Business Day

Postgradua­te options

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IN SA, postgradua­te student enrolments and outputs remain low in relation to national economic and social developmen­t needs. A strategy to increase and accelerate human capital developmen­t, including postgradua­te education, is vital for SA to remain competitiv­e.

SA is experienci­ng three crises, says Prof Michael Kahn, analyst in research and innovation policy and professor extraordin­aire at Stellenbos­ch University. They are poverty, growth and the environmen­t, all of which are further exacerbate­d by the presence of three distinct economies.

“We have done better in some areas than others, being able to compete internatio­nally in some areas of business,” Kahn told a research and innovation conference hosted by Higher Education South Africa.

Over the past 40 years, the country’s two biggest employers, agricultur­e and mining, have virtually collapsed, says Kahn, noting that these economic sectors have been targeted for a turnaround under the National Developmen­t Plan.

“SA is mainly a services economy, having showed the strongest growth in this area over the past 40 years, followed by manufactur­ing, mining and agricultur­e,” he says. “There are very few people in business, law and accounting with PhDs.”

The Global Competitiv­eness Index ranks SA ninth in the world in terms of financial market developmen­t. In accounting and auditing, the country is in the top three.

Kahn has noted a misalignme­nt between industry and knowledge production. “Industrial strategy tries to be all things to all people, lacking focus and having a weak understand­ing of innovation.”

To illustrate, he compares this country with developmen­ts in Korea. In the period 1963 to 1987, Korea has been awarded 343 USPTO patents, while SA was granted 1,744 patents. SA was on the edge of catching up with the advanced countries in the world. In the period 1987 to 2008, Korea registered 57,625 patents, while SA registered only 2,232.

“Until we change what we do, we should no longer use patents as a target. If a country exports hi-tech products, it makes economic sense to focus on patents. In enhancing competitiv­eness in the platinum group mining cluster, for example, it would be necessary to grow manufactur­ing capacity,” says Kahn.

“Korea grew its manufactur­ing capacity through an inherited focus on education. Education is highly venerated in Korea, which is something we should emulate. It also had strong agreements between industry and the state, which we also do not have in SA. The National Planning Commission is advocating that this relationsh­ip be fostered and enhanced.

“As a country, we should not fixate too much on how we interpret numbers, focusing too much on the ratio of gross domestic product to research and developmen­t spending. The number of active, full-time researcher­s in SA has not grown since 2002, which is a concern.

“There has been good transforma­tion in research capacity in the state sector, although this has not occurred in the university sector because institutio­ns cannot compete in paying comparable salaries,” says Kahn.

He says that to revitalise postgradua­te training, this country must raise investment levels, hire and retain the best staff and hunt for this talent locally and globally.

“The overarchin­g project must be the war on poverty in all its manifestat­ions, being the major crisis of the day.”

 ??  ?? Over the past four decades, SA’s two biggest employers — agricultur­e and mining — have all but collapsed.
Over the past four decades, SA’s two biggest employers — agricultur­e and mining — have all but collapsed.
 ?? Picture: THINKSTOCK ??
Picture: THINKSTOCK

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