The Australian Government's Innovation Report

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EXECUTIVE SUMMARY With total funding of $8.3 billion over the 10 year period from 2001-02 to 2010-11, the Backing Australia’s Ability initiative is the largest and most comprehensive single set of programmes and measures put in place by an Australian Government in support of science and innovation. It targets three key elements of the innovation system: strengthening our ability to generate ideas and undertake research, accelerating the commercial application of ideas, and developing and retaining Australian skills. The 2006-07 Innovation Report is the sixth Innovation Report since the announcement of Backing Australia’s Ability. It follows the final year of funding under the initial Backing Australia’s Ability – An Innovation Action Plan for the Future (2001) package. Support for new measures, as well as a wide range of existing programmes, is now being delivered under Backing Australia’s Ability – Building our Future through Science and Innovation (2004). The Backing Australia’s Ability themes continue to remain a relevant and unifying feature of the Australian Government’s investment in science and innovation. This report provides an opportunity to reflect on the considerable achievements of Australian Government departments and agencies against these themes over 2005-06, along with their progress in addressing broader national goals through their implementation of the National Research Priorities. The report additionally presents the findings of the third Australian Innovation Scorecard, comparing Australia’s innovation performance to that of other countries in the OECD. It thus provides a broader global context for Australia’s innovation activities and a means of tracking our progress in an increasingly competitive global economy. Finally, the report outlines the important role that key institutions and strategic planning processes are playing in informing the future of Australian science and innovation and ensuring that Australia remains well-placed to reap the rewards of its investments in years to come. Initiatives for a dynamic national innovation system Strengthening our ability to generate ideas and undertake research Australian Government agencies reported considerable progress in 2005-06 in achieving research and development (R&D) outcomes consistent with their missions. Highlights included: • The Commonwealth Scientific and Industrial Research Organisation (CSIRO) reported five new spinoff companies formed during the year, taking the market value of its spin-off portfolio to record levels, and generated record revenues ($37.1 million) from its intellectual property assets. CSIRO also reported an ongoing focus on building long-term collaborative partnerships with industry, government agencies and universities and developing critical mass in key areas through its National Research Flagships. • The Defence Science and Technology Organisation marketed over 40 technologies during 2005-06. It additionally entered into two new alliance agreements with industry, placed 78 research agreements and entered into 12 collaborative arrangements across a wide range of disciplines. • The Australian Nuclear Science and Technology Organisation completed construction and operation approval of the new OPAL reactor. The facility will commence routine operation in early 2007 and, with world-class instrumentation, will be a leading regional centre for researchers in Australia and internationally to work and collaborate in fields such as biology, materials science and food science. Executive Summary 13
The year also saw significant outcomes under several major programmes administered by Australian Government departments and agencies in support of R&D activities. Highlights included: • At 30 June 2006, a total of 5830 companies were registered with the R&D Tax Concession for the 2004-05 income year, with reported R&D expenditure totalling $7.79 billion, an increase in expenditure of 12.5% over the previous year. • The International Science Linkages Programme supported 18 projects to a value of around $5.2 million under its Competitive Grants in 2005-06, including 13 collaborative research projects, two conferences, one showcase and two strategic planning activities. Further funding support for international activities was also reported under the China and France cooperation funds and the Strategic Policy and International Science and Technology Networks elements of the programme. • Under the Australian Research Council’s (ARC) National Competitive Grants Programme Discovery Projects scheme 917 proposals for funding commencing in 2006 were successful, representing a funding commitment of $95.2 million in 2006 and $273.6 million over the five years to 2010. Across two selection rounds for funding commencing in 2006 the Linkage Projects scheme supported 400 new collaborative research projects and awards, worth $114.2 million over the five year period to 2010. This funding commitment will attract $175.2 million in cash and in-kind contributions from partner organisations. • The Australian Government allocated $437 million to the National Health and Medical Research Council (NHMRC) for health and medical research in 2005-06, with major commitments through Project Grants ($185 million) and Programme Grants ($91 million). New funding activities of the NHMRC included a commitment of $10 million, matched by the ARC, to jointly fund research that will further the National Research Priorities. Finally, the year saw developments in two major Australian Government initiatives that will significantly strengthen the quality and impact of Australian research and enhance its international competitiveness: • In February 2006 the National Collaborative Research Infrastructure Strategy (NCRIS) Roadmap was released by the Minister for Education, Science and Training, the Hon Julie Bishop MP. The Roadmap identifies 16 capability areas in which Australia should aim to develop, or further develop, research capability through major infrastructure investment. $500 million will be provided through NCRIS to implement Roadmap priorities. This investment will enable Australian researchers to tackle issues of national importance and will contribute to keeping them at the forefront of their fields. • The Australian Government announced in 2006 that it would implement a Research Quality Framework (RQF) which will strengthen the assessment of research carried out in Australia. The RQF, an Australian Government initiative to formulate a world’s best practice framework for evaluating the quality and the impact of research, will ensure that public funding is being invested in research that is of the highest quality and which delivers real benefits to the wider community. Preparatory work and trialling will continue in 2007, with data collection in 2008 and funding implementation in 2009. Accelerating the commercial application of ideas In 2005-06 Australian Government departments and agencies reported strong progress through existing programmes and initiatives in facilitating the translation of research outcomes and technologies into the market place. Highlights included: • The Commercialising Emerging Technologies Programme reported approval of 172 new applications in 2005-06, along with assistance to 53 enterprises with 80 capital raising outcomes worth $56 million, and the launch of 20 manufacturing or new products and services. • The Pre-Seed Fund reported investment of $12.8 million in 36 companies and projects in 2005-06. Of these ventures, 22 were new investments. • Under the ICT Incubators Programme in 2004-05 (most recent data available) incubators reported raising over $42 million in private co-investment for their incubatee companies and assisting incubatees to win more than $14 million in government grants. Incubators additionally reported that their incubatees recorded a significant increase in annual revenue. 14 Backing Australia’s Ability
Page 1 and 2: 2006 07 The Australian Government
Page 3 and 4: ISBN: 0 642 77 675x ISBN: 0 642 77
Page 5 and 6: Enhancing industrial R&D 44 R&D Tax
Page 7 and 8: PRIORITY 3 - FRONTIER TECHNOLOGIES
Page 9 and 10: 8 Backing Australia’s Ability
Page 11 and 12: FRDC GDP GERD GGAP GOVERD GRDC HECS
Page 13: 12 Backing Australia’s Ability
Page 17 and 18: The Australian Innovation Scorecard
Page 19 and 20: Table 1: Australian Government supp
Page 21 and 22: The Australian Government’s inves
Page 23 and 24: Sustaining funding for government r
Page 25 and 26: • Key to Australasian liverwort a
Page 27 and 28: Australian Institute of Marine Scie
Page 29 and 30: Coral gives new insight into changi
Page 31 and 32: • As part of the joint Careers in
Page 33 and 34: Developing meaningful, long-term co
Page 35 and 36: Defence Science and Technology Orga
Page 37 and 38: In 2005-06, Geoscience Australia st
Page 39 and 40: The majority of research-related pu
Page 41 and 42: The successful proposals represent
Page 43 and 44: In addition to the continued large
Page 45 and 46: Enhancing industrial R&D R&D Tax Co
Page 47 and 48: • improving the management of nat
Page 49 and 50: Food Innovation Grants Programme As
Page 51 and 52: Most facilities provide training pr
Page 53 and 54: Total funding for the ISL programme
Page 55 and 56: Improving research quality and acce
Page 57 and 58: PART 2 - Accelerating the commercia
Page 59 and 60: Pooled Development Funds The Pooled
Page 61 and 62: In 2005-06, $12.83 million was inve
Page 63 and 64: 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
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Higher Education Loan Programme The
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Fostering entrepreneurship and awar
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Skilled Immigration Migration conti
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ANSTO’s Dr Tony Taylor with the m
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The millimetre wave radar stope mon
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Sustainable use of Australia’s bi
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New techniques assist exploration c
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Pushing the heater bank used to run
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The diagnostic tool uses a unique a
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The researchers anticipate that the
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Advanced materials Quick dry merino
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Promoting an innovation culture and
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Dairy for Tomorrow launch in Tasman
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David Griffin (left) and Andreas Sc
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Scientists are searching for an eff
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Clearinghouse-type websites are cur
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120 Backing Australia’s Ability
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The scorecard provides an overview
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Notes: 1. Australia’s ranking is
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FIGURE 1: Percentage change in the
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FIGURE 2: Australia’s innovation
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Compared to the 2004 scorecard Aust
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FIGURE 6: Number of scientific and
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FIGURE 9: Percentage of the workfor
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Knowledge Diffusion Investment in I
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FIGURE 16: Investment in new equipm
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Percentage of Turnover Attributed t
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Conclusions The Australian Innovati
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Commonwealth State and Territory Ad
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• promoting and marketing industr
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Australian Bureau of Statistics The
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Informing the future House of Repre
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152 Backing Australia’s Ability
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Appendix 1: Major flows of funding
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Appendix 3: Overview of Australia
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Appendix 4: Backing Australia’s A
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Appendix 5: Overview of R&D in regi
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Appendix 7: National Research Prior
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CRC for Spatial Information http://
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Desert Knowledge CRC http://www.des
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ARC Centre of Excellence in Vision
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170 Backing Australia’s Ability B
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The Australian Government's Innovation Report

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