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Research and Development (R&D) is one of the key sub-functions of a National System of Innovation (NSI). It is the primary point of entry for new scientific development and a key focus for industrial innovation. Recent trends show evidence of disinvestments and decay of South Africa’s R&D capacity. The problem investigated in this study is the delayed effect and influence R&D investment has on the system’s ability to produce R&D output. System Dynamics modelling is an excellent tool to assess a system’s ability to adjust to change and the impact of new decisions that have to be made. The conceptual design of a System Dynamics model of R&D activities is presented. The theoretical underpinning and main assumptions made in deriving and developing the model are also discussed. OPSOMMING Navorsing en Ontwikkeling (N&O) is een van die sleutelsub-funksies van ‘n Nasionale Stelsel van Innovasie (NSI). Dit is die primere toegangspunt vir nuwe wetenskaplike ontwikkeling en ‘n sleutelfokus vir industriele innovasie. Onlangse neigings lewer bewyse van disinvestering en agteruitgang in Suid-Afrika se N&Okapasiteit. Die probleem wat in hierdie studie ondersoek word, is die vertraagde effek en invloed wat N&O-investering op die stelsel se vermoe het om N&O-uitsette te lewer. Stelseldinamikamodellering is ‘n uitstekende gereedskapstuk om ‘n stelsel se vermoe om aan te pas by verandering te takseer en die impak van nuwe besluite wat geneem moet word te toets. Die konseptuele ontwerp van ‘n Stelseldinamikamodel van N&O-aktiwiteite word voorgehou. Die teoretiese onderbou en die hoofaannames wat gemaak is in die afleiding en ontwikkeling van die model word ook bespreek.

A CONCEPTUAL SYSTEMS DYNAMICS MODEL OF RESEARCH AND DEVELOPMENT ACTIVITIES IN SOUTH AFRICA