The Australian Government's Innovation Report

PART 2 – Accelerating the commercial application of ideas
The potential returns from improvements to Australia’s capacity to generate new knowledge will not be fully
realised without mechanisms that support its rapid uptake and application. Commercialisation is one of the
many mechanisms through which research can be productively applied and an important pathway through
which its positive benefits accrue to the broader economy.
Funding under the Backing Australia’s Ability initiative provides significant targeted support for the
commercialisation of Australian research and technologies. This support recognises a need to better position
businesses and research institutions to exploit ideas and effectively and efficiently transform them into
marketable products, processes and services. Key areas of focus include addressing barriers to commercialisation
(such as accessing capital) and developing the collaborative linkages that maintain a dynamic flow of knowledge
and skills between businesses and the public research sector.
Support through the Backing Australia’s Ability initiative is part of the Australian Government’s broader
commitment to ensuring that Australia remains well placed to exploit the full potential of the knowledge it
generates. This section identifies some key indicators of Australia’s performance against this goal, and
highlights relevant activities of Australian Government departments and agencies over 2005-06.
Performance highlights
• In 2004 universities and publicly funded research organisations in Australia negotiated research
contracts and consultancies to the value of $899 million and their income from licenses, options and
assignments amounted to $59 million.
• The total number of start-up companies formed by universities and publicly funded research agencies
operational at the end of 2004 reached 255, having tripled since the end of 2000. The value of equity
holdings increased by 41% in real terms over the same period.
• In Australia, the number of triadic patent families has experienced a general upward trend, rising from
156 in 1985 to 431 in 2003. Australia’s share in world triadic patent families reached an all time high of
0.82% in 2003, following a steady rise since 1996.
• During the two calendar years prior to December 2005, innovating businesses in Australia represented
33.5% of all businesses. This is an increase of 3.9 percentage points from the 29.6% recorded for the
two years preceding December 2003.
• Total expenditure on innovation by innovating businesses in the financial year 2004-05 was $30.6
billion, an increase of 40%, or $8.7 billion, from 2002-03. As a proportion of their total business
expenditure, this corresponded to and increase from 2.9% to 3.7% over the same period.
• Australia’s economic competitiveness was ranked 19 th in the world in 2006 according to the Global
Competitiveness Index.
56 Backing Australia’s Ability