The bulk of the national investment from the State-owned Industrial Develop-ment Corporation (IDC) was allotted to Gauteng between the 2003/4 and 2012/13 financial years, with the Free State receiving the lowest level of investment by the State-owned bank.

This is according to IDC CEO Geoffrey Qhena, who spoke at the sixth South African Innovation Summit, held in Sandton, Gauteng, last month.

According to Qhena, Gauteng received 32% of IDC funding, while the Free State received 1%.

As the country’s economic powerhouse and hub for innovation, Gauteng attracted the highest levels of investment. More recently, the establish- ment of new industries in South Africa, such as renewable energy and biofuels, has seen the IDC increasing investment in the Northern and Eastern Cape, which received 15% and 12% of investment respectively.

“Innovation is important because we live in a changing world. We try to encourage ongoing conversation that encourages innovation in industry. We have to be innovative if we want to make an impact on the local economy; it is also key that all sectors become innovative. We can’t expect to be competitive if we do not continue to innovate in all sectors that we invest in,” Qhena stated.

He noted that the role of the IDC is to stimulate the economy through industrial development and to participate in the South African economy, as well as in the African continent through the various sectors. As the IDC is State-owned, it has to be aligned with government priorities, Qhena said.

The IDC’s interventions include support programmes for industrial innovation, where it offers financial assistance for products and processes covering the life cycle from proof of concept to completion of a pre-production prototype.

Its Venture Capital Business Unit provides funding for the development and commercialisation of technology-rich South African intellectual property that is globally unique. Since its inception in 2007, the unit has approved R538-million in 69 transactions, while 1 700 jobs were expected to be created in companies that received the funding.

In terms of start-ups, the IDC funds the establishment of new businesses, using proven technologies. In the last nine years, 48% of the value of IDC funding approvals was allocated to new start-up businesses that ranged from small businesses to mega-projects. About 111 000 jobs were expected to be created through these businesses.

Expansions see financial support being given to businesses that need to increase their production capacity.

Qhena says its is vital to take risks and a long-term approach to support innovation.

“The investments we have undertaken include the Support Programme for Industrial Inno- vation (SPII), which is a Depart-ment of Trade and Industry incentive that is managed by the IDC,”

The SPII provides financial assistance for innovators in the form of grants and it guides them through the product- development process. The IDC has approved R668-million over the last ten years for the SPII.

Meanwhile, Qhena adds that the stance of the IDC is to provide innovative funding programmes to support innovation in industry.

IDC schemes such as the Gro-E Scheme encourage businesses that want to create jobs, at specific costs, as well as the Gro-E Youth Scheme, which assists companies in creating jobs.

The IDC also has in place the women entrepreneurial fund, the people with disabilities fund, the development fund and the equity contribution fund.