R&D Investment Escalation — Reaching 1.5% of GDP
Theme: Science, technology and innovation
Assessment
Responsible: DSI / National Treasury / NRF
Feasibility Assessment
Medium. Fiscal constraints limit near-term public R&D growth. Tax incentive enhancement and IP commercialisation framework reform are more achievable in the short run.
Description
South Africa's gross expenditure on research and development (GERD) stands at approximately 0.6% of GDPGDP — Gross Domestic Product: The total monetary value of all goods and services produced within a country's borders in a given period. The primary measure of an economy's size and overall output. (2023/24)—well below the National Development PlanNDP — National Development Plan: South Africa's long-term development blueprint adopted in 2012, setting out targets for 2030 to eliminate poverty, reduce inequality, and grow the economy to create 11 million jobs. Produced by the National Planning Commission.'s 1.5% target and the OECD average of 2.7%. Business expenditure on R&D (BERD) is particularly low at 0.3% of GDP, compared to 2.0% in South Korea and 1.2% in Brazil, reflecting limited domestic innovation investment by the private sector and structural dependence on technology licensing from multinationals. The R&D Tax Incentive (Section 11D of the Income Tax Act), which provides a 150% deduction for qualifying R&D expenditure, has not achieved the uplift anticipated at its 2012 introduction: fewer than 200 companies claim the incentive annually, constrained by the narrow definition of qualifying R&D and the complex approval process administered by DSIT. The STI Decadal Plan sets a credible path to 1% of GDP by 2027 and 1.5% by 2032. Reforms proposed: broadening the Section 11D definition to include market validation and design activities, creating an R&D voucher scheme for SMMEs (complementing the Innovation Fund, id=68), and establishing a government R&D procurement programme that counts as public GERD. The PC on Science BRRRs note DSIT's own budget declining in real terms, the opposite of what the Decadal Plan requires.
South Africa cannot build a knowledge economy on 0.6% of GDP in R&D investment—reaching 1.5% requires both public budget growth and private sector R&D incentives that actually work for the innovation activities our firms actually do. — DSIT STI Decadal Plan Baseline Assessment, 2022
Parliamentary record
9 meetingsCommittee sittings this reform was drawn from, most recent first. Each row opens the meeting on this site; the PMG link goes to the source record.
Higher Education and Training
18 February 2026Employment of foreign academics at universities and colleges, with DHET Minister & DHA Deputy Minister
Higher Education and Training
19 November 2025Walter Sisulu University (WSU) on its state of governance, administration, teaching and learning
Higher Education and Training
12 November 2025Sol Plaatjie University state of governance, administration and related matters (with Deputy Minister)
How to cite
Wilse-Samson, L. (2026). R&D Investment Escalation — Reaching 1.5% of GDP. SA Policy Space. Retrieved 24 August 2026, from https://sa-policy-space.vercel.app/ideas/rd-investment-escalation-reaching-15-of-gdp?snapshot=2026-08-24
Status History
tracked since Mar 2026- Recorded as Proposed when status tracking began — held since at least Mar 2026.Mar 2026
Data as of 2026-08-24 · latest PMG meeting 2026-08-21