The Support Programme for Industrial Innovation (SPII) is designed to promote technology development in South Africa’s industry, through the provision of financial assistance for the development of innovative products and/or processes. The Support Programme for Industrial Innovation DTIC grant is focused specifically on the development phase, which begins at the conclusion of basic research and ends at the point when a pre-production prototype has been produced.
The Support Programme for Industrial Innovation (SPII)
The SPII was one of the support instruments developed to give effect to the DTI’s work through the Industrial Policy Action Plan and supported small, medium-sized and micro-enterprises (SMMEs), as well as large enterprises.
It aims to promote the development of technologically innovative products/ processes that are commercially viable & internationally competitive.
The biggest challenge is to get these industrial innovations to be commercial products.
With SPII, the department will be able to assist in developing the entrepreneurial mind-set and functional skill-sets to enable innovators to create and launch their technology ventures.
Innovation refers to new and unique products or processes that may be incremental, novel or radical. For a product to be considered innovative, the following will be considered:
• Functionally unique and advanced;
• Low cost;
• If process driven, it should be a substantial improvement of the original process; and
• Predominantly be the result of technical development as opposed to research or studies and should emphasise technical innovation.
Support Schemes of the SPII Grant
The programme is divided into three support schemes, namely the Product Process Development (PPD) scheme which is a non-repayable grant focusing on small, micro and medium enterprises and capped at maximum R2 million. There is also the Matching Scheme which provides a non-taxable, non-repayable grant of between 50% and 75% of qualifying costs and capped at R5 million, as well as the conditionally repayable Partnership Scheme which is a non-taxable and conditionally repayable grant of 50% of qualifying costs with a minimum grant R10 000 000.
1. Matching Scheme
• 65% of qualifying costs > 25% BEE or > 50 % Ownership by Women or People with disabilities;
• 75% of qualifying costs >50% BEE ownership;
• Payments are made against predetermined milestones; and
• Maximum grant amounts to R5 million per project.
2. Partnership scheme
• For large scale R&D project;
• Grant of 50% on the actual direct cost incurred in development activity;
• Has no maximum grant amount; and
• Incorporates a conditional repayment mechanism in the form of a minimal levy on sales.
3. Product Process Development Scheme
• Not based on innovation;
• Support (grant) from 65%, 75% or 85% depending on BEE participation;
• More items that may qualify such as for example computers and rent;
• Grant up to R 500 000; and
• Only for Small, very small and micro enterprises.
Requirements for the The Support Programme for Industrial Innovation DTIC Grant:
- Development should represent significant advance in technology;
- Development and subsequent production must take place within South Africa;
- Intellectual Property to reside in South African registered company;
- Participating businesses should (must) be South African registered enterprises;
- Government funded institutions (e.g. CSIR) do not directly qualify for support but may participate as subcontractor(s) and;
- No simultaneous applications from the same company.
At DTC, we understand the complexities of the various funding agencies and the unique application criteria for each. We have assisted thousands of entrepreneurs through the application process to access funding for businesses, and we can assist you with the same.
Contact us for further information on the Support Programme for Industrial Innovation DTIC grant.