Innovation Key to South Africa’s Industrial Growth: dtic

Maseko said innovation plays an important role in increasing productivity, building skills and strengthening export competitiveness.

South Africa must strengthen innovation-driven industrialisation if it wants to achieve meaningful economic growth and create sustainable jobs, according to the Department of Trade, Industry and Competition (dtic).

Speaking at a policy dialogue on industrialisation through innovation in Johannesburg, Acting Chief Director for Innovation and Technology at the dtic, Nontombi Maseko, said industrial development remains central to expanding the economy and improving employment opportunities.

She stressed that innovation is not only a tool for technological advancement but also a critical driver of re-industrialisation, helping industries improve productivity, diversify production and compete in high-value global markets.

Innovation linked directly to economic growth

Maseko said innovation plays an important role in increasing productivity, building skills and strengthening export competitiveness. For innovation to deliver economic benefits, support must be provided throughout the entire process, from the development of ideas to commercialisation and large-scale market adoption.

She explained that the dtic works to support innovation through incentives, procurement programmes and targeted sector interventions. One of the department's major initiatives is the National Technology Commercialisation Strategy, which was jointly developed with the Department of Science, Technology and Innovation to accelerate the commercialisation of locally developed technologies.

The strategy seeks to help South African innovations reach both domestic and international markets while strengthening local industrial capacity.

Building local manufacturing capability

Maseko warned that South Africa risks missing out on industrial benefits if it fails to develop manufacturing capabilities in emerging sectors such as green hydrogen.

She noted that components like electrolysers and fuel cells are essential to the green hydrogen economy. Without local production capacity, the country could generate export earnings while losing opportunities to create industrial jobs and develop domestic expertise.

According to her, localisation, innovation and industrialisation are closely connected and must be pursued together to build a stronger and more competitive economy.

Government programmes support technology development

The dtic views innovation as a core component of its industrial development strategy rather than a separate policy area. Maseko said innovation is integrated into several government instruments, including procurement programmes, investment incentives, Special Economic Zones and sector-specific master plans.

She highlighted programmes such as the Support Programme for Industrial Innovation (SPII) and the Technology and Human Resources for Industry Programme (THRIP), which provide funding for technology development and industry collaboration.

Over the past five years, approximately R49 million was disbursed through SPII, while THRIP received R157 million in funding support. These investments are aimed at strengthening research, encouraging innovation and supporting industrial growth.

The policy dialogue is being hosted by the National Advisory Council on Innovation (NACI) in partnership with the Department of Science, Technology and Innovation, the dtic and the OR Tambo Special Economic Zone. The two-day event is examining how innovation can be leveraged to support industrialisation, economic growth and long-term competitiveness in South Africa.