Department of Science and Technology – Cost-Benefit Analysis and Strategic Review of Funding Instruments
Mthente was commissioned by the Department of Science and Technology
(DST) to examine the effectiveness of the current funding instruments
to support Science Engineering and Technology (SET) human capital
development.
The DST as a government department is charged with the responsibility
of introducing measures that put science and technology into action
such that there is an impact on the growth and development in areas
that matter to all South Africans.
In order to allow the DST to deliver on its mandate and keep up with
the global trends of being innovative & creating knowledge based
economies, South Africa is transforming and developing its Science,
Engineering and Technology system. Now, in order to be innovative as
well as ensure competitiveness, investment in the SET human capital is
fundamental and necessary.
As part of this investment, the DST wished to examine the
effectiveness of its current funding instruments involved in the SET
human capital development. This examination thus entailed an
identification of strengths and weaknesses of SET funding instruments
and an assessment of the effectiveness of these instruments, including
a cost-benefit analysis that measured the ratio of government
investment to output. Cases comparable to South Africa were also
looked into. Last but not least, the project identified barriers
to the effective use of such funding instruments.
To achieve these objectives, the initial component of this project was
to be a three-pronged desktop research phase where Mthente
identified funding instruments available in the public sector that
support SET human capital development. After this, Mthente
conducted an in-depth review of the instruments and some telephone
enquiries to try and further identify more funding instruments and
highlight their governance structures, target beneficiaries, reach and
roll-out systems. Thirdly, Mthente identified funding instruments
that supported SET human capital from three economies comparable to
South Africa.
Upon completing the desktop research, stakeholder interviews were
conducted to gain a holistic understanding of the structure and
roll-out of the funding instruments from the perspective of the
institutions administering and managing them. Beyond the stakeholder
interviews and the desktop research components, Mthente conducted
an online perception survey based on the key performance indicators
identified through the desktop review, as well as the exploratory
stakeholder interviews. Where necessary, the researchers were
supplement this component with telephonic interviews.
After conducting the online survey, Mthente carried out a cost-benefit
analysis that measured whether the government was getting value
for money from the SET funding instruments. The findings were
then used to make recommendations to contribute to the DST’s
future policies and strategy.









