The Australian Government's Innovation Report

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Support for major government research agencies In 2006-07, the Australian Government will provide an estimated $1351.7 million in support for its major research agencies, including the Commonwealth Scientific and Industrial Research Organisation (CSIRO) ($607.2 million), the Defence Science and Technology Organisation (DSTO) ($340.7 million), the Australian Nuclear Science and Technology Organisation (ANSTO) ($129.7 million), Geoscience Australia ($113.0 million) and the Australian Government Antarctic Division ($99.7 million). Other smaller agencies will receive a combined total of approximately $61.3 million. As well as support from the Australian Government, these agencies also attract external funds, as they undertake strategic research and interact with other areas of the national innovation system. CSIRO, for example, receives business funding, as well as funds from earned revenue (including licensing fees and disposal of assets), and in 2006-07, its total income is expected to reach $970 million. Support for business R&D and innovation Australian Government support for industrial R&D and innovation, including both direct support through appropriations and the estimated effects of tax revenue forgone, is expected to reach $1252.5 million in 2006-07, which is an increase of 25.1% in nominal terms from 1996-97. The R&D Tax Concession, as the Australian Government’s principle mechanism for encouraging private sector expenditure on R&D, accounts for just over half of the total support for business innovation. Direct support for business R&D and innovation is however also growing and will rise to $595.5 million in 2006-07, an increase of $104.8 million in nominal terms over 2005-06. Among the largest programmes are the Automotive Competitiveness and Investment Scheme ($238.0 million), Commercial Ready Programme ($199.0 million), Pharmaceuticals Partnerships Programme ($31.6 million) and the ICT Centre of Excellence ($24.0 million). Since 1996-97 direct support for business R&D and innovation has increased by 366% in nominal terms. Support for university research and research training Australian Government support for research and research training in Australia’s higher education sector flows through two channels: support for individual and teams of researchers through competitively awarded grants and support through performance-based block funding for higher education institutions to conduct research, train higher degree by research students and upgrade research infrastructure. In 2006-07 this support is estimated to be $2234.3 million and includes key programmes such as the Australian Research Council’s National Competitive Grants Programme ($570.3 million), the Research Training Scheme ($573.9 million), Research Infrastructure Block Grants ($203.9 million) and the Australian Postgraduate Awards Scheme ($95.3 million). Since 1996-97 government support for university research and research training has increased by 38.5% in nominal terms. Support for major science and technology programmes R&D and innovation in major sectors of the economy are supported by Australian Government programmes and grant schemes which facilitate critical health and medical research, rural research and energy and environment R&D. In particular, the Cooperative Research Centres (CRC) Programme continues to play an important role in bringing together researchers and end-users to explore commercial and other applications of research results for the benefit of Australia’s economy. In 2006-07, a total of $1135.5 million will be provided to major science and technology programmes, including $437.6 million for National Health and Medical Research Council (NHMRC) Research Grants, $189.4 million for the CRC Programme, $221.4 million for rural research and $140.6 million for energy and environment R&D. Over the past decade, support for major science and technology programmes has grown substantially from a share of under 13% of the total government support for science and innovation in 1996-97 to nearly 20% in 2006-07. The Australian Government, for example, doubled its funding for the NHMRC in support of health R&D since 2000-01, and in 2006-07, increased its support for energy and environment R&D by almost 120% over the previous year. Chapter 1 - Science and innovation – advancing our abilities 19
The Australian Government’s investment in science and innovation: Backing Australia’s Ability A key feature of the Australian Government’s support for science and innovation is the Backing Australia’s Ability initiative. Over the decade from 2001-02 to 2010-11 Backing Australia’s Ability is providing $8.3 billion in funding through two separate packages: Backing Australia’s Ability – An Innovation Action Plan for the Future (2001), and Backing Australia’s Ability – Building our Future Through Science and Innovation (2004). Backing Australia’s Ability represents a whole-of-system approach to building Australia’s innovative capacity. Support is delivered through a number of Australian Government departments and agencies and is focused under three broad themes identified as critical to sustaining a strong and vibrant national innovation system: • Strengthening our ability to generate ideas and undertake research; • Accelerating the commercial application of ideas; and • Developing and retaining Australian skills. These themes continue to have broad relevance and, along with the National Research Priorities (see below), provide a unifying framework for Australia’s science and innovation activities. Progress made by Australian Government departments and agencies during 2005-06 against the Backing Australia’s Ability themes is outlined in Chapter 2. Science and innovation serving national priority goals: the National Research Priorities In addition to its significant investments in the capabilities that underpin a vibrant national innovation system, the Australian Government has implemented policies to improve their contribution to areas of significant social, economic and environmental benefit to Australia. The National Research Priorities (NRPs) were announced in December 2002 following an extensive consultation process. The priorities (An Environmentally Sustainable Australia; Promoting and Maintaining Good Health; Frontier Technologies for Building and Transforming Australian Industries; and Safeguarding Australia) are broad-based, thematic and multidisciplinary in nature. They address areas of strength, opportunity or need in Australian research and assist in promoting, coordinating and implementing the national research effort. Progress made by Australian Government departments and agencies in implementing the NRPs in 2005-06 is outlined in Chapter 3. 20 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 and 14: 12 Backing Australia’s Ability
Page 15 and 16: The year also saw significant outco
Page 17 and 18: The Australian Innovation Scorecard
Page 19: Table 1: Australian Government supp
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
Page 65 and 66: Building on ICT strengths Advanced
Page 67 and 68: Other achievements included: • ge
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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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