New Approaches for Funding Researchand Innovation in Africa
50
Dr.Julius Mugwagwa
Dr.Geoffrey Banda
Dr. Nicholas Ozor
Dr.Maurice Bolo
Ms.Ruth Oriama

New Approaches for Funding
Research and Innovation in Africa
Dr. Julius Mugwagwa
UCL, Department of Science, Technology, Engineeringand Public Policy, London
Dr. Geoffrey Banda
The Innogen Institute, and NIHR TIBA Research Centre,
University of Edinburgh, - Science, Technology, Innovationand Studies, Edinburgh, UK
Dr. Nicholas Ozor
African Technology Policy Studies Network (ATPS)
Dr. Maurice Bolo
The Scinnovent Centre
Ms. Ruth Oriama
African Technology Policy Studies Network (ATPS)

TheScinnoventCentre

SCIENCE, INNOVATION AND ENTERPRISE

The African Technology Policy Studies Network (ATPS) is atransdisciplinary network of researchers, policymakers, private sector
actors and the civil society promoting the generation, dissemination,
use and mastery of Science, Technology and Innovations (STI) for African
development, environmental sustainability and global inclusion. In
collaboration with like-minded institutions, ATPS provides platforms
for regional and international research and knowledge sharing in orderto build Africa’s capabilities in STI policy research, policymaking andimplementation for sustainable development.

Published by the African Technology Policy
Studies Network
P O Box 10081, 00100 GPO Nairobi Kenya© 2019ISBN: 978-9966-124-99-9

Table of Contents

Table of Contents.........................................................................................i
List of Tables..............................................................................................iii
About Science Granting Councils Initiative................................................iv
About The African Technology Policy Studies Network (ATPS)...................v
Acknowledgement....................................................................................vi
Key Messages..............................................................................................1
1.0
Introduction.....................................................................................2
2.0
Context of The Policy Issue..............................................................6
3.0
Methodology....................................................................................8
4.0
Key Findings and General Recommendations.................................9
4.1
How Important Is the Funding of Research andInnovation Among African Countries and What Is the
Evidence to Demonstrate the Level of Importance?.......................9
4.2
What Are the New and Innovative Funding Approaches(Schemes, Models or Mechanisms) That Have Been
Applied Across the World and What Lessons
Could Be Drawn for African Countries?.........................................10
4.3
What Historical and Current Factors Facilitate or
Constrain the Implementation of the Funding Approaches
and How Have/Can The Gains Be Enhanced or
The Challenges Resolved?.............................................................11
4.4
What Institutional Reforms Accompanied the
New Approaches and How Could Africa Re-Position
Its Own Institutional Architecture for Enhanced
Research and Innovation Funding?...............................................12
4.5
How Are Other Broader Issues Pertinent to
Research and Innovation Broadly Being Taken into
Consideration Towards More Efficient and Effective
Funding for Research and Innovation?..........................................13
5.0
Conclusion.....................................................................................16(i)Appendices..............................................................................................17
Appendix 1: Old and New Funding Approaches for
Research and Innovation..........................................................................17
References...............................................................................................19
ATPS Technopolicy Brief Series.................................................................22(ii)

List of Tables
Table 1: Specific Policy Recommendations for Key Actors.......................14
Table 2: Old and New (Green) Funding Models for Research andInnovation......................................................................................17(iii)

About Science Granting Councils
Initiative

The Science Granting Councils Initiative in Sub-Saharan Africa (SGCI)
seeks to strengthen capacities of Science Granting Councils (SGCs) inEastern, Southern, Central and West Africa in order to support researchand evidence-based policies that will contribute to economic and social
development. It is jointly funded by the United Kingdom’s Department forInternational Development (DFID), Canada’s International Development
Research Centre (IDRC), and South Africa’s National Research Foundation(NRF).
The objectives of SGCI are to strengthen the ability of participating SGCs
to 1) manage research; 2) design and monitor research programmes, andto formulate and implement policies based on the use of robust science,technology and innovation (STI) indicators; 3) support knowledge transfer
to the private sector; and; 4) establish partnerships with one another, andwith other science system actors. The implementation of these objectives isachieved through regional training courses, individualised on-site training
sessions, on-line training, webinars and, collaborative research. The SGCI
works with 15 councils in Kenya, Rwanda, Uganda, Tanzania, Ethiopia, Coted’Ivoire, Burkina Faso, Senegal, Ghana, Zambia, Mozambique, Botswana,
Malawi, Namibia and Zimbabwe.
The SGCIs principle output include 1) more effective research management
practices among Councils, 2) strengthened ability of Councils to design
and monitor research programmes, and to formulate and implement
policies based on the use of robust science technology and innovation
indicators, 3) increased knowledge transfer to the private sector and 4)
increasingly coordinated and networked Councils. More effective Councils
are expected to strengthen national science systems, and ultimately leadto nationally-led research that contributes to development in participating
African countries.

(iv)

About the African Technology
Policy Studies Network (ATPS)

The African Technology Policy Studies Network (ATPS) is a trans-disciplinary
network of researchers, policymakers, private sector actors and thecivil society promoting the generation, dissemination, use and masteryof Science, Technology and Innovations (STI) for African development,
environmental sustainability and global inclusion. ATPS has over 1,300
members and 3000 stakeholders in over 51 countries in 5 continents withinstitutional partnerships worldwide. We implement our programs throughmembers in national chapters established in 30 countries (27 in Africa and3 Diaspora chapters in the Australia, United States of America, and United
Kingdom). In collaboration with like-minded institutions, ATPS provides
platforms for regional and international research and knowledge sharing
in order to build Africa’s capabilities in STI policy research, policymaking
and implementation for sustainable development.

About Scinnovent Centre

The Scinnovent Centre is a science, technology and innovation (STI)
policy think tank registered in Kenya as a not-for-profit company. Their
preliminary concern is that despite advancements in science, technology
and innovation (STI), poverty levels in Africa are increasing; environment
degradation is worsening; the ecosystem has become more fragile;sustainability has been compromised and livelihoods threatened.
So they ask three big questions: Why have the developments in science,technology and innovation not made any significant difference in African
development? Why have STI policies not translated into practical changeon the ground? How come pockets of success piloted across countries
have not scaled?
(v)

Acknowledgement

This policy brief was produced by the African Technology Policy Studies
Network (ATPS) in partnership with the Scinnovent Centre under the
Science Granting Councils Initiative in sub-Saharan Africa. The ATPS and
Scinnovent Centre acknowledge the funding support received from United
Kingdom’s Department for International Development (DFID), Canada’s
International Development Research Centre (IDRC), South Africa’s National
Research Foundation (NRF) and the Swedish International Development
Cooperation Agency (Sida).

(vi)

Key Messages• The overarching message of this policy brief is that Africa needs
consistent, sufficient, relevant and sustainable funding for researchand innovation.
• Innovative funding models based on new coalitions between the
public, private and non-profit sectors is required to support seamlessly
the different stages of research, translation and innovation value
chain.
• African countries have developed some innovative and dynamic new
funding models, and more can be done to adopt and deploy otherregions’ funding models to mitigate decreasing traditional sources offunding for research and innovation.
• New and innovative funding approaches models developed leverage
to a large extent on partnerships, co-funding and multi-disciplinaryarrangements• The new funding approaches have brought greater standardisationof research applications, better resource tracking and accountability
among recipients and strengthened the research-policy interface.
• There are context-specific and context-transcending historical,
technical, social, political and economic factors that stakeholders in
the research and innovation ecosystem need to address if they are to
optimise funding of research and innovation.

New Approaches for Funding Research and Innovation in Africa | 1

1.0		

Introduction

This policy brief is situated in the backdrop of declining or stagnant national
and international research funding sources and the increasing need fornew models for funding research and innovation. African countries face
an urgent need to industrialise and achieve rapid economic growth toimprove the livelihoods of citizens and attain robust infrastructure that
supports health, energy, environmental and food security as well as full
employment leveraging the demographic dividend highlighted in Agenda
2063. Appropriation of new knowledge generated by contextualised
research and innovation is a key driver of sustainable and inclusive socioeconomic development. However, research and innovation are resourceintensive, depending largely on sustainable and focused funding buttressedby an innovation ecosystem purposively designed to harness innovations
and turn them into useful products and services for solving societal
problems. Many African countries do not have these conditions in place.
Given the aforementioned, funding of research and innovation in Africa
urgently requires new models that take a deliberate systemic approach tobuilding coalitions of agents and actors in innovation systems (at national,
sectoral, regional and technological levels), policy and governancedesigns and architectures and funders that support appropriate emerging
technologies and innovations.
The key roles that science, technology and innovation (STI) play in driving
economic growth and development through enhanced industrial activities
and competitiveness backed by increased production efficiencies is widely
acknowledged in Africa (Oyeyinka et al, 2018; Chataway et al., 2009; Juma
2016; Ozor, 2015).
2 | New Approaches for Funding Research and Innovation in Africa

African countries committed to raising domestic research expenditure
to at least ‘1% of gross domestic product’ (GDP) (Lagos Plan of Action,1980). However, most countries are failing to fulfil this commitment andcalls for increased funding have grown. For health, governments agreed
in the Algiers Declaration to allocate 5% of the National Health Budget
to health research systems and few are meeting this target (Nabyonga
et al, 2018). Yet, commitment to deploying STI to strengthen economies
is not lacking. The AU’s Agenda 2063 ‘The Africa We Want’ aspires for aprosperous Africa imbued with means and resources to drive sustainable
development and long-term stewardship of resources, where African
people have a high standard of living, quality of life, sound health andwell-being and assured health security (AUC, 2015). In order to deliver
Agenda 2063, the Science, Technology and Innovation Strategy for Africa,
STISA-2024 was developed, and it identifies research and innovation as
enablers for achieving sustained growth, competitiveness and economictransformation (AUC, 2014). STISA-2024 calls for continuous embeddingof STI in six priority areas: eradicating hunger and ensuring nutrition andfood security; prevention and control of diseases and ensuring wellbeing;
communication (physical and intellectual mobility); protecting our space;living together; and wealth creation. STISA-2024 recognises that thecontinent needs to adopt and adapt existing and emerging technologies toaccelerate transition into innovation-led and knowledge-based economies
in the continent.
The national, regional and continental STI policy agendas in sub-SaharanAfrica (SSA) has become more prominent in the recent years (UNESCO,2016). Various surveys on African countries having S&T or STI policies
show a gradual increase from none between 1960 and 1980, to 13 out of
17 in 2010 (Mouton et al,2014). Countries have adopted STI policies andinstitutional developments in support of these initiatives at sub-regional
levels (UNESCO 2016) and national level in SSA (AOSTI 2013).

New Approaches for Funding Research and Innovation in Africa | 3

These developments are occurring within the context of adopting
Sustainable Development Goals (SDGs), which include specific reference
to STI within SDG 17 (UNGA 2015), in contrast to absence of explicit
reference to STI in the Millennium Development Goals (MDGs). Someargue that this may have hampered efforts to pursue STI capacity building
in preceding years. Accompanying these policy developments has been an
increase in the number of donors interested, or active, in supporting STI
in Africa compared with the support of just a few during the 1990s (AOSTI2013).
However, while more than two-thirds of African countries have moved todesign and adopt STI policies and strategies a majority of the countries
still lack the requisite capacity to leverage and benefit from investment in
STI (Oyeyinka et al, 2018). Most countries have not solved the challengeof sustainably funding research and innovation and as a result they are
failing to effectively generate and deploy knowledge and technologicalinnovations for socioeconomic growth. Harnessing new and/or improved
products and services for economic sectors such as agriculture, mining,
manufacturing, health and infrastructure, among others are importantfor economic growth. African countries have an opportunity to avoid
technology and development lock-in and path dependencies byleapfrogging infrastructure and industry challenges of pioneer economies
by carefully integrating their transition to knowledge-based economies
with achievement of SDGs and leveraging their endowments in natural
resources and an imminent demographic dividend. This is possible throughcontext-specific and locally grounded generation of new knowledge
from research and innovation to produce economically useful goods andservices. Funding these research and innovation endeavours requires
designing sectoral and national policies and strategies that purposively
target investing in local capabilities and institutional architectures that
support scientific knowledge generation and its appropriation.
It is in within this context and with the aim to inform current debates,
reviews and re-organization of investment in African research andinnovation, that this policy brief identifies “new approaches, mechanisms,
4 | New Approaches for Funding Research and Innovation in Africa

schemes or models for funding research and innovation in Africa” paying
particular attention to lessons learnt and potential applicability in African
settings.
Research and innovation is a function of knowledge-sharing and lessondrawing, therefore policy and practice processes on research andinnovation in Africa can benefit from experiences elsewhere.
The study on which this brief is based was guided by five key researchquestions:1.

How important is the funding of research and innovation among
African countries and what is the evidence to demonstrate thelevel of importance?

2.

What are the new and innovative funding approaches (schemes,models and mechanisms) that have been applied across theworld and what lessons could be drawn for African countries?

3.

What historical and current factors facilitate or constrain theimplementation of the funding approaches and how have/canthe gains be enhanced or the challenges resolved?

4.

What institutional reforms accompanied the new approaches
and how could Africa re-position its own institutionalarchitecture for enhanced research and innovation funding?

5.

How are other broader issues pertinent to research andinnovation broadly being taken into consideration towards more
efficient and effective funding for research and innovation?

New Approaches for Funding Research and Innovation in Africa | 5

2.0		

Context of the Policy Issue

The policy issue tackled by this brief is that of funding for research andinnovation. We set this issue within a wider context of the innovation
principle which argues that innovation is the “single most important driverof societal prosperity and is indispensable for sustainable development
and economic growth” (ERF, 2015). The principle underscores theimportant role that knowledge and innovation generation, translation,and commercialisation play especially as countries transition to theknowledge-based economy (KBE). This is important for African countries,
which need to rapidly industrialise and achieve inclusive and sustainableeconomic development. Many African countries face immense problemsof large proportions of unemployed youths. Young people (15 to 24
years) constitute about 37% of the working age population, but accountfor more than 60% of all unemployed people in Africa. Effective researchand innovation funding approaches therefore, should result in mutually
reinforcing and complementary investments in R&D and innovation
which will in turn result in multiple impacts from small entrepreneurial
initiatives in high technology industries with the concomitant employmentof millions of workers. However, generation and translation of researchand innovation into useful economic growth depends on sustained andfocused investment.
Depending on the stage of activity on the research-innovation-commercialisation spectrum, investment approaches range from government
investment into research and innovation as a public good.

6 | New Approaches for Funding Research and Innovation in Africa

This is what Mazzucato (2011) calls the entrepreneurial state; philanthropy
and other social investors as well as the state in the “valley of death”;
to commercially-driven financial institutions funding entrepreneurship.
This policy brief is based on a study which sought to identify and analyse
exemplar case studies of new approaches to funding research andinnovation from African countries and across the world. The intention
is to demonstrate the funding mechanisms and models, the institutionalarchitecture as well as policy and strategy environments that the casestudies crystallise and can be contextualised into African coutries setting..
This brief argues that models have economic, geographic and otherpolitical economy complexities, thus a direct juxtaposition would lead to
failure. What this brief does is to unpack the rationale behind the funding
mechanisms and models so that African governments, Science Granting
Councils, the private sector, philanthropic organisations and foundations,amongst others, can learn from elsewhere in their separate and collective
efforts to sustainably fund research and innovation in the continent.
We consider research as the robust knowledge generation activities
undertaken by a broad range of actors using the scientific method. Among
the research performing actors are universities, research institutes,
private, public sector and informal sector players. Recognising thisbroad range of players in the research terrain is important for developing
policies, strategies and funding mechanisms that harness and synergise
the potential of these knowledge generators and others in innovation.
In this brief, we adopt the OECD/Eurostat (2005) definition of innovation
as the introduction of new or significantly improved products (goods orservices), processes, organizational methods, and marketing methods ininternal business practices or in the open marketplace.

New Approaches for Funding Research and Innovation in Africa | 7

3.0		

Methodology

Research informing this policy brief was conducted using mixed methods.
Between July and December 2018, we did literature reviews covering
documents from national science granting councils (SGCs)/commissions
and other funding agencies. We then interviewed representatives fromthe 15-country African Science Granting Councils Initiative , and expert
stakeholders from key African science policy institutions and African
researchers in the diaspora and Africans working in key research,academic and policy institutions. Given the complexity and expanse ofliterature and practices on research and innovation funding across theWorld, it is impossible to discuss all models, approaches and mechanisms
in this document. Consequently, this brief explores and discusses someexamples of new or innovative funding models and mechanisms that
may be adopted to sustainably fund research and innovation in Africancountries. The discussion contextualise these models and mechanisms
into different African settings in mind.

8 | New Approaches for Funding Research and Innovation in Africa

4.0		
		Key findings and generalrecommendations

The following key messages and recommendations are drawn from thestudy, presented in line with the five broad research questions presented
above.
4.1

HOW IMPORTANT IS THE FUNDING OF RESEARCH AND
INNOVATION AMONG AFRICAN COUNTRIES AND WHAT IS
THE EVIDENCE TO DEMONSTRATE THE LEVEL OF IMPORTANCE?

Key messages
The importance of research and innovation is rated between medium andhigh among the SGCI countries. Across most African countries, the importance of research and innovation is generally rated as increasing as
demonstrated by investment in institutional and policy provisions for STI
instituted in the last few years.
Recommendation 4.1.1: Beyond tactical addressing of current socio-economic challenges, African governments need to develop unifying
long-range and operationable national ideologies on the role of researchand innovation modelled around the impending demographic dividend
and leveraging the continent’s unique resource endowment for economic
progress.
An example is how Japan attained universal health coverage in the early
1960s, way ahead of the rest of the world by defining access to health asa ‘nation building’ imperative.

New Approaches for Funding Research and Innovation in Africa | 9

Recommendation 4.1.2: As part of their mandate to support and manage
research programmes, SGCs should assist researchers to generate researchand innovation impact evidence and sustained relevance which will result
into political will and commitment to fund research and innovation.
There is a lot of data generated by various agencies, e.g. African Science
Technology and Innovation Indicators (ASTII), which can be utilized more
for decision-making at national and sectoral levels.
Recommendation 4.1.3: For the purposes of defining research andinnovation policy objectives and identifying appropriate approaches forfunding, it is important for different stages of the research and innovation
value to be mapped out (by sector where possible) from basic research to
products. This will enable identification of entry points for different funding
options. SGCs should lead this as part of their objective to strengthen
research and evidence-based policies.
4.2

WHAT ARE THE NEW AND INNOVATIVE FUNDING APPROACHES(SCHEMES, MODELS OR MECHANISMS) THAT HAVE BEEN
APPLIED ACROSS THE WORLD AND WHAT LESSONS COULD BE
DRAWN FOR AFRICAN COUNTRIES?

Key messages
New dynamic funding models have been developed, adopted anddeployed in countries and sectors to deal with realities of decreasing
funding for research and innovation from traditional sources (see Annex
1). These models which encompass partnerships, co-funding and multidisciplinary approaches, seek to ensure context-driven, efficient andeffective utilisation of resources.
Recommendation 4.2.1: In light of the reality that different countries andsectors may work best with particular funding approaches, there is needfor accommodation of diverse funding models and means of optimisingand assessing their impact.

10 | New Approaches for Funding Research and Innovation in Africa

SGCs and line ministries should work closely to come up with robust
procedures for identifying and consolidating desired sector outcomes thatpolicymaking should focus.
Recommendation 4.2.3: Access to and deployment of effective
approaches for funding research and innovation require strong leadershipand oversight from governments and SGCs, especially with respect toidentifying and balancing the disparate requirements of different sectors
and areas of application with their points of commonality.
4.3

WHAT HISTORICAL AND CURRENT FACTORS FACILITATE ORCONSTRAIN THE IMPLEMENTATION OF THE FUNDING
APPROACHES AND HOW HAVE/CAN THE GAINS BE ENHANCED
OR THE CHALLENGES RESOLVED?

Key messages
Challenges stalk the expansion and sustainable deployment of new
funding models. For instance, political will remains insufficient and notacted upon, while urgent attention needs to be paid to persistent limited
government financial resources, unfavourable institutional traditions,policy incoherence across sectors, mismatch between research priorities
and developmental challenges, lack of long-term policy planning, rapid
technological changes and poor choices of strategic partnerships.
Recommendation 4.3 1: SGCs should commission an on-going review ofbest practice at sectoral, national and international levels to consolidate
knowledge about how deployment and implementation of STI policies,
research and innovation approaches can be optimised. The review should
include the use of existing and new funding approaches, and should
include details about how a specific industry or component of the researchand innovation value chain can engage with upstream or downstream
processes.

New Approaches for Funding Research and Innovation in Africa | 11

4.4

WHAT INSTITUTIONAL REFORMS ACCOMPANIED THE NEW
APPROACHES AND HOW COULD AFRICA RE-POSITIONITS OWN INSTITUTIONAL ARCHITECTURE FOR ENHANCEDRESEARCH AND INNOVATION FUNDING?

Key messages
New funding approaches were reported to have brought more
standardisation of research applications, better resource tracking andaccountability among recipients and stronger research-policy institutions.
Recommendation 4.4.1: Leveraging their access to global knowledge
resources, SGCs should help countries develop or reconfigure their STI
policies to be not only forward-looking and agile, but also how they
influence funding approaches/models and other interventions towards
strategic goals. Strategies for funding research and innovation shouldalign with key policies such as national industrial, health, agricultural andeducation strategies and other national developmental visions.
Recommendation 4.4.2: SGCs should help countries to establish
consolidated national knowledge platforms on research and innovation.
Generation and sharing of knowledge is integral of research and innovation
processes. This can be more cohesively and efficiently achieved within
the research and innovation ecosystems and greater benefits will accrue
to SGCs, researchers, decision-makers as well as entrepreneurs and actors
in the research and innovation systems.

12 | New Approaches for Funding Research and Innovation in Africa

4.5

HOW ARE OTHER BROADER ISSUES PERTINENT TO RE
SEARCH AND INNOVATION BROADLY BEING TAKEN INTOCONSIDERATION TOWARDS MORE EFFICIENT AND
EFFECTIVE FUNDING FOR RESEARCH AND INNOVATION?

Key messages
It is undoubted that African countries’ goals of economic development
driven by research and innovation are in line with trends elsewhere.
There are however, context-specific and context-transcending technical,
social, political and economic issues that stakeholders in the research andinnovation ecosystem need to be aware of and to consider in order to
optimise use of research and innovation resources.
Recommendation 4.5.1: STI policies and research and innovation funding
models will be more effective when underpinned by an understandingof the interdependent political, social, technical and economic factorsthat affect them. SGCs and governments should use their considerable
convening power to regularly bring together research, business, regulator,
user and different other communities at national level to explore funding
approaches that best promote the values and interests of African countries
in a global context.

New Approaches for Funding Research and Innovation in Africa | 13

We present below key messages and general policy recommendations
above targeting four key actors.
Table 1: Specific policy recommendations for key actors
Policy Actor
African Union(AU)& Regional
Economic
Communities (REC)

Policy Issue
Increasing,sustaining
andoperationalising
political will.

Recommended Action
There is an urgent need for committed
funding by AU and RECs for continental andregional programmes such as Agenda2063
and STISA 2024.

Honouring 1% GDP to National governments need to explore
STI commitment by innovative ways to expedite meeting andnational governments
sustaining the long overdue 1% of GDP
commitment to R&D. With the global
average above 2%, African countries needto rump up their commitments if
progression to knowledge based economy(KBE) is to be realised.
Science granting Generate and document As part of their mandate to support andcouncils(SGCs)
evidence of R&I impact manage research programmes, SGCs should
assist researchers to generate research andinnovation impact evidence and sustained
relevance which will result in political will
and commitment to funding research andinnovation.
Map out research and As part of their objective of strengthening
innovation ecosystems
research and evidence-based policies, SGCs
should lead processes of mapping out
different stages of the research andinnovation value chain. It is important todefine research and innovation policy
objectives and identify appropriate
approaches for funding research andinnovation.

14 | New Approaches for Funding Research and Innovation in Africa

Policy Actor
Policy Issue
Private and non- Increase levels andprofit sectors
relevance of funding andactivities.

Harness and leverage
financial resources andpartnership models.
Development
partners

Support countries toreconfigure the R&I
systems

Recommended Action
This could be achieved through working
with national and local governments, aswell as academia in co-designing policies
and R&I responses that are aligned to
sectoral and national developmental
objectives.
Sector to innovatively seek and deploy
resourcesattheirdisposalforstrengthening sectoral and national
research and innovation ecosystems.
Leveraging their access to global knowledge
resources, development partners should
help countries to develop or reconfigure
their STI policies to not only forwardlooking and agile, but also how they
influence funding approaches and otherinterventions towards strategic goals, andstimulate demand for research andinnovation.

New Approaches for Funding Research and Innovation in Africa | 15

5.0		

Conclusion

This policy brief highlights that dynamic new funding models have beendeveloped, adopted and deployed in countries and sectors to deal withthe realities of decreasing traditional funding for research and innovation
sources. These models, encompassing partnerships, co-funding andmulti-disciplinary approaches, seek to ensure context-driven, efficientand effective utilisation of scarce resources. Challenges ranging frominsufficient political will to lack of implementation plans and uncoordinatedapproaches to STI were reported to be stalling the expansion andsustainable deployment of the new funding models. This policy briefadvances a number of recommendations on how science granting
councils, the African Union and regional economic communities, national
governments, private and non-profit sectors as well as development
partners can leverage their access to global intellectual, financial resources
and convening power to further strengthen availability of capabilities andfunding for different stages of the research and innovation value chain.

16 | New Approaches for Funding Research and Innovation in Africa

Appendices
APPENDIX 1: OLD AND NEW (GREEN) FUNDING APPROACHES FOR		RESEARCH AND INNOVATION
FunderGovernment

What is funded
Basic Research
Applied Research

Funding Mechanism
Grants and grandchallenges

Public institution cofunding on
interdisciplinary andmultidisciplinary
Commercialisation programmes
Translational
Research

Entrepreneurship(SMEs)

Innovation brokerage

Rationale
Traditionally
governments havefunded basic, applied
and translational
research as investment
in economic growthand development.
These are deemed
public goods.

Formation of national
research funding
consortia
Co-funding with SGCIs in
the Region

Private Sector

Public Private
Partnerships
Impact Investors

Investment in high-end
research programmes,incl. Chairs (240 in SA)
and Centres of
Excellence, with 15-year
funding horizons
Applied Research Retained profits andborrowing for capital
Commercialisation markets

Applied Research

Corporate Social
Responsibility
Equity and projectfunding

Commercialisation
Commercialisation Equity or debt

Profit driven motives

Solving market failure
issuesSolving market failure
with a focus on social
goods

New Approaches for Funding Research and Innovation in Africa | 17

Funder
Capital Markets

What is funded
Commercialisation

Funding Mechanism
EquityCrowdfunding

Research andcommercialisation

EquityLocal andInternational
collaborative
research grants

Research

GrantsPrivate sector

Take-over ofapplied research
after proof ofconcept, safety
and efficacy

Patent buyouts

Charities

Basic and applied
Grants and co-funding
research as well as academia and SMEs
clinical trials
working neglected areas

Cities or regions

Land, labour andutilities

Grants given as
incentives to firms that
relocate to a city or
region targeting
industrial development

18 | New Approaches for Funding Research and Innovation in Africa

Rationale
Attractive return on
investment in theventureSocial investment
because of market
failureScarcity of local
funding for research inmany African nations
Innovators either
selling off patents tofund more innovation
or researchers notinterested inentrepreneurship
These tend to be nicheareas such as rarediseases where market
failure is common
Attracting particularindustrial activities toa particular city or
region to boost
economic activity andcontribute to
rejuvenation of deindustrialised placesReferences
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Juma, C (2016). Gales of Creative Destruction, in Innovation and Its
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ATPS Technopolicy Brief Series1• Towards effective PPP in research and innovation_A perspective for
SGCs in Africa Brief No. 49• Innovative Practices and Policies for Promoting Biodiversity Informatics
in Sub Saharan Africa. ATPS Technopolicy Brief No. 48• Improving the Relevance of University Training to Labour Market
Demands in Africa ATPS Technopolicy Brief No. 47• Developing Policies for Biodiversity Informatics in Sub-Saharan Africa
Brief No. 46• Using the Land Potential Knowledge System (LandPKS) Mobile
Technology for Agricultural Productivity and Resilience ATPS
Technopolicy Brief No. 45• Mainstreaming Gender in the National Science, Technology andInnovation (STI) Policy of Kenya (ATPS Technopolicy brief 44)• Social Innovation: An untapped Resource for Inclusive Green Growth(ATPS Technopolicy brief 43)• Policy Axes that can uphold Agricultural Innovations for Climate Change
Adaptation & Food Security in Central Africa: Case of Cameroon,
Equatorial Guineaand Central African Republic (ATPS Technopolicy
brief 42)
• Frameworks for Intellectual Property Protection of Traditional
Knowledge in Tanzania (ATPS Technopolicy brief 41)• Assessment of Possible Intellectual Property Protection Options of
Traditional Knowledge System in Ethiopia (ATPS Technopolicy brief 40)

22 | New Approaches for Funding Research and Innovation in Africa

• Towards influencing National Legislation, Policies, Strategies andProgrammes for appropriate Protection and Benefit-Sharing ofTraditional Knowledge (TK) with Traditional Herbalists in Uganda(ATPS Technopolicy brief 39)• Traditional Healers and their provision of Mental Health Services
in Cosmopolitan Informal Settlements in Nairobi, Kenya (ATPSTechnopolicy brief 38)• Policy Implications for Intellectual Property Systems for Traditional
Healers in Lesotho (ATPS Technopolicy brief 37)• Incidence of Indigenous and Innovative Climate Change Adaptation
Practices for Smallholder Farmers’ Livelihood Security in Chikhwawa
District, Southern Malawi (ATPS Technopolicy brief 36)• Machobane Farming System and its Relevance to Climate Change
Policy in Lesotho (ATPS Technopolicy brief 35)• Policy Challenges of Climate Change and Adaptation in Northern
Nigeria (ATPS Technopolicy brief 34)• Sensitizing and Building the Capacity of Women towards Climate
Change Consequences in Northern Lakes of Egypt (ATPS Technopolicy
brief 33)
• Agricultural Innovations for Climate Change Adaption and Food
Security in Ghana and The Gambia: Policy Options (ATPS Technopolicy
brief 32)
• Tracking Effective Indigenous Adaptation Strategies on Impacts of
Climate Variability on Food Security and Health of Subsistence Farmers
in Tanzania By Riziki Silas Shemdoe, (ATPS Technopolicy Brief No. 31)• Harnessing Wind Energy for Climate Change Adaptation and Food
Security in Coastal Regions of Ghana: A Policy Perspective By Mahu
Seth Agbeve; (ATPS TechnoPolicy Brief No. 30.)

New Approaches for Funding Research and Innovation in Africa | 23

ISBN: 978-9966-124-99-9