Water innovation and the circular economy in special economic zones in South Africa
Date
2022
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
In light of the planned economic recovery identified by the South African government, the applicability of various mechanisms, principles and theories which enable economic development should be considered, particularly in the context of growing urbanisation and water scarcity challenges. The first mechanism considered in this study relates to the use of special economic zones to drive industrial growth and as a mechanism of attracting foreign direct investment. The second mechanism relates to the adoption of alternative economic models such as the circular economy (CE) which addresses both economic development and resource challenges. The third mechanism relates to expedition and exploration of technologies aligned to the current technological revolution which is information, communication and technology (ICT) based and is expected to result in a new social and economic paradigm or techno-economic paradigm (TEP). The final mechanism for economic development is related to the promotion of all types of innovation which historically have been linked to economic development. This research report explores these selected recovery mechanisms with a focus on ICT-led circular water innovation and its impact on economic development and developing a green economic paradigm.
There is a need to understand the meaning and impact of the CE on economic development in South Africa in light of the economic recovery considerations and the constraints related to water. CE innovation, in all categories, is important given the positive relationship innovation has with economic development and the opportunity to use all types of innovation and not just original innovation as a developing country. In addition, a better understanding of the current global technological revolution is required in order to determine its applicability for the South African context, particularly given its expected culmination into a green techno-economic paradigm which will have a beneficial societal and economic impact. The role of SEZs as a showcase on how circular economy innovation and water technologies have been adopted in an environmentally and economically beneficial manner will assist in providing practicality to the study.
Seven of the ten SEZs in South Africa were used as a sample with qualitative, semi-structured interviews conducted with SEZ representatives and water specialists. All interviewees were familiar with the topics of water, innovation and the circular economy in SEZs. Interviews were supplemented with document analyses of water innovation in industries in South Africa.
The major findings of this study are that water innovation in the circular economy has a positive environmental impact through the reduction of pollution and improved water security. The socio-economic impact primarily relates to job creation both in new industries that are emerging from offtakes and new service models and there is potential for green jobs. There are many types of ICT enabled water innovation adopted within the SEZs with water monitors being the most prevalent. From a techno-economic paradigm perspective when measured against the TEP criteria of low cost, opportunities for entrepreneurship and organisational change, only the criterion of cost reduction has been observed in this study with entrepreneurship and organisational change lagging. However, the potential exists to create clusters of innovation which include water monitors, robotics and data analytics as a cluster or desalination, renewable energy (hydro and solar power) and low-cost membranes as another cluster. These clusters when coupled with government support through entrepreneurship incubation and policy incentives, have the potential to hasten the technological revolution through increased innovation, adoption and diffusion of technologies. This is however a collaborative effort wherein both the private and public sector need to work together to build an ICT enabled circular economy to create new green growth and economic development
Description
A research report submitted to the Wits Business School in the University of the Witwatersrand, in partial fulfillment of the requirements for the degree of Master
of Management in the field of Innovation Studies, Johannesburg, 2022
Keywords
Circular economy, Water, Techno-economic paradigm, Special economic zones, Innovation capabilities, UCTD
Citation
Bedessy, Kiara. (2022). Water innovation and the circular economy in special economic zones in South Africa [Master’s dissertation PhD thesis, University of the Witwatersrand, Johannesburg]. WireDSpace.https://hdl.handle.net/10539/41003