Footnotes

Chapter 1 - Introduction

[1] Journals of the Senate, 2013–14, no. 20 (18 March 2014), pp 630–31.

[2] Department of Industry, Submission 110; Professionals Australia, Submission 117; Engineers Australia, Submission 46; Innovation Australia, Submission 157; Business Council of Australia, Submission 175; Ernst & Young, Submission 52; Community and Public Sector Union and the CSIRO Staff Association, Submission 159; CSIRO, Submission 36, p. 1.

[3] Senate Economics References Committee, Australia's Innovation System: Interim Report, August 2015, https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/Innovation_System/Interim_Report

[4] Chief Scientist for Australia, Submission 20, p. 1.

[5] Organisation for Economic Co-operation and Development, OECD innovation strategy 2015: An agenda for policy action, October 2015, p. 2.

[6] Innovation Australia, Submission 157, p. 2.

[7] Business Council of Australia, Submission 175, p. 3.

[8] Charles Sturt University, Submission 6, p. 3. See also Ernst & Young, Submission 52, p. 3. The benefits of publicly-funded research were quantified by others. Synchrotron Light Source Australia cited studies that estimate the benefit-to-cost ratios of publicly-funded R&D at between 2:1 and 3:1. Synchrotron Light Source Australia, Submission 139, pp 2–3.

[9] Organisation for Economic Co-operation and Development, Innovation and Growth – Rationale for an Innovation Strategy; cited in Ernst & Young, Submission 52, p. 3.

[10] Australian Academy of Technological Sciences and Engineering, Submission 96, p. 2.

[11] Department of Industry, Submission 110, p. 6.

[12] CSIRO, Submission 36, p. 4.

[13] Professor Deborah Hodgson, University of Newcastle, Committee Hansard, 8 October 2014, p. 1.

[14] Pfizer Australia, Supplementary Submission 138, p. 3.

Chapter 2 - Key challenges to innovation in Australia

[1] CSIRO, Submission 36, p. 5.

[2] For example, Engineers Australia referred to the following technologies developed through Australian research and development: the diagnostic ultrasound, Cochlear implants, breathing aids to treat sleep apnoea, construction cranes, tunnelling technology, Ausra large-scale solar thermal system, buried contact solar cell, foundations of WiFi technology, Jindalee over-the-horizon radar, Australia Telescope, Sydney Coordinated Adaptive Traffic System, black box flight recorder, Jira collaborative workplace software, variable rack and pinion steering, orbital engine, wave piercing catamarans and Scramjet. Engineers Australia, Submission 46, p. 4. Pfizer noted that in health matters, Australia has produced ten Nobel Laureates, 'one of the highest number per head of population of any country'. Pfizer Australia, Submission 138, p. 3.

[3] For example, see Association of Australian Medical Research Institutes, Submission 85, p. 4.

[4] Professor Edward Byrne AC, Monash University, Submission 1, p. 1. However, the CSIRO highlighted some collaborations—see Submission 36, p. 36.

[5] Professor Edward Byrne AC, Submission 1, p. 1.

[6] Australian Academy of Technological Sciences and Engineering, Submission 96, p. 2.

[7] Australian CleanTech, Submission 4, pp 1–2.

[8] Department of Industry, Submission 110, p. 5.

[9] Mr Kevin Bloch, Cisco Systems, Committee Hansard, 24 August 2015, p. 7.

[10] CSIRO, Submission 36, p. 21.

[11] Australian Institute for Bioengineering and Nanotechnology, Submission 61, p. 2.

[12] Ms Roslyn Mitchelson, Medical Technology Association of Australia, Committee Hansard, 24 August 2015, p. 11; Mr Justin Strharsky, Resource Innovation through Information Technology, Committee Hansard, 24 August 2015, p. 26; Mr Serg Duchini, Deloitte Touche Tohmatsu, Committee Hansard, 3 August 2015, p. 26.

[13] Australian Institute for Bioengineering and Nanotechnology, Submission 61, p. 1; Chief Scientist, Submission 20, p. 3; Business Council of Australia, Submission 175, p. 12.

[14] Ms Susi Tegen, Medical Technology Association of Australia, Committee Hansard, 24 August 2015, p. 10; Mr David Harrison, University of Western Australia, Committee Hansard, 24 August 2015, p. 12.

[15] Professor Deborah Hodgson, University of Newcastle, Committee Hansard, 8 October 2014, p. 2.

[16] Department of Industry, Innovation, Science, Research and Tertiary Education, Revitalised Prime Minister's Science Council, Media Release, 20 January 2012, http://archive.industry.gov.au/ministerarchive2013/chrisevans/mediareleases/pages/REVITALISEDPRIMEMINISTERSSCIENCECOUNCIL.aspx.htm (accessed 24 November 2015).

[17] Australian Government, Industry Innovation and Competitiveness Agenda, October 2014, p. xix, http://www.dpmc.gov.au/sites/default/files/publications/industry_innovation_competitiveness_agenda.pdf (accessed 24 November 2015).

[18] GSK, Submission 103, p. 1. See also Telstra, Submission 171, p. 4.

[19] The ATSE suggested that '[e]ven long-running, proven successful programs such as the Cooperative Research Centres have been subject to decreasing levels of support and uncertainty for applicants and participants'. Australian Academy of Technological Sciences and Engineering, Submission 96, p. 3.

[20] Professor Edward Byrne AC, Submission 1, p. 1.

[21] Professor Attila Brungs, University of Technology Sydney, Committee Hansard, 22 April 2015, p. 1.

[22] Ms Susi Tegan, Medical Technology Association of Australia, Committee Hansard, 24 August 2015, p. 8.

[23] Ms Susi Tegan, Medical Technology Association of Australia, Committee Hansard, 24 August 2015, p. 11.

[24] CSL, Submission 132, p. 5.

[25] Mr Trent Bagnall, Slingshot Accelerator Pty Ltd, Committee Hansard, 8 October 2014, p. 18.

[26] Mr Trent Bagnall, Slingshot Accelerator Pty Ltd, Committee Hansard, 8 October 2014, p. 17.

[27] Dr Krystal Evans, BioMelbourne Network, Submission 72, p. 4.

[28] Organisation for Economic Co-operation and Development, Innovation and Growth – Rationale for an Innovation Strategy, p. 3, http://www.oecd.org/science/inno/39374789.pdf (accessed 19 November 2015).

[29] Chief Scientist for Australia, Submission 20, p. 4.

[30] Organisation for Economic Co-operation and Development, Innovation and Growth – Rationale for an Innovation Strategy, p. 5.

[31] Ms Susi Tegen, Medical Technology Association of Australia, Committee Hansard, 24 August 2015, p. 8.

[32] Dr Geoff Garrett and Professor Mark Dodgson, Submission 149, p. 2.

[33] Chief Scientist for Australia, Submission 20, p. 1.

[34] Innovation and Business Development Pty Ltd, Submission 29, p. 6.

[35] Innovation and Business Development Pty Ltd, Submission 29, p. 9.

[36] Chief Scientist for Australia, Submission 20, p. 3.

[37] Dr Geoff Garrett and Professor Mark Dodgson, Submission 149, p. 1.

[38] Business Council of Australia, Submission 175, p. 3.

[39] CSIRO, Submission 36, p. 4.

[40] Dr Geoff Garret and Professor Mark Dodgson, Submission 149, p. 2.

[41] Chief Scientist for Australia, Submission 20, p. 2.

[42] Chief Scientist for Australia, Submission 20, p. 2.

[43] Chief Scientist for Australia, Submission 20, p. 2.

[44] Organisation for Economic Co-operation and Development, Innovation and Growth – Rationale for an Innovation Strategy; cited in Ernst & Young, Submission 52, p. 3.

[45] Department of Industry, Submission 110, p. 5; Ernst & Young, Submission 52, p. 3; Community and Public Sector Union (CPSU) and CSIRO Staff Association, Submission 159, p. 5; Chief Scientist for Australia, Submission 20, p. 2; Engineers Australia, Submission 46, p. 8.

[46] CSIRO, Submission 36, p. 6.

[47] CSIRO, Submission 36, p. 6.

[48] CSIRO, Submission 36, p. 6.

[49] CSIRO, Submission 36, p. 6

[50] CSIRO, Submission 36, p. 7.

[51] The University of Melbourne, Submission 146, p. 4.

[52] The University of Melbourne, Submission 146, p. 2.

[53] Professor Deborah Hodgson, University of Newcastle, Committee Hansard, 8 October 2014, p. 3.

[54] Professor Deborah Hodgson, University of Newcastle, Committee Hansard, 8 October 2014, p. 6.

[55] Ms Suzanne Campbell, Australian Information Industry Association, Committee Hansard, 22 April 2015, p. 10. The AIIA represents over 400 member organisations nationally, including hardware, software, telecommunications, information and communications technology (ICT) services, professional services and R&D organisations.

[56] PricewaterhouseCoopers, Funding Australia's future: innovation & digital technologies, 16 April 2014, http://www.pwc.com.au/press-room/2014/innovation-digital-technologies-apr14.html (accessed 18 November 2015).

[57] Neal Woorich, 'Venture capital drought threatens Australian economy', ABC News, 11 August 2015, http://www.abc.net.au/news/2015-08-11/venture-capital-drought-threatens-australian-economy/6687992 (accessed 18 November 2015).

[58] Charles Sturt University, Submission 6, p. 5.

[59] Charles Sturt University, Submission 6, p. 5.

[60] Charles Sturt University, Submission 6, p. 5.

[61] Charles Sturt University, Submission 6, p. 5.

[62] Mr Trent Bagnall, Slingshot Accelerator Pty Ltd, Committee Hansard, 8 October 2014, p. 17.

[63] Foundation for Young Australians, New Work Order, November 2015, http://www.fya.org.au/wp-content/uploads/2015/11/How-young-people-are-faring-report-card-2015-FINAL.pdf (accessed 19 November 2015).

[64] Rick Morton, 'Two-thirds of students 'chasing careers that won't exist', The Australian, 24 August 2015.

[65] Chief Scientist for Australia, Submission 20, p. 1.

[66] For example, a joint submission from the Council for Humanities, Arts and Social Sciences (CHASS) and the Australasian Consortium of Humanities Research Centres (ACHRC) argued that the disciplines they represent contribute to innovation by: facilitating the application of STEM research; fostering a climate of innovation (by encouraging free thinking and creativity); and translating ideas into innovation through the creative industries. As an example, CHASS and the ACHRC noted how HASS research undertaken by cognitive psychologists, linguists and marketers, among others, facilitated the further development and application of the Cochlear implant. Submission 25, p. 1.

[67] UTS provided an example of smart wheelchair technology developed at UTS with 'the interdisciplinary interplay of health, ICT and creative industries'. UTS, Submission 118, p. 3.

[68] The Council for the Humanities, Arts and Social Sciences and the Australasian Consortium of Humanities Research Centres, Submission 25, pp 1–2.

[69] The Council for the Humanities, Arts and Social Sciences and the Australasian Consortium of Humanities Research Centres, Submission 25, pp 1–2.

[70] Mr Kevin Bloch, Cisco Systems, Committee Hansard, 24 August 2015, p. 7.

[71] UTS, Submission 118, p. 4.

Coalition Senators’ additional comments

[1] PC 2007, pp.561-568 http://www.pc.gov.au/inquiries/completed/science/report/science.pdf

[2] Eurostat 2015, Gross domestic expenditure on R&D (GERD), % of GDP http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=t2020_20&plugin=1

[3] ABS 2012, 8104.0 - Research and Experimental Development, Businesses, Australia, 2010-11, http://www.abs.gov.au/Ausstats/abs@.nsf/Previousproducts/8104.0Appendix12010-11

[4] Productivity Commission 2008, Annual Report 2007-08, Canberra.

[5] Productivity Commission 2008, The Productivity Challenge and Innovation, Media Release, 31 October, Canberra.

Summary - A broad view of innovation

[1] Australia. Review of the National Innovation System (Cutler Review), (2008)

[2] The Senate. Economic References Committee, (2015)

[3] Williamson, Raghnaill, Douglas, & Sanchez, (2015)

[4] OECD, (2015a)

[5] There is a historical link between technology and design, established in the manufacturing revolution in the 19^th century. Burton, (1999)

[7] The Royal Society, (2009)

[8] http://www.industry.gov.au/INDUSTRY/INDUSTRYINITIATIVES/Pages/Boosting-the-Commercial-Returns-from-Research.aspx

[9] The contemporary concept of disruption originated in the work of Clayton Christensen Christensen, (1997; Dyer, Gregersen, & Christensen, (2011). Some researchers have argued that the theory of disruptive innovation has become too generalised. King & Baatartgtokh, (2015; Lepore, (2014)

[10] McKell Institute, (2015)

[11] Christensen & Eyring, (2011; Wildavsky, Kelly, & Carey, (2010)

[12] Extract from joint opinion piece by then Communications Minister Malcolm Turnbull and Vivek Kundra, former White House CIO and current Executive Vice President for Salesforce (The Australian March 31 2015).

[13] See http://www.cio.com.au/article/581132/nsw-see-australia-first-government-data-analytics-centre/

[14] Office of the Chief Scientist (Professor Ian Chubb), (2014)

[15] Australian Industry Group, (2015)

[16] Department of Education and Training, (2015)

[17] Other significant groupings were: Health (13.5 per cent), management and commerce (19.0 per cent), society and culture (24.0 per cent) and creative arts (8.1 per cent)

[18] Rothwell, (2013)

[19] Department of Industry, (2014)

[20] NCVER, (2015)

[21] Kinner, (2015)

[22] HEIF has been in operation for 16 years.

[23] Green, Agarwal, & others, (2009)

[24] Australia. Industry Task Force on Leadership and Management Skills, (1995)

[25] International engineering and design businesses such as Arup, GHD, and SKM, have Australian origins.

[26] Buculo & King, (2014) Howard, (2008)

[27] Great Britain. Treasury, (2005)

[28] See http://www.designcouncil.org.uk/

[29] Chesbrough, (2003; Sloane, (2011)

[30] Howe, (2009; Libert & Spector, (2009; Sloane, (2011; Surowiecki, (2004)

[31] Terwiesch & Ulrich, (2009)

[32] Murray, (1996)

[33] Bhidé, (2000)

[34] For university-based startups, a range of institutional sources is providing funding to get startups off the ground. See Howard, (2015)

[35] Hendrickson, Bucifal, Balaguera, & Hansellb, (2015)

[36] In Finland there is evidence to support the view that policies supporting high growth start-ups can have significant impact Autio & Rannikko, (2015)

[37] European Commission, (2015) and http://www.mckinsey.com/insights/manufacturing/moving_toward_a_circular_economy

[38] OECD, (2015b)

[39] http://www.oecd.org/sti/inno/Symposium%2020-21%20March_Summary_Record.pdf. See also OECD, (2015c)

[40] McKell Institute, (2015)

[42] The CRC Programme was instituted in 1992.

[43] See Howard, (2015)

[44] See Department of Business Innovation and Skills (2014) ‘Insights from international benchmarking of the UK science and innovation system’ BIS Analysis Paper 03, January 2014 https://www.gov.uk/government/publications/science-and-innovation-system-international-benchmarking, and European Commission (2012) ‘Communication on the European Research Area’ http://ec.europa.eu/research/era/era_communication_en.htm

[45] A detailed analysis has been undertaken for the Council of Learned the Academies Howard, (2015). See also OECD, (2008; Victoria. Department of Innovation Industry and Regional Development, (2009)

[46] See for example, Brisbane Innovation Scorecard, which comprehensively provides local information from which to make good policy decisions. http://www.enablebrisbane.com.au/Enable2013/innovation-scorecard/brisbane-innovation-scorecard-overview

[47] Dodgson, Hughes, Foster, & Metcalfe, (2010)

[48] Australian Bureau of Statistics, (2014)

[49] For example Business Council of Australia, (2014)

[50] See Perkmann et al., (2015) The report shows that that convincingly shows that better engaged researchers publish more, win more grants and get promoted more.

[51] Etzkowitz, (2002). Etzkowitz identifies the origin of the ‘one day a week’ rule at MIT, which was intended to encourage industry collaboration. It was adopted in Australian universities, but is now less common.

[52] Some commentators have argued that business has already ‘paid’ for industry research through taxes and public funding.

[53] The recently completed Dowling Review of Business University Research Collaborations concluded: ‘Strong, trusting relationships between people in business and academia form the foundation for successful collaboration’. Dowling, (2015)

[54] Significant contributions from MIT on building better university-business relationships include: Wright, (2008); and Pertuze, Calder, Greitzer, & Lucas, (2010)

[55] See Universities Australia, ACCI, AiGroup, Business Council of Australia, & Australian Collaborative Edication Network, (2014)

[56] Toner & Dalitz, (2014)

[57] Noonan, Burke, Wade, & Pilcher, (2015)

[58] Department of Industry Innovation and Science, (2015)

[59] CSIRO, (2015)

[60] One of Austrade’s two reported outcomes is to ‘contribute to Australia’s economic prosperity by promoting Australia’s export and other international economic interests through the provision of information, advice, and services to businesses, associations, education institutions and governments’. See Australian Trade Commission (Austrade), (2015)

[61] This support has had the imprimatur of inquiries and reviews of medical research including McKeon et al., (2013) And Australia. Health and Medical Strategic Review, (1999)

[62] It is the case that not all SMEs are members of business associations, or take the time to join.

[63] See more at: http://www.defence.gov.au/dmo/DoingBusiness/Industry/SkillingDefenceIndustry/IndustrySkillingProgramEnhancement/#sthash.qVVpCm97.dpuf

[65] The Taskforce has received over 870 formal submissions and has held over 120 consultation meetings. See http://bettertax.gov.au/ and The Treasury, (2015)

[66] Group of Eight Universities & Universities, (2012) The Rand Corporation reviewed the methodology. See Jones, Castle-Clarke, Manville, Gunashekar, & Grant, (2013)

[67] Gray et al., (2015)

[68] See http://www.industry.gov.au/innovation/reportsandstudies/NSRC/Pages/2014-National-Survey-of-Research-Commercialisation.aspx

[69] Department of Industry and Science, (2015b)

[70] See Department of Industry, (2014)

[71] See http://www.industry.gov.au/Office-of-the-Chief-Economist/Research-Papers/Pages/default.aspx

[72] The Industry Growth Centres Initiative, announced in early 2015, is the centrepiece of the Commonwealth Government's new industry policy direction and part of the Industry Innovation and Competitiveness Agenda. See Department of Industry and Science, (2015a)

[73] Australia. Prime Minister, (2001)

[74] For example, digital prototyping, information modelling and analytics enable firms to invent, design, build, deliver, and support products and projects faster, better and more efficiently and effectively. They can provide the ‘digital thread’ that links businesses through global value chains and create efficiency and productivity gains through reduced transactions costs.

[75] For example, Keech Australia Limited (Submission No 17 and Hansard 3 August 2015) and Hoffman engineering(Hansard 24 August 2015)

[76] Aranguren & Wilson, (2013; Bresnahan & Gambardella, (2004; Chiesa & Chiaroni, (2005; Cooke & Shṿarts, (2007; Innovating Regions in Europe, (2006; Johnston, (2003; Porter, (2005; Potter & Miranda, (2009)

[77] OECD, (2013). See also http://s3platform.jrc.ec.europa.eu/home

[78] https://www.sbir.gov/sites/default/files/sbir_pd_with_1-8-14_amendments_2-24-14.pdf

[79] Information abut the US SBIR program is at https://www.sbir.gov/about/about-sbir#

[80] Chapman & Withers, (2015) and Chapman, (2014)

[81] Chapman & Simes, (2006)

[82] Cumming D and Johan S (2012) Venture’s Economic Impact in Australia, December 2012; Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) progress report. See https://www.avcal.com.au/documents/item/619

[83] These roles are currently performed by Innovation Australia, previously known as the Industrial Research and Development Board.

[84] Austrade was established by the Australian Trade Commission Act 1985. It is a Prescribed Agency subject to the Financial Management and Accountability Act 1997 and the Public Service Act 1999 and is part of the Foreign Affairs and Trade portfolio. Austrade is responsible to the Minister for Trade and Competitiveness. Austrade operates in 82 offices in 48 markets. Austrade delivered consular, passport and other government services in 172 consular posts, which it manages.

[85] The National Commission of Audit had recommended that the creation of a new national health institutes flagship would combine the National Health and Medical Research Council, Cancer Australia and the research budget of the Australian National Preventative Health Agency. “The new institute would align and fully embed health and medical research in the health system. This would improve patient outcomes and deliver efficiencies by improving the evidence base available to clinicians and patients”. National Commision of Audit, (2014)

[86] The approach is used in the CRC Programme and was followed in the Education Investment Fund.

[87] Global businesses invest in discovery research, including in Australia. The incentives foreshadowed would encourage Australian business to be involved at the edge of science.

[88] Growth Centres Projects are collaborative projects that build capacity and address barriers impeding competitiveness.

[89] For example, the Victorian Government has established a $200m Future Industries Fund to ‘support high growth, high value industries that are critical to Victoria’s future as a competitive, innovative, and outward looking economy’. The industries are: Medical technology and pharmaceuticals, New energy technology, Food and fibre, Transport, defence and construction technology, International education, and Professional services

[90] Australia. Productivity Commission, (2011)

[91] The CRC Advisory Committee is looking to simplify the CRC application process and develop other models that are ‘fit for purpose’.

[92] http://www.csiro.au/~/media/About/Files/Strategy/CSIRO_Strategy_2020-PDF.pdf?la=en

[93] StartupAUS, (2014)

[94] See http://www.uts.edu.au/future-students/business/business-study-areas/mba-and-executive-mba-programs/mba-entrepreneurship

[97] Policy has not been able to replicate a Silicon Valley and very few of the many biotech clusters have achieved intended results in terms of job and wealth creation.

[98] Department of Industry, (2014)

[99] Kinner, (2015; Office of the Chief Scientist (Professor Ian Chubb), (2014; Prinsley & Baranyai, (2015))

[100] Science in Australia Gender Equity (SAGE) Pilot https://www.science.org.au/SAGE/Pilot

[101] Beddie, Creaser, Hargreaves, & Ong, (2014)

[102] Green, Agarwal & others, (2009)

[103] Martin, (2009)

[104] Universities Australia et al., (2014)

[105] There are also ‘reverse’ pathway programs as university graduates look to the VET sector to acquire the technical skills and knowledge necessary in a workplace context.

[106] http://www.industry.gov.au/innovation/reportsandstudies/Documents/2015-16ScienceResearchAndInnovationBudgetTables.xlsx

[108] http://www.enterprise-ireland.com/en/Productivity/ and http://www.enterprise-ireland.com/EI_Corporate/en/Publications/Reports-Published-Strategies/2014-Annual-Report-and-Accounts-English.pdf

[109] http://www.tekes.fi/en/tekes/

[110] https://www.epsrc.ac.uk/

[111] https://www.epsrc.ac.uk/about/facts/budget/

[112] http://www.nserc-crsng.gc.ca/NSERC-CRSNG/vision-vision_eng.asp

[114] http://www.sfi.ie/about/

[115] A*STAR is The Agency for Science, Technology and Research. It is Singapore's lead public sector agency that “spearheads economic oriented research to advance scientific discovery and develop innovative technology”. See http://www.a-star.edu.sg/About-A-STAR/Science-and-Engineering-Research-Council.aspx