South Africa must dramatically increase its investment in research and development if it hopes to compete with the world's fastest-growing economies, Deputy Minister of Science, Technology and Innovation Dr Nomalungelo Gina declared at the opening of South African Innovation Week (SAIW) 2026 at Nasrec, Johannesburg.
Gina described innovation as the driving force behind any nation with ambitions of industrialisation and long-term economic growth, stressing that countries which develop their own technological solutions rather than relying on imports consistently outperform their peers.
"All fast-growing economies are driven by strong investments in research and development and a robust system for commercialising prototypes," Gina said.
Ambitious targets set under Decadal Plan
Central to government's strategy is the Science, Technology, and Innovation Decadal Plan (2022-2032), which serves as a roadmap for embedding innovation at the core of the country's socio-economic progress. The plan sets a goal of lifting Gross Expenditure on Research and Development (GERD) from the current 1% of GDP to 1.5% — a significant increase that underscores the urgency with which authorities view the funding shortfall.
The Deputy Minister acknowledged that R&D has long been starved of adequate resources, with the private sector in particular failing to invest sufficiently in developing new technologies. She pointed out that institutions such as the Council for Scientific and Industrial Research (CSIR) and universities have produced numerous technology demonstrators and prototypes that remain stuck in laboratories, never making the leap into the broader economy.
"The private sector is not taking up these technologies, which are ready for diffusion into the economy. It is these innovation gaps that we seek to address through industry partnership engagements as the DSTI. The Decadal Plan further defines key priority areas as grand challenges to be addressed through our efforts," she said.
Skills mismatch threatens future readiness
Beyond funding constraints, Gina raised concerns about a growing skills deficit that threatens the country's ability to participate meaningfully in the technology-driven economy of the future. She noted that South Africa faces a fundamental mismatch between the qualifications graduates possess and the capabilities the modern gig economy demands, leaving many educated young people without employment despite an urgent need for new expertise — particularly in fields shaped by artificial intelligence.
Building a pipeline of professionals in science, technology, engineering and mathematics (STEM) is at the heart of government's response, the Deputy Minister explained, describing these future innovators as essential players in the emerging economy.
Gina also called for far greater coordination across government, industry, education and science, warning against the continued practice of different stakeholders operating in isolation from one another. She said pooling funding instruments to support the full chain from research through to development, commercialisation and intellectual property registration would be fundamental to the system's success.
"Our adopted mantra is 'Placing Science, Technology and Innovation at the Centre of Government, Education, Industry and Science'," Gina told delegates.
South Africa's push to raise research and development spending from 1% to 1.5% of GDP could unlock significant economic opportunities for local businesses, entrepreneurs and job seekers, particularly in STEM fields where a growing skills mismatch has left many graduates unemployable. Bridging the gap between laboratory prototypes and commercial products would strengthen local industry and reduce reliance on imported technology. Whether the private sector responds with meaningful investment will ultimately determine if these ambitious targets translate into tangible economic gains.
