Inquiry Into Innovation and Creativity: Workforce for the New Economy

TAFE QUEENSLAND SUPPLEMENTARY SUBMISSION

TO THE HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON EDUCATION AND EMPLOYMENT

NEW INQUIRY INTO INNOVATON AND CREATIVITY: WORKFORCE FOR A NEW ECONOMY

TAFE Queensland Supplementary Submission to the House of Representatives Standing Committee on Education and Employment

Inquiry into Innovation and Creativity: Workforce for a New Economy

A: Level 9, 133 Mary Street Brisbane Queensland 4000

P: PO Box 16100 City East Queensland 4002

W: tafeqld.edu.au ABN 72 898 805 093

Authorised by: Ms. Jodi Schmidt, CEO, TAFE Queensland.

Disclaimer: The views expressed in this document are those of TAFE Queensland and do not necessarily reflect any opinion or policy of the Queensland Government, the Attorney-General and Minister for Justice and Minister for Training and Skills or the Queensland Department of Education and Training.

Purpose

This submission provides supplementary information to support TAFE Queensland’s response to the House of Representatives Standing Committee on Education and Training Inquiry into innovation and creativity: workforce for a new economy, following the expansion of the inquiry’s Terms of Reference. It seeks to specifically address the additional components of the inquiries terms of reference.

Introduction

TAFE Queensland appreciates the opportunity to contribute to the new inquiry into innovation and creativity: workforce for a new economy.

TAFE Queensland is the State’s public provider of Vocational Education and Training (VET). With over 130 years of history and through a state-wide network of institutes, TAFE Queensland is the most experienced provider of VET in Queensland. TAFE Queensland offers training through a variety of modes including traditional classroom delivery, distance learning, online tuition, workplace training and a blended delivery method combining two or more delivery modes.

TAFE Queensland continues to be the largest provider of VET services in Queensland with more than 120,000 students choosing to study with TAFE Queensland in 2015/16. During this period a total of 52,000 qualifications were awarded ranging from statements of attainment to bachelor degrees in over 600 program areas. TAFE Queensland delivers high quality outcomes for students and employers, with:  Competency completion rates of more than 89%;  Students that are employed or in further education at more than 87%;  Student satisfaction at more than 88%; and  Employer satisfaction at more than 91%.

Students from 85 countries choose to study with TAFE Queensland in Australia and abroad due to its international profile, world class standard of training, state-of-the-art facilities and the wide range of programs offered.

Summary of Key Recommendations

TAFE Queensland reiterates the key recommendations made to the Standing Committee in its original submission:

1. Expand the VET sector’s capacity to deliver innovation with industry through the establishment of an Australian Government initiative of $50 million over four years for applied research and innovation services to be allocated through a contestable process to the VET sector.

2. That the key role of TAFE Queensland and the VET sector more generally in ensuring Australia’s workforce is equipped with the necessary skills to drive the national innovation agenda is acknowledged in any future innovation program planning and funding allocation.

3. The development of an education and training fund to support targeted investment within the VET sector in areas of future skilling demand.

An example that demonstrates this is when TAFE Queensland educators mentor learners (students) as they address an employer problem (or unmet opportunity) with some form of technical, scientific or creative study and application related to their course. Outcomes are actionable, leading to improvements in practice or new products and services which are innovative. Through this practice our learners work with potential future employers – supporting employability outcomes and developing their enterprise skills. These types of applied research efforts are typically unfunded however do need to be incorporated as part of the curriculum. Again, funding that strategically supports this work would further enable TAFE Queensland and other VET providers to provide additional services that improve and enhance workplace innovation and practices.

Applied research can rapidly deliver tangible and innovative outcomes for employers and industry and the broader economy, as it aims to not only seek solutions, but also look for ideas ‘out of the box’. Applied research is distinct from other forms of ‘work integrated learning’ (such as apprenticeships or workplace-based projects) because it focuses more on problem solving, critical reflection, innovation and consequently develops enterprise skills1. TAFE Queensland view applied research as an enhancement to work integrated learning approaches such as internships, vocational placements and work experience.

TAFE Queensland educators typically consider working with employers in their local communities as ‘just part of the job – always has been’. TAFE Queensland is committed to further developing and growing our applied research capabilities and practices in tandem with employers and industry partners. Applied research outcomes may lead to increased profitability, sustainability and resilience of local employers across TAFE Queensland’s regions, and at a macro level an increased rate of business growth, stronger communities and innovation. Greater recognition needs to be given to the role that TAFE Queensland and similar providers in the sector play in working and collaborating with employers and industry partners. This work has the potential to greatly increase the economic viability of local small to medium sized businesses and in turn, significantly contribute to stronger local communities and the economy as a whole.

Innovation: A Core TAFE Queensland Value

Innovation is one of TAFE Queensland’s four key values. Our educators work with business and industry across Queensland to deliver skilled potential employees and improve their workplace practices and processes. The unacknowledged work of our educators and learners supports resilient workplaces and sustainable communities. For example, the recent Senate report: ‘Future role and contribution of regional capitals to Australia’ highlighted the role of education in strengthening regional economies, delivered through regional universities with no recognition of the importance of VET delivered through TAFEs. It discussed the low educational attainment within regions, however the measurement (degree or above) was skewed towards university – not VET – accreditation.

The role TAFE Queensland plays – in its 56 locations state-wide – in generating increased economic activity through its close partnerships with employers requires greater recognition, in particular the acknowledgement of TAFEs historical, existing and ongoing role wherein TAFE educators work with employers. TAFE currently is not directly funded to undertake this work, rather it is undertaken as part of training. TAFE Queensland aspires to formalise and grow our employer collaborations.

1 Enterprise skills as defined by Foundation for Young Australians 2016, The New basics. Melbourne, FYA. Accessed 28 November 2016 < https://www.fya.org.au/wp-content/uploads/2016/04/The-New-Basics_Update_Web.pdf>.

TAFE Queensland staff are ‘Pracademics’2 and innovators. They:

 are more interested in business enterprise and social inclusion outcomes rather than on publication outcomes;  speak the same, practical language as our collaborators rather than academic theory;  are more concerned with action learning, development of enterprise skills and employment outcomes than claiming “intellectual property rights over the innovation outcomes” (cf. AiGroup 2016 : 38);  use practical ‘hands on’ applied learning as an approach to adult learning;  aim to foster educator capabilities in the scholarship of learning, teaching and applied research;  provide an easy entry point as opposed to universities (because of our strong community connectivity and lower barriers to entry);  aim to facilitate employment outcomes and stronger businesses with flow on effects to local economic activity; and  build TAFE Queensland’s profile as a market leader of high quality education and training.

Our recommendation for greater recognition of the role TAFE plays in developing an innovative workforce for the new economy appears to be supported by the Australian Industry Group (AiGroup 2016: 4) who in a separate earlier submission to this inquiry noted:

“The rise of entrepreneurialism is an important factor to promote innovation in the new economy. A highly skilled workforce is a key ingredient across the economy and for the growth of small business. These skills need to include the technical as well as the non-technical and the role of the Vocational Education and Training (VET) sector should not be overlooked.”

2 A pracademic is someone who is both an academic and an active practitioner in their field of expertise.

Applied Research and Innovation and Entrepreneurship Services (ARIES)

TAFE Queensland’s leading edge work to date in establishing the RedSpace: Centre for Applied Research and Innovation, TAFE Queensland is also launching a new service line called ARIES – Applied Research, Innovation and Entrepreneurship Services. Much of the work described within ARIES is already being undertaken by educators and staff across TAFE Queensland. However, to date, it has not been comprehensively promoted and co-ordinated as a service line offer to employers, industry and communities.

ARIES aspires to formally recognise and grow these activities within regions, nuanced to the strengths of each location. In doing so, and in promoting the impact of ARIES, TAFE Queensland will support and claim its role and contribution to the innovation landscape in tandem with the opportunities to realise and leverage enhanced commercial, socio-economic and graduate outcomes.

ARIES aims to:  increase TAFE Queensland’s focus on delivering systemised support for employers – applied research and work integrated learning – across regions by educators and learners;  strengthen TAFE Queensland’s Small Business Solutions offering across Queensland to mentor small business owners through their business journey from Start > Build > Scale and Succeed;  leverage TAFE Queensland facilities as innovation spaces – destinations for events, community learning hubs, hands on experimentation, ‘play’ and ‘making’, and enterprise networking. This aims to build towards the use of TAFE facilities as Applied Research Centres;  support and coordinate innovation initiatives such as rapid prototyping and pilot projects to enable our transitioning economy;  enhance collaboration with innovation ecosystem stakeholders, to enable upskilling, innovation and foster community resilience. Doing so will also increase the profile and traction for TAFE Queensland to engage with innovation funding agendas and leverage thought leadership across the national and international TAFE/VET sector; and  facilitate TAFE Queensland spaces as community learning hubs and event destinations – a place that connects enterprises, people and services to develop future skills.

ARIES aims to catalyse innovation activities in the state-wide innovation ecosystem including:  activating ideas from local and regional stakeholders into prototypes and pilots using design thinking approaches;  facilitating communities of practice across regions, by identifying common interests in emerging fields and joining them for collaboration;  highlighting regional strengths (for example industries aligned with the Queensland Science and Research Priorities) and fast growing emerging markets, then support their growth (securing funding, potential employer sponsors etc.); and  igniting and sharing new ideas through thought leadership and knowledge transfer.

Expected outcomes include:  enhanced learning and teaching experiences and employment outcomes for our students;  stronger relationships with employers state-wide;  sustainability and resilience of local firms;  increased rate of business growth;  stronger communities; and  an innovative workforce.

By facilitating enterprise networking – across all types and sizes of enterprise – TAFE Queensland continues to play a unique role in the innovation ecosystem, enabling new business opportunities, and social and networked learning. An example includes:  the highly successful Expressway Network for SMEs in Brisbane, which has the potential to be expanded across all TAFE Queensland regions. Initiated by the Department of Science, Information Technology and Innovation, and coordinated, facilitated and grown by TAFE Queensland Brisbane over the past three years, the network now includes partner organisations Microsoft Innovation Centre and Regional Development Australia.  TAFE Queensland has also brought together a large group of organisations, such as incubators, research institutions, angel and other investors, and government entities to support and provide additional services and advice to the small to medium sized high potential businesses. With respect to co-location, cluster formation and the development of precincts between universities and industry; TAFE Queensland campuses span the length and breadth of the state, from Thursday Island to Mount Isa, to Charleville to Warwick (see Figure 2). TAFE Queensland acknowledges that employers in our local communities compete on a global level for outstanding research and innovations that can improve quality of life, foster new opportunities and the economic growth and development of their community. TAFE Queensland aspires to support local employers in our communities by creating and sustaining ‘Centres of Applied Research’ – where educators and learners collaborate with employers to solve employer problems. This model has proven to be highly successful in Canada (outlined more extensively in our initial submission) and leads to stronger employers because applied research practices solve their problems (and they may then have greater capacity to hire staff) and support development of resilient local communities.

Figure 2: TAFE Queensland Delivery Locations

Through Centres of Applied Research, TAFE Queensland facilitates learners to work with employers, which improves employability outcomes. To achieve this aspiration we reiterate the recommendation from our original submission that funding of $50 million over four years be made available to the VET sector through a competitive process. This funding may be matched by employer contributions to ignite our Centres of Applied Research. It will enable TAFE Queensland to train students to match skills required by industry; to better respond to ‘incubation’ opportunities, such as future foundation and employability skills and to use our spaces for innovation and networking.

TAFE Queensland SkillsTech may already be perceived as a Centre of Excellence – it is Queensland's leading specialist provider of trade and technical training in automotive, building & construction, electrical, refrigeration and air-conditioning, water, rail, plumbing, gas, CAD/drafting, welding and engineering.

Training is delivered for pre-apprenticeships, apprenticeships/traineeships, short courses and higher level study including diplomas and advanced diplomas. Educators at SkillsTech work closely with employers to develop work ready graduates.

5. Relationships between tertiary education entrepreneurship programs and public, private and not-for-profit incubators and accelerators.

TAFE Queensland has identified the important role it can play in driving innovation and entrepreneurship, particularly in the Queensland context. This work ranges from mentoring small business and start-ups, linking with incubators to support applied research to the active embedding of entrepreneurial skills within training it delivers. Once again this work has the potential to strategically support by the Australian Government through targeted investment in areas that will support its innovation agenda. As part of the ARIES (Applied Research, Innovation and Entrepreneurship Services) service TAFE Queensland has mapped the innovation and entrepreneurial ecosystem within Queensland. TAFE Queensland has a recognisable trusted brand and works with all entities in the ecosystem. We observe increased interest by governments worldwide in the role of innovation in growing businesses and creating new employment opportunities. To date, there has been an emphasis on the role of start-ups – particularly technology start-ups – in creating new jobs and this is beginning to be partly balanced with a recognition of the vital role played by growth oriented SMEs – in addition to larger and established employers. This wave of start-up activity is not confined to Brisbane and a network of almost twenty innovation hubs now operate along the Queensland east coast alone – two-thirds of these were launched in the last two years. Over $1.5 billion has already been invested or allocated by the state and federal governments to advance their innovation agendas. Expanding this existing funding or allocating new funding to TAFE and the VET sector would present an opportunity to access what is currently untapped potential. There are a number of spaces that could be repurposed for this amongst the TAFE Queensland regions and their campuses. The majority of current start-up support activities are focused on business skills and knowledge – from pitching to project management – and there is less activity focused on developing technical knowhow and skills; and we see alarmingly little emphasis on developing the innovation and entrepreneurship skills in the current workforce. A recent joint study by TAFE Queensland and CSIRO illustrated the importance of entrepreneurship being recognised as a future core skill as its importance increases across all sectors of the economy. We also see little emphasis on important but somewhat neglected demographic groups – including women, indigenous groups and more mature employees. This will lead to a skills gap that will constrain economic growth and send innovation offshore. TAFE Queensland works closely with entities in the innovation ecosystem, for example:  The Space Incubator is located within the Cairns campus of TAFE Queensland North, with TAFE Queensland providing the facility and resources gratis.  TAFE Queensland RedSpace: is actively forging links with incubators to generate applied research projects. For example, learners may work with incubator tenants to test and help scale tenant businesses. Doing so provides additional resources and support for start-ups who are time poor and lack resources.  The TAFE Queensland Small Business Solutions team are state-wide and since 2008 have mentored 7500+ start-ups and small to medium sized enterprises on their business journey. Small Business Solutions is unique in that training – often one-to-one mentoring specific to the business learner is delivered by successful entrepreneurs who also have educational qualifications. Small Business Solutions also has strong links with Chambers of Commerce and government service providers (such as Regional Development Australia).

 TAFE Queensland collaborates with universities across Queensland and with other VET providers nationally, which contributes to the national VET sector.  Many of TAFE Queensland’s educators may be described as ‘Pracademics’ – who work both within TAFE Queensland and also are active practitioners in their fields of expertise.

6. Other related matters that the Committee considers relevant

TAFE Queensland notes the AiGroup submission to this original Inquiry, which claimed “Vocational education and training in Australia must underpin and provide the new and different skills needed to help Australia be a competitive player in the digitised economy.” Innes Willox, Ai Group CEO, in AiGroup 2016.

We also note a McKinsey Australia recommendation (2014 : 16):

Access to talent. In Australia’s domestic workforce, common concerns cited were the calibre of middle management, the mismatch between the type of degrees studied and those sought by employers, the efficacy of vocational training, and a disconnect between the skills currently developed by Australia’s education system and those required for a more complex, more global world. Access to internationally mobile talent, especially skilled labour to address specific shortages, was also raised. This corresponds with international comparisons; Australia ranks 35th on availability of skilled labour and 27th on availability of competent managers. Fully 30 percent of businesses report that they find a lack of skilled persons is a barrier to innovation.

TAFE Queensland believes that applied research will lift the efficacy of vocational training, which has been heavily damaged by recent scandals created by unscrupulous providers. In 2017, Queensland’s transitioning economy provides impetus for new services and upskilling to prepare mass workforces for fast growth and emerging industries. To a large extent, as jobs and industries disappear workers will need to create their own jobs and businesses. Future skills development is a solution to high youth unemployment and at-risk employees in declining industries. These factors compel us to purposefully focus on entrepreneurship, innovation and by implication, an applied research agenda.

TAFE Queensland can bridge the gap between traditional theoretical research and the economic front-line through leveraging the applied, practice-based focus of our ‘Pracademic’ Educators to partner with industry and enterprise on applied research, innovation and entrepreneurial projects that support the development of business growth, new and improved technologies, processes, products and services. While working with a broad range of partners, a key focus will be to engage with and discover innovative solutions that are highly nuanced to regional strengths and local employer needs, particularly SMEs within each region to enable productivity gains and benefits.

References:

1. AiGroup 2016 Submission to the inquiry on innovation and creativity, workforce for the new economy. Submission no. 30. Canberra, Parliament of Australia. Accessed via http://www.aph.gov.au/Parliamentary Business/Committees/House/Employment Education and Training/Innovationandcreativity/Submissions.

2. CEDA 2016, VET: securing skills for growth. Melbourne, Committee for Economic Development of Australia. Accessed 28 November 2016 http://wave.org.au/wave/wp- content/uploads/2016/09/CEDA-VET-Report-August-2016.pdf.

3. Daniel, A., Hong, C., Laing, P. 2016 ARIES Activation. [unpublished] Brisbane, TAFE Queensland.

4. Foundation for Young Australians 2016, The New basics. Melbourne, FYA. Accessed 28 November 2016 < https://www.fya.org.au/wp-content/uploads/2016/04/The-New- Basics Update Web.pdf>.

5. Matchett, S. 2016 ‘RUN good for regions’ in Campus Morning Mail, 28 November 2016, Accessed 28 November 2016 < http://campusmorningmail.com.au/>.

6. McKinsey Australia 2014, Compete to Prosper: Improving Australia’s Global Competitiveness, Sydney, McKinsey and Company. Accessed 29 November < http://www.mckinsey.com/global- locations/pacific/australia/en/latest-thinking/compete-to-prosper>.

7. Productivity Commission 2016, Digital Disruption: What do governments need to do? Commission Research Paper, Canberra. Accessed 28 November 2016 < http://www.pc.gov.au/research/completed/digital-disruption/digital-disruption-research- paper.pdf>.

8. RedSpace: 2016 ARIES Case Studies, Brisbane TAFE Queensland Accessed 1 December http://intranet.tafeqld.edu.au/Learning-and-Teaching/RedSpace/Redspace- Services/Pages/ARIES.aspx

9. Reeson, A. etal. 2016 The VET Era. Equipping Australia’s workforce for the future digital economy. Brisbane, CSIRO. Accessed 28 November 2016 < http://tafeqld.edu.au/resources/pdf/about-us/research-papers/vet-era.pdf>.