South African Businesses Urged to Innovate More Amid Economic Challenges

South African businesses are falling behind on innovation, with only 62% engaging in innovation activities between 2019 and 2021, down from 70% in the previous cycle. The pandemic disrupted many projects, highlighting the urgent need for support during economic downturns. To tackle this, President Ramaphosa has introduced an innovation fund focused on tech startups, complementing existing programs like R&D tax incentives. Survey findings reveal that innovation-active businesses are more productive and globally competitive, but face high costs and intense competition. Most innovations are incremental, not groundbreaking. Experts recommend targeted support based on business activity and outcomes, emphasizing small but meaningful steps over radical leaps. It’s time to get smarter about how we fund innovation

The Conversation