The Australian Government's Innovation Report

PART 3 - Developing and retaining Australian skills
Australia’s capacity for science and innovation depends upon the availability of well-educated and highlytrained
people who can conduct world-leading research and support the growth of innovative businesses and
industries. The potential to attract, develop, and retain such people will have an impact on our ability to
compete in global markets and secure Australia’s long term economic growth and development.
Australia’s education and training systems are among the world’s best and support the development of a wide
range of skills relevant to a modern economy. However, like many other countries, Australia is experiencing
increasing pressure in the supply of people with science, engineering and technology skills. This is being driven
by a number of factors including: high levels of demand that have accompanied strong growth in some
sectors; a highly competitive global market for skills in these areas; and an apparent decline in student interest
in, and uptake of, relevant courses.
Through the Backing Australia’s Ability initiative, the Australian Government is working to improve incentives
and support for people to develop science, technology and related skills across the lifecycle (from early
schooling to tertiary education and beyond), encourage positive attitudes towards science and innovation in
the community, and improve the long-term sustainability of Australia’s skills base. This section identifies some
key indicators of Australia’s performance in developing and retaining the skills that underpin an innovative
economy and highlights relevant activities of Australian Government departments and agencies
over 2005-06.
Performance highlights
• Total human resources devoted to R&D (R&D personnel) in Australia reached 119 384 person years
in 2004-05, an increase of 24.9% from 2000-01.
• Australia had around 8 researchers (person years) per thousand labour force in 2004. This ranked
Australia in 8th place among OECD countries.
• Human resources in science and technology by qualification (persons successfully completing tertiary
education in a science and technology field) in Australia accounted for 30.8% of total population aged
25-64 years in 2004. Australia ranked 8th among OECD countries on this indicator.
• Human resources in science and technology by occupation in Australia (persons employed in a science
and technology occupation where tertiary qualifications are normally required) accounted for 35.6%
of total employment in 2001. Australia ranked 6th among OECD countries on this indicator.
• The percentage of Australia’s 25 to 34 year old population with tertiary education was around 36.2%
in 2004, compared to 30.9% for the OECD average.
• Australia ranked 8th among OECD countries in terms of the number of PhD graduates as a percentage
of the population at a typical age of graduation in 2004.
• Australia achieved a net gain of 42 349 highly-skilled workers through migration in 2005-06, an increase
of 64.6% from 2000-01.
• In 2003 Australia ranked 8th among OECD countries in terms of mathematical literacy of 15 year olds
and 4th in terms of scientific literacy of 15 year olds.
Chapter 2 - Initiatives for a dynamic national innovation system 81