Support Programme for Industrial Innovation (SPII)

Support Programme for Industrial Innovation (SPII). This is a dti innovation support programme that is administered by the Industrial Development Corporation (IDC). Regarding policy implications for the administration of SPII the following changes have been introduced since January 2005: Matching Scheme (maximum grant R1,5 million) Only small and medium sized companies (SMEs: as determined by the Small Business Act) can qualify in terms of the Matching Scheme, which makes provision for a 50% grant with no payback, for innovative development of new products and processes. Partnership Scheme (PII) (grants larger than R1,5 million) This Scheme is open to all companies, which make provision for a 50% grant, and a payback mechanism based on sales from the new product or process. A nominal internal rate of return (IRR) of 19% to the Partnership Scheme is aimed at. The reason for this is to lessen the strain on the fiscus regarding the annual requirement for funds in the budget. In considering support for a project(s), under PII, there should be a clear indication of the causality (additionality) that will follow from the support. In other words support should not be given to projects that would have happened anyway without support. Product Process Development Scheme In January 2005 the dti introduced the Product Process Development Scheme (PPD). This scheme is only for small enterprises as per the definition for the manufacturing sector in the Natinal Small Business Ammendment Act, 2003. Financial assistance under the PPD scheme is in the form of a taxable non-repayable grant between 65% and 85% of the total qualifying costs incurred in pre-competitive development activity associated with specific development project up to a maximum grant amount of R500 000 per project. Contact Details: SPII Champion Dr Areef Suleman +27 (11) 269 3450 E-mail: areefs@idc.co.za PO Box 784055 Sandton 2146 Tel: +27 (11) 269 3073 Fax:+27 (11) 269 3126 E-mail: spii@idc.co.za For more information visit www.spii.co.za