermen by SMS. Or Morris Mbetsa's "Block & Track" mobile phone-based anti-theft and vehicle tracking system.

While Pascal is a fourth year student at the Department of Electrical and Information Engineering at the University of Nairobi, Morris has no formal electronics training at all. All they have in common is that they're both from Kenya and they're both smart, tackling real problems, entrepreneurial and driven.

EVAPORATIVE COOLING In Northern Nigeria, a

local teacher, Mohammad Bah Abba created a pot-in-pot system to keep food longer, an innovation that is drastically changing the way food preservation happens in the arid parts of Northern and West Africa.  In most of the developed world, living without electricity is a foreign thought.  Here it is a reality, but one that local innovators can solve. 

INNOVATION TIPS FROM ETHAN ZUCKERMAN (INNOVATION FROM CONSTRAINT Here are the seven principles of innovation from

constraint that I shared with my audience in Barcelona: - innovation often comes from constraint

- don’t fight culture- embrace market mechanisms- innovate on existing platforms- realize that problems aren’t obvious from afar- understand that what you have is more important than what you lack- build infrastructure on infrastructure

I’d add two other observations that I’ve realized in giving this talk more recently:

- objects need to become familiar and pervasive, then they become hackable- the really amazing innovation happens when objects change function

DRIVERS Compelling need Customer intimacy Ease of use Low cost Uses local abundant resources (eg sun,

labour etc) Recycling

TELECOMMUNICATION DRIVERS

Services such as "Call Me" - where customers on many African networks can send a fixed number of free messages per day when they're out of credit requesting someone to call them - came about as a result of people "flashing" or "beeping" their friends (in other words, calling their phones and hanging up to indicate that they wanted to talk).

Today's more formal and official Call-Me-style services have come about as a direct result of this entrepreneurial behaviour.

BUILDING CAPACITY IN AFRICA Education Brands Micro finance “Trade not Aid” Connectivity Innovation systems

THE ANSWER IS IN THE YOUTH With more than 930 million inhabitants,

almost half of whom are below the age of 15, Africa’s people, particularly its youth, are the key to its future economic development. But at the moment, this is a resource that is being severely neglected.

ENDA-TIERS MONDE

A brief narrative description of the journal article, document, or resource.This monograph considers the work of, an international nongovernmental organization (NGO) based in Dakar, Senegal, which has many facets: street schools for working children, art and music shows for marginalized youth, town planning programs, income generation activities for prisoners, and drugs and AIDS prevention campaigns. The monograph describes and presents facts about some of Enda-Tiers Monde's programs and activities. It explains that Enda's teams work closely with local people in elaborating and carrying out programs in the belief that it is the young and the poor themselves (who normally have no say) who should conceive and carry out their own development strategies. According to the bulletin, Enda is attempting to redefine attitudes and approaches to work, learning, and environmental preservation, and is now carrying its activities to other countries of Africa, Asia, and Latin America. The bulletin suggests that Enda Tiers-Monde's alternative approaches to today's world of globalization, urban expansion, economic instability, and fast demographic growth are of particular relevance to all those seeking an appropriate and equitable future for the countries of the southern hemisphere.

ENABLING CAPACITY A number of initiatives today continue

the earlier pioneering work of Nathan Eagle, an MIT Professor who, through his EPROM initiative introduced the idea of mobile phone programming courses to East Africa's Computer Science Departments.

Now, universities including Strathmore in Kenya and Thies in Senegal regularly organise mobile "boot camps" which, over two or three days, take students through a crash course in mobile applications development.

WHY AFRICA MUST LOOK EAST FOR INNOVATION in 2050 Europe’s headcount will have fallen by 70m, or 10% In 2050 Asia headcount will have risen by 1.3bn, in Africa by 1

bn. Asia has a clear strategy (see Singapore intelligent nation),

many Asian countries have country intellectual capital development plans

China understands that future growth is about ability to generate innovation, take a look at the recent WIPO report showing that Chinese advance rapidly and topped Germany last year.

While in Europe we still live, talk and walk according to Washington consesus, China defied this consensus (or what Dani Rodrik called a Washington confusion) and moves fast forward bulidng rapidly relationship capital with African states. At the same time Europe (or France as a best example) in not capable to help migrants to achieve success in Europe and then turn millions of African imigrants into facilitators of Europe-Africa trade links.

CREATIVE SERVICE DELIVERY The HealthStore Foundation, which has developed a network of

viable for-profit health stations in Africa with a controlled supply chain delivering real drugs (half of the pharmaceuticals sold in Africa are fakes with no medicinal value). See http://www.cfwshops.org/.

MicroPlace, with Ashwini Narayanan as the General Manager, channeling investors into microfinance to reduce poverty. This effort grew out of eBay’s finance division.

Water.Org, founded by Gary White, has grown explosively in the past few years, pioneering new models of delivering clean water and sanitation via small loans and creative financing arrangements.

The Eye Fund, founded by David Green, which has developed new models of fee-for-service eye care combining low cost and high quality, and is now reaching hundreds of thousands of people in India.

MicroCredit Enterprises itself, which uses guarantees to unlock private capital for microfinance institutions in the developing world. Since I last paid attention to it a few years ago, it has grown from just a few million to nearly $40 million in guarantees, and made loans that have reached over 500,000 people.

ALWAYS SOMETHING NEW OUT OF AFRICA (PLINY) Ingenuity and practicality

It has also become clear that South African individuals and South African businesses are making strides in innovation. Recent comment from Justin Stanford, from venture funding group 4Di Capital, noted that local technology innovators have improved the way they package and present their business plans to potential investors.

Justin Stanford is confident in the development of South African technological innovation and has undertaken with Vinny Lingham, a leading technology entrepreneur, to launch the Cape Silicon initiative, which will provide investors and technology innovators with information about funding initiatives and industry news.

According to HBD Venture Capital’s CEO, Julia Fourie, South African businesses have a particularly strong track record in information technology in areas such as banking and mobile technology.

Fourie also points out that, “… more information needs to publicised about innovation in South Africa. More South Africans need to be made aware of all the great South African-led innovation ideas and projects. It is also crucial for new South African innovators to understand what does and doesn’t work or why a certain project might not have done well in the past. The knowledge gained through the experience of others will in turn drive more successful ventures.”

Fourie finally notes that South African innovation is very often at the forefront of international standards but the commercialisation of those ideas is not always the best. The improvement of the commercialisation of innovative ideas is the big challenge for South African entrepreneurs, scientists and other bright minds.

ALWAYS SOMETHING NEW OUT OF AFRICA (PLINY) Success in innovation

There are undoubtedly many examples of success in South African ingenuity. The University of Cape Town for example lists five success stories linked to various departments. Hot Platinum, Cape Carotene, Cell-Life, Stereotactic Pointer, AngioDesign are the five listed. The Hot Platinum project for example, has successfully developed innovative platinum casting equipment from technology developed by the UCT Engineering & Built Environment Faculty. The equipment is capable of melting and casting, platinum (20-250g), palladium, gold, silver and stainless steel using standard single phase power; making it an accessible and cost effective solution to small manufacturing jewelers as well as dentists. An innovative centrifugal casting unit optimises the casting process.

UCT graduates and entrepreneurs Ali Brey (Managing Director) and Irshad Khan (Technical Director) established a production facility in Montague Gardens, Cape Town, from which they have produced units that have been distributed to nearly all the jewelry design centres at tertiary institutions as well as a number of mining houses, and jewellers in South Africa. The firm achieved European Certification and learnt a great deal in the process - overcoming a significant hurdle in commercialisation. After a successful reception at a number of international trade fares, the export market is opening up and the first units have been exported.

Another recent example of a successful company receiving funding was Skyrove. It is a business that allows anyone to set up their own internet WiFi hotspot and make money from sharing it with others. It has over 500 hotspots in South Africa and over 20 000 registered users. It received funding from 4Di Capital, a New-Jersey based company, mentioned above.

INNOVATION IN RSA Applying existing technology in new ways. Very practical. Very applicable. Tailored for the unique market demands. Developing world markets THE most

demanding markets. Early stage development not primary

focus (our view). Innovation stimulated by private and

public sector needs. Incubated by the market. Tested by the market.

SYSTEMS OF INNOVATION: THEIR TIME HAS COME

Innovations systems transfer science from the lab to meet developing countries' needs

Academics have long argued for developing countries to adopt "systems of innovation". Now it looks like politicians have got the message.

A consensus has been growing among policymakers in the developed world for several decades that the most effective way to put scientific research findings to productive use is to build "systems of innovation".

Innovation is a complex process, involving different actors and institutions, of which science is just one. Strengthening the system requires many policy initiatives to increase support both for each component and for the linkages between them.

More recently, enthusiasm has been growing — at least in academic and policy advice circles — for the idea that systems of innovation hold the key that links science to developing countries' socioeconomic needs

INNOVATION SYSTEMS IN EMERGING ECONOMIES The 'system of innovation' (or 'innovation system') approach to the

production of scientific and technological knowledge has been gaining ground in policy and academic circles over the last two decades. It has, for example, already been endorsed by an array of international and national bodies, including the Organization for Economic Co-Operation and Development (OECD), the Inter-American Development Bank (IDB), the World Bank, and various United Nations agencies, as well as non-governmental organisations and governments in both developed and developing countries.

As a result, those responsible for funding and supporting research, technological development and innovation in developing countries are increasingly likely to come under pressure to adopt the innovation system approach as a guide to decision-making.

The approach represents a major change in the way that the production of knowledge is viewed, and thus supported. It shifts attention away from research and the supply of science and technology, towards the whole process of innovation, in which research is only one element.

The concept of 'innovation' refers to the search for, development, adaptation, imitation and adoption of technologies that are new to a specific context. [1] An innovation system is therefore a network of organisations within an economic system that are directly involved in the creation, diffusion and use of scientific and technological knowledge, as well as the organisations responsible for the coordination and support of these processes.

INNOVATION SYSTEMS: 4 TOPICS The first is that innovation is essentially the result of an interactive process

between many actors, including companies, universities and research institutes. Individual organisations rarely possess all the knowledge necessary for the whole process of innovation. As a result, they need to combine scientific, design, engineering and operational knowledge from different sources.

The second feature is that innovation does not follow a linear path that begins with research, moves through the processes of development, design and engineering, and production, and ends with the successful introduction of new products and processes. Rather, it tends to involve continuous feedback loops between the different stages.

Another important aspect of the innovation systems approach is that it can been applied to different levels of the economy, depending on whether one is trying to analyse (or promote) innovation at a 'supra-national', regional, national, local or sectoral level.

Finally, the innovation system approach has considerable appeal for policymakers. The concept of a system of innovation brings together in a single framework the elements of good practice required to foster innovation. In other words, it provides a coherent analytical tool for handling the disparate processes of knowledge creation, distribution and use, as well as the ways that these affect productivity, competitiveness, and economic and social development.

AFRICA UNCHAINED The major theme that recurs is that 'with proper policy

formulation and planning, Africa can set herself on a path of development and walk it like it has never done before'. The secret behind this developmental walk is the creation of systems of innovation that are sensitive to developmental needs of Africa as expressed by the subtitle, The making of African innovation systems.

In general the book is critical about the problems that have led to Africa's present socio-economic and political turmoil. However, these criticisms are balanced with arguments that point out the potential that the continent has to solve her problems using internally generated solutions. Foreign help is appreciated, but Africa is urged to learn to make use of her local resources even if it means breaking unfavourable rules and regulations imposed on her by external powers.

The book is cautious about the role of Africa in the globalisation process. It argues that Africa cannot compete with the industrialised world, because even her most industrialised countries experience a huge gap between knowledge and technology. Similarly, it is not in favour of transferring Western innovation to Africa as advocated by the dominant modernisation paradigm. Instead, it favours the application of indigenous knowledge to the Innovations Systems of Africa. Africa must start accumulating 'mental capital', instead of waiting for 'the invisible hand' to solve her problems.

PUTTING AFRICA FIRST: THE MAKING OF AFRICAN INNOVATION SYSTEMSCRITICAL ARTS, JAN-DEC, 2005 BY SYDNEY F. KANKUZI

The book is cautious about the role of Africa in the globalisation process. It argues that Africa cannot compete with the industrialised world, because even her most industrialised countries experience a huge gap between knowledge and technology. Similarly, it is not in favour of transferring Western innovation to Africa as advocated by the dominant modernisation paradigm. Instead, it favours the application of indigenous knowledge to the Innovations Systems of Africa. Africa must start accumulating 'mental capital', instead of waiting for 'the invisible hand' to solve her problems.

BUSINESS PLAN ENDORSED FOR AFRICAN INNOVATION NETWORK (ANDI)

Some 300 high-level researchers and policy-makers endorsed an ambitious business plan, including a proposal for a US$ 600 million endowment fund, for the new African Network for Drugs and Diagnostics Innovation (ANDI) at the second stakeholders’ meeting in Cape Town.

The ANDI network aims to support and promote research by African institutions for new drugs and diagnostics to address the diseases most affecting Africans. The concept was launched by several African institutions, through TDR, in October 2008 in Abuja, Nigeria.

The turnout at Cape Town, South Africa, reflected the support for the ANDI initiative that has since developed among governments, research institutions, Africans in the diaspora, and international and multilateral agencies, including the African Development Bank and the European Commission.

Currently, there is a “valley of death” between product R&D and the marketplace where most innovation falters, said South Africa’s Minister of Science and Technology, Naledi Pandor, in a keynote address at the 4-7 October event, attended by several health and science ministers.

“That’s where innovation needs the most support, and where it is least likely to get it from the only agents available – venture capitalists or ‘business angels’,” she added. “The establishment of ANDI will help us deal with the crisis in R&D for neglected diseases and develop human capital for sustainable development.”