Steady R&D-to-GDP Ratio Reflects Economy’s 1.9% Growth, While Researcher Numbers Decline

The findings were published in the latest South African R&D Survey conducted by the Human Sciences Research Council’s (HSRC) Centre for Science, Technology and Innovation Indicators (CeSTII).

South Africa’s gross domestic expenditure on research and development (R&D) rose to R28.282 billion in real terms during the 2022/23 fiscal year, marking a 2.1% increase from R27.712 billion in the previous year. This growth, however, did not alter the R&D-to-GDP ratio, which remained static at 0.61%, paralleling the economy’s 1.9% growth in 2022.

The findings were published in the latest South African R&D Survey conducted by the Human Sciences Research Council’s (HSRC) Centre for Science, Technology and Innovation Indicators (CeSTII).

Business Sector Drives R&D Growth

The business sector led the charge in R&D expenditure, contributing R14.507 billion, an increase of nearly R1 billion (R950 million) from the previous fiscal year. This uptick is largely attributed to higher R&D investments in manufacturing and mining, as detailed in the survey’s statistical breakdown.

Across all institutional sectors—including government, higher education, non-profits, and science councils—nominal R&D spending increased during the year.

R&D Funding Sources

Key funders of South Africa’s R&D activities in 2022/23 included:

Government: R20.664 billion

Businesses: R11.754 billion

Foreign sources: R7.060 billion

Challenges in Researcher Workforce

While financial investment in R&D improved, the number of researchers declined from 63,122 in 2021/22 to 61,457 in 2022/23, continuing a concerning trend in South Africa’s national innovation system.

On a brighter note, the proportion of female researchers increased marginally from 47% to 47.6%, reflecting small but steady progress in gender representation.

Insights from the Survey

Dr. Nazeem Mustapha, who led the research, emphasized that while the R&D-to-GDP ratio remained unchanged, the rise in business R&D expenditure is an encouraging signal for policymakers and investors.

Dr. Glenda Kruss, CeSTII’s Executive Head, noted that the survey data provides critical insights into the strengths and weaknesses of South Africa’s national system of innovation.

“A positive takeaway is the reversal of the downward trend in R&D spending that began in 2019/20, even before the pandemic disrupted R&D performers,” she said.

Future Implications

The results highlight the need for further investment in R&D to increase South Africa’s research intensity. Policymakers are urged to address the declining researcher numbers while leveraging the momentum in business-driven R&D.

As the government explores strategies to boost innovation and economic competitiveness, bridging gaps in funding, expanding workforce diversity, and incentivizing private-sector R&D will be crucial for sustained growth.