R&D and innovation in services companies: The air traffic and navigation services case study

The South African government has introduced a R&D Tax Incentive Scheme to encourage organisations to develop technology. This study investigated whether it is viable for a service company to develop technological solutions and advancements that are eligible for the R&D Tax Incentive. This is a case study of Air Traffic and Navigation Services Company Limited (ATNS). In this case study, qualitative and quantitative research approaches were combined. Data gathering were combinations of the focus group method, questionnaires, interviews and record analysis. The core business of ATNS is to provide Air Traffic and Navigation Services in South Africa´s continental and adjacent oceanic airspace. The study found that although ATNS is committed to “remaining at the forefront of product, service and technology development and leading the way for our stakeholders” (2010 Annual Report), it is ATNS policy to purchase from global equipment manufacturers rather than developing products or solutions in-house. The organisational culture negatively affects technological activities as entrepreneurship is not encouraged. Although ATNS personnel have substantial technical capabilities, they are not employed for technology development. This study found that ATNS could develop technological solutions and advancements that are eligible for the R&D tax incentive.