The 2012/13 GERD results suggest that the decline in investment in Research and Development from 2009/10, has been arrested. South Africa has recorded increased investment in R&D during the period from 2011/12 to 2012/13. This trend has also been seen in other countries after the economic challenges from 2008. However, even with this increased investment and an improved outlook for the future years, South Africa's Gross Expenditure on Research and Development has remained at 0,76% of GDP over the past three years. Increased investment in Research and Development must be encouraged in order to reap the benefits of our geographic advantages as well as to increase our competitiveness in a challenging global environment. Government's focus on creating a climate for this investment has resulted in enabling policies in Human Capital development, research infrastructure, incentives for increased private sector investment, and international cooperation in Science and Technology. Over the next five years we will continue to encourage a significantly increased private and public sector investment in Research and Development.