3 1 M a y TECHNOLOGY AND HUMAN RESOURCES FOR INDUSTRY PROGRAMME MCDM GUIDE FOR THE EVALUATION AND PRIORITISATION OF THRIP PROJECTS

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1 3 1 M a y MCDM GUIDE FOR THE EVALUATION AND PRIORITISATION OF THRIP PROJECTS NOTE: Applicants are strongly advised to read this MCDM document in conjunction with the THRIP GUIDE MISSION STATEMENT Levering collaborative partnerships on a cost-sharing basis, for research in science, engineering and technology, in order to provide technology solutions towards a competitive industry and to produce a flow of highly skilled researchers and technology managers for industry. T H R I P M C D M G U I D E

2 3 1 M a y Contents 1. BACKGROUND TO THRIP The objectives of THRIP are: The priorities of THRIP are: PRIORITISING THRIP PROJECTS THRIP PROJECT FUNDING CYCLES Funding Process Funding Cycles THE MCDM HURDLES, FUNDING RATIOS AND FUNDING LIMITS Hurdles MCDM Scores Project Characteristics Research Collaboration Continuation and Progress Capacity Building Characteristics related to Industry Partner(s) Funding ratios Funding Limits ADDITIONAL FUNDING RULES SUMMARY OF THRIP MCDM SHOWING MAXIMUM POSSIBLE SCORES GUIDE DETAILS FOR THE APPLICATION OF THE MCDM IN EVALUATING THRIP PROJECT PROPOSALS ABBREVIATIONS DEFINITIONS T H R I P M C D M G U I D E 1

3 1. BACKGROUND TO THRIP The Technology and Human Resources for Industry Programme (THRIP) is a partnership programme that is funded by the Department of Trade and Industry (the dti) and managed by the National Research Foundation (NRF). The programme is managed in terms of the strategic direction of the dti, and is aligned with the current strategic direction of the NRF such that the programme benefits synergistically from the institutional partnership. THRIP promotes partnerships in pre-commercial research between business and the public-funded research base including universities and research institutions. On a cost-sharing basis with industry, THRIP supports Science, Engineering and Technology (SET) research collaboration focused on addressing the technology needs of the participating firms. THRIP also encourages and supports the development and mobility of research personnel and students among participating organizations. 1.1 The objectives of THRIP are: To contribute to an increase in the number of quality of people with appropriate skills in the development and management of technology for industry; To promote increased interaction among researchers and technology managers in industry, Higher Education Institutions (HEIs) and Science, Engineering and Technology Institutions (SETIs) through the mobility of trained people among the sectors with the aim of developing skills for the commercial exploitation of Science and Technology; To stimulate industry and government to increase their investment in research, technology development, diffusion and the promotion of innovation; To promote increased collaboration between large and small enterprises, HEIs and SETIs by conducting research and development activities that lead to technology transfer and product or process development; and To promote large (thematic) collaborative research and development projects in the dti priority areas. 1.2 The priorities of THRIP are: To support an increase in the number of black and female students who intend to pursue technological and engineering careers; To promote technological know-how in the Small, Medium and Micro- Enterprise (SMME) sector through access to skills from HEIs and SETIs; To facilitate and improve the competitiveness of Black Empowerment Enterprise (BEE) and black-owned enterprises through technology and human resources development; and To facilitate and support multi-firm projects in which industry partners collaborate and share in the project outcomes, strongly encouraging SMME participation. T H R I P M C D M G U I D E 2

4 2. PRIORITISING THRIP PROJECTS The THRIP application and disbursement process is competitive. Increasingly, funds will go to those projects of greatest scientific and technological merit that best meet THRIP objectives and priorities. The MCDM is used to prioritise projects. Increasingly the best projects will be more fully funded and some projects that pass the hurdles may not be funded because of low MCDM scores. 3. THRIP PROJECT FUNDING CYCLES 3.1 Funding Process Year 0 Activity J F M A M J J A S O N D J F M THRIP CALL OPENS X X X THRIP CALL CLOSES X Panel meetings to evaluate projects Funding decisions X X X ANNOUNCE THRIP APPROVED PROJECTS FOR FOLLOWING YEAR 31 NOVEMBER X Year 1 Activity J F M A M J J A S O N D J F M Nomination of students X X X Start accepting PoP Start accepting PoE X X Year 2 Activity J F M A M J J A S O N D J F M 10 February LAST PoP accepted X 14 February LAST PoE accepted X Annual Progress Report Submission (31 Mar) X 3.2 Funding Cycles T H R I P M C D M G U I D E 3

5 THRIP projects are generally funded for 3 years at a time. Each 3 year project will be termed a funding cycle. However, many projects require several cycles of funding to deliver their full potential. Project proposals and annual reports are judged appropriately for the cycle of funding that is being requested. As a project moves through the research life-cycles other new projects may be initiated from ideas stemming from the initial project. These then start a new cycle of research investment. A project retains its title throughout the cycles of investment. Projects are not necessarily funded for multiple cycles. PROJECT 1 Cycle 1 (Y 1-3) Project 1.1 PROJECT 2 Cycle 2 (Y 1-3) Project 1.2 Cycle 1 (Y 1-3) Project 2.1 Cycle 3 (Y1-3) Project 1.3 PROJECT 3 Cycle 2 (Y1-3) Project 2.2 Cycle 3 ( Y1-3 Project 2.3 PROJECT 4 Figure 1: Each cycle is a 3-year project (Y1-3). Some projects will only comprise 1 cycle. Some projects will bud-off new projects which may develop through multi-cycle phases. Cycle-specific aspects of adjudication criteria are described in the next section: the MCDM. 4. THE MCDM The MCDM is a research-based project application assessment tool based on the principles of value measurement theory. The first stage is exclusionary where projects must pass hurdles and may be judged not fundable if any hurdle is failed. The second stage is a merit-based assessment that scores projects in terms of objectives, priorities and focus of the programme. The level of funding, or a decision not to fund, is based firstly on the hurdles and secondly on the MCDM score. Not all fundable projects will be funded. New projects are assessed by a panel of researchers and practitioners who grade projects according to the set criteria in the MCDM and award scores up to a maximum for each criterion. The total maximum score is 1,040. The panel adjudication of projects strongly guides the THRIP management team and the final decisions are made by the THRIP Management Committee. T H R I P M C D M G U I D E 4

6 5. HURDLES, FUNDING RATIOS AND FUNDING LIMITS NOTE: Section 8 details MCDM scoring 5.1 Hurdles A hurdle is the minimum requirement for a project proposal to be considered for THRIP funding. ALL hurdles must be passed for the project to be funded, EXCEPT for Hurdle 4, a first-time application from a black project leader does not need to produce technology-related outputs during the first year of support in Cycle 1 of supported research. These 7 hurdles are: i. Improved competitiveness of South African industry The project must be a high quality science, engineering and/or technology research project whose outputs are likely to make a significant contribution towards improving the capacity of the industry partner to improve the competitive edge of South African industry. ii. Innovation and technology transfer The project proposal must demonstrate that new knowledge will be created or that existing knowledge will be applied and that the industry partner and/or industry sector is highly likely to implement a new process or produce a new product as a result of the research. iii. Prototype development The project proposal must demonstrate that a project outcome will be a product, process, procedure, model or technique that will benefit the industry partner. iv. Defined scientific and technological merit and outputs The project proposal must demonstrate appropriate, high quality science, engineering and/or technology research methods and approaches. These should be provided at a level of detail enabling a specialist to evaluate quality. The project must indicate the phase of development of the research in terms of funding cycles. (See Figure 1). v. Benefits to South Africa (in case of a contributing foreign company) The project proposal must demonstrate how SA will benefit if the technology is developed for a foreign company. vi. Additionality In the case of large industry partner, the project proposal must identify those research activities that would not occur without THRIP funding. The benefits to the industry partner must be clearly demonstrated. vii. Causality and Implementation In the case of large industry partner, the project proposal must show clearly i) what benefits are CAUSED by the THRIP investment. For example: technology outputs (product, process, procedure, model or technique) and research outcomes (technical reports, research papers, student graduation, skills development); and ii) a clear plan for the implementation of research outcomes to the benefit of the industry partner/s and/or the industry sector. T H R I P M C D M G U I D E 5

7 5.2 MCDM Scores Project application is judged using the MCDM scoring assessment. Further details are in Section Project Characteristics Alignment to the dti Priorities the dti growth and new sector alignment The project proposal must demonstrate the degree to which it is aligned with specified and current priority sectors of the dti. (See National Industrial Policy Framework 7.1.3/4: page 23 and 7.4: page 25). (Highest possible score: 80). Job creation The applicant is advised to develop this section with the industry partner. The number and kinds of jobs and the likelihood that the jobs will materialize should be provided. Estimates assume the project will be successful in its aims and the time is from the completion of the project. As a project progresses through cycles the likelihood of job creation should demonstrably be higher. (Highest possible score: 80). Commercial potential The applicant is advised to develop this section with the industry partner. The nature and value of the commercialization opportunity should be specified. Estimates assume the project will be successful in its aims and the time is from the completion of the project. Details of the market environment and market planning will be an advantage. In many instances the research outcome is an improvement in existing commercial activities the increase in revenue generation should be estimated. As a project progresses through cycles the likelihood of job creation should be demonstrably higher. (Highest possible score: 80). Investment potential The applicant is advised to develop this section in consultation with a venture capital specialist, and in collaboration with the industry partner. The nature and value of the investment opportunity should be specified. Estimates assume the project will be successful in its aims and the time is from the completion of the project. As a project progresses through cycles the likelihood of job creation should demonstrably be higher. (Highest possible score: 80). An alternative investment outcome is the production of highly qualified personnel with specialized technical and/or scientific skills. The role of these specialists and their advantage to the T H R I P M C D M G U I D E 6

8 industry partner and/or the sector needs to be clearly described. (If the alternative is taken, the highest possible score is 50). Contribution to environmental sustainability Many industry processes have a detrimental impact on the environment. This item provides an opportunity for those projects that contribute positively to environmental quality and sustainability to achieve MCDM score. The proposal should specify whether the project contributes positively to the environment through natural resource protection or through mitigating the impacts of natural resource use. (Highest possible score: 65) Scientific and Technological Merit The project proposal must demonstrate appropriate, high quality science, engineering and/or technology research methods and approaches. These should be provided at a level of detail enabling a specialist to evaluate quality. Discipline-specific and multi- or transdisciplinary projects are acceptable. Approach must be appropriate to funding cycle. (Highest possible score: 80) Additionality The project proposal must clarify the degree to which the THRIP funding makes the difference. For example: would the project go ahead without THRIP funding and/or which project objective/s would only be met with THRIP funding. (Highest possible score: 25) Causality and Implementation Causality refers to a demonstrable output or outcome resulting from THRIP investment in the R&D project. Where an output refers to a product, process, technique or a paper and outcome refers to a spinoff company, a new policy, new products in the market or improved quality of life. Implementation refers to the degree to which the THRIP research outcome is likely to be implemented by the industry partner / sector. (Highest possible score: 25) Research Collaboration The project proposal must demonstrate clearly the name, title, position and role of each collaborating researcher and institutions in the project. Emphasis is placed on collaborations with black researchers and with international collaborators. (Highest possible score: 50) Continuation and Progress The annual progress report project proposal must demonstrate progress clearly against each project objective. There will be an opportunity in the annual report to motivate any increase in industry partner funding and therefore a potential increase in THRIP funds. NOTE: The project is only PROPOSED once and the annual report will be in terms of the objectives of the first proposal. IF additional funding is approved in T H R I P M C D M G U I D E 7

9 Year 2 or 3, reporting on the additional objectives must be included in the annual report. (Highest possible score: 65) Capacity Building General Student Capacity Building At least one registered South African student at 4 th year level of study or higher must be involved in and trained through the research. (Highest possible score: 65) Capacity Building with regards to Black Researchers Emphasis is placed on increasing numbers of black and female researchers and the development of black and female research leaders. (Highest possible score: 65) Student Corrective Action Emphasis is placed on increasing numbers of black and female students. (Highest possible score: 65) TIPTOP Placements Placements of researchers in industry and of industry personnel in HEIs are encouraged. (Highest possible score: 65) Characteristics related to Industry Partner(s) Project Management and Structure Permanent management structures such as steering committee that meets at least twice a year and that involves industry partners and research institutions are strongly encouraged. (Highest possible score: 50) Number and Nature of Companies in Joint Planning Joint project and management planning between all collaborating individuals and institutions is strongly encouraged. (Highest possible score: 50) Size of Companies The involvement of SMMEs and of BEE Companies is strongly encouraged. (Highest possible score: 50). 5.3 Funding ratios Below are the ratios for THRIP funding to promote increased collaboration between large and small enterprises and greater SMME and BEE participation. T H R I P M C D M G U I D E 8

10 INDUSTRY PARTNER (S) THRIP CONTRI- BUTION (R) LARGE INDUSTRY CONTRI- BUTION (R) SMALL & MEDIUM ENTER- PRISE CONTRI- BUTION VERY SMALL ENTER- PRISE CONTRI= BUTION Large company(ies) only OR Association comprising only large members Large company(ies) plus minimum of 25% by number of SMMEs (e.g. consortium with 1, 2 or 3 large companies must have at least 1 SMME partner) OR Association comprising Large and SMME members 1 2 5% of highest contribution No financial contribution All SMMEs OR Association comprising only SMME members 1-1 No financial contribution NEW Black female grant holder 1 1 All SMMEs and all BEE OR Association comprising only SSME & BEE members 2-1 No financial contribution The application of the MCDM scoring to the funding of projects will be as follows: Projects will be categorized as R1:R3, R1:R2, R1:R1 or R2:R1 (THRIP: INDUSTRY) depending on the category of THRIP industry partner(s). The R1:R1 will apply for all black female grant holders, irrespective of the size of the industry partner, except in projects funded by SMME with a BEE status. A Very Small Enterprise is defined by the National Small Business Act, No 102 of 1996 as a separate and distinct business entity which can be classified as a very small enterprise by satisfying the following criteria: o Total full-time equivalent of paid employees: less than 20. o Total annual turnover: less than R4 million. o Total gross asset value (fixed property excluded): less than R1.5 million. A Very Small Enterprise must have been in existence 2 years prior to participating in a THRIP project. Projects will be ranked from high to low MCDM score. THRIP funding will be allocated ( Qualifying amount ) to projects progressively from high MCDM scores to low MCDM scores until the available funds are fully allocated (cut-off point). 5.4 Funding Limits The following funding limits currently (2010/11) apply: Maximum of R200, per SA student (at 4 th year level of study or higher) involved (spending at least 20% of time on project) in the project. T H R I P M C D M G U I D E 9

11 In the case of students from African countries the maximum is R85, A THRIP contribution to TIPTOP, according to the approved project support ratio, to a maximum annual package of R250, A once-off contribution to a SMME or to a project leader based at an HEI of maximum R10, towards the cost for legal advice on the development of an agreement on the treatment of IPR. This amount need not be matched by an industrial partner contribution. The IPR budget items must form part of a THRIP application 6. ADDITIONAL FUNDING RULES The project leader must have an employment contract with the HEI or SETI. Where the project leader is based at a SETI the project proposal must clearly demonstrate the participation and training of students enrolled at the HEI(s). At least one HEI and one industrial partner must be involved. The industrial partner must give a clear indication that the project will directly benefit the specific company and that the applicable financial investment commitment will be met. In the case of a foreign industrial partner, there must be an indication of how South Africa stands to benefit from the anticipated technology outcomes resulting from the collaboration. Arrangement for the ownership and exploitation of intellectual property arising from a project must be agreed upon between the HEI / SETI and industrial partner(s), with due consideration to protect the researcher and/or the HEI / SETI, prior to commencement of the project. No funds will be released without this. Such an agreement may not restrict publication of any research results for more than two years after the agreed scheduled completion date of the project. Continuation of support for a project through a funding cycle is dependent on: o A complete and satisfactory progress and/or annual report; and o An evaluation of the reported progress by the industry partner(s) as being satisfactory. In the case of a large enterprise, implementation and causality and additionality that will follow from THRIP support must be clearly articulated. Additionality refers to the extent to which THRIP funding generates activities which would not otherwise have happened. The additionality level is considered to be an indicator of THRIP s success as a supply-side incentive. NOTE: Applicants are strongly advised to read this MCDM document in conjunction with the THRIP GUIDE T H R I P M C D M G U I D E 10

12 7. SUMMARY OF THRIP MCDM SHOWING MAXIMUM POSSIBLE SCORES I PROJECT CHARACTERISTICS I.1 Alignment to the dti Priorities I.1.1 the dti National Industrial Policy Framework Alignment 80 I.1.2 Job Creation 80 I.1.3 Commercial Potential 80 I.1.4 Investment Potential 80 I.1.5 Environmental Impact 65 I.2 Scientific and Technological Merit 80 I.3 Additionality 25 I.4 Causality and Implementation 25 II RESEARCH COLLABORATION 50 III CONTINUATION AND PROGRESS 65 IV CAPACITY BUILDING IV.1 General Student Capacity Building 65 IV.2 Capacity building with regards to Black Researchers 65 IV.3 Student Corrective Action 65 IV.4 TIPTOP Placements 65 V CHARACTERISTICS RELATED TO INDUSTRY PARTNER(S) 50 V.1 Project Management and Structure 50 V.2 Number and Nature of Companies in Joint Planning 50 V.3 Size of Companies 50 TOTAL SCORE Total Maximum Score is the highest possible score a project could get. In order to get this it would have to be scored at maximum on ALL criteria / sub-criteria. T H R I P M C D M G U I D E 11

13 SCENARIOS SCENARIOS 30 APRIL GUIDE DETAILS FOR THE APPLICATION OF THE MCDM IN EVALUATING THRIP PROJECT PROPOSALS Criteria, Sub-criteria & Scenarios Score Explanatory Notes for Scenarios I PROJECT CHARACTERISTICS I.1 Alignment to the dti priorities (for job creation and commercial and investment potential) the dti growth and sector alignment THRIP is a dti-funded programme, therefore sub-criteria 1.2 and 1.3 focus on specifically prioritizing projects which address the dti core responsibilities. They are also intended to support projects which are in line with the dti National Industrial Policy Framework priority areas: Agriculture & Agro-processing Aerospace & Automotive Biotechnology Business Process Outsourcing Capital Equipment and Capital Goods Chemicals Clothing and Textiles a) Fully in line with identified / defined growth and new sectors. b) Some alignment with identified growth and new sectors. c) No alignment with identified growth and new sectors. Creative Industries Cultural Industries Fisheries, Forestry & Timber, Paper & Pulp ITC Metals and Minerals Pharmaceuticals Energy 80 All aspects of the project fall into the growth and new sectors. >40 Some aspects of the project fall into the growth and new sectors No aspects of the project fall into the above growth and new sectors Job Creation Jobs may be created directly or indirectly Consideration must be given to the risk associated with the creation of jobs Consideration must be given to the performance estimates in the proposal Projects in cycles 2 or 3 are expected to score >35 a) High potential to 80 The manufacture of the product or the create jobs process developed or the outcome of the b) Some potential to create jobs c) No potential to create jobs research will lead the job creation. >40 The manufacture of the product or the process developed or the outcome of the research has some potential to create jobs The manufacture of the product or the process developed or the outcome of the research has no potential to create jobs. T H R I P M C D M G U I D E 12

14 SCENARIOS SCENARIOS 30 APRIL 2012 Criteria, Sub-criteria & Scenarios Score Explanatory Notes for Scenarios I.1.3 Commercial potential Consideration must be given to: Commercial potential in terms of the final product or process which the research is intended to directly impact on; The commercialization intentions of this product by the industrial partner(s); The performance estimates in the proposal; The risk associated with the commercial potential; and Projects in cycles 2 or 3 are expected to score >40. a) High potential for 80 There should be an explicit statement to this commercialization effect in the proposal and the Panel should be after pre- competitive sufficiently convinced that this potential exists. development. b) Some potential for >40 commercialization after pre- competitive development. c) No potential for 0-40 commercialisation I.1.4 Investment potential (capital and human) Investment potential refers to the potential for this project to lead to investment in South Africa. The investment may come from the industry partner(s) or from other parties who may be South African or foreign. The investment may for example entail the building of factories in South Africa or extensions / improvements to existing ones. The project may also necessitate investment in human resource development to operate the capital investments. The risk associated with the planned or envisaged investment must also be considered. a) High investment potential Consideration must be given to the performance estimates in the proposal. 80 There is a high likelihood that the project will lead to the establishment of factories, investment of foreign capital. b) Medium investment potential c) Low investment potential >40 There is a reasonable to good likelihood that the project will lead to the establishment of factories, investment of foreign capital OR the development of high quality human resources. (IF THIS ALTERNATIVE IS TAKEN, THE HIGHEST POSSIBLE SCORE IS 50) There is a little likelihood that the project will lead to the establishment of factories, investment of foreign capital or the development of high quality human resources. T H R I P M C D M G U I D E 13

15 SCENARIOS SCENARIOS 30 APRIL 2012 Criteria, Sub-criteria & Scenarios Score Explanatory Notes for Scenarios I.1.5 Environmental Impact the dti has various responsibilities of national priority related to industrial activities. One of these is supporting cleaner production. Cleaner production here refers to reducing the negative impact of industrial processes and/or products in the environment. The panel will need to evaluate the potential impact of the research on this effect. Note that whereas in many projects this may be a non-issue b), in others this issue may need to be raised / sourced. a) The project per se is about reducing the negative 65 impact of industrial processes on the environment. b) Project either by nature has potential for significant 50 positive environmental impact or pays attention to specifically addressing the potential negative environmental impact. c) Impact of project, product or process 25 environmentally neutral. d) Project has potential for significant negative 0 environmental impact and this is not addressed I.2 Scientific and Technological Merit The proposal must clearly demonstrate: understanding of recent and pertinent literature; a clear, relevant methodology; and a clear link between the method/approach and meeting project objectives. a) Innovative and cutting-edge application of science and technology that will clearly facilitate meeting project objectives b) Adequate application of science and technology that will clearly facilitate meeting project objectives c) Poor articulation of scientific method/ approach, unlikely to deliver project outputs and outcomes 80 All aspects of the project must be well planned with appropriate methods and a clear logical link between approach and outcomes. >40 Most aspects of the project must be well planned, with appropriate methods and a clear logical link between approach and outcomes Few aspects of the project are well planned, with appropriate methods and a clear logical link between approach and outcomes. T H R I P M C D M G U I D E 14

16 SCENARIOS SCENARIOS SCENARIOS 30 APRIL 2012 Criteria, Sub-criteria & Scenarios Score Explanatory Notes for Scenarios I.3 Additionality Additionality refers to the extent to which THRIP funding will generate activities which would not otherwise have happened. The additiionality level is considered to be an indicator of THRIP s success as a supply-side incentive. The activity generated must at all times be directly applicable to the research project being considered for funding. a) Full 25 New activities and monies are leveraged by THRIP from additionality industry for the research over and above what industry had intended to invest in the research, or the availability of THRIP resources has prompted industry to pursue research that it would normally not have considered at that time. b) Partial additionality c) No additionality I.4 Causality and Implementation II 15 Funding of a project has already been earmarked, but THRIP funding has resulted in an expansion of the scope of the project, the addition of higher risk elements, changes in timeframes, etc. 0 The activity of the project will go ahead at the same level and rate even without THRIP support. The project will not be supported. Causality refers to the degree to which the project will cause / result in outputs and outcomes. Output: This refers to a product, process, technique or paper. Outcome: This refers to a spin-off company, a new policy, new products in the market or improved quality of life, Implementation refers to the degree to which the THRIP research outcome is likely to be implemented by the industry partner / sector. a) Full causality and 25 The project is highly likely to lead to the use of implementation a new or innovative output(s) or outcome(s) by b) Partial causality and implementation c) Minimal causality and implementation RESEARCH COLLABORATION the industry partner or in the sector. 15 Some aspect of the project is likely to lead to the use of a new or innovative output(s) or outcome(s) by the industry partner or in the sector. 0 The limited research outputs / outcomes are unlikely to be implemented. This criterion recognizes the value of collaboration. All THRIP grant holders are required to specify in detail the name, title, position, institutions and role of each collaborating researcher. in the THRIP project. a) The project involves substantial networking and 50 research collaboration between industry partner(s) and research intuition(s). Black researchers must be included and international partners are recommended. b) The project involves some networking and research 25 collaboration between industry partner(s) and research institution(s). Black researchers must be included. T H R I P M C D M G U I D E 15

17 c) Little or no networking and research collaboration between industry partner(s) and research institution(s). Criteria, Sub-criteria & Scenarios Score Explanatory Notes for Scenarios III CONTINUATION AND PROGRESS THRIP funding is generally approved for the duration of a THRIP project (to a maximum of 3 years), subject to: o Availability of funds o All agreed Conditions of Grant being met o Progress (reported in the Annual Progress report) being to the satisfaction of THRIP and the industry partner(s) reported in the Evaluation Report) A project proposal is only written and approved once. The proposal should be carefully prepared with institutional pre-approval. Continuation of funding for years 2 and 3 is dependant on an adequate annual progress report. The level of funding is unlikely to be changed during the 3 years of support but if additional industry funding is found it will be considered. THRIP has the intention to meet the agreed conditions of grant, but unforeseen changes may result in appropriately authorized decisions to be taken and/or communicated otherwise. After 3 years, if the project warrants further development, a second cycle of funding can be proposed (see section 3.2). This enables a longer period from the initial ideas to full commercialization. In every project cycle, each of the 3 funded years must have specific objectives and the progress report must report on these. All THRIP grant holders are required to submit an Annual Progress Report with the industrial partners evaluation. In the case of a project that was supported by more than one industrial partner, at least 50% of the partners should submit an evaluation. These are the primary reports to be used by the Panel in evaluating progress and approving continued funding. The evaluation of progress should also consider the progress relative to targets set in the approved proposal. The targets within the proposal would generally appear under: o Work plan o Outputs summary (technology; human resources; prototypes; patents; artifacts; publications etc.) o Acquisitions (e.g. equipment in budget section) o Students trained To allow for the possibility that new proposals can score better than poorlyperforming continuation projects on this sub-criterion, all new projects are automatically allocated a score of 50 here. In assessing the progress, the panel is expected to make a holistic evaluation of progress. 0 T H R I P M C D M G U I D E 16

18 SCENARIOS 30 APRIL 2012 Criteria, Sub-criteria & Scenarios Score Explanatory Notes for Scenarios IV a) Technology and research targets fully met b) Technology and research targets partially met OR c) New project c) No significant progress has been made on any of the technology and research targets, but acceptable explanation or reasons have been provided d) No significant progress has been made on any of the technology and research targets and no acceptable explanations or reasons have been provided CAPACITY BUILDING Some of the targets have been fully met but not all, or all targets have been partially met. All new projects are to be allocated a score of 50 for this criterion so as to allow for new projects to score better than poorperforming continuation projects 30 0 >10 fails the project for continuation The criterion, made up of four sub-criteria (IV.1 to IV.4) deals with building capacity to achieve the objectives of THRIP. The capacity building focuses on infrastructure provision and human resource development. It also specifically attempts to leverage a higher return on investment (IV.1) and to support corrective action (IV.2 and IV.3). Note that as a rule, THRIP will invest a maximum of R200, per SA student (full time equivalent) involved in a project. These scenarios attempt to credit those projects who train more SA students (at 4 th year level or higher) per Rand investment from THRIP. The capacity building applies only to SA students at 4 th year level or higher, spending at least 20% of their time involved in the project research. The grant holder must report as to whether a student has registered as a fulltime or part-time student. T H R I P M C D M G U I D E 17

19 SCENARIOS SCENARIOS 3 1 M a y IV.1 IV.2 General Student Capacity Building These scenarios attempt to credit those projects who train more SA students (at 4 th year level or higher) per Rand investment from THRIP. The capacity building applies only to SA students at 4 th year level or higher, spending at least 20% of their time involved in the project research. The grant holder must report as to whether a student has registered as a fulltime or part-time student. a) A cost to THRIP of 65 R50, or less per SA student trained at 4 th year level and higher b) A cost to THRIP of 50 R50, to R66, per SA student trained at 4 th year level and higher c) A cost to THRIP of 40 R66, to R100, per SA student trained at 4 th year level and higher d) A cost to THRIP of 25 R100, to R200, per SA student trained at 4 th year level and higher e) No involvement of students at 0 Only undergraduate students at 3 rd year 4 th year level and higher level involved (spending at least 20% of their time on the project) Capacity Building with regards to Black Researchers This sub-criterion is designed to promote research capacity building among black researchers. a) The project leader and all the 65 researchers are black b) The project leader and at 50 least one researcher is black c) The project leader is white 35 and one / all other researchers are black d) All the researchers (including 0 the project leader) are white T H R I P M C D M G U I D E 18

20 SCENARIOS SCENARIOS 30 APRIL 2012 Criteria, Sub-criteria & Scenarios Score Explanatory Notes for Scenarios IV.3 IV.4 Student Corrective Action One of the three priorities of THRIP is to support an increase in number of black and female students who intend to pursue technological and engineering careers. This sub-criterion addresses this priority. In scoring this sub-criterion the Panel must concern itself only with those students who count according to THRIP minimum requirements, i.e. SA students at 4 th year level of study or higher, spending at least 20% of their time of this project a) Above 80% of black or female 65 This information can simply be read students off the application form. b) Above 50% of black or female 30 This information can simply be read students c) Below 50% of black or female students TIPTOP Placements off the application form. 0 This information can simply be read off the application form. Technology Innovation promotion through the Transfer of People (TIPTOP) represents a set of placement mechanisms to promote mobility of people participating in THRIP projects, among the organizations involved in the projects. They are also viewed as an effective mechanism for transfer of technology between collaborators. TIPTOPs are to be fully embedded in the project and the industry partner to be TIPTOP-matched should also be making a financial contribution (at least 10% of total industry contribution) to the project. There are four specific TIPTOP options (TIPTOPs 1 4) depending on participants. The participants and period also determines the TIPTOP value. The scoring for this sub-criterion is intended to encourage more TIPTOPs and/or longer periods spent at the relocation destination. 65 This information can simply be read off the application form. a) More than two TIPTOP candidates spending at least 50% of time per annum at the relocation destination b) One or two TIPTOP candidate(s) spending at least 50% of time per annum at the relocation destination c) No participation in the TIPTOP scheme 30 This information can simply be read off the application form. 0 This information can simply be read off the application form. NB: A TIPTOP candidate will be supported for a maximum of 3 years. T H R I P M C D M G U I D E 19

21 SCENARIOS 30 APRIL 2012 Criteria, Sub-criteria & Scenarios Score Explanatory Notes for Scenarios V CHARACTERISTICS RELATED TO THE INDUSTRIAL PARTNER(S) The primary aim of THRIP is to improve the competitiveness of SA industry. This criterion (V) comprising sub-criterion V.1 to V.3 looks at issues relating to the role/ contribution of the industrial partner(s) in the scoring of the projects. It recognizes factors that relate to: The benefits of collaboration involving all players in the project, preferably in a structured fashion. The benefits of companies pooling their resources in funding research (generally pre-competitive), to enhance their competitive edge internationally. The acceptance internationally and locally that the SMME sector provides attractive opportunities for economic growth and job creation. V.1 Project Management and Structure This sub-criterion encourages true close collaboration by all the participants in the research project. This sub-criterion and V.2 are very similar and may be difficult to distinguish. The difference though is that this focuses on structure whereas the other emphasizes number. a) Permanent management 50 structures such as a steering committee that meets at least twice a year and involves industry partner(s), all institutions involved, research leaders and students. b) Regular scheduled meetings 35 between industrial partner(s) and project leader and students. c) Ad hoc meetings between 25 industrial partner(s) and project leader d) No meetings between 0 industrial partner and project leader V.2 Number and nature of companies in joint planning One of the priorities of THRIP is to facilitate and support multi-firm projects in which firms, including at least one SMME, collaborate and share in the project outcomes. This sub-criterion recognizes the benefit of pooling resources to address common objectives. This is particularly critical in South Africa with its limited resources, to enable effective competition by South African companies in the global village. The scenarios are designed to encourage collaboration in a reasonably structured fashion and an intention to share in the outcomes of the collaboration. T H R I P M C D M G U I D E 20

22 SCENARIOS SCENARIOS 30 APRIL 2012 (a) Multi-company with joint planning between industrial partners including at least one SMME. (b ) Multi-company involvement between industrial partners including at lest one SMME, without any joint planning. (c) Only one company involved. 50 The grouping would generally be structured but may be formal, or informal. The group will generally hold regular meetings at which the project(s) activities are discussed. There should be joint discussions and a sharing of outcomes. 25 In this case it would be clear that the companies to be matched in the proposal have not had joint discussion / planning on this project. 0 They generally also do not have the intention of joint planning sessions but have invested in the research for their individual interest. The researcher, however, uses the combined contributions of the companies in this project. V.3 Size of Company(ies) One of the THRIP priorities is to promote technological know-how within the SMME sector, through the deployment of skills vested in HEIs and SETIs. The initiation, support and growth of SMMEs are also specifically the dti and national priority, in recognition of the important role of these in job creation and economic growth. This sub-criterion credits projects for attracting participation of and better still, collaboration between SMMEs. It is hoped that THRIP provides incentives for SMMEs to invest in research to address their technology needs. There is a standard set of criteria for classification of industrial partners as SMMEs. The THRIP secretariat will ensure that these are classified correctly. a) More than one 50 SMME involved, without any large company b) More than one 25 SMME involved but includes one or more large company(ies) c) Only one SMME 10 involved, with or without a large company d) No SMME involved 0 T H R I P M C D M G U I D E 21

23 9. ABBREVIATIONS the dti HEI NRF IPR SET SETI SIC SMME THRIP TIPTOP VAT Department of Trade and Industry Higher Education Institution National Research Foundation Intellectual Property Rights Science, Engineering and Technology Science, Engineering and Technology Institution Standard Industrial Classification Small, Medium or Micro Enterprise Technology and Human Resources for Industry Programme Technology Innovation Promotion through the Transfer Of People Value Added Tax 10. DEFINITIONS Additionality Additionality refers to the extent to which THRIP funding generates activities which would not otherwise have happened. The additionality level is considered to be an indicator of THRIPs success as a supply-side incentive. Causality Causality refers to the outcomes of the research that are directly attributable to THRIP funding (i.e. are caused by THRIP funding). Innovation and technology transfer The and is important here. One has to show that innovation is occurring (i.e. new knowledge is being created or that existing knowledge is being applied to new areas) AND (meaning that both have to occur) the innovation or technology is being transferred to the industrial partner(s) for their benefit. A prototype A prototype can be a widget (an object, e.g. an engine) or a model (mathematical or other, e.g. a model describing a feeding system or management system) or a process (e.g. a manufacturing process of some kind a chemical plant) or a procedure (e.g. a procedure for analysis of water sample, or a procedure for growing GM crops). What is important is that the prototype is well defined. Scientific and/or technology outputs T H R I P M C D M G U I D E 22

24 In this case either scientific or technology outputs can be defined. Scientific outputs include papers, patents, conference notes, theses, etc. that describe the science. Technology outputs include patents, plans, models, descriptions, designs or blue prints of the technology. Very Small Enterprise A Very Small Enterprise is defined as a separate and distinct business entity which can be classified as a very small enterprise by satisfying the following criteria: Total full-time equivalent of paid employees: less than 20. Total annual turnover: less than R4 million. Total gross asset value (fixed property excluded): less than R1.5 million. T H R I P M C D M G U I D E 23