MIND THE GAP – CLOSE THE GAP: THE CHALLENGES TO SATISFY THE DEPARTMENT OF DEFENCE’S NEED FOR SCIENCE, ENGINEERING AND TECHNOLOGY BASED SUPPORT
A SUBMISSION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON DEFENCE 26 OCTOBER 2004
EXECUTIVE SUMMARY
Overview
Since the tabling of the White Paper on Defence in 1996, the Defence Review in 1998 and the White Paper on South African Defence Related Industries, in 1999, world changes have profoundly affected the science, engineering and technology (SET) support base for the Department of Defence (DoD).
Growing continental involvement is increasing the requirements for the DoD’s science, engineering, research, development and technology support base. Rapid technological advances imply both new challenges and also new opportunities in the ongoing development of the DoD and South African National Defence Force (SANDF).
The role for a Defence SET support base, as part of the South African SET base, becomes increasingly important, as military SET generally represents the high technology or leading edge component of the national system for innovation. Defence SET plays the lead role in establishing SET in South Africa and Africa as a whole.
This submission states the gap that exists in terms of the Defence SET with respect to Government’s initial policy position in this regard; highlights emergent and reinforcing policy and direction, including current developments in SET policy, and finally proposes a way forward to close the SET gap. It does not set out to give a detailed solution like organisational structures, but sets out the manner these might be arrived at.
Policy statements and direction, emergent policy developments and the analysis of international examples show that the DoD needs a public sector Defence SET capability.
The Defence Review states that South Africa will employ the following strategies to ensure the protection of the state and its people against external military threats:
SET is considered to be an important enabler in achieving the above, and therefore a main contributor to national security.
Defence applications are exciting and draw keen learnership and youth involvement and provide an additional channel to deliver a new generation of scientists and engineers.
Recommendations
The submission makes the following recommendations (Note: Detailed recommendations are contained in Section 7 of the main document):
MIND THE GAP – CLOSE THE GAP: THE CHALLENGES TO SATISFY THE DEPARTMENT OF DEFENCE’S NEED FOR SCIENCE, ENGINEERING AND TECHNOLOGY BASED SUPPORT
A SUBMISSION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON DEFENCE 26 OCTOBER 2004
Since the tabling of the White Paper on Defence in 1996, the Defence Review in 1998 and the White Paper on South African Defence Related Industries in 1999, the world has changed profoundly and in ways that matter a great deal particularly with respect to the science, engineering and technology (SET) support base for the Department of Defence (DoD).
The DoD faces and must deal with major changes and challenges. Growing continental involvement is expanding South Africa’s defence tasks, thus increasing the requirements for the science, engineering, research, development and technology support base. Rapid technological advances, both civil and military, imply not only new types of threats and challenges but also provide new opportunities in the ongoing reshaping and adaptability of the DoD and South African National Defence Force (SANDF).
The role for a Defence SET support base, as an integral part of the broader South African SET base, becomes increasingly important, as military SET generally represents the high technology or leading edge component of the national system for innovation. Defence SET can therefore play the lead role in establishing, collating and aligning SET in South Africa and across the African continent, in line with the African Union (AU) principles of greater cooperation.
The purpose of this submission is three-fold:
2.1 To state the Defence SET gap in respect to Government’s initial policy position in this regard;
2.2 To highlight emergent and reinforcing policy and direction, including current developments in SET policy, and
2.3 To propose a way forward to close the SET gap.
The White Paper on Defence (1996), states that:
The White Paper on South African Defence Related Industries (1999) states that: "It is neither affordable nor necessary to strive for complete self-sufficiency in armaments production and all the technologies to support it. However, the SANDF requires that in certain strategic areas, limited self-sufficiency must be retained and maintained and that in others, the SANDF needs to remain an informed buyer and user of equipment."
Where the retention of the strategic technologies and capabilities is required, but is not viable on its own, either in the private sector or the public sector, a number of alternatives are to be used for their retention. This is particularly important to enable the DoD to retain a balanced core technology base to match the core force concept defined in the Defence Review. "Where required by technical, economic or political considerations, special organisational solutions have to be pursued to retain these strategically important technologies and capabilities."
The White Paper continues: "Government will consider retaining strategic, non-profitable facilities with limited commercial application in the public sector. This includes specialised defence research and development facilities, test ranges and test laboratories. Technology development in the defence manufacturing industry needs to be driven by military-technical considerations and the retention of facilities which are not able to be privatised due to them not being financially viable, will be considered. Technology developments that are of strategic importance to the SANDF and the Defence Related Industries will be retained with public funding at an appropriate Defence Evaluation and Research Institute (DERI)."
These policy statements are as valid today as in 1998, save for the implementation.
President Mbeki stated that:
"…we do no foresee that there will be any need for new and major policy initiatives. The task we will all face during the decade ahead will be to ensure the vigorous implementation of these policies, to create the winning people-centred society …" Further, that "We must ensure that our country and people are properly positioned within the global community of nations, fully understanding and responding to the diverse political, economic, social and technological challenges of the process of globalisation. In this regard, we will have to persist in the work we are doing towards the regeneration of Africa and the construction of a new and more equitable world order."
"We already have the policies and programmes that will enable us to translate all the strategic objectives we have just spoken of into a material factor in achieving the goals of the expansion of the frontiers of human fulfilment, and the continuous extension of the frontiers of the freedom, of which Nelson Mandela spoke a decade ago."
On the tasks of the African Renaissance, President Thabo Mbeki had this to say: "…we still have to contribute as much as we can to the common African effort to strengthen such institutions as SADC, the African Union and NEPAD and help ensure that they discharge their responsibilities effectively. We must do this work driven by the conviction that we will not allow anything to stand in our way towards the building of a peaceful, democratic and prosperous Africa."
From these statements it can be concluded that the challenges of growth, development and modernisation require further and significant infrastructure investments, skills development, scientific and technological research, development and expansion of the knowledge base.
"Ten years down the line, the White Paper on Defence and the Defence Review will now be reviewed. To date these two fundamental documents have guided the transformation of the defence function. The foundation on which they were based remains sound. But there are certain aspects, which need to be revisited and adjusted."
"The White Paper on Defence Related Industries, which outlines policy, needs now to be reviewed…We must guarantee ongoing work in research and development without which we will not be able to maintain our leading position in this sphere. Our approach must be informed by the need to increase our greater collaboration among the nations of the South."
The government published South Africa’s National Research and Development strategy in August 2002. It highlights President Thabo Mbeki’s envisaged increase in governmental spending on human resource development in science and technology as well as on research and development (Parliament in January 2002). The strategy motivates an increase in government spending on science and technology from the current 0,29% of GDP to at least double that amount in real terms over a period of 3 years. This strategy, if applied also to the needs of the national defence science and technology capability, offers hope that South Africa can start to implement the relevant policies mentioned.
3.2.4 The Challenges of the New Partnership for Africa’s Development (NEPAD).
If the Defence SET components of the broader SET community in South Africa are to internalise NEPAD as "us", it clearly stands to reason that the Defence SET components have to shape NEPAD as much as to take ownership of it. A Defence SET support base, therefore, has a role to play in contributing to the Government’s initiatives in NEPAD, particularly in the areas of ensuring African ownership, responsibility and leadership; increasing investment in human resources development; developing a new partnership in Africa on the basis of mutual commitment, obligations, interest, contributions and benefits.
Priority themes of Government for the next decade that are pertinent to the Defence SET support base are cooperation and implementation of NEPAD. In this regard, relevant key International Relations, Peace and Security Cluster themes and broad objectives are - to promote and deepen international cooperation in SET, and support the Peace and Security Council (PSC) of the AU in its efforts to contribute to peace keeping in Africa.
According to the Leading Edge technology scan, significant developments have taken place in the area of science and technology policy.
Firstly, the Minister of Science and Technology, Mr Mosibudi Mangena, has released a "roadmap" policy document for biotechnology development. The policy calls for the establishment of a world-class genomics capability in South Africa, with at least one national facility and a number of centres of excellence.
Secondly, a new umbrella body, the Scientific, Engineering and Technological Societies and Allied Professions Group of South Africa (SETAG), has been formed. SETAG will operate under the auspices of the National Science and Technology Forum (NSTF), and is to encourage more sectoral identity and participation of the SET community in the National System of Innovation (NSI), which is crucial in order to integrate efforts and to provide a common platform and critical mass. SETAG intends to address issues such as the importance of mathematics and science and the visibility and recognition of the SET sector in building South Africa.
Thirdly, the Minister of Trade and Industry, Mr Mandisi Mpahlwa, has announced that South Africa will soon introduce a dedicated aerospace industry support initiative to unlock the potential of this sector, which is considered key for stimulating investment and economic growth. According to the Minister, this initiative would seek to stimulate growth in the aerospace industry (civil and defence) by promoting the high standards and quality required in this sector by encouraging training of industry personnel and by cooperation with universities, science councils and other research and tertiary education institutions. Most importantly, Minister Mpahlwa felt that the initiative should include the establishment of an aerospace centre of excellence.
In the light of the identified initial policy position, the emergent and reinforcing policy and direction, including the current science and technology policy developments as outlined, the Gap, is clearly the absence of an appropriate national defence science and technology organisation, a regulatory framework, high level champions and proper alignment between Defence SET and Department of Science and Technology and Department of Trade and Industry SET.
The South African DoD needs a sustainable Defence SET capability in support of its mission of providing defence in a democracy, peacekeeping and strategic Defence SET leadership on the continent. In this regard, it will be proper to consider why the DoD needs this capability, what is required and how the need may be satisfied.
To ensure the long-term effectiveness of a modern, technologically advanced defence capability, a publicly owned and funded Defence SET capability is considered important in most democracies. Due to the increasing pace in the development of technology and the increasing pace whereby products and processes are made redundant by newer technologies, no country can afford to become technologically illiterate, or forced out of joint operations due to technological incompatibility. A long term investment perspective in SET, based on a relevant technology strategy can help prevent technological isolation or "colonisation" that results becoming completely dependant on foreign suppliers of military equipment.
The concept "capability" is used here to describe three inter-dependent core elements required to successfully execute a mission. These are the personnel (with their application knowledge, subject knowledge and skills), infrastructure (facilities and equipment) and processes (concepts of operation, doctrine, command and control arrangements, methods and procedures).
In times of relative peace and without a uniquely identifiable threat, the relative importance of a Defence SET capability becomes even more pronounced. The reason is that the focus tends to shift from performing operational tasks to ensuring that an ability exists to manage the re-establishment, adaptation and/or scaling up the military capability within a relatively short time when required to do so. To this end, the knowledge base inherent in a properly designed Defence SET capability provides essential support. This is particularly true in smaller defence forces where capabilities tend to fall sooner below critical mass, under these conditions. One example where this solution is explicitly pursued is in Australia - with its relatively large complement of civilian members of the DoD, employed in the Defence Science and Technology Organisation (DSTO).
The main categories of support required are:
The basic and/or applied defence research in the state’s "in-house" Defence SET capability is considered an essential component of the ability to perform the abovementioned roles. In-depth knowledge, experience and wisdom are created through a chain of activities ranging from basic and applied research, prototype/concept developments, product demonstrators, test, evaluation, certification, modifications and upgrades. Test and evaluation facilities are an important enabler in the knowledge generation process.
Intellectual Property (IP) generated in the process of research and development can become the foundation of wealth creating value chains in a country’s economy. Innovations are considered one of the main enablers in a nation’s economic growth and IP rights are one of the most important mechanisms to protect the innovations. In many countries the national departments for Science and Technology and the Treasury, together with the IP developer work together to prevent unlawful exploitation of the IP and to ensure that the IP based revenue returns to the country of origin. The exploitation of IP can be a major source of job and wealth creation.
Typical characteristics describing the "in-house" nature of the capability are summarised below:
World-wide it is evident that defence departments can only reap the benefits of complex equipment and processes based on modern science and technology, if they have a minimum internal capability to support them. However, in the modern competitive world of knowledge-based economies, governments find it increasingly difficult to retain appropriately qualified and experienced scientists and engineers in public service. A successful solution found in most democracies, is for the state to own and fund one or more dedicated defence SET organisation(s) which typically exists under an Act of Parliament.
International examples of such organisations designed to serve their respective departments of defence are FOI in Sweden, TNO_FEL in the Netherlands, DSTO in Australia, Defence R&D Canada in Canada, DRDO in India, DSO in Singapore etc. The UK recently split DERA, the single organisation designed to provide this capability, into Dstl, Qinetiq and DDA, each focussing on a part of the required capability. The USA has a number of Federally Funded Research and Development Centres working on various mandated long term programmes, a number of state owned and funded organisations possessing "core competencies" as well as a variety of laboratories associated with the Arms of Service and the universities that together provide the required national defence science and technology capability. Some of the characteristics of these organisations are:
Technology, specifically defence technology has become a major generator of industrial competitiveness, national skills development, wealth, intellectual property, innovation, and science and technological excellence. Defence SET is also one of the instruments used by governments to increase the interest and careers in SET, in line with the intentions and complementary to their national human resource development strategies.
Earlier in this submission, the Gap was identified as the absence of an appropriate national Defence SET grouping (referred to as the SA Defence Evaluation and Research Institute (SADERI in the White Paper on the Defence Related Industries), a regulatory framework and high level champions. Hence a proper consideration has to be given as to why the DoD needs this capability, what is required and how the need may be satisfied.
In South Africa, with its relatively small SET base, the optimum organisational solution that will provide the required characteristics for a Defence SET support base must still be found. Overseas experience seems to indicate that a single, semi-governmental organisation may be best suited to ensure that the SET capability is above critical mass, sustainable and effective.
A political mandate will be required to create such an organisation. Government will also have to budget for such a capability and appoint appropriate governance structures. It should be noted that such a Defence SET capability can be primarily knowledge based. This implies that its most important assets can be intangible, consisting of people that need to be properly trained, experienced and motivated, and the associated intellectual assets.
The existence of such a dedicated, state-owned Defence SET capability would greatly enhance the synergy and ensure complementarities with other members of the State’s science and technology base. This can have a large impact on the SET output of South Africa.
References
Defence Review, 1998.
Defence Department Budget Vote, National Assembly, Cape Town, 8 June 2004.
Leading Edge – a technology scan, Issue no. 50, September 2004.
South Africa’s National Research and Development strategy, August 2002.
State of the Nation Address, Houses of Parliament, Cape Town, 6 February 2004.
White Paper on Defence, 1996.
White Paper on South African Defence Related Industries, 1999.
National Human Resource Strategy, 2002.
Financial Mail of 16 July 2004