The Australian Government's Innovation Report

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Science and Engineering Collaboration International science and engineering collaboration is an important element in the innovation process, helping to diffuse technology and make R&D more efficient. In the 2006 scorecard, Australian researchers collaborated with researchers from 114 other countries on science and engineering articles, an increase of eight countries from the 2004 scorecard. Figure 18 shows that those countries that have the most international science and engineering collaboration partners are on the whole located in North America and Western Europe. Australia ranked 13 th in the OECD. FIGURE 18: Breadth of international science and engineering collaboration compared to the OECD average Percentage difference from the OECD average 80 60 40 20 0 -20 -40 -60 -80 United Kingdom United States France Germany Netherlands Canada Switzerland Japan Italy Belgium Sweden Spain Australia Denmark Austria Mexico Finland Portugal Turkey Norway Korea Poland Czech Republic New Zealand Greece Hungary Ireland Slovak Republic Iceland Luxembourg Source: OECD. Data from 2003. Market Outcomes Multifactor Productivity Multi-factor productivity (MFP) growth reflects the contributions of innovations and technological change to economic growth. Figure 19 shows that Australia’s average annual growth in MFP between 1999 and 2003 is in line with the OECD average, with the result that Australia ranks 10 th out of 19 OECD countries. Australia’s average annual MFP growth rate was 1.1% for the 1999-2003 period, slightly down from 1.4% value for the 1997-2001 period reported in the 2004 scorecard. FIGURE 19: Average annual growth in multi-factor productivity 1999-2003 as a percentage difference from the OECD average Percentage difference from the OECD average 250 200 150 100 50 0 -50 -100 -150 Ireland Greece Finland Sweden United Kingdom United States New Zealand France Japan Australia Germany Canada Belgium Austria Portugal Netherlands Denmark Spain Italy Source: OECD Productivity Database 2006. Chapter 4 - Australian innovation scorecard 139
Percentage of Turnover Attributed to New Innovations The percentage of turnover attributed to new innovations is another indicator available from the ABS innovation survey. This indicator measures the percentage of total turnover that arises from new products (that is, not including products that were unchanged or products that had been changed in minor ways). This can be interpreted as a measure of the intensity of innovation in each country and of the extent of technological renewal and upgrading, in value terms. Figure 20 shows that Australia scored considerably below the average for European members of the OECD for this indicator, ranking 14 th out of 17 European Union countries. FIGURE 20: Percentage turnover from new goods and services for product innovators as a percentage difference from the EU average 60 Percentage difference from the EU average 40 20 0 -20 -40 -60 -80 United Kingdom Denmark Iceland Spain Italy Finland Germany Greece United States Portugal Austria Belgium Netherlands Australia France Luxembourg Norway Source: OECD. Data from 2001-2003. Proportion of Innovating Businesses Another indicator drawn from the ABS Innovation Survey measures the proportion of innovating businesses in the economy. The Australian data are compared with similar data available for European countries that show the extent to which firms introduced new or significantly improved goods, services or processes. 9 The industries included in the comparison are mining, manufacturing, utilities, wholesale trade, transport and storage, communication services, property services and finance and insurance. In these industries 41% of Australian firms have introduced new or significantly improved goods, services, or processes, slightly above the average for the European member countries from the OECD. Australia ranked 10 th out of 18 countries as is shown in Figure 21. 9 Consistent with all indicators derived from the ABS innovation survey, methodology concerns were taken into account to ensure consistency with the European values. In doing this some industries have been excluded from the analysis, including agriculture, forestry & fishing, construction, retail trade, accommodation, cafes and restaurants, property services and health and education. 140 Backing Australia’s Ability
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2006 07 The Australian Government
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ISBN: 0 642 77 675x ISBN: 0 642 77
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Enhancing industrial R&D 44 R&D Tax
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PRIORITY 3 - FRONTIER TECHNOLOGIES
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8 Backing Australia’s Ability
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FRDC GDP GERD GGAP GOVERD GRDC HECS
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12 Backing Australia’s Ability
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The year also saw significant outco
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The Australian Innovation Scorecard
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Table 1: Australian Government supp
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The Australian Government’s inves
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Sustaining funding for government r
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• Key to Australasian liverwort a
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Australian Institute of Marine Scie
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Coral gives new insight into changi
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• As part of the joint Careers in
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Developing meaningful, long-term co
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Defence Science and Technology Orga
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In 2005-06, Geoscience Australia st
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The majority of research-related pu
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The successful proposals represent
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In addition to the continued large
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Enhancing industrial R&D R&D Tax Co
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• improving the management of nat
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Food Innovation Grants Programme As
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Most facilities provide training pr
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Total funding for the ISL programme
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Improving research quality and acce
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PART 2 - Accelerating the commercia
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Pooled Development Funds The Pooled
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In 2005-06, $12.83 million was inve
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Table 9: Sectoral distribution of C
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Building on ICT strengths Advanced
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Other achievements included: • ge
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Seafood Services Australia Ltd An I
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Interest in ITOL and e-business rem
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• provision of a business develop
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Building links to facilitate commer
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Taking a closer look at stem cells
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Biotechnology Australia Public Awar
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• commercialisation seminars for
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Advancing SET skills Audit of Scien
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National Youth Science Forum The Na
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Mathematics and informatics In 2005
Page 89 and 90: Higher Education Loan Programme The
Page 91 and 92: Fostering entrepreneurship and awar
Page 93 and 94: Skilled Immigration Migration conti
Page 95 and 96: ANSTO’s Dr Tony Taylor with the m
Page 97 and 98: The millimetre wave radar stope mon
Page 99 and 100: Sustainable use of Australia’s bi
Page 101 and 102: New techniques assist exploration c
Page 103 and 104: Pushing the heater bank used to run
Page 105 and 106: The diagnostic tool uses a unique a
Page 107 and 108: The researchers anticipate that the
Page 109 and 110: Advanced materials Quick dry merino
Page 111 and 112: Promoting an innovation culture and
Page 113 and 114: Dairy for Tomorrow launch in Tasman
Page 115 and 116: David Griffin (left) and Andreas Sc
Page 117 and 118: Scientists are searching for an eff
Page 119 and 120: Clearinghouse-type websites are cur
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Page 123 and 124: The scorecard provides an overview
Page 125 and 126: Notes: 1. Australia’s ranking is
Page 127 and 128: FIGURE 1: Percentage change in the
Page 129 and 130: FIGURE 2: Australia’s innovation
Page 131 and 132: Compared to the 2004 scorecard Aust
Page 133 and 134: FIGURE 6: Number of scientific and
Page 135 and 136: FIGURE 9: Percentage of the workfor
Page 137 and 138: Knowledge Diffusion Investment in I
Page 139: FIGURE 16: Investment in new equipm
Page 143 and 144: Conclusions The Australian Innovati
Page 145 and 146: Commonwealth State and Territory Ad
Page 147 and 148: • promoting and marketing industr
Page 149 and 150: Australian Bureau of Statistics The
Page 151 and 152: Informing the future House of Repre
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Page 155 and 156: Appendix 1: Major flows of funding
Page 157 and 158: Appendix 3: Overview of Australia
Page 159 and 160: Appendix 4: Backing Australia’s A
Page 161 and 162: Appendix 5: Overview of R&D in regi
Page 163 and 164: Appendix 7: National Research Prior
Page 165 and 166: CRC for Spatial Information http://
Page 167 and 168: Desert Knowledge CRC http://www.des
Page 169 and 170: ARC Centre of Excellence in Vision
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The Australian Government's Innovation Report

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