R&D and innovation capabilities in South African state-owned enterprises: the case of the Air Traffic & Navigation Services SOC Ltd

The case study argues that ATNS is successfully fostering a culture of R&D and innovation within the organisation, in the context of its unique and favourable position as arguably the leader of air traffic and navigation services on the African continent and the southern Indian Ocean region more broadly. This culture of R&D and innovation is reinforced at the level of executive leadership and the board, but also reflected in increased expenditure on R&D over the past five years, and events such as the Avi Afrique innovation summit. An important question addressed by this case study is which dimensions could be crucial in gearing ATNS to perform R&D and innovation effectively and efficiently in the future. Given its limited resources and the highly regulated nature of the aviation industry, attempting to outstrip global leaders in the development of air traffic and navigation management technology, predominantly supplied by a few large multinational companies, would be a high-risk option outside of the core mandate of the organisation. However, ATNS could deepen its R&D and innovation capabilities through strategic collaboration investments in areas with potential for long-term revenue growth. This includes training, for example, as well as greater focus on the IP protection of adaptive innovations that could yield commercial benefits or product development in the future. An example is the organisation's database of aeronautical information. An additional key challenge for ATNS in respect of its R&D and innovation capabilities is its capacity to respond to exponential technological changes and big data convergence within the air traffic and navigation global business environment, which anticipates a single globally-interoperable system in the future. In summary, this report is a snapshot of the unique character of R&D and innovation at ATNS in terms of critical dimensions such as human and technological capabilities, collaboration, research infrastructure, and governance, highlighting challenges and opportunities for consideration by the entity and stakeholders within its innovation system.