About Government Funding Incentives for R&D in South Africa
Government departments offer an array of incentive schemes to stimulate and facilitate the development of sustainable, competitive enterprises by providing accessible incentives that effectively support national priorities. A variety of incentive schemes seek to support the development or growth of commercially viable and sustainable enterprises through the provision of either funding or tax relief, thereby ensuring the creation of new and sustainable jobs. The intention is to increase participation in various areas of development. Most of the incentives are housed within the Department of Trade and Industry, with a few others in other government departments.
Incentive categories generally mirror the stages involved in project development, visually:
- Conceptualisation of the project, including feasibility studies and research and development;
- Capital expenditure, involving the creation or expansion of the productive capacity of businesses; and
- Competitiveness enhancement, involving the introduction of efficiencies and whetting the competitive edge of established companies and commercial or industrial sectors
Concept and R&D
These are incentives available to private sector enterprises that invest in the creation, design and improvement of new products and processes. Such businesses conduct investigative activities with the intention of making a discovery that can either lead to the development of such new products and processes or to the improvement of existing products.
These are companies that want to acquire or upgrade assets in order either to establish or expand the business’ productive capacity.
These are investments which facilitate increased competitiveness, sustainable economic growth and development in a specific sector.