Unlocking innovation: government funding for innovation-active firms in South Africa. Fact sheet 52

Abstract

This fact sheet provides insight into the state of innovation funding in the industry and services sectors during the period 2019-2021, which coincided with the Covid-19 pandemic. Based on the South African Business Innovation Survey (BIS) 2019-2021 data, the analysis shows that a notable proportion of innovation-active firms relied heavily on internal funds to finance their innovation activities. Businesses indicated a gap between their knowledge of the availability of government financial support and the application procedures required. Most firms that did apply for government funding relied on Covid-19 government support. Overall, the data highlight the need for greater awareness and understanding of government funding opportunities, to facilitate better utilisation of available resources to foster firm innovation.