Growth and Innovation: Perspective on the interaction between economic growth, science, technology and human capital

Given the elapse of almost a decade since the political transition, it is perhaps time to take stock. In this document we will do so by reference to the growth performance of South Africa, as well as developments in its labour markets in terms of employment opportunities created. But we will also attempt to consider the wider dimension of the human development indicators that may give a more comprehensive view of the developmental successes and failures of the South African economy and society.
In developing such an assessment, it will be important to take cognizance of the fact that the new South Africa was not born of a vacuum in 1994. South Africa in 1994 carried with it the baggage of its prior developmental strategies and the structural characteristics this provided it with. That the prior developmental strategy of apartheid was fundamentally flawed and damaging to long-term economic development as been amply documented and established by now, and thus requires little by way of emphasis.
But a legacy of four decades of seriously misguided developmental strategy does not dissipate overnight. Putting South Africa onto a new and better growth path will take time, no matter how good the new policy initiatives may be. Understanding the growth trajectory that South Africa finds itself on will have to pay attention to longer-term trends in the key variables of interest.

This study therefore hopes to provide an understanding of the wider context within which the South African economy finds itself in its developmental path. In doing so we will consider both international trends in crucial variables, as well as the longer term historical context within which South African development has to be understood. Moreover, in developing our argument, we will consider key lessons that we can heed from the experiences of other countries around the world – countries chosen both for the sake of their similarity to the South African context, as well as for their difference.