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2012-DIISR-Innovatio © Commonwealth of Australia 2012 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Department of Industry, Innovation, Science, Research and Tertiary Education, GPO Box 9839, Canberra ACT 2601. ISSN 1836-3083 ISBN: 978-1-922125-62-0 Produced by: Department of Industry, Innovation, Science, Research and Tertiary Education Designed by: Corporate Media and Communication, Corporate Division, Department of Industry, Innovation, Science, Research and Tertiary Education Edited by: WordsWorth Writing, Canberra CONTACT OFFICER Manager, Business Performance Department of Industry, Innovation, Science, Research and Tertiary Education GPO Box 9839 Canberra ACT 2601 Telephone: +61 2 6213 7047 Facsimile: +61 2 6213 7000 Email: [email protected] Web address of this report: www.innovation.gov.au ii Department of Innovation Annual Report 2011–12 SECRETARY Senator the Hon Chris Evans, Industry House, 10 Binara Street Minister for Tertiary Education, Skills, Science and Research Canberra City ACT 2601 Parliament House GPO Box 9839 Canberra ACT 2600 Canberra ACT 2601 Phone: 02 6213 6650 Fax: 02 6213 6657 Email: [email protected] Web: www.innovation.gov.au ABN: 74 599 608 295 Dear Minister I am pleased to present to you the 2011–12 annual report of the Department of Industry, Innovation, Science, Research and Tertiary Education’s activities, for tabling before Parliament, as required by section 63 of the Public Service Act 1999. The department’s annual report also includes the 2011–12 annual report of IP Australia as it is a prescribed agency under the Financial Management and Accountability Act 1997 and operates as a non-statutory agency with limited autonomy from the department. The report has been prepared in accordance with the guidelines issued by the Department of the Prime Minister and Cabinet. The annual report also includes information required by section 5 of the Financial Management and Accountability Act 1997, schedule 2 part 4 of the Work Health and Safety Act 2011, Part II of the Freedom of Information Act 1982, section 311A of the Commonwealth Electoral Act 1918, and section 516A of the Environment Protection and Biodiversity Conservation Act 1999. Also, in accordance with the Commonwealth Fraud Control Guidelines, I certify that the department has prepared a fraud risk assessment and control plan, and has in place fraud prevention, detection and investigation procedures and has taken all reasonable measures to minimise the incidence of fraud. These meet the specific needs of the department. Yours sincerely Dr Don Russell 2 October 2012 CC: The Hon Greg Combet AM MP, Minister for Industry and Innovation CC: The Hon Brendan O’Connor MP, Minister for Small Business CC: Senator the Hon Kate Lundy, Minister Assisting for Industry and Innovation iii iv Department of Innovation Annual Report 2011–12 CONTENTS PART A CHAPTER ONE SECRETARY’S REVIEW 1 Overview 2 Industry and innovation 5 Science and research 5 Skills and education 6 Financial performance 6 CHAPTER TWO PORTFOLIO AND DEPARTMENTAL OVERVIEW 9 Portfolio overview 10 Departmental overview 11 Department outcome and program structure 18 CHAPTER THREE OUTCOME 1—REPORT ON PERFORMANCE 21 Outcome 1 overview 22 Program 1.1 Industry development and investment 22 Program 1.2 Innovative industry 29 Program 1.3 Program support 34 Purchaser-provider arrangements 37 Evaluations 38 v CHAPTER FOUR OUTCOME 2—REPORT ON PERFORMANCE 39 Outcome 2 overview 40 Program 2.1 Investment in higher education research 40 Program 2.2 Science and research capacity 43 Program 2.3 Program support 51 Purchaser–provider arrangements 54 Evaluations 54 CHAPTER FIVE OUTCOME 3—REPORT ON PERFORMANCE 57 Outcome 3 overview 58 Program 3.1 Higher education support 59 Program 3.2 Higher education loan program 63 Program 3.3 Tertiary student assistance 65 Program 3.4 Vocational education and training 67 Program 3.5 VET national support 69 Program 3.6 International education support 73 Program 3.7 Program support 76 Purchaser–provider arrangements 76 Evaluations 76 CHAPTER SIX CORPORATE MANAGEMENT AND ACCOUNTABILITY 77 Corporate governance 78 Quality service delivery 80 Accountability and financial management 81 External scrutiny 83 Management of human resources 84 vi Department of Innovation Annual Report 2011–12 CHAPTER SEVEN APPENDICES 91 Appendix A1: Agency resource statement 92 Appendix A2: Expenses and resources for Outcome 1 94 Appendix A3: Expenses and resources for Outcome 2 96 Appendix A4: Expenses and resources for Outcome 3 98 Appendix A5: Freedom of information 101 Appendix A6: Advertising and market research 102 Appendix A7: Ecologically sustainable development and environmental performance 104 Appendix A8: Disability reporting 108 Appendix A9: Corrections to the 2010–11 Annual report 109 Appendix A10: Office locations 110 CHAPTER EIGHT FINANCIAL PERFORMANCE 115 Independent auditor’s report 116 Statement by the Secretary and Chief Financial Officer 118 Financial statements 119 PART B CHAPTER NINE IP AUSTRALIA DIRECTOR GENERAL’S REVIEW 221 IP Australia Director General’s review 222 CHAPTER TEN IP AUSTRALIA OVERVIEW 225 Role and functions 226 Outcome and sub-progam structure 228 Outlook 229 vii CHAPTER ELEVEN IP AUSTRALIA REPORT ON PERFORMANCE 231 Performance measures 232 Outcome 1 overview 237 Sub-Program 1.1 IP rights administration and professional registration 239 Sub-Program 1.2 Awareness, education and international engagement 243 Sub-Program 1.3 Advice to government 246 CHAPTER TWELVE IP AUSTRALIA CORPORATE MANAGEMENT AND ACCOUNTABILITY 249 Organisational structure 250 Corporate governance 252 Purchasing 255 Consultants, competitive tendering and contracting 255 Grant programs 256 Management of human resources 256 CHAPTER THIRTEEN IP AUSTRALIA APPENDICES 261 Appendix B1: Agency resource statement 262 Appendix B2: Expenses and resources for Outcome 1 264 Appendix B3: Work health and safety 266 Appendix B4: Freedom of information 268 Appendix B5: Advertising and market research 269 Appendix B6: Ecologically sustainable development and environmental performance 270 Appendix B7: Disability reporting 271 Appendix B8: Annual report contact details 272 viii Department of Innovation Annual Report 2011–12 CHAPTER FOURTEEN IP AUSTRALIA FINANCIAL PERFORMANCE 273 Independent auditor’s report 274 Statement by the Director General and Chief Financial Officer 276 Financial statements 277 PART C REFERENCES 323 Abbreviations and acronyms 324 Glossary 326 Department compliance list 327 IP Australia compliance list 330 Index 333 ix About this report The Department of Industry, Innovation, Science, PART A—DEPARTMENT OF INDUSTRY, Research and Tertiary Education has prepared this INNOVATION, SCIENCE, RESEARCH report according to the Requirements for annual AND TERTIARY EDUCATION reports for departments, executive agencies and Chapters one through eight cover the Department FMA Act bodies, approved by the Joint Committee of Industry, Innovation, Science, Research and of Public Accounts and Audit in June 2012. Tertiary Education, including a review by the Secretary; a departmental and portfolio overview The department reported against three outcomes and structure information; a report on performance and associated programs for the 2011–12 financial for Outcome 1, Outcome 2 and Outcome 3; year. Outcomes 1 and 2 were set out in the corporate management and accountability 2011–12 Innovation, Industry, Science and Research information; appendices; and financial information, Portfolio Budget Statements, and Outcome 3 including audited financial statements. was set out in the 2011–12 Industry, Innovation, Science, Research and Tertiary Education Portfolio PART B—IP AUSTRALIA Additional Estimates Statements. Chapters nine through fourteen cover IP Australia, IP Australia, a prescribed agency within the including a review by the Director General; its role and department’s organisational structure, reports functions; a report on performance for Outcome 1; against one outcome for the 2011–12 financial year. corporate management and accountability information; appendices; and financial information, The department and IP Australia have also including audited financial statements. provided information required by legislation on freedom of information, work health and safety, PART C—REFERENCES advertising and market research and ecologically This section includes reference material to assist sustainable development. in the navigation and understanding of this report. PARTS OF THIS REPORT HOW TO ACCESS THIS REPORT The report is divided into three parts, as follows: Annual reports are available from libraries around Australia under the Commonwealth library deposit and free issue schemes. A list of these libraries is available from the Australian Government Information Management Office at www.agimo.gov.au. This report is also available on the department’s website: www.innovation.gov.au. x Department of Innovation Annual Report 2011–12 Part A: Part Department of Industry, Innovation, Science, Research and Tertiary Education and Tertiary Research Science, Innovation, Department of Industry, Part A Chapter One Secretary’s review Overview Industry and innovation Science and research Skills and education Financial performance Chapter 1: Secretary’s review 1 Chapter 1: Secretary’s review OVERVIEW
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