SENATE

Thursday, 13 October 2016 SENATE 41
Over the last ten years we have seen a 52 per cent increase in Australian Government support for R&D—from over $6.6
billion to over $10.1 billion.
Our challenge is to turn this investment into real benefits for Australians.
Innovation matters to all Australians because it is about job creation. It is about new and improved opportunities to do
business, and it underpins a healthy economy.
Innovation is about new or improved goods or services, new processes or new business models.
Innovation is not just about tech start-ups. And it is not about existing firms losing business and jobs to new firms. It is also
about established businesses doing things better to stay competitive.
Innovation is happening on the factory floor, on our farms, at the supermarket checkout and in the office, in addition to the
leading-edge research occurring in our science laboratories. It's all about turning ideas into a commercial opportunity—to
create jobs and better the quality of our lives.
The word may have a renewed popularity around the world, but the idea resonates with our history.
From the stump jump plough and the Hills Hoist to the Cervical Cancer Vaccine, Australians have developed a reputation
for identifying problems and applying insight, intellect and determination to solve them.
We can't afford to be complacent, particularly as our competitors drive their own innovation agendas. We must be
responsive and forward looking.
Australia needs to remain competitive globally. While the Australian economy has shown resilience, there are increasing
risks to the economic outlook.
We have fallen in our ranking on the latest Global Innovation Index. Although this still leaves us in the 'Innovation
Leaders' group we can and must do better.
Leading innovative countries like the UK and Sweden have established institutions like Innovate UK and VINNOVA that
manage coherent, coordinated, national strategies for innovation. These institutions support high levels of public sector
research translation for economic and social benefit. In many of these leading countries, the delivery of national innovation
strategies is the responsibility of an independent agency, which operates at arm's length from government.
This Bill creates a new Innovation and Science Australia board.
The new board will replace the current Innovation Australia board and redefine the activities of that board. It will continue
to be chaired by Mr Bill Ferris, an active and persuasive advocate for innovation to successive Australian governments. The
Bill also creates a new board position of Deputy Chair, which will be filled by Dr Alan Finkel during his term as Australia's
Chief Scientist.
Innovation and Science Australia will help us complete the first wave of the National Innovation and Science Agenda,
pursue a second wave based on investment attraction and its 2030 Strategic Plan will guide our third wave.
Beyond that, it will work across the government—providing guidance around our $10.1 billion annual investment in
Innovation, Science and Research—and will directly engage international, business and community sectors to improve the
national innovation system's overall performance.
It's about bang for buck, about fostering an innovation ecosystem, and about linking our investment and our programmes
together to create something more.
The composition of the membership of Innovation Australia will continue for Innovation and Science Australia. The
members include some of the best minds in innovation and science in Australia today. The talent on this board represents
innovators and entrepreneurs with proven records of success.
Innovation and Science Australia will continue the good work of Innovation Australia but will gain more strategic advisory
responsibilities. Innovation and Science Australia has an ambitious work plan for the first 12 months of its operation and this
legislation will help them to take it forward.
The work of Innovation and Science Australia will involve undertaking periodic audits of Australia's science, research and
innovation system to assess and make recommendations on alignment with Government priorities. The board will identify
gaps and better understand the activity in the science, research and innovation system and the impact of whole of Government
investment.
A further key activity for the new board will be to develop, for the Government's consideration, a long-term, 2030 Strategic
Plan, to be informed by the audit I have just mentioned. This plan will identify science, research and innovation investment
priorities and specific areas for policy and programme reform.
Innovation and Science Australia will review the adequacy, capacity and condition of Australia's innovation system on a
regular basis. These reviews will inform any updates to the Strategic Plan and improve government policies and programmes.
As part of promoting public discussion, Innovation and Science Australia will be able to commission and publish research,
including publishing the board's advice to government when the board wishes to do so.
Innovation and Science Australia will also promote investment in industry, innovation, science and research in Australia
including showcasing successful innovators, entrepreneurs and researchers. To make this happen the board, through its
membership, will establish strong and extensive business and community links.
CHAMBER