2005 06 The Australian Government’s Innovation Report

REAL RESULTS | REAL JOBS PRIME MINISTER’S FOREWORD

Th e Australian Government is committed to the future prosperity of our nation and to fostering and improving our record of innovation. It is only through a world-class education and skills development system, and access to the best ideas and technology in the world, that we can grow our economic prosperity and nurture the capacity of our people to innovate and to develop new ideas. Backing Australia’s Ability and Backing Australia’s Ability – Building Our Future through Science and Innovation is providing a record $8.3 billion 10 year commitment to our innovation system. Th e strategy focuses on strengthening Australia’s ability to generate ideas and undertake research, accelerating the commercial application of these ideas, and developing and retaining Australian skills. It includes incentives such as increased tax concessions for R&D, and support for commercialising scientifi c research and innovative ideas. Th e Australian Government’s Innovation Report 2005-06 highlights the achievements being made by government, industry and the research sector working together to produce economic and social benefi ts. It also demonstrates how a whole-of-government approach, together with consultation with industry and researchers, is critical to the success of Australia’s innovation strategy. By supporting the creation, development and implementation of new ideas through Backing Australia’s Ability, we can ensure Australian enterprises can continue to turn good ideas into more jobs and greater economic prosperity for Australia.

John Howard

Prime Minister’s Foreword i ii Backing Australia’s Ability CONTENTS

Prime Minister’s Foreword i

Contents iii

Tables vi

List of abbreviations vii

Executive summary 1

Chapter one: Initiatives for a dynamic national innovation system 5

Part one – Strengthening our ability to generate ideas and undertake research 5 Government research agencies 6 Australian Antarctic Division 8 Australian Biological Resources Study 9 Australian Institute of Aboriginal and Torres Strait Islander Studies 9 Australian Institute of Marine Science 10 Australian Nuclear Science and Technology Organisation 12 Bureau of Meteorology Research Centre 13 Commonwealth Scientifi c and Industrial Research Organisation 15 Defence Science and Technology Organisation 18 Geoscience Australia 20 National Measurement Institute 21 The business sector 22 Commercial Ready 24 Industry Cooperative Innovation Programme 24 R&D Start 24 R&D Tax Concession 25 The Rural Research and Development Corporations and Companies 27 Food Centres of Excellence 28 Food Innovation Grants Programme 29 ICT Centre of Excellence, National ICT Australia 29 The research sector 30 Australian Research Council 31 The National Competitive Grants Programme 32 Research Infrastructure Block Grants Scheme 33 Institutional Grants Scheme 33

Contents iii Health and medical research 33 National Health and Medical Research Council 34 Major research infrastructure 35 National Collaborative Research Infrastructure Strategy 35 Health and Medical Research – Independent Research Institute Infrastructure Scheme 36 Major National Research Facilities Programme 36 Systemic Infrastructure Initiative 37 Philanthropy 38 Prime Minister’s Community Business Partnership 38 Science and innovation in foreign aid 38 Australian Centre for International Agricultural Research 38

Part two – Accelerating the commercial application of ideas 39 Facilitating commercialisation 39 Venture Capital Regime 39 Biotechnology World Class Centre of Excellence (The Australian Stem Cell Centre) 40 National Biotechnology Strategy 41 Pooled Development Funds 42 Innovation Investment Fund 43 Pre-Seed Fund 43 Renewable Energy Equity Fund 43 Renewable Energy Development Initiative 44 Research to investment ready stage 44 Commercialising Emerging Technologies 45 Biotechnology Innovation Fund 46 Building on IT Strengths – comprising the Advanced Networks Programme, the BITS Incubator Programme and the Intelligent Island Programme 47 Commercial Ready 48 Encouraging companies to innovate 48 Industry Cooperative Innovation Programme 48 Innovation Access Programme – Industry 49 Information Technology Online Programme 50 Pharmaceuticals Partnerships Programme 51 New Industries Development Programme 52 Textile, Clothing and Footwear Strategic Investment Program Scheme 53 Automotive Competitiveness and Investment Scheme Motor Vehicle Producer Research and Development Scheme 53 Renewable Energy Commercialisation Programme 53 Greenhouse Gas Abatement Programme 54 Building links to facilitate commercialisation 55 Cooperative Research Centres Programme 56 Intellectual Property 57 International Science Linkages 59

iv Backing Australia’s Ability Part three – Developing and retaining Australian skills 59 Schools 59 Fostering Scientifi c, Mathematical and Technological Skills in Government Schools 60 The Le@rning Federation: Schools Online Curriculum Content Initiative 61 National Youth Science Forum 62 The Smart Olympiads 63 Physics, biology and chemistry 63 Mathematics and informatics 64 Higher education 64 2 000 Additional Targeted University Places 65 Research Training Scheme 66 Regional Protection Fund 66 Postgraduate Education Loans Scheme (now Higher Education Loan Programme) 66 Australian Postgraduate Awards Programme 66 Endeavour International Postgraduate Research Scholarships 67 Gaining and retaining skills 67 Federation Fellowships 68 Skilled Immigration 68 Fostering entrepreneurship and awareness of science and innovation 69 National Innovation Awareness Strategy (NIAS) 69 NIAS – Science Connections Programme 69 NIAS – Department of Industry, Tourism and Resources 70 Questacon – The National Science and Technology Centre 71 Questacon Smart Moves 71

Chapter two: National Research Priorities 73 Priority – An Environmentally Sustainable Australia 73 Goal: Water – a critical resource 73 Goal: Transforming existing industries 75 Goal: Overcoming soil loss, salinity and acidity 76 Goal: Reducing and capturing emissions in transport and energy generation 77 Goal: Sustainable use of Australia’s biodiversity 78 Goal: Developing deep earth resources 80 Goal: Responding to climate change and variability 81 Priority – Promoting and maintaining good health 82 Goal: A healthy start to life 82 Goal: Ageing well, ageing productively 82 Goal: Preventive health care 83 Goal: Strengthening Australia’s social and economic fabric 84 Priority – Frontier technologies for building and transforming Australian industries 85 Goal: Breakthrough science 85 Goal: Frontier technologies 86 Goal: Advanced materials 86 Goal: Smart information use 87 Goal: Promoting an innovation culture and economy 88

Contents v Priority: Safeguarding Australia 89 Goal: Critical infrastructure 89 Goal: Understanding our region and the world 90 Goal: Protecting Australia from invasive diseases and pests 90 Goal: Protecting Australia from terrorism and crime 91 Goal: Transformational defence technologies 92

Chapter three: Informing the future 93 Key institutions 93 Australian Bureau of Statistics 93 Chief Scientist 94 Prime Minister’s Science, Engineering and Innovation Council 94 Australian Biotechnology Advisory Council 95 Commonwealth, State and Territory Advisory Council on Innovation 95 The Industry Research and Development Board 96 Business/Industry/Higher Education Collaboration Council 96 National Innovation Council 97 Looking ahead 97 Backing Australia’s Ability Outcomes Framework 97 Research Quality Framework for Publicly Funded Research 97 Audit of Science, Engineering and Technology Skills 98 Venture Capital Review 98

Appendices 99

TABLES

Table 1: Australia’s GERD as a share of GDP by source of funding – by OECD country, 2002 6 Table 2: Public sector expenditure as a percentage of GDP – by OECD country, 2002 7 Table 3: GOVERD as a percentage of GDP – by OECD country, 2002 7 Table 4: Australia’s business expenditure on R&D, 1981-82 to 2003-04 23 Table 5: BERD as a percentage of GDP – by OECD country, 2003 23 Table 6: Number of fi rms using the 125% R&D Tax Offset and 175% Premium 26 Table 7: HERD as a percentage of GDP – by OECD country, 2002 31 Table 8: Australian tertiary graduates in science and engineering, 1988 to 2003 64 Table 9: Australian PhD graduates in science and engineering, 1988 to 2003 65 Table 10: Net gains in scientists and engineers through migration – by selected occupation, 1999-2000 to 2003-04 68

vi Backing Australia’s Ability LIST OF ABBREVIATIONS

AAD Australian Antarctic Division ABARE Australian Bureau of Agricultural and Resource Economics ABRS Australian Biological Resources Study ABS Australian Bureau of Statistics ACIAR Australian Centre for International Agricultural Research ACIS Automotive Competitiveness and Investment Scheme AIATSIS Australian Institute of Aboriginal and Torres Strait Islander Studies AIC Australian Institute of Criminology AIMS Australian Institute of Marine Science ANP Advanced Networks Programme ANSTO Australian Nuclear Science and Technology Organisation APA Australian Postgraduate Awards AQIS Australian Quarantine and Inspection Service ARC Australian Research Council ASCC Australian Stem Cell Centre ASO Australian Science Olympiads BERD Business expenditure on research and development BIF Biotechnology Innovation Fund BITS Building on IT Strengths BMP Best management practices BMRC Bureau of Meteorology Research Centre BRS Bureau of Rural Sciences BTRE Bureau of Transport and Regional Economics COMET Commercialising Emerging Technologies CRC Cooperative Research Centre CRDC Cotton R&D Corporation CSIRO Commonwealth Scientifi c and Industrial Research Organisation CSTACI Commonwealth, State and Territory Advisory Council on Innovation DEST Department of Education, Science and Training DEWR Department of Employment and Workplace Relations DIMIA Department of Immigration and Multicultural and Indigenous Affairs DITR Department of Industry, Tourism and Resources DSTO Defence Science and Technology Organisation EBA Enrolment benchmark adjustment EU European Union FIG Food Innovation Grants FRDC Fisheries Research and Development Corporation GDP Gross domestic product GERD Gross expenditure on research and development GGAP Greenhouse Gas Abatement Programme

List of Abbreviations vii GOVERD Government expenditure on R&D GRDC Grains Research and Development Corporation HECS Higher Education Contribution Scheme HELP Higher Education Loan Programme HERD Higher education expenditure on R&D IAccP Innovation Access Programme ICT Information and communications technology ICIP Industry Cooperative Innovation Programme IGS Institutional Grants Scheme IIF Innovation Investment Fund IP Intellectual property IPRIA Intellectual Property Research Institute of Australia IPRS International Postgraduate Research Scholarships IR&D Board Industry Research and Development Board ISL International Science Linkages IT Information technology ITOL Information Technology Online Programme MODL Migration Occupations in Demand List MNRF Major National Research Facilities NBS National Biotechnology Strategy NCGP National Competitive Grants Programme NCRIS National Collaborative Research Infrastructure Strategy NFIS National Food Industry Strategy NHMRC National Health and Medical Research Council NIAS National Innovation Awareness Strategy NICTA National Information and Communications Technology Australia NIDP New Industries Development Programme NMI National Measurement Institute NRP National Research Priorities NYSF National Youth Science Forum OECD Organisation for Economic Cooperation and Development OPAL Open Pool Australian Light-Water reactor P3 Pharmaceuticals Partnerships Programme PDF Pooled Development Funds PELS Postgraduate Education Loans Scheme PSF Pre-Seed Fund PMSEIC Prime Minister’s Science, Engineering and Innovation Council PUBLERD Public expenditure on research and development R&D Research and development RDCs Rural R&D Corporations REDI Renewable Energy Development Initiative REEF Renewable Energy Equity Fund RIBG Research Infrastructure Block Grant RPF Regional Protection Fund RQF Research Quality Framework RTS Research Training Scheme

viii Backing Australia’s Ability S&T Science and technology SCOPE Science Connections Programme SET Science, engineering and technology SII Systemic Infrastructure Initiative SMEs Small to medium enterprises TCF (SIP) Textile, Clothing and Footwear Strategic Investment Programme Scheme UK United Kingdom US United States VC Venture capital VCLP Venture Capital Limited Partnerships

List of Abbreviations ix x Backing Australia’s Ability EXECUTIVE SUMMARY

Science and Innovation – advancing our abilities Th e 2005-06 Innovation Report provides a comprehensive overview of the Australian Government’s policies and programmes in the areas of science and innovation, with a particular emphasis on the Backing Australia’s Ability package. Th e funding provided through the Australian Government’s innovation statement (2001), Backing Australia’s Ability, will fi nish in 2005-06. Support for many of the programmes and initiatives will be continued under Backing Australia’s Ability – Building Our Future through Science and Innovation, which was announced by the Australian Government in May 2004. Total funding provided through the combined Backing Australia’s Ability packages is $8.3 billion over the 10-year period from 2001-02 to 2010-11. Total government investment in science and innovation has reached $52 billion over 10 years. Th is is the fi fth Innovation Report since the announcement ofBacking Australia’s Ability in 2001. It focuses on the three themes of Backing Australia’s Ability, strengthening Australia’s ability to undertake research, accelerating the commercial application of ideas and developing and retaining Australian skills. Th e report also provides information on the progress by departments and agencies on the implementation of the National Research Priorities and an overview of the major research, science and innovation organisations within Australia. Strengthening our ability to undertake research Many government agencies are involved in strategic long-term research and are working closely with other areas of Australia’s national innovation system. Highlights for the year include the signing of a contract for ANSTO’s synroc technology to be used at Sellafi eld in the UK to clean up nuclear waste. Th e income CSIRO received through intellectual property and equity reached $20.4 million, which comprised running royalties of $15.1 million and revenue from the sale of equity and intellectual property through spin-off s of $5.3 million. DSTO entered into 12 new licensing agreements with industry, placed 34 research agreements and entered into 18 collaborative arrangements. At 30 June 2005, a total of 2 355 companies intended to claim the R&D Tax Off set for the 2003-04 income year and 891 companies intended to claim the 175% Premium R&D Tax Concession for 2003-04. Th e Research and Development Corporations invested over $500 million in rural R&D during 2004-05, with the Australian Government contributing over $200 million of this funding. Under the Australian Research Council’s National Competitive Grants Programme, Discovery Projects will support approximately 2 750 new and ongoing research projects, representing a commitment of $99.5 million in 2005 and $297.5 million over the fi ve years to 2009. Linkage Projects will support 488 new collaborative research projects and awards worth $115.9 million over the fi ve years to 2009, which will attract $173.0 million in matching contributions in cash and in-kind from partner organisations. Linkage Infrastructure (Equipment and Facilities) approved 78 applications for funding which represented a commitment of $30.4 million. In relation to support for research, Research Infrastructure Block Grant funding rose from $160.3 million in 2004 to $183 million in 2005 and Institutional Grant Scheme funding rose from $284.6 million in 2004 to $290.6 million in 2005. Th e Australian Government allocated $411 million to the National Health and Medical Research Council for health and medical research in 2004-05, with major funding commitments provided through Programme Grants ($115 million) and Project Grants ($160 million). Additional funding of $200 million over fi ve years was also announced for infrastructure support for medical research institutes, with the fi rst round of funding allocating $13 million to 20 medical research institutes in early 2005.

Executive summary 1 Th e Systemic Infrastructure Initiative will also provide $29 million over 2004 to 2006 to enhance Australia’s advanced computing, communications and information infrastructure. Accelerating the commercial application of ideas Backing Australia’s Ability – Building Our Future through Science and Innovation has a large focus on the commercial application of research outputs and provides increased incentives for Australian businesses to undertake research and development. A review into Australia’s venture capital industry was announced by the Minister for Industry, Tourism and Resources in May 2005 to report by the end of 2005. At 30 June 2005 there were nine Venture Capital Limited Partnerships registered with approximately $1 billion in committed capital. To date about $46 million has been invested by Venture Capital Limited Partnerships in 10 eligible investee companies. In 2005 there were 95 companies registered as Pooled Development Funds, with around $50 million invested in 53 Australian businesses. At December 2004, the total amount invested by the Innovation Investment Fund was $221 million, with returns to investors of $261.4 million. Th e government plays a strong role in nurturing the spirit of enterprise and allowing young companies the opportunity to grow. At 30 June 2005, the Pre-Seed Fund had made 25 investments in 22 companies and three projects in the areas of IT, life sciences, medical devices, agriculture, chemical engineering, environment and manufacturing. In 2004-05, COMET had 203 applications, helped fi rms raise $54 million in capital, led to 40 alliances or joint ventures, and assisted 33 fi rms to launch new products. During 2004-05, the NIDP supported 31 new and 34 continuing Pilot Commercialisation Projects and 16 new and 12 continuing In- Market Experience Scholarships with payments worth more than $3 million. Th e Commercial Ready programme commenced on 1 October 2004 and replaces the R&D Start Programme, the Biotechnology Innovation Fund and the competitive grants support for technology diff usion in the Innovation Access Programme – Industry. At 30 June 2005, 75 grant applications had been assessed with 42 approved for support of over $38 million. Th e sixth and fi nal round of the Biotechnology Innovation Fund was announced in May 2004 with a total of 84 applications being considered from 51 companies, most from the health care and agricultural sectors, securing funding worth $11.80 million. At 30 June 2004, 345 companies were accepted as BITS incubatees covering a diverse cross-section of the ICT industry including communications hardware and software, business intelligence tools, security and safety, life sciences and biotechnology and e-commerce applications. In addition, the Information Technology Online programme funded nine projects to consortium groups involving 50 organisations during 2004-05. From 1 July 2005, elements of the Innovation Access Programme – Industry were subsumed into the new Industry Cooperative Innovation Programme. Launched on 2 June 2005, this $25 million programme has funding until 2011 and aims to encourage business-to-business cooperation on innovation projects within a sector to enhance productivity, growth and international competitiveness. Th e Automotive Competitiveness and Investment Scheme Motor Vehicle Producer Research and Development Scheme will off er $150 million in competitive R&D assistance from 2006-10, with fi ve Australian automotive R&D projects selected as the fi rst recipients of $41.36 million in assistance under the scheme in April 2005. In December 2004 the Minister for Education, Science and Training approved funding of $407 million for 16 successful CRC applicants, resulting in fi ve new CRCs, nine centres to be developed from existing CRCs, and two CRCs receiving supplementary funding. When all CRCs from the 2004 selection round are established, there will be 72 operating in six sectors: environment, agriculture and rural based manufacturing, information and communication technology, mining and energy, medical science and technology, and manufacturing technology. Th e 2004 round saw a shift to a stronger economic focus in the programme following an evaluation in 2003. Developing and retaining Australian skills Th e Australian Government views the investment in developing and upgrading skills as a necessary requirement for the tenets of an innovative society. It is through such development that ideas are nurtured and innovations are adopted more readily. Increasing public awareness of the many benefi ts that arise from research will also help to change perceptions of its role in society and increase the attractiveness of undertaking a science related career.

2 Backing Australia’s Ability Early exposure to science and innovation related issues are essential to foster a spirit of investigation within young Australians. Australia’s performance at the International Science Olympiads was exemplary with 12 of Australia’s 13 competitors being awarded medals including four gold. Australia maintained its ranking amongst the best competing countries and placed eighth out of 50 in biology, seventh out of 59 in chemistry and 16th out of 77 in physics. Australia’s participation at the International Mathematical Olympiad and International Olympiad in Informatics was also of a very high standard, with the mathematics team winning a gold medal, a silver medal, two bronze medals and an honourable mention. In 2004-05, Questacon Smart Moves travelled to 302 schools in Western Australia, Tasmania and Victoria, as well as northern and central Queensland and the Northern Territory. Nearly 62 500 students participated in the programme over the year. Under the Fostering Scientifi c, Mathematical and Technological Skills in Government Schools initiative, the total enrolment benchmark adjustment in 2005 was $107.1 million and was triggered in New South Wales, Victoria, Queensland, South Australia and Western Australia. Building on the interest generated through the early years of schooling, many Australian Government initiatives are aimed at providing increased opportunities to develop the skills necessary to pursue a career in science, engineering and technology related areas. In 2005, $91.18 million was allocated under the Australian Postgraduate Awards scheme, which will increase to $93.12 million in 2006. In addition, approximately 330 new Endeavour IPRS scholarships were awarded at a cost of $18.1 million. Funding of $151 million was provided for 2000 additional targeted university places in 2002 with a priority on mathematics, science and information and communications technology. Th e funding allocated under the Research Training Scheme rose from $540.8 million in 2004 to $552.2 million in 2005. Th e Higher Education Loans Programme (HELP) replaced the Postgraduate Education Loans Scheme in January 2005 and includes a new loan programme called FEE-HELP to assist students to pay tuition fees. On 15 June 2005 the Minister for Education, Science and Training announced 24 new Federation Fellowships with funding commencing in 2005, which brings the total number of fellowships awarded under the scheme to 94. National Research Priorities In 2002, Prime Minister John Howard announced the establishment of four National Research Priorities for Australian research: • An Environmentally Sustainable Australia; • Promoting and Maintaining Good Health; • Frontier Technologies for Building and Transforming Australian Industries; and • Safeguarding Australia. Th e four research priorities are broadly based, thematic and multidisciplinary in nature. Within each of these priorities is a set of goals, which were enhanced in 2003 to strengthen the contributions of social science and humanities research. All Australian Government research and research funding bodies are required to maintain plans which show their progress in implementing the priorities into their activities. Th is is the second year that agencies have reported on their progress in implementing the National Research Priorities and this report provides a series of vignettes demonstrating the progress that agencies have made in adopting them. Looking ahead Although Backing Australia’s Ability represents an unprecedented investment by the Australian Government in areas of science and innovation, further work must be undertaken to ensure that Australia remains well placed to capture the maximum benefi ts from its investment and remain globally competitive. Due to the signifi cant amount of funding provided through Backing Australia’s Ability, it is vital to ensure that this investment is evaluated to determine whether it has achieved its objectives. Th e Australian Government, through the Department of Education, Science and Training, is developing a whole-of-package evaluation strategy to measure the impact of the additional funding provided through Backing Australia’s Ability. Although still in its early stages, the department is developing an outcomes framework and has examined models both nationally and internationally.

Executive summary 3 In May 2004 the Prime Minister announced the establishment of quality and accessibility frameworks for publicly funded research as part of Backing Australia’s Ability – Building Our Future through Science and Innovation. Th e Research Quality Framework will provide the basis for distributing research resources in Australia including research block funding for universities, publicly funded research agencies and research funding councils. Any additional research resources will be distributed on the basis of RQF outcomes to reward the highest quality research, wherever it occurs. Th e Department of Education, Science and Training is also in the process of conducting an audit of science, engineering and technology skills in Australia. Th e audit covers a range of themes including demand and supply of skills, the perceptions of young Australians towards learning science, career paths and industry views. It is expected that the audit report will be released in early 2006 and will form the basis for ongoing policy development and dialogue in addressing skills needs.

4 Backing Australia’s Ability CHAPTER ONE: Initiatives for a dynamic national innovation system

Backing Australia’s Ability provides signifi cant support for science and innovation in Australia. $8.3 billion will be provided through the package in total over the 10 years from 2001-02 to 2010-11. Th e initiatives announced under Backing Australia’s Ability are presented under three key themes which have been identifi ed as crucial to fostering a strong and vibrant national innovation system. Th e three themes are: • strengthening our ability to generate ideas and undertake research; • accelerating the commercial application of ideas; and • developing and retaining Australian skills. Th is chapter examines some of the progress made by Australian Government departments and agencies against the key themes of Backing Australia’s Ability during 2004-05. PART ONE – Strengthening our ability to generate ideas and undertake research

National Investment in R&D Australia’s investment in R&D, measured by gross domestic expenditure on R&D (GERD), has been growing steadily over the recent years. According to the latest data from the Australian Bureau of Statistics, Australia invested an estimated $12.8 billion in R&D in 2002-03, an increase of $2.4 billion or 23.3% over the two years since 2000-01. In 2002, Australia accounted for an estimated 1.2% of total world R&D spending. Th e United States led the world in R&D with 36.0% of total world R&D spending, followed by Japan (14.0%), China (9.3%), Germany (7.2%), France (5.0%), the United Kingdom (4.2%) and Korea (2.9%). Over the period 1992-2002, Australia’s GERD grew at an average annual rate of 5.0% in real terms, higher than 3.2% for the OECD as a whole and 2.6% for the EU-15. China recorded the highest annual growth rate in the world at 15.0% over the same period, which resulted in an increase of its share in total world R&D spending from 3.4% to 9.3%. In 2002-03, the largest share of funding for Australia’s R&D eff ort came from industrial fi rms (46.4%). Most of the balance came from the Australian Government (37.6%) and the state and territory governments (6.7%). Universities, private non-profi t institutions and overseas provided the remainder. Th e last quarter of a century has seen a considerable shift in the structure of R&D funding in Australia. Th e contribution of Australian business to R&D funding has been on an upward trend, rising from 20.6% in 1978-79 to 46.4% in 2002-03. Meanwhile, governments have contributed a diminishing proportion of R&D funding with the percentage falling from 76.5% to 44.3% over the same period. Similar trends have occurred in most OECD countries. Despite the continuous growth of Australia’s R&D investment in the recent years, Australia’s R&D intensity (gross domestic expenditure on R&D as a percentage of GDP) is still relatively low by OECD standards. At 1.69% in 2002, Australia ranked 18th among OECD countries, below the averages for the OECD as a whole (2.25%) and the EU-15 (1.95%). Th e concern remains over the low level of business investment in R&D as compared to the size of the Australian economy. As table 1 shows, in 2002 industry-funded R&D in Australia amounted to 0.83% of GDP, below the OECD average of 1.40% and the EU-15 average of 1.07%. In contrast, government-funded R&D in Australia stood at 0.72% of GDP, above the OECD average of 0.68% and the EU-15 average of 0.67%.

Chapter One: Initiatives for a dynamic national innovation system 5 Table 1: Australia’s GERD as a share of GDP by source of funding – by OECD country, 2002

Funded by Government Funded by Industry Funded by Others

Sweden Finland Japan Iceland United States Switzerland Korea Germany Denmark France Total OECD Belgium Austria Canada EU-15 United Kingdom Netherlands Norway Luxembourg AUSTRALIA Czech Republic Ireland New Zealand Spain Hungary Italy Portugal Turkey Greece Slovak Republic Poland Mexico 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 % of GDP

Source: OECD, Main Science and Technology Indicators database 2005/1. Note: 2003 for Sweden; 2001 for Belgium, Denmark, Greece, Iceland, Italy, New Zealand, Norway, Mexico, Portugal; 2000 for Luxembourg, Switzerland; and 1996 for Italy. Government research agencies

Government research agencies play a vital role within the Australian national innovation system. Th ey often conduct long-term strategic research that would not otherwise be undertaken due to unacceptable risks or uncertain outcomes. Th e level of government investment in R&D in Australia is high by OECD standards. The public sector Australia’s R&D expenditure in the public sector amounted to $5.9 billion in 2002-03, comprising R&D performed by government research laboratories ($2.5 billion) and universities ($3.4 billion). Th e Australian Government funded almost 72% of R&D performed in the public sector. Th e largest share of public sector R&D was directed to health (20.3%), followed by primary products (14.3%), non-oriented research (13.2%), environment (12.3%) and manufacturing (7.3%). Th is indicates that public sector R&D is highly complementary to business R&D which was focused on manufacturing (39.3%), information and communication services (18.4%), commercial services and tourism (11.3%) and energy (6.5%). Over the decade 1992-2002, Australia’s public sector expenditure on R&D (PUBLERD) recorded an average annual growth rate of 3.3% in real terms. Th is growth rate was the same as the United States and Sweden, and slightly above the OECD average of 3.2%. It was much higher than the average growth rate in the EU-15 of 1.9%. Relative to GDP, Australia’s PUBLERD reached 0.78% in 2002-03, slightly up from 0.77% in 2000-01. As such, Australia ranked sixth equally with Germany amongst OECD countries, well above the OECD average of 0.66% and the EU-15 average of 0.68%. Iceland, Finland, Sweden, Canada and France are the only countries ahead of Australia with a fi gure between 0.80% and 1.26%.

6 Backing Australia’s Ability Table 2: Public sector R&D expenditure as a percentage of GDP – by OECD country, 2002

Iceland 1.26 Finland 1.02 Sweden 0.95 Canada 0.87 France 0.80 AUSTRALIA 0.78 Germany 0.78 Netherlands 0.77 Denmark 0.77 Japan 0.73 Norway 0.71 New Zealand 0.69 Austria 0.69 EU-15 0.68 Switzerland 0.67 Total OECD 0.66 United States 0.65 Korea 0.60 Hungary 0.60 United Kingdom 0.59 Italy 0.58 Belgium 0.57 Portugal 0.53 Turkey 0.48 Spain 0.47 Czech Republic 0.47 Poland 0.46 Greece 0.43 Ireland 0.35 Mexico 0.27 Slovak Republic 0.20 Luxembourg 0.17 0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 % of GDP

Source: OECD, Main Science and Technology Indicators database 2005/1. Note: 2000 for Switzerland and Luxembourg; 2001 for Sweden, Greece and Mexico; and 2003 for New Zealand. Government R&D Government expenditure on R&D (GOVERD) reached $2.5 billion in 2002-03, an increase of 5.4% at current prices over the two years since 2000-01. GOVERD as a percentage of GDP fell to 0.33% in 2002-03, from 0.35% in 2000-01. Despite this, Australia still ranked relatively high among OECD countries, at eighth place, and well above the average levels of 0.25% for both the OECD as a whole and the EU-15.

Table 3: GOVERD as a percentage of GDP – by OECD country, 2002

Iceland 0.76 France 0.37 New Zealand 0.36 Finland 0.36 Germany 0.35 Hungary 0.34 Korea 0.34 AUSTRALIA 0.33 Japan 0.30 Czech Republic 0.28 Poland 0.26 Norway 0.26 Netherlands 0.25 EU-15 0.25 Total OECD 0.25 United States 0.23 Canada 0.22 Italy 0.20 Portugal 0.19 Denmark 0.19 Luxembourg 0.17 United Kingdom 0.17 Spain 0.16 Slovak Republic 0.15 Mexico 0.15 Greece 0.14 Belgium 0.14 Austria 0.12 Sweden 0.12 Ireland 0.10 Turkey 0.05 Switzerland 0.03 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 % of GDP

Sources: ABS, unpublished R&D data, September 2005; OECD, Main Science and Technology Indicators database, 2005/1. Note: 2000 for Switzerland and Luxembourg; 2001 for Sweden, Greece and Mexico; and 2003 for New Zealand.

Chapter One: Initiatives for a dynamic national innovation system 7 Australian Antarctic Division Th e Australian Antarctic Division (AAD), part of the Department of the Environment and Heritage, leads Australia’s Antarctic programme, conducts and supports scientifi c research in Antarctica and the Southern Ocean, and administers the Australian Antarctic Territory and the Territory of Heard Island and MacDonald Islands. Th e AAD also manages Australian government activity in Antarctica, provides transport and logistic support, maintains permanent Australian research stations, and conducts, supports and manages scientifi c research programmes on land and at sea. It supports about 180 scientists in Antarctica and the Southern Ocean each year. Of these, 40% are employed

Photo Bob Jones © Australian Antarctic Divison Commonwealth of Australia by the AAD while the remainder work for Australian and Photo credits: AAD overseas universities and research institutions. Studies are conducted in glaciology, meteorology, oceanography, geosciences, astronomy, space and atmospheric sciences, biology, Antarctic marine living resources, human impacts and human biology and medicine. Emphasis is on climate science and quantitative marine biology to support Australia’s position in the international Commission for the Conservation of Antarctic Marine Living Resources. Scientifi c data contributes to new generation climate change models, sea level rise estimates, sustainable fi sheries, understanding Australia’s biodiversity, space weather and environmental protection. In 2004, Antarctic science supported by the AAD resulted in 362 publications and two books: Th e moss fl ora of Macquarie Island and Antarctic marine protists. During

Photo Bob Jones © Australian Antarctic Divison Commonwealth of Australia the year, 127 chief investigators conducted 134 science Photo credits: AAD projects in the Australian Antarctic programme. Australian Antarctic Science Grants, available only to projects led by university scientists, were awarded to 54 of these projects. A total of 110 scientists travelled to Antarctica and the Southern Ocean to undertake research, 87 of whom were employed by universities and research institutions in Australia and overseas, and 23 by the AAD. Th e Australian Antarctic programme supports a large number of postgraduate students including 103 PhD, seven Master of Science and 16 Honours students with 32 co-supervised by AAD scientists. Five new top-up PhD scholarships were supported in 2004-05. Th e AAD collaborates extensively with other institutions, both within Australia and overseas. A total of 35 institutions are represented in the Australian Antarctic Science programme as home to chief investigators. In addition, collaborations with 162 institutions in 28 diff erent countries were undertaken in 2004-05. Photo Bob Jones © Australian Antarctic Divison Commonwealth of Australia Photo credits: AAD www.aad.gov.au

8 Backing Australia’s Ability Evidence of rapid and widespread changes in the deep Southern Ocean

An expedition led by Dr Steve Rintoul of the Antarctic Climate and Ecosystems Cooperative Research Centre and CSIRO Wealth from Oceans Flagship has found that the deep waters near Antarctica are cooler and less salty than they were 10 years ago. While conventional wisdom suggests that deep ocean waters should remain relatively stable over time, samples from the basin between Antarctica and Australia are now 0.015 parts per thousand less salty and 0.1 degrees cooler than they were 10 years ago. And although these changes might seem small, they are 50 times larger than the changes seen in similar deep waters near Perth. Th e challenge now is to understand why the movement of water between the warm, surface waters and cool, deep layers is changing. One possible explanation is that more glacial ice is melting in Antarctica due to the impact of global warming, but it could also be a natural climate cycle. Th e next step will be to test the ocean samples to determine the content of glacial melt water.

Australian Biological Resources Study Th e Australian Biological Resources Study (ABRS) funds taxonomic and biogeographic research and training that leads to the scientifi c documentation of Australia’s biodiversity. Total research expenditure under this programme was $1.827 million in 2004–05. Funding supported 61 taxonomic research projects, four scholarships, 14 student bursaries and a number of small research contracts. All ABRS projects aim to contribute to the underlying taxonomic knowledge necessary for the conservation and sustainable use of Australia’s biodiversity. Taxonomic investigations included research into such diverse biota as zooanthellae (microalgae), smut fungi, sea anemones, fl atworms, kangaroo beetles and orchids, and added new information to existing databases about groups of environmental or economic signifi cance, such as cyanobacteria, fungi of native plants, aphids, fl ies, earthworms, tapeworms, reptiles and minor marine phyla. Results will contribute to future publications such as Flora of Australia and expand existing online sources of information including the Australian Faunal Directory and Flora of Australia Online. www.deh.gov.au/biodiversity/abrs

Australian Institute of Aboriginal and Torres Strait Islander Studies Th e Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS) is a statutory body and independent research organisation promoting knowledge and understanding of past and present Australian Indigenous cultures. It houses the world’s premiere collection of Aboriginal and Torres Strait Islander resources including printed material, sound recordings, fi lms and video, and hosts the Aboriginal Studies Press. AIATSIS is a core partner of the Cooperative Research Centre for Aboriginal Health, as well as an associate partner with the Cooperative Research Centre for Desert Knowledge. It has links with the Offi ce of Indigenous Policy Coordination, Minerals Council of Australia, most Australian universities and many international higher education centres as well as domestic stakeholders such as Martu custodians fi ring traditional lands in the Sandy Deserts of WA. the National Native Title Tribunal. Understanding fi re ecology is an important component of managing lands in remote Australia. Photo credits: AIATSIS

Chapter One: Initiatives for a dynamic national innovation system 9 During 2005, the International Union for Quaternary Research funded an AIATSIS-linked three-year congress, part of which will look specifi cally at Aboriginal and Torres Strait Islander landscape/human relationships through time. AIATSIS was also party to the ARC Network Bid— Discovering the past to shape the future: networking environmental sciences for understanding Australia’s biodiversity. Projects completed during 2004-05 included the Illicit Drug Use and Policing Protocols Project, good practice examples for diff erent policing jurisdictions, the Australian Collaboration Project Stage 1 (which profi led success in local Aboriginal organisations). Funding and recruitment for a national profi ling exercise was also obtained. Australian Government funding of about $13 million will Participants in the launch of the Wet Tropics Aboriginal Plan. also allow digitisation of at risk AIATSIS manuscripts, Photo credits: AIATSIS papers, images and tape archives and make about 20% of the entire AIATSIS collection (over fi ve years) available in electronic format. The Australian Institute of Marine Science Th e Australian Institute of Marine Science (AIMS) is Australia’s only research agency entirely focused on marine research. AIMS brings together some of the world’s best expertise and capacity in marine science in three broad areas – marine conservation and biodiversity, coastal processes, and marine biotechnology. Research is focused on sustainability and the capture of new opportunities through transfer of knowledge, which supports marine conservation and industry development across the northern parts of Australia’s Exclusive Economic Zone.

Th e tropical rock lobster is the focus of a collaborative project being Th e Institute’s main laboratory is located at Cape undertaken at AIMS to support the development a new aquaculture industry based around this commercially of valuable species. Ferguson 50km from Townsville and includes purpose- Photo credits: AIMS built laboratories for biotechnology, organic chemistry, geochemistry, biochemistry, molecular genetics and analytical chemistry, as well as multi-use laboratories to support ecological tasks. Support laboratories in Fremantle and Darwin supplement research undertaken at the main facility. Two AIMS vessels, the RV Cape Ferguson and RV Lady Basten, support access to tropical waters off Queensland, the Northern Territory and Western Australia. A fl eet of smaller vessels supports fi eldwork near-shore and off shore. AIMS maintains a high commitment to collaboration, which adds value, and capacity to its research eff ort. An extensive collaborative network extends across all states and territories and to over 21 countries. While the foundation of the Institute’s collaborative network has been developed through researcher networks, there are a growing number

Research being undertaken at AIMS is determining the eff ects of agricultural of more formal institutional collaborative arrangements chemicals such as diuron on corals of the Great Barrier Reef. between organisations, including with industry. Co- Photo credits: AIMS invested research through joint ventures, strategic alliances

10 Backing Australia’s Ability and signifi cant collaborations represents the majority of the Institute’s research eff ort. Major outcomes for 2004-05 include: • Techniques of sponge culture developed for research application have been adopted by several Indigenous communities that are now working to develop their own sponge farms. Th ese farms may provide new economic and educational ventures owned and operated by Indigenous communities in remote and regional Australia. • Research on the sensitivity and use of microbial indicators of pollution from both tropical and polar experimental studies is enabling the detection of pollution stress at chronic levels before more obvious impacts become apparent. Sponges are a potentially signifi cant source of bioactive compounds with application in human health and environmental care. • Collaborative research has successfully overcome the Photo credits: AIMS diffi culty of producing economic supplies of marine compounds for clinical investigation. In recently completed experiments, researchers transferred the DNA responsible for producing a biologically active compound from a complex organism into an easily cultured bacterium, enabling the culture of a sustainable supply of target metabolites through microbial fermentation. • All AIMS seawater temperature logger data, representing more than 10 million records, are now available on the web. Approximately 130 loggers are spread across 65 sites, from Papua New Guinea to Bundaberg, and are changed once a year by a network of volunteers and collaborators. • For decades, AIMS has been active in assessing the status of both domestic and international coral Equipment such as this towed video camera, developed in the AIMS Mechanical and Electronics workshops, are providing an insight into reefs. In 2004-05, these activities culminated in areas of the marine domain not previously surveyed. two major outputs, the Status of coral reefs of the Photo credits: AIMS world: 2004 report and Methods for ecological monitoring of coral reefs: a resource for managers. Th ese volumes and their predecessors continue to be used as benchmark references for researchers and managers worldwide. • Long-term quantitative data on corals, algae, reef fi shes and crown-of-thorns starfi sh from annual surveys spanning more than a decade have been collated from reefs covering nearly the entire Great Barrier Reef World Heritage Area. • Research to assess the impact of sediment runoff on the health of Micronesian coral reefs provided training opportunities for local scientists and has generated new information that has been transferred to local communities and government. Student researchers assisting AIMS scientist Dr Ray Berkelmans www.aims.gov.au with an investigation into coral growth rates in the Keppel Islands, Queensland. Coral growth is critically linked to sea temperature. Photo credits: AIMS

Chapter One: Initiatives for a dynamic national innovation system 11 Australian Nuclear Science and Technology Organisation Th e Australian Nuclear Science and Technology Organisation (ANSTO) is Australia’s national nuclear organisation and the centre of Australian nuclear expertise. Over the past year, the organisation’s activities have resulted in: • fi ve books, monologues and chapters being produced along with 175 journal articles and 267 conference papers and abstracts; • 15 invention disclosures being prepared and six provisional patents being fi led; • 194 postgraduate and undergraduate research students being supervised; • collaborations on 260 research projects; and • active commercialisation plans for 21 inventions and designs being fi nalised. Th e foremost commercialisation highlight of the year was a contract for ANSTO’s synroc technology to be used to imprison radioactive waste at Sellafi eld in the UK. ANSTO has undertaken extensive research on synroc and its applications since its invention in 1978 at the Australian National University. Provisional patents were fi led for a new process to increase and control the size of acid catalysed sol-gel particles, new technology for producing multilayered ‘onion style’ nanoparticles, and a novel, bio-friendly chemistry for the encapsulation and release of proteins in silica spheres. Th ese signifi cantly increase the scope of ANSTO’s controlled release technology to applications requiring release of proteins in cosmetic, homecare and healthcare products. A provisional patent application was also fi nalised in the nanostructural engineering area covering new bioreactor technology that has potential applications in areas as diverse as antibiotic production, sewage treatment, bioleaching and bioremediation. Th e ANSTO OPAL reactor is currently under construction and scheduled for completion in 2006, with operation to begin in early 2007. OPAL will have an initial suite of eight world-class neutron beam instruments, which will be used by scientists from ANSTO, universities, research institutions and industry. In an historic $8.5 million agreement, the National Science Council of Taiwan will fund the installation and operation of an additional neutron beam instrument at OPAL. Th e cold neutron 3-axis spectrometer will be used to analyse Australia’s largest single science investment, the OPAL research materials at the atomic and molecular levels. reactor, is expected to be online in 2006. Th e initial suite of eight neutron beam instruments in the beamhall (foreground) will place this facility among the top three in the world. Research excellence Photo credits: ANSTO ANSTO’s team of experts work at the cutting edge of international research. Th e head of ANSTO’s Institute for Nuclear Geophysiology, Professor Ann Henderson- Sellers, has been recognised by the Institute of Scientifi c Information as one of the world’s most cited scientifi c authors, while ANSTO’s fi rst Federation Fellow, Jill Trewhella – an international leader in using small angle neutron scattering in structural biology – arrived in July 2005 to work on enhancing biological applications of OPAL. A second Federation Fellow, Professor Jeremy Smith from the University of Heidelberg, is also furthering his research into computational molecular biophysics through work with OPAL and the Australian Synchrotron. Photo credits: ANSTO

12 Backing Australia’s Ability Information dissemination ANSTO uses a number of initiatives to raise awareness of its activities including: • weekend tours, held on the fi rst Saturday of each month and open to the community; • the inaugural ‘Materials Science Day @ ANSTO’ held during National Science Week and including a four-day exhibition at the Australian Museum; • Velocity: Science in Motion – an award-winning, free science magazine that is emailed each quarter and features stories about the work of scientists and science agencies across Australia; • Nuclear science in society – a new resource for science students in Years 7 to 10 developed in consultation with the Australian Science Teachers Association and state science education departments; and • a fi ve-day international workshop held in April 2005 by ANSTO’s Institute of Nuclear Geophysiology to explore new isotopic techniques and better understand environmental responses to climate change. www.ansto.gov.au

First independent test of global climate models

New climate change research using rainfall data shows that rare, naturally occurring water isotopes accurately measure deforestation and greenhouse impacts and could provide the world’s fi rst independent accuracy test of global climate models. ANSTO’s Professor Ann Henderson-Sellers and Dr Kendal McGuffi e of the University of Technology, Sydney have compared concentrations of two heavy water isotopes in the data collected between the 1970s and 2000s from the Amazon jungle and Andes mountains to assess the eff ects of human impacts in the Amazon Basin. Since the 1970s, less and less heavy water isotopes have been found in the rainy seasons, signalling deforestation. And while these results support previous studies, this time researchers have gone further and used the isotopic signals to ‘fi ngerprint’ plant transpiration, giving us extra information about the eff ects of land use changes. Th e success of this study suggests that this measurement model may also be useful in otherpartsof the world, including Australia.

Bureau of Meteorology Research Centre Th e Bureau of Meteorology Research Centre (BMRC) is the research division of the Bureau of Meteorology, Australia’s national meteorological service. Th e BMRC: • fulfi ls the Bureau’s statutory responsibility to advance meteorological science with a focus on the southern hemisphere and the Australian region; • enhances the operations and services of the Bureau through the development of advanced systems and techniques; and • promotes the application of meteorological science for the general good of the Australian community. Th ese objectives are met through four sub-programmes, weather, climate, ocean and hydrology research, and implemented through six thematic research groups: • Model development –research into atmospheric modelling to support weather and climate research and operations. • Data assimilation – research on advanced data assimilation systems to support model prediction and validation in research and operations.

Chapter One: Initiatives for a dynamic national innovation system 13 Th e Bureau of Meteorology has developed a new range of Fire Weather Forecast Products, such as Soil Moisture Defi cit maps. Th e soil moisture defi cit is a measure of the dryness of the soil and is calculated from observed rainfall and maximum temperature. Th e blank areas in the interior of Australia are due to the lack of rainfall observations. Th e green indicates areas of recent rainfall with soil moisture near fi eld capacity, whereas the red shows areas where the soil is dry to very dry. Th e national maps are primarily used for estimating the fuel moisture content, which in turn is used in the prediction of the forest fi re danger index. Previously, forest fi re danger predictions were point based, and these distributed soil moisture defi cit maps together with numerical weather prediction fi elds make it possible to predict a spatially distributed forest fi re danger index. Photo credits: BMRC

• Climate dynamics – the use of climate models to improve understanding of climate predictability, variability and change, and to improve the performance of climate models. • Weather forecasting – improving the understanding of mesoscale processes and developing systems to enhance weather forecasting services. • Climate forecasting – improving the understanding of Australia’s climate, including the eff ects of climate change, and developing systems to predict climate. • Ocean and marine forecasting – improving the understanding of the variability of the oceans and marine environment of the Australian region, and developing systems for monitoring and predicting ocean variability. In 2004-05, more than 60 articles authored by BMRC scientists were published in international peer-reviewed journals and books. A further 100 were published as reports or conference papers. BMRC scientists supervised seven Australian PhD students from the University of Melbourne, Macquarie University and Monash University, and seven overseas students. Twelve researchers from international institutions visited throughout the year. BMRC scientists also served on a range of national and international working groups and external advisory committees, concerned with both scientifi c and science policy issues. Signifi cant research collaborations were undertaken in Australia and overseas with organisations including CSIRO, the Australian Radiation Protection and Nuclear Safety Agency, the National Oceanic and Atmospheric Administration and NASA in the USA, and national meteorological services in China, Japan, the United Kingdom, Indonesia and other Asian and Pacifi c countries. Recent implementations include continuing upgrades to modelling systems used for tropical prediction, thunderstorm forecast guidance, ocean forecasting, weather elements and the transport and dispersion of a wide range of pollutants (including volcanic ash, bushfi re smoke, the foot and mouth disease virus, radioactive plumes and dust storms). www.bom.gov.au/bmrc

14 Backing Australia’s Ability Th e Ocean Forecast Australia Model (OFAM) is the high-resolution ocean model being developed within BLUElink for operational ocean forecasting. OFAM is a global model with enhanced spatial resolution (~10km) in Australia’s marginal seas. Each white dot corresponds to every 10th grid point in the model. Water depth (bathymetry) is shown in colour. Photo credits: Reprinted from the Bulletin of the Australian Meteorological and Oceanographic Society.

Advanced forecasting clears the smoke for fi re agencies

With the increased focus on prescribed burning as a means of mitigating the severity of bushfi res, smoke management has become an important issue for land managers. Th e Bureau of Meteorology Research Centre has developed a web-based delivery system by which it provides management agencies with twice-daily smoke dispersion forecasts. Using the system, managers can obtain information concerning the likely smoke transport path 24 hours before lighting a burn. Driven by the latest mesoLAPS numerical model data, the smoke dispersion forecasts track smoke transport for up to 36 hours. Th e delivery system also allows

input from regional forecasters to ensure accurate A composite of two satellite images captured by the Moderate Resolution Imaging Spectroradiometer (MODIS) instrument on information is being provided. the Terra satellite on 19 January 2005. Smoke from fi res which had been burning for more than three days near Perth is evident. Th e Research in this area is ongoing through the Bushfi re apparent fl ow of the smoke plume out to sea and then back over land to the north of Perth is a result of a wind shift from the southwest to Cooperative Research Centre, with the ultimate the southeast in the 12 hours prior to the image being captured. Th e development of this feature was evident in routine smoke forecasts aim of providing quantitative forecasts of smoke available to fi re managers. constituents. Photo credits: BMRC Commonwealth Scientifi c and Industrial Research Organisation (CSIRO) CSIRO is Australia’s national science agency. It is a powerhouse of ideas, technologies and skills for building prosperity, growth, health and sustainability, and serves government, industries, business and communities across the nation. CSIRO carries out scientifi c research in areas including energy, information technology, health, minerals, agriculture, the environment and natural resources. Its research delivers: • innovative technologies to improve the competitiveness of existing industries; • technologies to transform or create new markets for Australian industry; • integrated solutions to meet major national challenges; • advice, information and research to meet specifi c community needs; and • knowledge-based services to governments and businesses.

Chapter One: Initiatives for a dynamic national innovation system 15 A total of 84% of CSIRO’s expenditure is directed towards the priority goals associated with the National Research Priorities. CSIRO hosts three major National Research Facilities (the Australian Animal Health Laboratory, the Australia Telescope and the oceanographic research vessel Southern Surveyor) and over 30 other research facilities including the Riverside Life Sciences Centre, CSIRO Discovery Centre and the Australian Resources Research Centre. CSIRO manages 11 national reference collections including the Australian National Fish Collection, the Australian National Insect Collection, the Australian National Herbarium, the Australian National Wildlife Collection, the National Tree Seed Collection and the Scientifi c Marine Data Collection.

Publication numbers (by calendar year) 2000 2001 2002 2003 2004 Journal articles 1 619 1 631 1 686 1 836 1 858 Conference papers 1 035 1 096 1 142 1 428 1 713 Technical reports 175 153 240 442 280 Books and chapters 178 128 223 240 270 Client reports 8 936 9 324 10 486 8 451 8 251

Intellectual property (numbers as at 30 June) 2001 2002 2003 2004 2005 Inventions (patent families) 751 733 779 754 745 New inventions 93 80 92 89 79 Current Patent Cooperation Treaty applications 82 104 90 92 95 Granted patents 1 774 1 801 2 002 2 079 2 048 Live patent cases 3 475 3 537 3 965 3 961 3 919 Australian trade marks 262 287 290 306 Foreign trade marks 84 93 92 100 Australian plant breeders rights 65 62 77 80 Foreign plant breeders rights 17 17 17 21 Australian registered designs 8 5 3 3 Foreign registered designs 9 12 12 12

At June 2005, CSIRO had 6 576 staff located across 57 sites throughout Australia and overseas. Just over 60% hold university degrees, including more than 2 013 doctorates and 470 masters. CSIRO also had 288 postdoctoral fellows, an increase from 259 the previous year. In collaboration with university colleagues, staff supervised or co-supervised 538 postgraduate research students (463 PhD, 32 masters and 43 honours students) during the year, 23% in collaboration with CRCs. A total of 245 postgraduate students were sponsored (including 232 PhD students), an increase from 235 the previous year. A new CEO Science Leader Scheme, which commenced in June 2005, aims to attract up to 25 of the best young scientists from across the globe over the next fi ve years.

Raising awareness Stories involving CSIRO science are reported in around 12 000 news or feature items every year in print, radio and television and involve Australian and international media. CSIRO Enquiries, the central telephone and email contact point, handles over 35 000 enquiries a year. CSIRO Education involves over 700 000 students, parents and teachers each year in activities that encourage appreciation of science. CSIRO jointly produces the Totally Wild science television programme, which has a viewing audience of over 400 000 each week. Th ere are also nine CSIRO Science Education Centres across Australia that provide hands-on classes for more than 260 000 students. Each centre also has a Lab on Legs travelling programme operating throughout Australia to take classes to the students and their schools.

16 Backing Australia’s Ability Th e Double Helix Science Club has two magazines –Th e Helix (circulation 13 000) and Scientriffi c (circulation 12 000), as well as events and activities for members. CSIRO Education also off ers a range of other programmes for school students and teachers. Th e Discovery Centre in Canberra is CSIRO’s showcase. Visitors can explore an interactive exhibition or make use of the modern events facilities. Discovery’s education programme gives children a chance to explore real research issues in a scientifi c setting complete with working laboratories. Developing and maintaining relationships Developing meaningful, long-term collaborative partnerships with industry, government and semi- government agencies, as well as Australian and international universities, remains a priority. Recent developments include: • Commencing a collaborative project between CSIRO Petroleum and German-based research centre Laser Zentrum Hannover eV in February 2005 that could save millions of dollars in oil exploration costs and introduce new Australian geochemical and petroleum analysis techniques to Europe. • Receiving $9.5 million from the South Australian Government for a new Wine Innovation Cluster. Th e funding will be used to link the Australian Wine Research Institute building on the Adelaide University’s Waite campus with CSIRO Plant Industry’s research facilities. • Finalising a new Collaborative Research Support Scheme with Monash University to encourage the development of collaborative research between the two organisations with preference given to early Photo credits: CSIRO career researchers. Market based outcomes over the past year include: • New contracts were signed with Research and Development Corporations amounting to $44.3 million. • Relationships with 40 SMEs were established that generated over $100 000 each in revenue for CSIRO. • Th e spin-off company, Epitactix Pty Ltd, was formed to develop and commercialise novel semi- conductor and transistor devices. • CeNTIE-2 began – a three-year $23 million co- investment between CSIRO and the Department of Communications, Information Technology and the Arts in advanced networking applications. • Th e intellectual property and equity income value achieved was $20.4 million. Th ese revenues include running royalties of $15.1 million (signifi cantly Th e CSIRO Science Education Centre in Darwin, NT, helps bring above the previous year), and revenues from sales science alive for school students, both in Darwin and across the remote communities of the Northern Territory. of equity investment and IP through spin-off s of Photo credits: CSIRO $5.3 million. www.csiro.au Chapter One: Initiatives for a dynamic national innovation system 17 Total Wellbeing Diet a national success story

Research at CSIRO has identifi ed dietary approaches that can assist Australians to improve their lifestyle and achieve better health. At the request of dieticians, who were concerned about the promotion of high protein diets without reliable supporting evidence, staff at CSIRO’s Clinical Research Unit in Adelaide decided to investigate the benefi ts of protein versus traditional high carbohydrate, low-fat diets. Clinic researchers studied 100 overweight and obese women on two diff erent diets over a period of 12 weeks. Th e women were divided into two groups: one group was placed on a high protein, low fat diet and the other was given a high carbohydrate, low fat diet. Researchers found that a majority of women preferred the high protein diet and that more weight and fat was lost by the women in that group. Th ese studies led the team at CSIRO to develop the CSIRO Total Wellbeing Diet, designed to provide a more nutritionally balanced alternative to other popular high protein diets. Th e CSIRO Total Wellbeing Diet book was launched during May 2005 and fast became one of the best selling publications of 2005.

Defence Science and Technology Organisation Th e Defence Science and Technology Organisation (DSTO) supports Australia’s defence by: • investigating future technologies for defence applications; • ensuring Australia is a smart buyer of defence equipment; • developing new defence capabilities; and • enhancing existing capabilities by increasing operational eff ectiveness, improving safety and serviceability, and reducing the cost of ownership. Structural integrity - International Follow-on Structural test Project (IFOSTP) DSTO’s capability also supports whole-of-government Photo credits: DSTO national security needs. Headed by the Chief Defence Scientist, Dr Roger Lough, DSTO employs about 2 200 staff , predominantly scientists, engineers, IT specialists and technicians. Th e organisation has an annual budget of approximately $300 million. Whenever possible, DSTO works closely with industry and the science and technology community to enhance its ability to support Australia’s defence capabilities and to contribute to national wealth. In 2004-05, DSTO fi led 10 provisional patent applications and published nearly 280 scientifi c reports as well as a similar number of articles in scientifi c and technical journals. It also entered into 12 new licensing agreements with industry, placed 34 research agreements primarily with universities, Fracture Mechanics. F111 Wing Commissioning Test. and entered into 18 collaborative arrangements across a Photo credits: DSTO wide range of technology disciplines.

18 Backing Australia’s Ability Many of these collaborative arrangements contributed to the National Research Priorities, particularly safeguarding Australia and supporting whole-of-government initiatives for counter-terrorism research. DSTO has demonstrated its commitment to such collaborations by entering into arrangements with many government agencies and joining the Publicly Funded Agencies’ Collaborative Counter- Terrorism research programme, which was launched in March 2005 and is coordinated by the National Security Science and Technology Branch of the Department of the Prime Minister and Cabinet. Technologies licensed for commercialisation included software to enable the automatic transcription of meetings, low cost rifl e scope technology to protect the user from head and torso shots, information security technologies, and landmine protection tool kits. Nuclear, Biological and Chemical Suited Sampling. DSTO awarded scholarships to a number of students Photo credits: DSTO under a variety of programmes during the year. Examples include: • Summer vacation scholarships. A total of 50 scholarships were off ered to promising tertiary students in a variety of disciplines including engineering, science, mathematics, information technology and human factors. • Industry experience placements. A total of 23 placements were off ered to high achieving tertiary students in a variety of disciplines including computer science, photonics, and software and telecommunications engineering. • Graduate Industry Linked Entrepreneurial Scheme. Ten scholarships were off ered to recent university graduates. DSTO has in place a broad programme of overseas Aircraft Materials Advanced Th ermography interactions which allow staff to benchmark their Photo credits: DSTO activities against the world’s best, as well as to undertake joint research programmes with defence science peers. Th e major vehicle for multilateral cooperation is the Technical Cooperation Programme involving around 1 200 defence scientists from Australia, the United States, United Kingdom, Canada and New Zealand. DSTO also has active bilateral programmes running with the United States, United Kingdom, Canada, New Zealand, France, the Netherlands, Singapore and Th ailand. www.dsto.defence.gov.au

Chapter One: Initiatives for a dynamic national innovation system 19 Helping our soldiers shoot around corners

Th e Defence Science and Technology Organisation’s Land Operations Division has developed a new off -axis viewing device that allows soldiers to scan and engage targets from a position of cover. Th e device, which is not an expensive prototype, attaches to the weapon’s sighting system and allows a soldier to survey the terrain around corners, over walls Photo credits: DSTO or other available cover. Th e device was designed as an alternative to camera and display systems that had been tested for off -axis shooting research. Although similar to the periscope rifl e used in Gallipoli in 1915, this device is far more compact and lightweight and does not aff ect the normal operation of the rifl e. It has already been deployed in current Australian Defence Force operations.

Off Axis View Device. Photo credits: DSTO

Geoscience Australia Geoscience Australia delivers fi rst-class geoscientifi c data, information and knowledge that enables informed decisions to be made about exploiting resources, managing the environment, the safety of communities and critical infrastructure, and the well-being of all Australians. Achievements during 2004-05 include: • studies that resulted in renewed industry interest in the petroleum potential of off -shore areas where there’s been no recent exploration activity; • collaborative onshore studies on mineral prospectivity that enhanced the attractiveness of developing deep earth resources in a number of regions across Australia; • a national bioregionalisation study to advance the sustainable use of Australia’s marine biodiversity through a range of regional marine planning initiatives; • the discovery of a new coral reef province in the southern part of the Gulf of Carpentaria that provided new information and thereby advanced Australia’s ability to manage and protect marine biodiversity in the region; • the release of a draft national risk assessment framework to enhance Australia’s capability to ensure the safety of its community and critical infrastructure; and • the development of an extensive range of topographic maps, satellite imagery and associated fundamental data products that underpin the nation’s capacity to address National Research Priorities. A new Geospatial and Earth Monitoring Division was also established within Geoscience Australia to enhance the agency’s capacity to manage geospatial information and knowledge, and Earth observations, and its fl exibility to respond to current and emerging national priorities, including the establishment of the Australian Tsunami Warning System. www.ga.gov.au

20 Backing Australia’s Ability Untouched coral reefs an oasis for marine life

A previously unidentifi ed major coral reef system discovered in the southern part of the Gulf of Carpentaria will provide valuable information to environmental and marine resource managers. Investigations of the site, extending for over 100 kilometres northwest from Mornington Island, have revealed that many of the estimated 50 separate reefs making up the province support locally diverse and luxuriant coral growth and a thriving array of sea life, including sponges, soft corals and shellfi sh. It has been estimated that reef growth has persisted in the region for 100 000 years. Run in conjunction with the Department of the Environment and Heritage and CSIRO Marine Research, the reef was discovered during a $900 000 survey led by Geoscience Australia in northern Australian marine waters on board the Australian Government’s National Facility ocean research vessel, the Southern Surveyor. Th e survey used a sophisticated sonar seabed mapping system and an underwater corer to investigate the reefs.

National Measurement Institute Th e National Measurement Institute (NMI) is the national centre for measurement in Australia. Itis responsible for physical, chemical, biological and legal metrology, for developing and maintaining Australia’s national standards of measurement traceable to the international system, and for disseminating measurement standards through calibration services and chemical and biological reference materials. NMI’s services include calibration at the highest level of accuracy, pattern approval of measuring instruments and a broad range of chemical and biological measurements to support industry and government. Th ese include food composition and safety, chemicals of concern to the environment, detecting drugs used in sport, and illicit drugs. In 2004-05 NMI: • published 22 externally refereed papers and 78 other publications, and delivered 27 training courses for participants from a range of industries including chemical, weighing, metering, electrical, electronics and power generation industries, trade measurement and analytical services; • continued work on a new atomic clock based on ions of ytterbium, trapped by electric fi elds and cooled by laser light. Th e ions are held in vacuum, and a novel vacuum chamber has recently been designed and commissioned using only non-magnetic materials. Th e systematic frequency uncertainty caused by magnetic fi elds has been dramatically reduced, making the frequency accuracy about a thousand times better than commercial atomic clocks; and • established the National Cocaine Signature Programme in partnership with the Australian Federal Police as part of the Australian Illicit Drug Intelligence Programme. It comprises four ‘chemical signatures’ which allow the origin of cocaine imported into Australia to be determined. In 2005-06 a framework for biological measurement will be developed to underpin all areas of life sciences, including biotechnology, and to ensure valid approaches to biomeasurement. www.measurement.gov.au

Chapter One: Initiatives for a dynamic national innovation system 21 Chemical ‘signatures’ of drugs help authorities track illicit drug imports

Access to a series of ‘chemical signatures’ developed by the National Measurement Institute in partnership with the Australian Federal Police (AFP) and the United States Drug Enforcement Administration has enabled law enforcement agencies around Australia to track heroin and cocaine imports. Th e National Cocaine Signature Programme has joined the National Heroin Signature Programme as part of the Australian Illicit Drug Intelligence Programme (AIDIP), established and funded by the AFP. Both are being successfully used to establish tactical links between drug seizures thereby assisting authorities to investigate and prosecute drug crimes involving cross- border seizures. For a specifi c investigation, chemical comparisons can be conducted within and between seizures to identify diff erent batches in a single shipment or potentially Photo credits: NMI demonstrate links between individuals or networks that trade in illicit drugs. On a strategic scale, the analytical results obtained under the AIDIP are used to identify the geographic regions of origin and manufacturing trends including precursor chemicals diverted from legitimate industrial use. Th is information assists in targeting resources available to law enforcement, as well as further developing the understanding Australia has of the illicit drug trade.

The business sector

Th e business sector is the largest performer of R&D in Australia, conducting around half of GERD in recent years. In 2003-04, Australia’s business expenditure on R&D (BERD) reached $7.22 billion, an increase of 9.9% at current prices or 6.9% in real terms over 2002-03. Th is is the highest level recorded and is the fourth successive year of increase. Over the decade to 2003, Australia’s BERD recorded an average annual growth rate of 6.4% in real terms. Th is compares favourably with 3.6% for the OECD as a whole and 3.1% for the EU-15. Australia’s business R&D intensity, measured by BERD as a percentage of GDP, has also risen to a new high of 0.89% in 2003-04, clearly exceeding the previous peak of 0.87% fi rst recorded in 1995-96, then in 2001-02 and 2002-03.

22 Backing Australia’s Ability Table 4: Australia’s business expenditure on R&D, 1981-82 to 2003-04

BERD BERD as a percentage of GDP 8,000 1.0 0.89 0.87 0.87 0.87 0.9 7,000 0.80 0.74 0.75 0.74 0.8 6,000 0.70 0.69 0.67 0.7 0.66 5,000 0.58 0.6 0.51 0.52 0.53 4,000 0.47 0.47 0.5

0.38 0.4 3,000 0.32 7,220.0 6,571.0

0.25 6,192.0 0.3 0.25 % of GDP 7 0

2,000 0 $million (at current prices) 4,983.0 0.24 3 0.2 4,356.6 4,234. 4,221. 4,137. 4,094.7

1,000 3,508. 8 7 3,119.2 3 1 7 0.1 2,861.9 3 2,364.6 2,099. 1,989. 1,798. 721.3 947.9 1,280. 1,455. 0 373.7 440. 506.8 0.0 2 8 4 88 9 0 91 2 5 7 8 9 0 2 04 1- -83 -85 -86 0- 1-9 -93 -9 -96 6-9 -9 -9 -0 -01 1-0 - 98 1 1982 1983-81984 1985 1986-871987- 1988-81989-9199 199 1992 1993-941994 1995 199 1997 1998 1999 2000 200 2002-032003

Sources: ABS, unpublished R&D data, September 2005; OECD, Main Science and Technology Indicators database, 2005/1. Australia’s business R&D intensity is relatively low by OECD standards. Sweden, Finland, Japan and Korea have ratios exceeding 2%. Switzerland, the United States, Germany, France, the United Kingdom and Canada lie in the range of 1% to 2%. At 0.89%, Australia lies with a small group of OECD countries including the Netherlands, the Czech Republic, Ireland, Spain and Italy having ratios between 0.5% and 1.0%, in the lower end of the OECD range, but above the less industrialised European countries. Table 5: BERD as a percentage of GDP – by OECD country, 2003

Sweden 2.95 Finland 2.46 Japan 2.36 Korea 2.01 Switzerland 1.90 United States 1.79 Germany 1.78 Denmark 1.75 Belgium 1.71 Iceland 1.67 Luxembourg 1.58 Total OECD 1.51 Austria 1.42 France 1.36 EU-15 1.25 United Kingdom 1.24 Canada 1.03 Norway 1.00 Netherlands 0.99 AUSTRALIA 0.89 Spain 0.80 Ireland 0.77 Italy 0.60 New Zealand 0.55 Czech Republic 0.47 Hungary 0.35 Slovak Republic 0.32 Portugal 0.30 Greece 0.20 Turkey 0.19 Poland 0.15 Mexico 0.12 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 % of GDP

Source: ABS, unpublished R&D data, September 2005; OECD, Main Science and Technology Indicators database, 2005/1. Note: 2000 for Luxembourg and Switzerland; 2001 for Mexico; and 2002 for Turkey, Portugal, Austria and Denmark.

Chapter One: Initiatives for a dynamic national innovation system 23 In comparison with most OECD countries, Australia’s business R&D exhibits several notable characteristics: the services sector conducts a high proportion of business R&D, small and medium size business enterprises carry out a high share of business R&D, and manufacturing R&D is skewed towards medium-low and low- technology industries. Commercial Ready Commercial Ready commenced on 1 October 2004 and was announced as part of the Australian Government’s new 2004 Backing Australia’s Ability – Building Our Future through Science and Innovation package. It aims to stimulate greater innovation and productivity growth in the private sector by providing around $200 million a year in competitive grants to SMEs to 2010-11. Th e grants will help SMEs undertake R&D, proof- of–concept and early stage commercialisation activities (see full description on pg44, research to investment ready stage). Industry Cooperative Innovation Programme Th e Industry Cooperative Innovation Programme (ICIP) was launched in June 2005 to provide competitive grants to support cooperative industry projects which relate to the development and use of new technologies in industry sectors. Total government funding is $25 million to 30 June 2011 (see full description on pg44, research to investment ready stage). R&D Start R&D Start, established as a competitive, merit based grants programme in 1996, closed to new applications on 10 September 2004. Th e programme, which assisted Australian companies to undertake R&D and early-stage commercialisation of technological innovation, was absorbed into the new Commercial Ready programme on 1 October 2004 as part of Backing Australia’s Ability – Building Our Future through Science and Innovation. Existing recipients of R&D Start funding were not aff ected by the change and continued to obtain support according to their contractual obligations and existing administrative arrangements. A total of 232 applications for R&D Start were considered in 2004-05, with 115 approved for assistance to the value of $121.66 million. Nearly all were small and medium sized companies, a trend which was consistent over the life of the programme. Th e information, computer and communication technologies, and applied sciences and technologies areas, received the most funding assistance. One hundred and twenty R&D Start projects were completed in 2004-05 – 77% had results commercialised or which are expected to be commercialised in the near future. Demand for R&D Start remained high over the life of the programme, with 1 365 projects in a range of industry sectors assisted since 1996. Data collected from the 234 recent post project survey respondents found that: • 46% of domestic patents applied for were successful; • 40% of international patents applied for were successful; • 63% of respondents considered their project was commercially successful; • 40% of collaborative arrangements were conducted with universities; and • R&D expenditure was highest in the fi rst year following the award of the R&D Start project. As at 30 June 2005, the programme had more than 400 active projects (grants and loans). All commitments and payments for these projects will be made against the Commercial Ready allocation. www.ausindustry.gov.au

24 Backing Australia’s Ability Get to the post fi rst with EasyMail

Th e offi ce mail run is set to be a thing of the past with Queensland business EasyMail bringing the post offi ce to our computers. Th e EasyMail system means no more printing, no folding, no envelopes, no stamps and no post offi ce queues as businesses can send postal mail directly from their computers, while still providing their customers and others with hard-copy mail delivered to their letter boxes. Th e virtual EasyMail print driver captures, records, encrypts and electronically sends the letters to its secure facility, where they are automatically printed, folded and posted through Australia Post. While the concept sounds simple, it took four years of research and development to make it happen. EasyMail was supported by the Australian Government through AusIndustry with a $245 000 R&D Start grant and a Commercialising Emerging Technologies (COMET) grant. EasyMail has since tripled full-time staff from six to 18 and with more than 1.8 billion letters posted from desktop computers each year, the sky is the limit. Photo credits: DITR

R&D Tax Concession Th e R&D Tax Concession is the government’s principal mechanism to encourage private sector expenditure on R&D. It has three elements: • 125% R&D Tax Concession – deductions of 125% of eligible expenditure incurred on eligible R&D activities from assessable income; • 175% Premium R&D Tax Concession – a higher level deduction for companies that have additional R&D expenditure for eligible labour expenditure above the previous three-year average; and • R&D Tax Off set – assists small companies, especially those in tax loss, by providing an immediate benefi t from the 125% R&D Tax Concession and the 175% Premium R&D Tax Concession by allowing them to cash out their benefi t. At 30 June 2005, 5 503 companies were registered for the 2003-04 fi nancial year, with reported R&D expenditure totalling $6.55 billion which was an increase of 3% over the previous year. In 2003-04 the number of registrations reached a record level, increasing by 8% over 2002-03 and an average of 12% a year over the previous fi ve years. Th e majority of companies reported R&D expenditure of less than $500 000, which represents 10% of the total reported R&D expenditure. Companies with a turnover of less than $5 million represented the largest single group of registrants (67%) for the R&D Tax Concession. Reported R&D activities valued greater than $10 million represented 45% of total reported R&D expenditure. Companies with a turnover of more than $50 million represented 13% of the registrants.

Chapter One: Initiatives for a dynamic national innovation system 25 Take up of the R&D Tax Offset and 175% Premium Tax Concession elements At 30 June 2005, a total of 2 355 companies had indicated the intention to claim the R&D Tax Off set for the 2003-04 income year. At 30 June 2005, a total of 891 companies had indicated the intention to claim the 175% Incremental (Premium) R&D Tax Concession for 2003-04 income year (made up of 683 companies claiming the Premium and 208 companies claiming the Off set at the Premium (175%) rate).

Table 6 - Number of fi rms using the 125% R&D Tax Offset and 175% Premium

125% R&D Tax Offset 175% Premium 2500

2000

1500

1000

500

0 2001-02 2002-03 2003-04

Note: Th e R&D Tax Off set data includes the R&D Tax Off set claimed at the 175% Premium rate. Data for 2001-02 as at 13 October 2004, data for 2002-03 as at 3 March 2005, and data for 2003-04 as at 30 June 2005.

R&D Tax Offset claims with the Australian Taxation Offi ce In the year ended 30 June 2005, the Australian Taxation Offi ce processed 2 058 R&D Tax Off set claims, with deductions totalling $717 million, giving rise to off set amounts of $215 million. www.ausindustry.gov.au

26 Backing Australia’s Ability Roma monsters cookie market

From humble beginnings in 1986 as a small retail outlet in a Melbourne suburb, Roma Food Products has expanded to sell health and dietetic foods in more than 40 countries, with exports accounting for 55% of business. Th e company’s vegan cookie creation hit the streets in 2004 and has a loyal following in Australia and abroad. Roma credits the Australian Government’s AusIndustry R&D Tax Concession innovation assistance programme Photo credits: DITR for the vegan cookie. Th e programme enabled Roma to pour $250 000 into research and development on the experimental activity and equipment needed to make the cookie formula work, and most importantly, for the cookie to compete for taste with common consumer products. During the cookie research and development, Roma experimented with cereal combinations for protein make-up similar to wheat only to fi nd the cookie formula so thick it would damage the mixing paddles. But they refused to give up and in time won the battle for a vegan cookie. Th e cookies are 98.7% fat free and have no cane sugar or gluten-containing materials such as wheat, egg and artifi cial preservatives. World-wide leaders in gluten-free and wheat-free products, Roma caters for coeliacs, those with food allergies, intolerances and other medical conditions.

Rural R&D Corporations and Companies Th e 15 rural R&D Corporations and Companies (RDCs – see appendix 14 for a full list) are a partnership between government and industry to invest in R&D and advance the interests of industry and the community. Th e government matches industry expenditure on R&D dollar-for-dollar up to a limit of 0.5% ofeach industry’s gross value of production. In 2004-05, the RDCs invested over $500 million in rural R&D, with the Australian Government contributing over $200 million of this funding. Th e main purpose of the RDCs is to identify the needs and priorities of industry and government, commission research, develop outputs and foster uptake and adoption. It is widely recognised that eff ective adoption of R&D outputs is greatest when parties who will benefi t are actively involved in the project as early as possible. Th e RDCs collaborate with industry and research providers at the project design stage before fi nalising the contract and beginning work. Engaging the intended recipients of research outputs is as vital as the knowledge derived from R&D. In delivering their services, the RDCs recognise that simply delivering R&D is not enough to guarantee its adoption. A major strength of the RDCs is their ability to address the government’s National Research Priorities, with all RDCs now checking and aligning the needs of their client industries with the government’s priorities and presenting the programmes to address these joint needs in their planning and reporting documents. Also, RDCs have now increased their focus on collaboration to provide holistic solutions to industry. Several RDCs prepare a prospectus-style document to signal key areas of interest and invite partnerships to address them. Others use formal cross commodity discussions to plan collaborations, such as the quarterly meetings between RDCs for the red meat and wool sectors. Th e rural RDCs use a fl exible attitude towards control of intellectual property (IP). Rather than focusing on creating royalty streams, they focus on managing the IP to develop practical tools to benefi t their levy-payers, and disseminating these topics as widely and effi ciently as possible to those people who have funded the R&D. Th is is achieved through workshops, fi eld trials, websites, fact sheets, publications, magazines, newsletters,

Chapter One: Initiatives for a dynamic national innovation system 27 and formal and informal industry networks. Th is approach does not preclude the use of commercialisation to achieve adoption of R&D outputs. For example, the Cotton RDC derived over 14% of its revenue from royalties in 2004-05, which will be invested back into R&D. Th e Grains RDC submitted 18 plant breeder’s rights applications and is a stakeholder in 11 companies limited by shares or guarantee – the aims of these entities being to foster adoption of grains industry R&D. Th e RDCs’ strong emphasis on facilitating adoption of innovations by industry has fostered: • better farm management; • advances in breeding new plant and animal varieties; • improved crop rotations with better pest and weed Photo credits: Australian Government Department of Agriculture, Fisheries and Forestry. control; • production and adoption of new herbicides; • more effi cient fertiliser use; • improved water use effi ciency; and • advances in machinery design. Th e Productivity Commission’s study, Trends in Australian Agriculture (July 2005), found that adoption of technological advances and innovation – such as that fostered by the rural RDCs – underpinned a doubling of real agricultural output over the four decades to 2003-04. Over the last 30 years, productivity growth has accounted for the entire increase in output by the agriculture sector. Such productivity increases help off set Australian producers’ declining terms of trade and assist Australia to Photo credits: Australian Government Department of Agriculture, Fisheries and Forestry. compete in increasingly competitive global markets. Food Centres of Excellence Th e Food Centres of Excellence programme is an Australian Government funded initiative under the National Food Industry Strategy. Th e programme is delivered by National Food Industry Strategy (NFIS) Ltd. It will provide $12.4 million over fi ve years to June 2007 to help develop world-class capability in Australian food R&D centres and help better coordinate Australia’s food R&D eff orts. Improved capability will encourage innovation in food product, process and systems development. Th e programme aims to: • foster commercialisation outcomes in the Australian based food industry, with follow-through investment and employment; • provide Australian based food processors with improved access to world class R&D expertise; • attract R&D activities of multinational food corporations; and • improve coordination of Australia’s food R&D eff orts. Two centres of excellence have been established: the National Centre of Excellence in Functional Foods at the University of Wollongong (NFIS contribution $5.5 million over fi ve years) and the Australian Food Safety Centre at the University of Tasmania (NFIS contribution $4.5 million over fi ve years). Th e Functional Food Centre’s science projects have formed the basis of industry co-funded projects in healthy ageing, kid’s food and weight control. Its partner organisations include CSIRO, Food Science Australia, the Australian Research Council Key Centre for Smart Foods at the University of Wollongong and the

28 Backing Australia’s Ability Department of Primary Industries – Victoria. Predictive microbiological and risk analysis projects developed by the Food Safety Centre have been incorporated in both AQIS Meat Export Regulations and Singapore food safety legislation. Both centres continue to develop human capital through undergraduate courses, higher research degrees through scholarships and collaborative research projects, an internship programme and master class workshops. NFIS Limited and the Australian Institute of Food Science and Technology recognise the critical shortage of food scientists and food technologists and have developed Food WorX – a CD resource for science teachers and career advisors that has been distributed to 6 000 secondary schools across Australia. Th e multi media format targets Year 11 and 12 students and provides information on career opportunities in the food industry. National Food Industry Strategy Ltd – www.nfi s.com.au National Centre of Excellence in Functional Foods – www.nceff.com.au Australian Food safety Centre of Excellence – www.foodsafetycentre.com.au Food Innovation Grants Programme Th e Food Innovation Grants (FIG) Programme is designed to foster innovation in the Australian food industry by providing competitive, merit-based grants on a matching dollar-for-dollar funding basis for up to half the eligible project costs to food businesses. Projects funded under the programme involve research and development to resolve a scientifi c or technical challenge for the Australian food industry. Project outputs have strong prospects for commercialisation within the business and uptake by other food businesses. A mid-term review of the programme undertaken in 2004 found that it was performing strongly and, as available grant funds had been committed, recommended it receive further funding. Th e Australian Government initially allocated $34.7 million to FIG over the fi ve years to June 2007. A further $12 million will be provided over 2005-06 and 2006-07. For 2004-05: • 43 full applications were received; • contracts were fi nalised for 21 new grants with a further six food companies negotiating grant deeds; • 41 grants were active at the end of the year; • total commitment of funds to new projects was $17.830 million; and • total payments to current projects were $10.003 million. www.nfi s.com.au ICT Centre of Excellence, National ICT Australia Th e National ICT Australia (NICTA) Centre of Excellence was established in October 2002 as the information and communications technology cornerstone of Backing Australia’s Ability. Australian Government funding of $129.5 million was allocated for its fi rst fi ve years of operation to 2005-06. Th e programme is designed to develop fi rst-class ICT research capabilities in existing and emerging fi elds, increase the availability of high quality ICT research skills by providing post graduate training and attracting ICT researchers from overseas, exploit the commercial potential of research outputs, and to become a catalyst for the development of networks and clusters in ICT industry activity.

NICTA: • is a leader in Australia’s ICT research community and is actively involved with Australia’s major public and private research centres and universities, as well as with international contemporaries in the US, Europe and Asia; • was a major player in Australia’s ICT Outlook Forum in September 2005, the third in a series of annual events to bring together ICT researchers and agree broad research priorities; and • is establishing linkages with SMEs so they can become familiar with its research activity and participate in research project development. Chapter One: Initiatives for a dynamic national innovation system 29 NICTA completed two and a half years of operation in June 2005 having grown to 313 staff (273.6 full-time equivalent), of which 181 (or 145.9 full-time equivalent) were researchers. Some 81 researchers are seconded from the University of NSW, the Australian National University, the University of Melbourne, and three Queensland universities. At 30 June 2005, NICTA was undertaking 52 projects across 16 programmes and had 173 research students. NICTA will continue to grow its staffi ng and research programmes through 2005-06 across its fi ve laboratories until it reaches its full scale of operations in 2007. Under Backing Australia’s Ability – Building Our Future through Science and Innovation, the government committed an additional $251 million for NICTA’s second phase of operations to 2010-11. www.nicta.com.au

Information is power in the fi ght against crime and disease

At its new laboratory in Brisbane, Queensland, National ICT Australia is working to address potential and real threats to Australia such as terrorism, crime, invasive disease and pests, as well as protecting the security of our online environment from cyber crime. Th e Safeguarding Australia project, which was launched in February 2005, aims to improve prevention, detection, prediction and recovery coordination in disaster situations. Staff at the laboratory are developing new information and communication technology based solutions to these new national challenges by utilising advanced methods such as spatial signal and information processing, networked embedded systems, data mining and integration and context aware information presentation.

The research sector

Australian universities play a vital role in the national research and innovation system. Th ey are major contributors to the generation and transmission of knowledge in Australia. Many of Australia’s leading researchers are internationally recognised for their high levels of skill and expertise in their respective fi elds of research. Th is exemplary standard enhances Australia’s reputation to eff ectively contribute to the global development of knowledge. Australian universities are also the key providers of training and professional development for our future researchers. University R&D Higher education expenditure on R&D (HERD) amounted to $3.4 billion in 2002. Th is represented an increase of 22.9% at current prices over 2000. Also, HERD as a percentage of GDP rose from 0.42% in 2000 to 0.45% in 2002. Th is ranked Australia equal ninth with Norway amongst OECD countries.

30 Backing Australia’s Ability Table 7: HERD as a percentage of GDP – by OECD country, 2002

Sweden 0.83 Finland 0.66 Canada 0.65 Switzerland 0.64 Denmark 0.58 Austria 0.57 Netherlands 0.52 Iceland 0.50 Norway 0.45 AUSTRALIA 0.45 Turkey 0.43 Belgium 0.43 France 0.43 Germany 0.43 Japan 0.43 EU-15 0.43 Unite Kingdom 0.42 United States 0.42 Total OECD 0.41 Italy 0.38 Portugal 0.34 New Zealand 0.33 Spain 0.31 Greece 0.29 Hungary 0.26 Korea 0.26 Ireland 0.25 Poland 0.20 Czech Repubilc 0.19 Mexico 0.12 Slovak Republic 0.05 Luxembourg 0.00 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 % of GDP Source: OECD, Main Science and Technology Indicators database, 2005/1. Note: 2000 for Luxembourg and Switzerland; 2001 for Mexico, Greece and Sweden; and 2003 for New Zealand.

Th ere have been a number of recent government policies and initiatives which have profoundly changed the funding landscape for higher education research in Australia. Th is includes the release and implementation of the policy documents Knowledge and innovation: A policy statement on research and research training and Our Universities – Backing Australia’s Future, and the legislative changes to establish the Higher Education Support Act. Th e government’s aim in initiating these processes is to encourage institutions to be more fl exible and responsive in developing a strategic portfolio of research activities and training programmes, and to better secure the benefi ts arising from the achievements of individual researchers and teams. Australian Research Council Th e Australian Research Council (ARC) was established to advance Australia’s research excellence andis a primary source of advice to the Australian Government on investment in national research. Under the National Competitive Grants Programme, it supports the highest quality research and research training through open competition in the sciences, social sciences and humanities. It facilitates collaboration between Australian researchers and industry, government and community organisations and the international research community. During 2004–05, the ARC announced two new joint funding initiatives with the National Health and Medical Research Council: • Thinking Systems will support novel, innovative and cross-disciplinary research at the intersections of neuroscience, genetics, proteomics, cognitive science, artifi cial intelligence, computer science and information technology; and • Ageing Well, Ageing Productively will foster research into ageing which crosses sectors, research disciplines and institutions to develop an authoritative evidence base to underpin more eff ective and well-informed policy and practice.

Chapter One: Initiatives for a dynamic national innovation system 31 Funding of $3.6 million in 2005-06 will support 37 research projects under e-Research Support, a new pilot initiative. Th e ARC also contributed to a number of government-sponsored reviews, including the National Collaborative Research Infrastructure Strategy, the Research Quality Framework and the Audit of Science, Engineering and Technology Skills. A survey during the second half of 2005 was undertaken to seek stakeholders’ views on the responsiveness of the National Competitive Grants Programme and the eff ectiveness of the ARC’s administration of the programme. Th e ARC’s governance arrangements were reviewed as part of the government’s response to the Review of Corporate Governance of Statutory Authorities and Offi ce Holders and on 15 July 2005 the Minister for Education, Science and Training announced that the ARC Board would be retired as soon as legislation permitted. www.arc.gov.au

National Competitive Grants Programme Th e National Competitive Grants Programme (NCGP) supports high quality research, collaborative links, high quality research training, and acquisition and access to equipment and facilities. Recent NCGP highlights include: • Discovery Projects support a continuum of research activities, from smaller single research projects to clusters of larger projects. Th ere were 3 414 applications for funding under the initiative to commence in 2005 of which 1 055 were successful. Successful applications are being funded for a period of up to fi ve years, representing a commitment of $99.5 million in 2005 and $297.5 million over the fi ve years to 2009. In total in 2005, about 2 750 new and ongoing research projects are being supported under Discovery Projects. • Linkage Projects support collaborative research projects between higher education researchers and industry and other partner organisations. Across the two rounds of applications (announced in November 2004 and June 2005) for funding commencing in 2005, the ARC is supporting 488 new collaborative research projects and awards worth $115.9 million over the fi ve years to 2009. Th is funding commitment will attract $173.0 million in matching contributions in cash and in-kind from partner organisations. A total of 895 partner organisations from around Australia will contribute to research under the new projects and awards commencing in 2005. Since the establishment of Linkage Projects in 2001, investment by partner organisations has continued to grow and currently exceeds $614 million in around 2 100 projects and awards. • Linkage Infrastructure (Equipment and Facilities) supports the collaborative development of large- scale research infrastructure by universities and other research organisations. In the 2005 new funding round, the ARC received 159 applications for funding of which 78 were approved. Th e funding commitment to these projects is $30.4 million – cash and in-kind contributions are also provided by partner organisations. In 2005, approximately 72% of funded projects involved three or more collaborating organisations. • Federation Fellowships were announced on 15 June 2005 by the Minister for Education, Science and Training with funding commencing in 2005. Of the 24 fellowships funded, four are to expatriate Australians who will leave international organisations to return home, and fi ve are to foreign nationals who will bring their experience and talent to Australia. Th e new fellows bring the total number of fellowships awarded under the scheme to 94. A list of Federation Fellows is at appendix 7. • Research Centres include the co-funded Centres of Excellence (National ICT Australia, the Australian Stem Cell Centre and the Australian Centre for Plant Functional Genomics), ARC Centres of Excellence, ARC Centres, Special Research Centres and Key Centres of Teaching and Research. In 2003, the ARC established eight new ARC Centres of Excellence and nine new ARC Centres in areas of national research priority. In June 2005 funding of $122 million over fi ve years for 11 new ARC Centres of Excellence was announced.

32 Backing Australia’s Ability Research Infrastructure Block Grants scheme Th e Research Infrastructure Block Grants (RIBG) scheme enhances the development and maintenance of research infrastructure of eligible higher education providers by meeting project-related infrastructure costs associated with Australian Competitive Grants. Block grants are provided each calendar year to remedy defi ciencies in current research infrastructure and ensure that areas of recognised research potential, in which higher education providers have taken steps to initiate high quality research activity, have access to the support necessary for development. Th rough Backing Australia’s Ability – Building Our Future through Science and Innovation, the Australian Government provided an additional $554.5 million from 2006-07 to 2010-11 to maintain the scheme at about 20 cents for each dollar of Australian competitive research grant income. RIBG funding rose from $160.3 million in 2004 to $183 million in 2005. http://www.backingaustraliasfuture.gov.au/guidelines/documents/ribg_igs_guide.pdf Institutional Grants Scheme Th e Institutional Grants Scheme (IGS) is designed to maintain and strengthen Australia’s knowledge base and research capabilities by developing an eff ective research and research training system in the higher education sector. It: • supports the general fabric of the research and research training activities of eligible higher education providers; • allows providers to manage their own research activities and set their own priorities; • assists providers to respond fl exibly to their research environment in accordance with their own strategies; and • enhances support for areas of research strength. In calendar year terms, IGS funding rose from $284.6 million in 2004 to $290.6 million in 2005. In August 2004, the Australian Government announced changes to its research block funding programmes from 2005. Th ese changes resulted from extensive consultation with the higher education sector during and following the 2003 evaluation of the 1999 knowledge and innovation reforms to higher education research and research training. Th e changes to the IGS and the Research Training Scheme give greater funding certainty to universities, reward high performing universities and protect others by ensuring that no provider will lose more than 5% of funding from one year to the next. http://www.backingaustraliasfuture.gov.au/guidelines/documents/ribg_igs_guide.pdf

Health and medical research

Health and medical research underpins the improvements in health care and clinical medicine. Th e intellectual curiosity and innovation of health and medical researchers enables Australia to benefi t from advances in health and medical research through improved treatment and therapies, and longer and better quality lives. A comprehensive review of Australian health and medical research was conducted in 1998 (the Wills Review) and the report Th e virtuous cycle – working together for health and medical research was released in May 1999. It emphasised the crucial relationships between government, industry and the research community (the virtuous cycle) in maintaining high standards of health and medical research, and the need to turn outcomes into tangible benefi ts for the Australian community. Th e report provided a strategic framework for the development of health and medical research in Australia for the next decade and beyond. Th e Wills Review was followed in December 2004 by an investment review of health and medical research in Australia (Sustaining the virtuous cycle for a healthy competitive Australia). Th is report found that the ‘virtuous cycle’ has started to achieve results.

Chapter One: Initiatives for a dynamic national innovation system 33 In recognition of the importance that health and medical research makes to society, the Australian Government provided more than $400 million through the National Health and Medical Research Council for medical research in 2004–05. Th roughBacking Australia’s Ability – Building Our Future through Science and Innovation, the government will provide a further $200 million over the next seven years from 2004–05 to 2010–11 for overhead infrastructure costs for independent medical research institutes. National Health and Medical Research Council Th e National Health and Medical Research Council (NHMRC) is Australia’s leading expert agency fostering health and medical research. It aims to: • raise the standard of individual and public health throughout Australia; • foster the development of consistent health standards between states and territories; • foster medical and public health research and training throughout Australia, including urgent and emerging areas in need of development; and • consider the ethical issues relating to health and ensure the highest ethical standards are observed in conducting Australian health and medical research. Th e Australian Government allocated $411 million to the NHMRC for health and medical research in 2004-05. Major funding commitments were made through its research support schemes, Programme Grants ($115 million) and Project Grants ($160 million). New commitments were also made through a $7 million Healthy Start to Life for Aboriginal and Torres Strait Islanders programme, more than $12 million for the Health Services Research programme and more than $15 million for Special Facilities Enabling Grants. Additional funding of $200 million over fi ve years was also announced for infrastructure support for medical research institutes – the fi rst tranche of $13 million was paid to 20 medical research institutes in early 2005. Th e forecast funding allocation for 2005-06 is $430 million. New funding activities proposed for this period include further collaborations with the Australian Research Council, clinical trials and broadening the Programme Grants scheme to allow single investigator applicants as well as established collaborative teams. Approximately 71% of all NHMRC research funding has been refl ected against the Australian Government’s National Research Priorities. Of that, 97% (more than $245 million) covers the Promoting and Maintaining Good Health priority for which the NHMRC is the lead agency. During 2004-05: • funding for individual researchers through the NHMRC’s people support awards increased by 14% from $91.4 million in 2004 to $105.92 million in 2005. Th is included funding for postgraduate and postdoctoral training, early and mid career development and senior researchers including 179 new post graduate scholarships ($10.5 million), 89 new or renewed Research Fellowships, and 44 new Career Development Awards ($16.8 million); • 1 054 individual researchers were supported by NHMRC People Support funding schemes, up from 862 in 2004; • the NHMRC ensured Australia continued its contribution to global knowledge in medical research by: • securing Australia’s membership of the international Human Frontier Science Programme. • awarding the fi rst round of International Collaborative Indigenous Health Research Partnership Grants. • participating in major international events including the OECD’s Global Science Forum initiative on neuroinformatics, the Global Forum for Health Research, the International Stem Cell Forum and the Asia-Pacifi c Economic Cooperation Life Sciences Innovation Forum.

34 Backing Australia’s Ability • twenty-four new proof of concept Development Grants ($2.15 million) and four Industry Fellowships ($1.39 million) were awarded to develop a better understanding of commercialising research outcomes; and • nine licences were issued allowing research using excess Assisted Reproductive Technology embryos. www.nhmrc.gov.au

Professor Christopher Goodnow from the John Curtin School of Medical Research at the Australian National University. Photo credits: NHMRC Major research infrastructure

Th e availability of quality infrastructure is a key determinant in the success of research and innovation activities and is a critical underpinning of research excellence. To ensure that Australia maximises the return on its investment in research, researchers must be able to access infrastructure that keeps pace with international capabilities and developing technology. Recent advances in many fi elds of knowledge have depended largely on advances in research instrumentation. Leading edge instrumentation often enhances research and innovation productivity and allows new techniques and processes to be utilised. Research infrastructure can consist of: • research facilities and equipment (and the services that support them); • libraries and ICT networks for storing, moving and accessing research information; and • collections, archives, large/complex data sets and records. Ensuring that major research infrastructure is widely accessible and that use is allocated on the basis of research excellence and impact are key policy issues in developing Australia’s research capacity. National Collaborative Research Infrastructure Strategy Th e National Collaborative Research Infrastructure Strategy (NCRIS) was announced in the 2004-05 Budget as part of Backing Australia’s Ability – Building Our Future through Science and Innovation. Funding of $542 million was committed from 2004-05 to 2010-11 to provide strategic direction for the Australian Government’s investment in major research facilities, supporting infrastructure and networks. Th e NCRIS aims to: • ensure Australian research contributes eff ectively to economic development, national security, well- being and environmental sustainability; • focus infrastructure investment in areas where Australia has the potential to be world-class and provide international leadership; • ensure Australia is a participant in cutting-edge, high-impact international research; and • encourage and support national research collaboration that focuses strengths and resources on high-value research. During 2004-05 extensive consultation and development work was undertaken to ready NCRIS for the primary phase of implementation beginning in 2006-07. An advisory committee, appointed in October 2004 by the Minister for Education, Science and Training, has consulted extensively with stakeholders including state and territory governments, universities, publicly-funded research agencies, peak groups and industry. Th e committee is also preparing a strategic roadmap to assist in prioritising major research infrastructure investments over the next decade. When completed in early 2006, the roadmap will identify areas in which Australia should aim to develop, or further develop, research capability through signifi cant investment in infrastructure.

Chapter One: Initiatives for a dynamic national innovation system 35 A key recommendation of the committee was to establish an expert standing committee to oversee the ongoing implementation, monitoring and review of NCRIS. Th is was accepted by the Minister, and the NCRIS Committee, chaired by Dr Michael Sargent, was appointed in August 2005. Initial NCRIS grants were approved by the Minister for funding in 2005-06 when some $13.1 million is available. Th ey include a grant of $5.5 million to the Australian Institute of Marine Science to replace the research vessel RV Lady Basten, a grant of $2.05 million to the Anglo-Australian Telescope Board towards the cost of refurbishing the Anglo-Australian Telescope and related facilities, and a grant of $2 million to provide facilities for the Brain and Mind Research Institute at the University of Sydney. www.dest.gov.au/sectors/research_sector/policies_issues_reviews/key_issues/ncris/ Health and medical research – Independent Research Institute Infrastructure Scheme Backing Australia’s Ability – Building Our Future through Science and Innovation included the provision of $200 million over the next seven years until 2010-11 for the overhead infrastructure costs for independent medical research institutes. Th e funding will assist independent medical research institutes that administer NHMRC funding with overhead infrastructure costs, by providing up to 20 cents for every dollar competitively provided for research by the NHMRC. Th is funding is consistent with that already provided to universities through the Research Infrastructure Block Grants Scheme. Funding of $13.5 million was awarded from the pool to 20 independent medical research institutes in 2004-05. Major National Research Facilities Programme Th e Major National Research Facilities (MNRF) Programme increases research opportunities by providing better access for Australian researchers to world-class facilities. It aims to improve Australia’s capability in science, engineering and technology, maintain and enhance Australia’s international scientifi c and industrial competitiveness, and support the commercialisation of research results. Under Backing Australia’s Ability the MNRF Programme received funding of more than $150 million over fi ve years to 2005-06. Fifteen specialised world-class facilities covering a range of disciplines are being funded and all are now operational. Achievements in 2004-05 included: • submissions for two joint patents by the Gemini and Square Kilometre Array MNRF resulting from instrumentation research at the Anglo-Australian Observatory (AAO); • the launch of several facilities including the Australian Phenomics Facility, the MNRF Division of the Australian Stem Cell Centre and the Arafura Timor Research Facility; and • a collaboration between the Australian Computational Earth Systems Simulator (ACcESS) and institutions in Australia, China, Japan and the United States to champion the development of the international Solid Earth Virtual Research Laboratory (iSERVO). Th e aim of iSERVO is to create a globally accessible computing capability to undertake solid earth simulation from the micro to the global scale. www.dest.gov.au/MNRF/

36 Backing Australia’s Ability Australian Phenomics Facility leads discovery of diabetes gene

Th e Australian Phenomics Facility building, partly funded by the MNRF Programme. Professor Chris Goodnow in one of the new laboratories. Photo credits: Marc Fenning, JCSMR, ANU Photo credits: Marc Fenning, JCSMR, ANU Th e Australian Phenomics Facility, a joint partnership between Australia’s National University (ANU), Monash University, the Garvan Institute for Medical Research and the University of Queensland, has discovered a new gene that contributes to autoimmune diseases such as type 1 diabetes and lupus. ANU researchers found that a mutation in the novel gene, which they have named Roquin, causes the body’s infection fi ghters, or T-cells, to attack their own tissue; the realisation opening the way to explore new treatments for people at risk of developing type 1 diabetes. Th e construction of the Australian Phenomics Facility has been funded by $11.5 million from the Australian Government’s Major National Research Facilities Programme. Systemic Infrastructure Initiative Under the Systemic Infrastructure Initiative (SII), the government is providing $246 million from 2002 to 2006 to upgrade systemic infrastructure and support world-class research and research training at Australian universities. Th e SII provides funding for innovative approaches which link or expand access to shared facilities or high priority investments that will bring sector-wide strategic benefi ts. SII funds are directed to key areas including the provision of high-speed communications links and facilitating discovery, access and dissemination of scholarly and scientifi c information. Funds are allocated on the advice of the Australian Research and Education Network Advisory Committee and the Australian Research Information Infrastructure Committee. Th rough the SII the government has provided over $83 million for high-speed communications links and access to broadband, bolstered by co-investment from universities, CSIRO and state and territory governments. Th e resulting communications capacity will facilitate a greater degree of research collaboration, provide greater access to remote instruments, and enable better quality, faster transmission of e-learning resources. Four projects are currently underway to improve access to information, develop software solutions for storing and organising digital information in institutional repositories, curate and preserve research data sets and information, and provide solutions which link authorised users to research and information within and between institutions. A further nine projects to explore other aspects of information infrastructure, including the management and integration of large data sets, have recently been funded. Th e SII will also provide $29 million over 2004 to 2006 to enhance Australia’s advanced computing, communications and information infrastructure. Part of this funding has been used to install the new supercomputing system of the National Facility of the Australian Partnership for Advanced Computing, providing a 10-fold increase in the facility’s capacity. Th e new system is among the top 40 internationally in terms of capacity. www.dest.gov.au/highered/research/sys_research.htm

Chapter One: Initiatives for a dynamic national innovation system 37 Philanthropy Accurate statistical data on the level of Australian philanthropic support is diffi cult to obtain. A report released by Philanthropy Australia in October 2005 estimates that the giving of money, goods and services to non- profi t organisations by individuals and businesses totals $11 billion a year, which does not include the response to the Asian tsunami crisis in 2004-05. Th is fi gure consists of $7.7 billion from individuals and $3.2 billion from business. http://www.partnerships.gov.au/philanthropy/philanthropy_research.shtml The Prime Minister’s Community Business Partnership Th e Prime Minister’s Community Business Partnership is a group of prominent business and community leaders appointed by the Prime Minister to advise government on community business collaboration, philanthropy and corporate social responsibility. Th e partnership operates on the premise that communities are stronger, more cohesive and dynamic when individuals, community organisations, government and business work together to achieve positive social outcomes. Th e partnership is supported by a secretariat located within the Department of Families, Community Services and Indigenous Aff airs. www.partnerships.gov.au

Science and innovation in foreign aid Australia plays an active role in providing assistance to those countries in a less fortunate position. As part of this role, Australia works closely with other world governments, the United Nations, Australian business and non-government organisations in order to develop and implement policies and programmes aimed at reducing the level of poverty in developing countries. Australian Centre for International Agricultural Research Th e Australian Centre for International Agricultural Research (ACIAR) operates as part of the Australian Government’s development cooperation programme, planning and investing in research and development for the agricultural sectors of developing nations, particularly in the Asia-Pacifi c region. Th e Centre aims to reduce poverty and improve livelihoods through more productive and sustainable agriculture. ACIAR recognises the importance of research in pathways that create more prosperous and sustainable agricultural sectors as the major sources of food and income in most developing countries. It plans, funds and manages collaborative research and development projects to generate income through more productive and sustainable agricultural systems, help establish sound policy and biosecurity protocols for bilateral trade, rehabilitate livelihoods after natural disasters and confl ict, foster environmental protection on the land and in the oceans, and deliver better natural resource management. Th e Australian Government allocated $49.3 million to ACIAR in 2005-06. During 2004-05 ACIAR invested in 227 agricultural research projects to achieve sustainable development and natural resource management in developing countries. Projects have enhanced the consistency and quality of food supply within countries that have regular or ongoing shortages of staple foods. ACIAR’s collaborative approach provides benefi ts to both the developing partner countries and in many cases to Australia, including opportunities for Australian scientists to develop expertise and innovative solutions. Australian benefi ts extend to crop and livestock sciences, capture and culture fi sheries, forestry, land and water resources and post harvest technology. ACIAR is also involved with economic and policy issues associated with sustainable management of farming systems and natural resources. Th ese projects create or further scientifi c knowledge and build up Australia’s human capacity at the same time as that of developing countries. During 2005-06, 52 fellowship holders from 15 developing countries pursued higher degree studies in Australia, and more than 140 scientists and extension staff from 13 developing countries took part in training and development courses. Th e results of ACIAR-supported research are disseminated through a variety of channels, including scientifi c publications, the Centre’s website, Partners in Research for Development magazine and training programmes.

38 Backing Australia’s Ability PART TWO – Accelerating the commercial application of ideas It is one thing to have great ideas; it is another to apply them or derive commercial value from them. One of the very productive ways in which ideas (inventions, discoveries, new ways of doing business) are applied is through commercialisation. Commercialisation can take many forms – within a particular business, within an industry, or between a research institution and the private sector. As defi ned in the 2005 Metrics for Research Commercialisation report to the Coordination Committee on Science and Technology, ‘research commercialisation’ is: ... the means by which universities’ and publicly funded research agencies’ research generates commercial benefi t, thereby contributing to Australia’s economic, social and environmental well-being. This is achieved through developing intellectual property, ideas, know-how and research-based skills resulting in new and improved products, services and business processes transferable to the private sector. Commercialisation is one element of the innovation dynamic. Th eEmerging Business of Knowledge Transfer (a 2005 report prepared for the Department of Education, Science and Training by Howard Partners Pty Ltd) outlines a framework to better understand the scope and nature of the research commercialisation process, especially in relation to universities’ research outputs. Th e report points out the importance of ‘knowledge diff usion’, ‘knowledge relationships’ and ‘knowledge engagement’. When decisions are made about transferring and applying research knowledge into the wider economy, it is important that the right mode or modes are applied for the circumstances. It is the aim of policy to have the right settings and incentives to facilitate this decision-making process. Backing Australia’s Ability - Building Our Future through Science and Innovation increased the emphasis on commercialisation through a range of programmes targeted at supporting businesses and research institutions as they take the results of research and transform them into marketable products, services and processes.

Facilitating commercialisation Th e Australian Government recognises the crucial importance of providing capital to commercialise research. Th ere are a number of initiatives which are aimed at increasing access to early stage investment capital which include the Pre-Seed Fund, Innovation Investment Fund, Commercialising Emerging Technologies programme, Commercial Ready and Renewable Energy Development Initiative. Levels of venture capital investment in particular within Australia have increased dramatically over recent years. Th is increased activity has prompted the Australian Government to review the impact of venture capital support on Australia’s economy and the eff ectiveness of current government initiatives in this area. The Venture Capital Regime Th e Venture Capital (VC) Regime aims to increase the supply of venture capital available to Australian start-up and expanding businesses by attracting capital from eligible non-resident investors. Th e VC Regime provides fl ow-through taxation treatment for registered venture capital limited partnerships (VCLPs) and Australian Fund of Funds (AFOFs). It also provides a tax exemption on profi ts from the disposal of interests in eligible venture capital investments to the limited partners (eligible investors) who satisfy certain requirements as specifi ed in the relevant legislation with respect to country of residency, tax status and ownership requirements. Th e VC Regime also provides a tax exemption on profi ts from the disposal of interests in eligible venture capital investments to eligible venture capital investors who are tax-exempt, non-resident investors from certain specifi ed countries, who invest directly into eligible investee companies. Broadly eligible venture capital investments can be made into entities that are Australian resident companies, where the total value of the entity’s assets is not more than $250 million and where the predominant activity is not property development, land ownership or fi nancial services. Th e Australian Government implemented a number of changes and enhancements to the venture capital legislation in 2004 and removed minor impediments to the intended operation of the regime. At 30 June 2005, there were nine VCLPs registered, with around $1 billion in committed capital. About $46 million has been invested by VCLPs in 10 eligible investee companies. www.ausindustry.gov.au

Chapter One: Initiatives for a dynamic national innovation system 39 Biotechnology World Class Centre of Excellence (the Australian Stem Cell Centre) Th e Biotechnology Centre of Excellence, the Australian Stem Cell Centre (ASCC) (formerly the National Stem Cell Centre), is the fl agship biotechnology initiative of Backing Australia’s Ability. Th e ASCC was initially awarded $43.55 million over four years through a joint-funding arrangement between the Department of Industry, Tourism and Resources and the Australian Research Council. On 6 May 2004, the Prime Minister announced an additional $55 million in funding over fi ve years (ending 2010-11) for the ASCC. Th e ASCC will also receive $5.5 million from the Department of Education, Science and Training under the Major National Research Facilities programme, and $11.375 million from the Victorian Government for infrastructure development. Th e ASCC has a national focus with research nodes and collaborations in Queensland, New South Wales, Victoria and South Australia. Th e nodes are governed by stakeholder agreements that refl ect a commercial model and outline the intellectual property and fi nancial contributions of each party. Agreements have been signed with Monash University, the University of Adelaide, the University of New South Wales, the University of Queensland, Howard Florey Institute, the Peter MacCallum Cancer Centre, the Victor Chang Cardiac Research Institute, the Murdoch Children’s Research Institute and the Baker Heart Research Institute. At June 2005, the ASCC had selected and provided funds to 15 research projects that met its scientifi c and commercialisation objectives. Project agreements, outlining specifi c research activities and IP management, have been developed for each. By August 2005 the ASCC had awarded a total of eight premier scholarships (up to $25 000 a year) and 10 small research grant scholarships (up to $1 000 a year). It had also provided a number of travel grants and conference awards. In February 2005 the ASCC opened its major national research facility and in November 2005 the ASCC released its second public annual report at its third annual stem cell conference. Th e ASCC is pursuing national and international commercial collaborations. In 2003 it entered intoa licence agreement with the US biotechnology company LifeCell Corp to acquire certain enabling rights to tissue matrix technology. In June 2004 the ASCC announced plans to collaborate with the Melbourne-based company Stem Cell Sciences Ltd to develop and distribute up to six new human embryonic stem cell lines. In August 2004, the ASCC entered into a collaborative agreement with Nephrogenix to explore the common ancestry of interrelated systems involved in forming kidneys, bone and bone marrow. Th e ASCC will focus on developing treatments for blood, heart and respiratory disease while Nephrogenix will focus on developing therapies for kidney conditions. In February 2005 the ASCC entered into an agreement with Innovative Dairy Products Ltd (CRC for Dairy) to pursue research in the area of cellular reprogramming. www.stemcellcentre.edu.au

Working together could speed up stem cell research

Scientists around the world working on human embryonic stem cells (hESCs) are hoping research will lead to the development of new treatments for diseases such as Parkinson’s and diabetes. Human embryonic stem cells are of particular interest to many researchers because of their potential to self-renew and to develop into any type of specialised cell in the body. During late 2004 the Australian Stem Cell Centre, Stem Cell Sciences and Melbourne IVF announced that they had produced the fi rst of a proposed six hESC lines, named MEL-1 after Melbourne, that would be made available to researchers around the world on a cost recovery basis without commercial or intellectual property restrictions. Th e second hESC line developed under this collaboration, MEL-2, was announced in June 2005. By providing MEL-1 and MEL-2 without intellectual property restrictions scientists from diff erent laboratories can use and compare results arising from the same hESC line, potentially speeding up research and leading to the faster discovery of new potential treatments.

40 Backing Australia’s Ability National Biotechnology Strategy Th e National Biotechnology Strategy (NBS) was launched in 2000 to provide a framework for capturing the benefi ts of biotechnology for Australia. In 1999 Biotechnology Australia was established as the coordinating agency for fi ve government departments with biotechnology responsibilities: industry, agriculture, environment, education and science, and health. In 2000, the government provided $30.5 million under the NBS for a range of activities including the Biotechnology Innovation Fund. Further support was provided under Backing Australia’s Ability through $20 million for the Biotechnology Innovation Fund and funding of $46.5 million for the establishment of the National Stem Cell Centre. Photo credits: DITR A further $20 million was provided to fund the NBS and Biotechnology Australia from 2004-05 to 2007-08 as part of the $5.3 billion funding package under Backing Australia’s Ability – Building Our Future through Science and Innovation. Major achievements include: Photo credits: DITR • A sixth and fi nal round of the Biotechnology Innovation Fund was conducted during 2004-05, with 51 successful projects announced in November. Under the six rounds of this programme, a total of 211 projects will receive almost $48 million in grants. Support for commercialising good biotechnology projects – including at the proof of concept stage – will continue to be available through the $1 billion Commercial Ready programme. • Signifi cant progress has been made towards strengthening the national eff orts under the NBS. During 2004-05, work was undertaken to identify Australia’s biotechnology capabilities across all main subsectors of biotechnology and to produce the fi rst nationally-coordinated international marketing product. Th e next phase is to develop a long-term national strategic plan for biotechnology spanning

10 years, and a national statistical framework for Photo credits: DITR biotechnology. Biotechnology Australia undertook an extensive range of activities under its public awareness programme during 2004-05. As the fi rst step in the development of a national approach on ethics in biotechnology, a National Bioethics Portal website was launched. An extensive upgrade of its schools’ resource, Biotechnology Online and its fact sheet series was also undertaken, as well as a comprehensive review of its website. Signifi cant progress was made in the development of a national genetic information resource for general practitioners. www.biotechnology.gov.au

Chapter One: Initiatives for a dynamic national innovation system 41 Helping students understand the ethics and science of biotechnology

A major national education resource, aimed at making high-school students more aware of the ethics and scientifi c principles of biotechnology, has been developed by the Biotechnology Australia Public Awareness Programme. Biotechnology Online can play a signifi cant role in helping students achieve an understanding of both the science and societal issues of contentious emerging biotechnology applications, such as genetically modifi ed foods or stem cells. It is a curriculum-based, national school resource fi rst developed in 2001 but 2005’s updates include much more information, new interactive games, more ethics materials, improved search functions and a module on careers. Biotechnology Online enables schools to supplement their current educational resources with a wide range of case studies, hands-on activities and experiments, student worksheets and teacher notes. www.biotechnologyonline.gov.au

Pooled Development Funds Th e Pooled Development Funds (PDF) programme aims to increase the supply of patient equity capital for Australian SMEs. By establishing commercially operating private sector investment companies (the PDFs), the programme develops and demonstrates the potential of the market for providing equity capital to eligible companies. Th e programme encourages Australian companies to apply for registration by providing both PDFs and their shareholders with concessional tax treatment on returns from eligible investments. Broadly PDF companies can invest in Australian businesses with total assets of not more than $50 million. PDF investments are generally by way of purchasing newly issued shares in the investee companies, which are raising money to either establish or substantially expand their businesses. Property development and retail sales operations are the only excluded activities. During 2004-05: • eight companies were registered as PDFs. • PDFs reported investing around $50 million into 53 Australian businesses. At 30 June 2005, there were a total of 95 companies registered as PDFs. www.ausindustry.gov.au

A Pooled Development Fund assists success of breakthrough biotech development

A small Australian biotech company has developed and applied to patent a new and effi cient process for the preparation of a widely used medical anti-coagulant with assistance from Cytopia Ltd, a Pooled Development Fund. Cytopia specialises in providing development capital to small Australian companies. It has been listed on the Australian Stock Exchange for the past six years and its Pooled Development Fund status has helped it raise more than $46 million for early stage investment in Australian biotech businesses. With assistance from Cytopia, another biotech company, Alchemia Pty Ltd has been able to develop a process to synthesise the natural polysaccharide known as heparin which has been used to treat blood clots following surgery for more than half a century. With continued support, Alchemia hopes to make its product the second synthetic heparin product on the market.

42 Backing Australia’s Ability Innovation Investment Fund Th e Innovation Investment Fund (IIF) was established in 1997 to provide small, high-tech companies at the seed, start-up or early expansion stages of development with access to equity (venture) capital. By providing early stage capital, the IIF is intended to increase the commercialisation of Australian R&D. Th e IIF has nine funds and by June 2005, there were 89 investments in 74 companies. Th e majority of the investee companies are commercialising information and communication, or life science technologies. At June 2005, the total amount invested by the funds was $221 million, with returns to investors of $261.4 million. Th e Australian Government proportion of the investment at June 2005 has been $138.5 million. Alchemia, a biotechnology company that specialises in the discovery, development and synthesis of carbohydrate-based molecules for pharmaceutical applications, is one example of an investee company whose IIF investment has assisted it to now be listed on the Australian Stock Exchange. A full evaluation of the IIF programme is currently underway and scheduled for completion at the end of 2005. www.ausindustry.gov.au Pre-Seed Fund Th e Pre-Seed Fund (PSF) was announced as part of Backing Australia’s Ability in January 2001. It seeks to take commercially-promising research and development opportunities at the pre-seed stage within Australian universities, Cooperative Research Centres and Australian Government owned research agencies to the market. Th e PSF aims to stimulate the commercialisation of public sector R&D activities, develop the management and entrepreneurial skills of public sector researchers, and build linkages with the fi nance and business community. It does this through four licensed venture capital funds in which the government and private sector investors invest. A licence under the PSF operates for 10 years. Th e Australian Government has provided $72.7 million of capital to the programme. Th is, combined with contributions from private sector investors, universities and public sector research agencies has resulted in $104.1 million being available to support companies and projects spinning out from universities and the Australian public sector research agencies. Th e four venture capital funds were established in late 2002 and are managed by venture capitalists experienced in research commercialisation and the development of sustainable businesses. At 30 June 2005, the PSF venture capital funds had made 25 investments in 22 companies and three projects in the areas of IT, life sciences, medical devices, agriculture, chemical engineering, environment and manufacturing. www.ausindustry.gov.a Renewable Energy Equity Fund Th e Renewable Energy Equity Fund (REEF) is a specialist renewable energy fund modelled on the Innovation Investment Fund programme. It aims to: • encourage development of enterprises which are commercialising R&D in renewable energy technologies by addressing capital and management constraints; and • develop fund managers with experience in the renewable energy industry. REEF was developed jointly by the Australian Greenhouse Offi ce within the Department of the Environment and Heritage and AusIndustry. Th e programme is delivered on behalf of the Department of the Environment and Heritage by AusIndustry. Th e Australian Government is investing $17.7 million in funding under the programme, with total capital available of approximately $26.6 million when matched by private sector funding at a ratio of 2:1. REEF is managed under licence agreement by CVC REEF Investment Managers Ltd.

Chapter One: Initiatives for a dynamic national innovation system 43 At 30 June 2005, REEF had invested $13.808 million of Australian Government and private capital in 10 companies. Technology developments currently being supported include wind generation, a hybrid energy storage system for use in waste collection vehicles, long- life batteries for use in remote and arid areas, biofuels and bio-energy, and geothermal energy from hot dry rocks. In September 2004, CVC REEF won a Best Early Stage Investment award from the Australian Venture Capital Association for its investment in Geodynamics Ltd. www.ausindustry.gov.au www.greenhouse.gov.au/renewable/reef/index.html

A wind turbine, Geelong Victoria. Wind turbines off er a possible solution to alternative energy needs, and off er a sustainable reduction in pollution outputs compared to current power generating methods. Photo credits: Lisa Schneider Renewable Energy Development Initiative Th e Renewable Energy Development Initiative (REDI) is a competitive merit-based grant programme supporting renewable energy innovation and its early-stage commercialisation. It was launched on 8 June 2005. REDI will provide up to $100 million in competitive grants for Australian businesses over seven years. Funding of between $50 000 and $5 million is available for R&D, proof of concept and early-stage commercialisation projects with high commercial and greenhouse gas abatement potential. Th e initiative is administered by AusIndustry with policy responsibility shared by both the Department of Industry, Tourism and Resources and the Department of the Environment and Heritage through the Australian Greenhouse Offi ce. Th e fi rst round of applications for REDI closed on 25 August 2005 and successful applicants were announced at the end of 2005. To determine which projects to fund, a new Renewable Energy Committee of the Industry Research and Development Board undertook technical assessments and merit ranked eligible applications, with a Department of Industry Tourism and Resources Delegate making the fi nal funding decision. REDI is expecting to hold two funding rounds a year until 2008. www.ausindustry.gov.au

Research to investment ready stage

It is crucial that adequate early stage support be provided to researchers so that the commercial applications of their research can be successfully exploited. Th is is particularly the case in relation to university research where there is often insuffi cient resources to fully explore the potential of research outcomes nor develop them to the stage where it is attractive for industry investment. Th e Australian Government has a number of programmes and initiatives which are aimed at supporting early stage research through to development. Th is early support assists many great ideas in reaching their commercial potential through the greater availability of knowledge, resources and assistance in the establishment of networks and linkages.

44 Backing Australia’s Ability Commercialising Emerging Technologies programme Th e Commercialising Emerging Technologies (COMET) programme provides fi rms and individuals with the knowledge and services they need to exploit the commercial potential of innovative activity. Th ere are many great ideas developed by individuals, small Australian companies and researchers in universities, and COMET has engaged private sector business advisers to help commercialise them. Successful applicants become ready for commercialisation activities with fi nancial assistance services and access to other business services. A $100 million extension of COMET was announced under the 2004 Backing Australia’s Ability – Building Our Future through Science and Innovation package to fund the programme until 2010-11. Th e extended programme supports small entrepreneurial fi rms to implement commercialisation, with an expanded network of 16 private sector business advisors throughout Australia. It now also supports eligible regional applicants with travel assistance, and has an increased focus on commercialising research from universities. In 2004-05, COMET had 155 applications, helped fi rms raise $54 million in capital, led to 40 alliances or joint ventures, and assisted 33 fi rms to launch new products. During the year 40 recipients commenced manufacturing and 33 launched a new product or service. At the end of 2004-05, 764 fi rms had completed the Tailored Assistance for Commercialisation component of the programme and 97 fi rms/individuals had completed the management skills development component. Another 31 COMET fi rms formed strategic alliances, six entered into a joint venture and three into some other form of alliance. Over the life of the programme, COMET has helped 162 recipients to form strategic alliances, 34 to enter into joint ventures and 50 into some other form of alliance. To date, 193 COMET fi rms have reported a new product or service launched. www.ausindustry.gov.au

Legacy software no challenge for today’s emerging technology

For organisations which rely on computers for their day-to-day business, upgrading out-of-date software, known as legacy applications, can be a costly and time consuming process. Until Quipoz automated the process of legacy systems transformation, with the help of a Commercialising Emerging Technologies programme (COMET) grant, organisations faced a major problem of how to meet their business needs cost eff ectively and rapidly, with minimal risk. While most other methods of upgrading legacy systems require signifi cant manual coding, Quipoz has developed a way of extracting all the underlying logic in an application and turning it into a wide spectrum language based on business rules, which can then be converted into the latest system architecture. Quipoz has been able to develop its technology to a point where it is now servicing some of Australia’s largest information technology users, such as Telstra and the Commonwealth Bank. Th e technology is also being widely used in the insurance industry. Since its inception, Quipoz has grown an estimated 300% a year. It now has 25 employees, and is exporting to the United Kingdom and New Zealand. Th e company is also targeting the US, Asia-Pacifi c and South African markets.

Chapter One: Initiatives for a dynamic national innovation system 45 Biotechnology Innovation Fund Th e Biotechnology Innovation Fund (BIF) is part of the National Biotechnology Strategy and was established in 2001 as a competitive, merit-based grants programme to increase the commercialisation of biotechnology. It provides companies with pre-seed, early stage and seed capital to reduce the costs of demonstrating proof of concept between the initial research stage of a biotechnology project and the early stage of its commercialisation. Th rough Backing Australia’s Ability – Building Our Future through Science and Innovation, the government provided BIF with additional funding of $20 million through to 2003–04. In November 2002, the government agreed to extend the timeframe for BIF to 30 June 2006. Funding has been awarded to biotechnology companies through six rounds to help: • increase the rate of commercialisation of Australian biotechnology innovation; • reduce the cost of demonstrating proof of concept; • encourage commercialisation of promising biotechnology developed in Australia; • develop biotechnology innovation to attract private sector investment; and • increase the level of commercialisation of Australian biotechnology. BIF was merged with the new Commercial Ready programme on 1 October 2004. Commercial Ready continues to support proof of concept activities but without limiting that support to biotech companies. Th e sixth and fi nal round of BIF was announced in May 2004 with applications closing on 15 July 2004. A total of 84 applications were considered with 51 companies, most from the health care and agricultural sectors, securing funding worth $11.80 million. Projects were aimed at commercialising application outcomes for ailments such as chronic back pain, the treatment of Parkinson’s disease, diabetes, various types of cancers, congestive heart failure, kidney disease, osteoporosis and sleep disorders. Other projects focused on research into tissue therapies and a bird fl u vaccine. Since the launch of BIF, 480 applications have been considered by the Biological Committee with a total of 211 projects supported under the programme, representing a 44% success rate. Th e total grant funding amount that has been provided to these companies totals nearly $48 million. At 30 June 2005, 126 BIF customers had completed their projects, with 90 reporting that they were underway to commercialise or expecting to commercialise in the near future. Data collected from 64 recent post project survey respondents found that: • 28% of all patents were applied for in Australia; • 25% of all patents were applied for in the United States; • 68% of respondents considered that they were fully, or were currently underway, to commercialise their project; and • an average of 1.9 additional staff members were employed per project. From 1 July 2004, funding for existing BIF customers was combined with the new Commercial Ready funding allocation. All commitments and payments for the BIF programme will be made against this allocation. As at 30 June 2005 BIF had 83 active customers. www.ausindustry.gov.au

46 Backing Australia’s Ability Building on IT Strengths – comprising the Advanced Networks Programme, the BITS Incubator Programme and the Intelligent Island Programme Building on IT Strengths (BITS) aimed to build the strength and competitiveness of the Australian ICT sector by increasing the rate of new SME formation and developing links and networks between industry participants. BITS was also designed to foster stronger commercialisation linkages with R&D organisations, creating clusters of innovative businesses based on ICT and developing advanced network infrastructure. Th e $78 million BITS Incubator Programme aims to improve the rate of commercialisation of ICT ideas and R&D by establishing incubators to increase the success Photo credits: Tracey Nicholls rate of new business formation in the sector. Funding provided to incubator managers allows them to help SMEs at a critical stage of their development when they may not be well served by venture capital markets. BITS established 10 incubators in each mainland state and territory and an 11th in Tasmania funded under the Intelligent Island Programme. In April 2004 two incubators merged, so that in the last year of the programme there were 10 BITS incubators in all states and territories. Th e incubators provided early stage fi nance and business support services. Th e $40 million Intelligent Island Programme contributes to the development of an internationally competitive ICT sector in Tasmania by supporting new projects and building on the existing ICT industry, Tasmanian Government initiatives and the research capacity of Tasmania’s education sector. Funding for the programme has been paid to the Tasmanian Department of Economic Development and will continue to be allocated at least until 2007-08. No further Australian Government A very large scale integrated circuit chip. funding for this programme is available. Photo credits: CSIRO Th e $60 million Advanced Networks Programme (ANP) is helping develop advanced network infrastructure in Australia that will deliver long-term benefi ts to the economy. Th e programme supports the development, trials and demonstration of advanced communications networks, experimental networks and testbeds. Two projects are being funded to provide very high capacity (up to 10 gigabits a second) networks linking Perth, Melbourne, Canberra, Sydney and Brisbane (CeNTIE and GrangeNet). Th ese networks enable research into (and commercialisation of) network technologies and emerging high speed broadband applications. A third ANP project (m.Net) is an advanced wireless network which enables research into wireless network technologies and applications. At 30 June 2004, 345 companies were accepted as BITS incubatees covering a diverse cross-section of the ICT industry including communications hardware and software, business intelligence tools, security and safety, life sciences and biotechnology and e-commerce applications. In four years, more than $127 million in private co-investment and more than $24 million in additional government grants were raised by BITS incubators. In May 2004, the government announced that the $36 million ICT Incubators Programme would be established to provide extended funding to 2007-08 for the better performing BITS incubators as part of Backing Australia’s Ability. A competitive process was undertaken in 2004 to select the better performing BITS incubators, with eight signing new funding agreements under the ICT Incubators Programme.

Chapter One: Initiatives for a dynamic national innovation system 47 Under the fi rst phase of the ANP to June 2004, the projects completed the primary rollout of network infrastructure and delivered promising results against the programme’s performance indicators, including the rollout of the networks, the demonstration and commercialisation of new applications, skills development, participation in international projects and enhanced collaboration between research institutions and industry. Th e emphasis of the second phase over the three years to 2006-07 is on use of the networks to intensify research into, and commercialisation of, leading-edge broadband applications and network technologies, as well as maintaining, upgrading and extending the networks that were established with the initial ANP funding. Th e BITS Incubator Programme was independently evaluated in 2003-04 with fi ndings showing that incubators had performed well by international standards and had helped accelerate the growth of companies. It also found that further funding was required to help ensure their long-term sustainability. www.dcita.gov.au/ict Commercial Ready Commercial Ready commenced on 1 October 2004 and was announced as part of Backing Australia’s Ability – Building Our Future through Science and Innovation. It aims to stimulate greater innovation and productivity growth in the private sector by providing around $200 million a year in competitive grants to SMEs to 2010-11. Th e grants will help SMEs undertake R&D, proof of concept and early-stage commercialisation activities. Th e initiative replaces the R&D Start Programme, the Biotechnology Innovation Fund and the competitive grants support for technology diff usion in the Innovation Access Programme – Industry. At 30 June 2005, 75 grant applications had been assessed, with 42 approved for support of over $38 million. A recent Industry Research and Development Board study found that there was strong support for the programme, including the expansion to include proof of concept and early-stage commercialisation activities. SMEs were particularly supportive of the extension of grant funding to the early-stage commercialisation phase of technically risky projects, and noted that this was an improvement on the R&D Start programme. More broadly, the study found that Commercial Ready focused on market outcomes and that this was an improvement on the focus of R&D Start on research processes. An independent evaluation of the programme will be undertaken after three years. www.industry.gov.au

Encouraging companies to innovate

Th e Australian Government recognises the important role that business plays in supporting research and development. Th rough a number of programmes and initiatives businesses are being encouraged to increase their innovative capacity to develop new products, services and business processes. Although there are considerable risks for businesses involved in research and development ventures, there would also appear to be considerable rewards if conducted successfully. Th e government’s role is to encourage and guide businesses through this process so that they can enjoy the benefi ts of success. Industry Cooperative Innovation Programme Th e Industry Cooperative Innovation Programme (ICIP) was launched in June 2005 to support cooperative industry projects which relate to the development and use of new technologies in industry sectors. Total government funding of $25 million to 30 June 2011 will: • encourage business-to-business cooperation on innovation projects that enhance productivity, growth and international competitiveness of Australian industries with a particular focus on meeting strategic industry needs; and • generate national benefi ts for the Australian economy. Competitive grants funding is available to groups of at least three entities who can work cooperatively to carry out the project and provide funds to match the ICIP grant assistance. Funding is provided under two streams:

48 Backing Australia’s Ability • Stream A provides assistance of up to $150 000 for small scale cooperative projects aimed at identifying the strategic scope and direction of future innovation in an industry. Th e projects can run for up to 18 months. • Stream B provides for more extensive cooperative projects aimed at progressing strategic innovations and achieving signifi cant benefi ts for an industry. For example, through R&D, proof of concept, innovation demonstration and adaptation, and innovation implementation activities. Th ese projects can take up to three years with assistance of up to $3 million. www.industry.gov.au Innovation Access Programme – Industry Th e Innovation Access Programme (IAccP) – Industry was designed to foster innovation and competitiveness by increasing the take-up of leading edge technologies and best practice processes by Australian fi rms, particularly SMEs. It comprised a competitive grants programme and technology showcasing (jointly supported by the Department of Education, Science and Training), innovation access fora and infrastructure support for the Intelligent Manufacturing Systems (IMS) Programme. Highlights for 2004-05 include: • Innovation access fora projects to support the Industry Action Agendas in the restaurant and catering, science, facilities management, and electronics industries. Th e fora progressed action agenda recommendations related to technology uptake and innovation. • Th e automotive industry attendance at the World Exposition 2005 in Aichi, Japan. Th e project assisted Australian companies to identify research and technologies that can be transferred to Australia and also assisted the formation of strategic partnerships. • Th e joint Department of Education, Science and Training/Department of Industry, Tourism and Resources international technology showcasing fund supported whole-of-country delegations to 10 events in 2004-05. Future support will be available through competitive grants of the International Science Linkages programme administered by the Department of Education, Science and Training. • Th e Industry Techlink, launched in 2003, provides a single point of contact for free technology advice for SMEs. In 2004, 2 589 contacts were made to the service and since its inception over 2 200 SMEs have sought assistance. • Th e IMS Programme is an industry-led, international collaboration programme supporting pre- competitive R&D into the next generation of advanced manufacturing technologies and processes. Currently 29 fi rms, three CRCs and seven public sector research organisations are engaged in nine projects, with partners from the EU, Switzerland, United States, Canada, Korea and Japan. As part of Backing Australia’s Ability – Building Our Future through Science and Innovation, changes to the support for innovation access and transfer activities were announced in May 2004. From 1 July 2005, elements of IAccP – Industry will be subsumed into the new Industry Cooperative Innovation Programme. Launched on 2 June 2005, this $25 million programme has funding until 2011 and aims to encourage business-to-business cooperation on innovation projects within a sector to enhance productivity, growth and international competitiveness. Th e programme will support projects aimed at strategic industry needs, with particular focus on those projects identifi ed through an industry Action Agenda. Th e fi rst 10-year phase of the IMS Programme came to a close in June 2005 and Australia’s involvement was reviewed in 2004. Th e key review fi ndings were: • the IMS has had limited impact across industry but stakeholders considered that it has helped foster international collaborative R&D; • Australian involvement in projects has tended to be in a supportive role; and • there have been modest but real outcomes for participants. International linkages and contacts through the programme have been particularly valued. www.au.ims.org

Chapter One: Initiatives for a dynamic national innovation system 49 Information Technology Online Programme Th e Information Technology Online (ITOL) Programme encourages collaborative industry-based projects which accelerate the adoption of e-business solutions, and fosters awareness and take-up of innovative e-commerce solutions within and across industry sectors. Since 1996 more than $13.3 million has been allocated to 119 innovative projects across a range of industry sectors including agriculture, health and pharmaceutical, building and construction, automotive, viticulture, creative media and mental health services. Grants are available for up to $200 000 and are capped at 50% of total eligible project costs. $2.56 million was provided in 2005-06 and $1.083 million is available for projects in 2006-07. Th e programme is a catalyst for industry groups to work collaboratively to solve industry-wide problems. Funding is only available to consortia of at least three parties. In 2004-05, ITOL funded nine projects to consortium groups involving 50 organisations. Interest in the programme is strong. In 2004-05: • ITOL received a total of 101 applications; • 8 461 people visited the website; and • 2 868 people subscribed to ITOL news brief. A number of reviews have been undertaken since the programme’s inception including: • a probity audit to review administrative processes which found that ITOL met Australian National Audit Offi ce best practice guidelines for grant management. • a Macquarie Graduate School of Management study which showed the majority of ITOL projects were successful in raising e-business knowledge in diverse regions, in businesses and in the broader community. Specifi cally: 75% of all consortium either achieved or exceeded their original project objectives; of the 12 projects that had already been completed at the time, most respondents said their consortium members kept on working together on the same or other projects even though the offi cial grant period had already ended; and 69% said project outcomes were better achieved due to the combined eff orts and contributions of the diff erent consortium members. www.dcita.gov.au/itol

Online job scheduling delivers real benefi ts for health industry

Hospitals and aged care facilities in Western Australia now have a single and effi cient point of call when looking to fi ll casual nursing vacancies. NurseWest, developed under the Job Scheduling for Casual Nursing project with funding from the Information Technology Online Programme, has sought to implement an e-business solution to better manage the supply of casual nurses to hospitals and aged care facilities. Th e solution allows employers and agencies to reduce administrative support and costs required to manage their casual workforces by streamlining processes and eliminating duplicate tasks. In addition, it provides greater fl exibility and more opportunity for employees. Th e Western Australia Department of Health believes NurseWest has delivered signifi cant benefi ts and time and cost savings. In addition to allowing hospitals to place all of their requests for staff electronically, NurseWest also allows managers to access client reports directly from the CasualPool system, providing hospitals with timely and relevant information.

50 Backing Australia’s Ability Pharmaceuticals Partnerships Programme Th e Pharmaceuticals Partnerships Programme (P3) is a $150 million, fi ve-year programme designed to increase the level of high quality pharmaceuticals R&D. It provides companies with 30 cents for every additional dollar of pharmaceuticals R&D undertaken in Australia, up to a $10 million cap. P3 encourages partnerships between multinationals, biotechs and researchers. It has had two application rounds to date and a third round will commence in the second half of 2006. Th e programme will conclude on 30 June 2009. Six companies secured funding under round two of P3, bringing the total number of participants to 17. Th e successful companies were: • Starpharma; • Alchemia Limited; • Alphapharm; • CBio Limited; • Peplin; and • Pfi zer Australia. Round 1 participant, Eli Lilly Australia, is increasing and expanding its collaborations in drug discovery and pure science under P3. Th e company currently has more than 300 contractual partnerships with investigators, research organisations and biotechnology companies and is committed to increasing its collaborations and partnerships with Australian researchers and biotechnology companies. Mayne Pharma, also a round 1 participant, commenced 11 new generic medicine development projects in 2004-05 and received approval for 44 new product launches from regulatory authorities. Mayne Pharma will use its funding under P3 to develop highly complex (including biological) generic medicines. Th is will allow Australians to access important medicines at a lower cost, and improve Australia’s ability to meet global demand for these pharmaceuticals. www.ausindustry.gov.au

Supporting investment by local pharmaceuticals

Multinational pharmaceutical company Merck Sharp & Dohme (Australia) Pty Ltd has established phase I clinical trial activities in Australia as a participant in the $150 million Pharmaceuticals Partnerships Programme (P3). Th e programme, which provides companies with 30 cents for every additional dollar of pharmaceuticals research and development undertaken in Australia, gives pharmaceutical companies the incentive to build on their investment in Australia’s medical research base and accelerate the development of the biotechnology industry. For Australia, the commencement of phase I clinical trials by Merck Sharp & Dohme as a result of the programme is a notable achievement, as we are only the third country outside of the US in which the company conducts this type of activity. During the course of its investment in Australia and with the help of up to $10 million from P3, Merck Sharp & Dohme is expected to further its clinical research programme right through to phase IV trials. Th ere has also been a focus on collaboration and licensing activities which span from basic research to pre-clinical activity and also on academic partnerships. Photo credits: DITR

Chapter One: Initiatives for a dynamic national innovation system 51 New Industries Development Programme Th e New Industries Development Programme (NIDP) aims to improve Australia’s performance in the commercialisation of new, innovative agribusiness products, services and technologies. Th e programme’s major focus is the commercialisation of market-driven solutions based on innovation. It is also about changing the form, presentation and delivery of traditional products, technologies and services to better meet changing consumer requirements. Under Backing Australia’s Ability the NIDP was a fi ve-year programme with funding of more than $20 million to June 2006. Th e programme has been extended by $14 million to June 2011 through Backing Australia’s Ability – Building Our Future through Science and Innovation. Th e funds will be used to provide: • competitive-based assistance for Pilot Commercialisation Projects to incubate new innovative niche agribusiness ventures that encourage through-chain approaches and involve at least one partner that is a small to medium agribusiness enterprise; • competitive-based in-market experience scholarships that enable emerging managers to gain fi rst hand experience in specifi c areas of business management and new markets; • further development of supply chain management and market analysis initiatives to encourage stronger, more innovative solutions to supply chain and marketing arrangements; • a capital raising and business development initiative aimed at changing attitudes and building understanding of what investors are seeking, and providing new businesses with access to commercial skills; and • up-to-date quality information for agribusinesses based on demonstration projects that showcase successful, market-driven innovation. Successful initiatives supported by NIDP include the Made in Australia magazine series, the Supply chain management: learning from others interactive CD and the Stepping Stones to Capital workshop series for grant recipients to educate them in all aspects of business development. During 2004-05, the NIDP supported 31 new and 34 continuing Pilot Commercialisation Projects and 16 new and 12 continuing in-market experience scholarships with payments worth more than $3 million. Several of those projects were start-up companies created for the purpose of commercialising a new product while the majority were established companies diversifying their product range. www.daff.gov.au/agribiz

New bait set to reel in Australia’s rock lobster industry

A South Australian business has been able to progress from a successful trial to full production of a new non-refrigerated bait for use in Australia’s rock lobster industry with a grant under the New Industries Development Programme. Currently Western Australia’s rock lobster industry, the nation’s prime single species fi shery, imports about 25 000 tonnes of bait annually. Th e imports are frozen, necessitating expensive chilling, transport and storage. However South Australian Marine Products Industries Pty Ltd (SAMPI) of Port Lincoln uses raw materials from the processing of the heads, tails and internal organs of blue fi n tuna to make three categories of by- products: oils which are high-value and rich in Omega-3 fats, fi sh emulsion which makes liquid fertiliser from the watery residue and ‘minced meat’ which makes jerky-like baits when blended with a natural ‘food glue’, alginate, derived from kelp. It is hoped that these baits will come to replace the more expensive imported baits currently used – which is a win not only for SAMPI but also for the entire rock lobster industry.

52 Backing Australia’s Ability Textile, Clothing and Footwear Strategic Investment Programme Scheme Th e Textile, Clothing and Footwear Strategic Investment Programme Scheme, known as the TCF (SIP) Scheme, is funded by the Australian Government (up to $677.7 million over fi ve years, to 2004-05) to foster sustainable, competitive textile, clothing and footwear industries in Australia. Th e scheme is open to enterprises undertaking eligible activities relating to manufacturing and design for manufacturing in Australia of textiles, clothing, footwear and processed leather. In 2004-05, $123.6 million in grants was paid to 280 businesses for eligible capital, innovation, value-added and regional restructuring expenditure. Machinery used to knit wool. Photo credits: CSIRO www.industry.gov.au. Automotive Competitiveness and Investment Scheme Motor Vehicle Producer Research and Development Scheme Th e Automotive Competitiveness and Investment Scheme (ACIS) Motor Vehicle Producer Research and Development Scheme aims to increase the amount of R&D undertaken by motor vehicle producers in Australia. Up to $150 million in competitive R&D assistance will be off ered from 2006-10. In April 2005, fi ve Australian automotive R&D projects were chosen as the fi rst recipients of $41.36 million in assistance under the scheme. Th ese projects cover areas crucial to the industry’s development including those with an environmental focus such as fuel economy and Machinery used in the manufacture of textiles. emissions improvement, and safety systems. Photo credits: CSIRO www.ausindustry.gov.au/content/content Renewable Energy Commercialisation Programme Th e Renewable Energy Commercialisation Programme was announced as a $55.6 million competitive grants programme designed to develop the renewable energy industry in Australia and reduce greenhouse gas emissions. Administered by the Australian Greenhouse Offi ce of the Department of the Environment and Heritage, it provides funds for projects that lead to the commercialisation of innovative renewable energy equipment, technologies, systems and processes. Th e programme has provided funding of between $135 000 and $1 million for 49 projects, including solar Air sampling out gassing from a new car. photovoltaic, solar thermal, wind, biomass, hydro, wave Photo credits: Tracey Nicholls.

Chapter One: Initiatives for a dynamic national innovation system 53 and hot dry rock developments. Two projects were successfully completed in 2004-05, bringing to 26 the number of completed projects under the programme. It is estimated that 500 direct jobs have or will be created as a result of the programme and private sector investment of up to $238 million and exports of $120 million could also be achieved. Greenhouse gas abatement

of up to six mega tonnes of CO2 equivalent is estimated as possible by 2010 from the uptake of the technologies commercialised under the programme. Additional benefi ts include rural and regional development, waste minimisation, salinity mitigation, job and export creation and diversifi cation of agricultural incomes. Th e programme also includes a $6 million industry development component, which has funded arange of standards, best practice guidelines and focused training material, and studies that address barriers to development of the renewable energy industry. www.greenhouse.gov.au/renewable/index.html

Solar technology that heats our homes, not our atmosphere

Th e Australian Government has provided support of $1.6 million for a new solar technology being commercialised by T3 Energy Ltd that heats the air in our homes and not our atmosphere. Th e grant was provided under the government’s Renewable Energy Commercialisation Programme, which provides fi nancial support to commercialise innovative and strategically important renewable energy technologies. Th e Solar Air Heater Project, which is a partnership between the Australian National University and Origin Energy, uses phase change materials that can effi ciently store solar energy during sunlight hours to heat homes overnight or even during the day when overcast. Projections indicate the technology has the potential to provide 1.75 million megawatt hours of energy each year by 2010, which would reduce annual greenhouse gas emissions by about 1.7 million tonnes. Th e Solar Air Heater Project was originally awarded a grant of $600 000 to successfully developthe product for commercial markets and the standard version is now being sold by T3 Energy Limited. An additional grant of $1 million will be used to incorporate water heating and electricity production into the design of the air heaters using Origin Energy’s sliver cell technology. Th e funding will also be used to reduce the cost of manufacturing the product by about 65%.

Greenhouse Gas Abatement Programme Th e Greenhouse Gas Abatement Programme (GGAP) targets projects that achieve large-scale, cost-eff ective and sustained abatement of greenhouse gas emissions from any sector of the economy, particularly in the fi rst Kyoto target period (2008-2012). Funding is provided to private industry, industry associations and local, state and territory governments to support projects that will result in substantial emission reductions or substantial sink enhancement. Th e programme leverages signifi cant private sector investment in large-scale energy effi cient and greenhouse abatement technologies and practices. Under GGAP, the latest industrial plant, equipment and techniques are being applied to the mining, minerals and energy sectors to deliver greenhouse gas abatement. Th ere have been three rounds of GGAP, with the third and fi nal round currently being concluded. One of the criteria for funding is the extent to which projects accelerate eff orts to research, develop and deploy new technologies or innovative processes. In 2004-05 the Minister for the Environment and Heritage made an off er of GGAP funding to Geodynamics Power Systems for a power generation proposal submitted under the round one Business Council for Sustainable Energy project. Th e proposal uses and will further develop an innovative waste heat-recovery technology called Kalina cycle in a power plant, which would be the fi rst demonstration of the technology in Australia. Th e Kalina cycle technology recovers heat more effi ciently than a traditional steam turbine.

54 Backing Australia’s Ability Th e proposed site is at Mount Keith Nickel Operations in Western Australia. Successful commercial application of the technology in Australia may result in future industrial applications, including to the hot- dry rock geothermal power plant under development by Geodynamics in South Australia. Deed of Agreement negotiations are currently underway. Other examples of GGAP projects include: • Macquarie Generation – investing in energy effi cient low pressure turbines; • Queensland Alumina Limited – replacing rotary kilns with several energy effi cient calciners; and • BHP – transferring Vocsidizer technology from manufacturing facilities to a waste coal mine gas electricity generation project. www.greenhouse.gov.au

Taking the chill out of greenhouse gas

Refrigerant Reclaim Australia (RRA) was awarded $280 000 from the Greenhouse Gas Abatement Programme in 2001 for the recovery and disposal of synthetic greenhouse gases from air-conditioning and refrigerants. Th e RRA project utilises Australian developed plasma-arc technology known as the Plascon in the destruction of recovered refrigerants such as hydrofl uorocarbons and perfl uorocarbons. Th is technology is considered the most environmentally eff ective process available globally with an effi ciency rate of 99.99%. Th is project was successfully completed in December 2004 and is already estimated to have achieved 104 700 tonnes of greenhouse gas abatement through the destruction and recycling of greenhouse gases.

Building links to facilitate commercialisation

A main theme of Backing Australia’s Ability – Building Our Future through Science and Innovation is to encourage greater levels of collaboration between the various sectors of Australia’s innovation system. Th rough such collaboration there is much greater opportunity to explore the potential and application of outcomes arising from research, and to ultimately seize a greater share of the market with the end product. Many of the initiatives in the package are aimed at providing greater opportunities for Australian businesses to capture the benefi ts of university research by strengthening the commercial linkages between them. In addition to supporting collaboration between researchers and industry, researchers themselves must also be given the opportunity to build linkages both within and outside of their discipline areas. A multi-disciplinary approach to research can yield many benefi ts that may have otherwise been unnoticed. Although commencing on a certain line of enquiry, the potential benefi ts or commercial application of a particular piece of research may only be recognised by a colleague in another discipline. In recognition of the importance of these networks, the Australian Government has developed a number of initiatives to encourage increased levels of collaboration. In particular the Australian Research Council through the National Competitive Grants Programme will support greater collaboration through initiatives such as the Research Networks, Centres of Excellence, regional clusters, e-research and partnerships with industry. Th e CSIRO Flagships have also been designed to foster closer collaborations with other sectors of the national innovation system, so that eff orts are more focused in addressing major national issues and economic opportunities.

Chapter One: Initiatives for a dynamic national innovation system 55 Cooperative Research Centres Programme Th e Cooperative Research Centres (CRC) Programme was established to bring together researchers and research users. It emphasises the importance of collaborative arrangements to provide research solutions focused on industry needs. It also has a strong education component with a focus on producing graduates with skills relevant to industry. When all CRCs from the 2004 selection round are established, there will be 72 operating in six sectors: environment, agriculture and rural based manufacturing, information and communication technology, mining and energy, medical science and technology, and manufacturing technology. Th e CRC Programme was launched in 1990 and funding was increased under Backing Australia’s Ability. An extra $65 million is now being provided for selection rounds in 2006 and 2008, as well as to fund the applicants that were successful in the 2004 round. Th e Minister for Education, Science and Training announced the outcome of the 2004 selection round in December 2004. Funding of $407 million was approved for 16 successful applicants, resulting in fi ve new CRCs, nine centres to be developed from existing CRCs, and two CRCs receiving supplementary funding. Th e 2004 round saw a shift to a stronger economic focus in the programme following an evaluation in 2003. Applicants were required to demonstrate the proposed contribution to industrial, commercial and economic growth and the ‘path to adoption’ of research results through commercialisation and utilisation. Since the programme’s inception to the end of June 2004, CRCs have produced more than 20 000 published works. In addition over 25 000 publications and technical reports have been developed for industry and end users. At June 2004, CRCs were employing more than 2 900 full-time equivalent research staff and supporting more than 2 100 postgraduate students. During 2003-04, CRCs reported that 296 students left to take up employment with relevant industry and other end user groups. A total of 1 326 collaborations with industry participants and other industry and end user groups were reported, and almost 750 major international collaborative alliances. Since the programme’s inception, CRCs have undertaken nearly 6 000 research contracts for industry and other end users earning $466 million. In 2003-04, CRCs reported 1 632 licence agreements, the creation of 22 spin-off companies and 15 other types of technology commercialisation agreements. For 2003-04, 354 patents were held in Australia and 610 overseas, with 76 patents fi led in Australia and 15 fi led overseas. www.crc.gov.au

Stamping out health industry fraud

Employing the know-how from its world fi rst real-time fraud detections systems in securities markets (currently deployed in 17 countries), the Capital Markets Cooperative Research Centre has launched an equivalent real-time fraud detection system for the Australian health insurance industry. Based on estimates of fraud within the Australian marketplace the system known as “Dtechtive” is estimated to help save the Australian industry as much as $1.88 billion a year. Health expenditure in Australia is rising by greater than the consumer price index and is one of the fastest growing government and business expenses. Th e total paid by Australia’s public and private health insurers is currently around $18.8 billion, of which it is estimated about 10% is lost through fraud and inappropriate practice in health insurance claims. Th e problem is increasing as electronic claims processing becomes more widely used. Dtechtive is the fi rst product in Australia to implement fraud detection systems at the time claims are fi rst processed, rather than after they have already been paid, when it becomes almost impossible for monies to be recovered. Th e system is to be taken to market by Dtecht Pty Ltd (a spin-off vehicle of CMCRC) with $1 million in venture funding already achieved.

56 Backing Australia’s Ability Intellectual property Backing Australia’s Ability intellectual property (IP) initiatives focus on raising the IP awareness of Australian business and on improving the level of IP protection to ensure an eff ective and accessible intellectual property system that promotes innovation, investment and international competitiveness for the benefi ts of all Australians.

IP awareness IP Australia, the Australian Government agency responsible for administering the Australian IP rights system for patents, trade marks, designs and plant breeder’s rights, provides ongoing funding and support for IP initiatives. IP Australia is recognised internationally as a leader in IP public education and awareness programmes and has assisted countries in the region to develop and implement their own IP education and awareness initiatives. It works closely with stakeholders to develop a range of eff ective IP awareness products including targeted seminars for small business and the tertiary sectors, a variety of online instructional services such as InnovatED and IP Professor, and guides for business such as Smart Start and the IP Toolbox. An Australian government IP portal, IP Access (http://www.ipaccess.gov.au/) has also been established to enable users to access all government IP information through a single internet entry point. Other recent initiatives include: • A Designs Act road show that targets designers and helps them to understand the processes and impacts of the new design legislation. • Redevelopment of Smart Start IP guide which is one of the most valuable IP information resources for SMEs. Th e Smart Start website received 71 088 hits last fi nancial year. • Providing an exhibition booth at the Australian Science Festival in 2004 for school groups to undertake activities to reinforce positive learning outcomes linked to IP. Last fi nancial year: • more than 6 500 requests were received for the IP Professor relationship marketing material; • more than 79 000 information products were distributed; • over 85% of IP seminar attendees rated presentations as above average; and • the IP Australia homepage received 2 971 251 hits, the IP Professor website received 268 992 hits, InnovatED received 88 832 hits and IP Access received 620 988 hits.

Strengthening IP rights Th e enactment of the government’s response to the recommendations of Intellectual Property and Competition Review Committee’s report Review of intellectual property legislation under the competition principles agreement, and the Advisory Council on Intellectual Property’s Review of enforcement of industrial property rights, are key IP protection initiatives. Several key patent recommendations from these reports were implemented by the Patents Amendment Act 2001. Th e remaining elements of the government response to the reports are expected to be implemented in 2005-06 including: • removing the jurisdiction of state and territory supreme courts to revoke a patent; • providing for exemplary damages to be awarded in cases of blatant or willful infringement of a patent; • clarifying the operation of section 119 of the Patents Act 1990 and extending the scope of this section to encompass all acts which would constitute an infringement of the relevant patent; • providing a competition test as an additional ground on which a compulsory licence to use a patent may be granted; and • ensuring that the assignment provisions of the Trade Marks Act 1995 are not used to prevent the parallel importation of legitimately trade marked goods.

Chapter One: Initiatives for a dynamic national innovation system 57 Review of designs ‘spare parts’ exclusions Th e new designs rights system, which commenced in June 2004, excluded spare parts from designs protection through a ‘right of repair’ provision. IP Australia will undertake a formal review of the exclusion in August 2005 to assess how well it has met the government’s objectives of encouraging innovation and competition.

Review of innovation patent system Th e government committed to review the eff ectiveness of the innovation patent system within fi ve years of its introduction in 2001. Th e purpose of the system is to encourage and stimulate innovation by providing a faster and cheaper means through which Australian SMEs can protect their lower level inventions. Th e review is expected to be completed by June 2006.

Review of grace period Amendments to the Patents Regulations 1991 providing a grace period for fi ling patent applications came into eff ect on 1 April 2002. Th e grace period helps to protect a patent applicant against invalidation by self publication and prior public use. Extensive consultation has been undertaken with key interest groups and stakeholders as part of a review of the amendments, and a full report is expected to be published in 2005. www.ipaustralia.gov.au

Intellectual Property Research Institute of Australia Th e Intellectual Property Research Institute of Australia (IPRIA), a Backing Australia’s Ability initiative, is located at the University of Melbourne. It was established in March 2002 with core funding from IP Australia. It provides high quality multidisciplinary research to improve policy advice on IP to Australian governments, improve the use of IP by Australian organisations, and improve the debate about IP issues in the Australian community. Th e ongoing activities of the IP research centre, have made a signifi cant contribution to knowledge creation, diff usion and awareness of IP issues during the past year. IPRIA’s contribution includes 37 projects currently underway as well as completion of: • six projects; • 24 working papers; • six occasional papers; • three reports; • two scoreboards; • 18 journal articles; • three conferences; • 10 public seminars; • six non-refereed journal articles; and • four other publications. IPRIA employs four full-time research fellows, nine casual researchers and draws on the research expertise of its director, three associate directors as well as 30 research associates from a range of national and international universities and institutes. IPRIA underwent an external review in May 2005 to assess whether it met its objectives. Th e review panel of eminent Australian and international academics considered the quality, quantity and relevance of the institute’s research and research-related activities, its relationships with its stakeholder, its external funding sources, and its fi nancial management and viability. Th e review panel was impressed by the performance of the institute in its fi rst three years and recognised the uniqueness of its multi-disciplinary approach. It recommended that the institute continue its work and also made a series of recommendations to enhance the next phase of its operations. www.ipria.org

58 Backing Australia’s Ability International Science Linkages International Science Linkages (ISL) helps Australian researchers increase their participation in international leading edge scientifi c research, as well as to leverage access to international research funds. It helps raise the profi le of Australian research and supports the development of strategic alliances between Australian and international researchers and industry. Th e programme is increasing Australia’s capacity to attract overseas R&D investment, promoting innovation and increasing the economic and social impact of Australian research. ISL supports: • Australian researchers to participate in strategically focused, leading edge, international scientifi c research and technology collaborations; • major international scientifi c conferences in Australia; • initiatives that showcase Australia’s scientifi c research and technology capabilities; • access to world leading international research facilities, networks and programmes through international exchanges, fellowships, missions and workshops; and • Australia’s bilateral and multilateral science and technology relations with other governments. An estimated 1 500 Australians were involved in projects supported under the programme in 2004-05. Th e competitive grants component of ISL supported an estimated 180 international collaborative scientifi c research and technology projects and related activities, the majority of which were in accordance with Australia’s National Research Priorities. Sixty-nine scientifi c publications were produced, and this number is expected to rise as the number of projects that are completed increases. ISL supported 18 workshops and other activities during the year that brought overseas experts to Australia, as well as a further 12 workshops or other activities overseas that provided Australian scientists with opportunities to link with leading-edge scientists internationally. ISL also provided targeted support for approximately 35 international exchanges, missions and workshops, and access to major international research facilities not available in Australia. www.dest.gov.au/science/isl PART THREE – Developing and retaining Australian skills Th e potential to develop, attract and retain highly skilled workers in Australia will have a direct impact on the nation’s prosperity and long-term growth. Th e capacity for a society to create and adopt innovative technologies directly aff ects its ability to compete on the global stage. Not only is it important to instil a sense of appreciation towards areas of science and innovation in young Australians, but this interest must be nurtured and maintained throughout the life cycle so that ultimately these areas present an attractive career choice. In 2003, the Committee for Reviewing Teacher and Teacher Education found that the percentage of Australian Year 12 students enrolled in science related subjects was trending downwards. However Australia is not alone in this area and many OECD countries also fi nd themselves in similar positions. A signifi cant amount of international attention has been focused on reversing this trend and attracting students back into science, engineering and technology related subject areas. Th rough Backing Australia’s Ability the Australia Government is providing a range of incentives to stimulate interest in science and innovation from childhood to adulthood. Under the package, more than $600 million will be provided over 10 years from 2001-02 to 2010-11 to address issues relating to skills, job prospects and appreciation of science’s important role in society. Schools Australia’s future depends on the high quality of the school system in producing tomorrow’s researchers. Encouraging students to develop an early interest in science based subjects is vital to develop longer-term participation in areas of science, engineering and technology. To stimulate this interest, students require the appropriate blend of foundation skills, values, knowledge and understanding necessary for lifelong learning, employment and eff ective participation within society.

Chapter One: Initiatives for a dynamic national innovation system 59 A disturbing trend amongst OECD countries is the decrease in the number of students undertaking science based subjects. Although performing at a world-class level, as evidenced through the recent results at the Smart Olympiads, Australian students enrolling in these areas are also trending downwards. Th e Australian Government is playing an active role in exploring the reasons behind this shift, encouraging students to develop an interest in science-based areas and ensuring that schools are suffi ciently resourced to suffi ciently perform their mandates. To achieve this, the government is working closely with state and territory governments, non-government school authorities, parents, educators and other organisations to seek the best possible outcomes for students. Th e Review of Teaching and Teacher Education was an initiative announced underBacking Australia’s Ability. Th e subsequent report from the review, Australia’s Teachers: Australia’s future – advancing innovation, science, technology and mathematics was released by the Minister for Education, Science and Training in October 2003. Th e objectives of the review were to identify strategies that will increase the numbers of talented people who are attracted to teaching as a career, especially in the fi elds of science, technology and mathematics education, and build a culture of continuous innovation at all levels of schooling within Australia. Amongst a number of fi ndings, the review committee recommended that urgent attention must be directed towards addressing the drop off in enrolments in science, technology and mathematics. In response to the review, the Australian Government announced the seven year $35.2 million Boosting Innovation in Technology, Science and Mathematics Teaching Programme and its main component, the $33.7 million Australian Schools Innovation in Science, Technology and Mathematics (ASISTM) Project. ASISTM helps enhance science, technology and mathematics education and promote innovation in school. It will fund an estimated 500 school cluster initiatives, including 1 300 teacher associates, to bring schools together with industry, science organisations, universities, teacher professional organisations and others to explore ways to encourage a culture of innovation in schools. Th e aim is to bring about real and lasting improvements in the ways in which science, mathematics and technology are taught in schools. Th ere has been an overwhelming level of interest in ASISTM, with the fi rst round of funding providing approximately $9 million to 103 school cluster projects involving 623 schools and 338 non school partners across Australia. Fostering Scientifi c, Mathematical and Technological Skills in Government Schools Th roughBacking Australia’s Ability, the Australian Government is allowing states which trigger the Enrolment Benchmark Adjustment (EBA) to retain their EBA liability for use in government schools to: • achieve better scientifi c, mathematical and technological skills; • develop school-based innovation; and • build supportive school environments. Th e EBA is a mechanism designed to remove the potential for cost shifting by states to the Australian Government by adjusting general recurrent grants for government schools based on the movement in the ratio of non-government students to government students. To retain their EBA liability for use under this initiative, states which trigger the EBA must submit a strategic plan to the Minister for Education, Science and Training each year setting out their proposed activities to strengthen the science, mathematics and technology curriculum in government schools. For 2005 the total EBA liability is $106.5 million. It has been triggered in New South Wales, Victoria, Queensland, South Australia and Western Australia. Th e initiative will continue under Backing Australia’s Ability – Building Our Future through Science and Innovation with the Australian Government providing an estimated $532 million over the four years 2005 to 2008 from the general recurrent grants allocation. http://backingaus.innovation.gov.au/research/fostering.htm

60 Backing Australia’s Ability Knowledge is power when it comes to science and technology

Th e Department of Education, Science and Training through its programme Fostering Scientifi c, Mathematical and Technological Skills in Government Schools, has been able to support schools in their implementation of innovative new ideas across the mathematics, science and technology curriculum. In Queensland, the Science State-Smart State project has involved a review of current science education to construct policy initiatives that will enhance student learning and opportunities. Forty-seven schools will trial a new Science in Society subject developed by the Queensland Studies Authority. A Student Research Scheme is also underway with CSIRO and 10 teachers from around the state have been selected for a Teacher Research Scheme. A further initiative, Spotlight on Science, has supported out of class activities for almost 4 000 students and the Spotlight on Science Taskforce has endorsed a Magnet School Model for Excellence for fi ve schools around Queensland.

The Le@rning Federation: Schools Online Curriculum Content Initiative Th e Australian Government committed $34.1 million over fi ve years (2001-06) to support the development of online learning materials and accompanying services and systems for Australian schools under Th e Le@rning Federation. Th is collaborative initiative is funded through Backing Australia’s Ability on a matched funds basis with all Australian states and territories. Th e New Zealand government joined the initiative in 2002, contributing a further $4.8 million. Th e Le@rning Federation is designed to: • develop high quality online curriculum content in priority areas; • create a framework for distributed access to that content to state and territory gateways; • develop materials that represent the best education available or conceivable in the early 21st century – such materials will engage teachers and students in the construction of learning and in creative and critical thinking; • support the innovation, enterprise and knowledge economy priorities of the state, territory and Australian governments; and • encourage a marketplace for high quality public and private online curriculum content. Achievements in 2004-05 include: • continuing 16 content development projects in the curriculum areas of science, mathematics and numeracy, studies of Australia, languages other than English, literacy for students at risk, and innovation, enterprise and creativity. 4 500 learning objects and digital resources will be developed by June 2006. • continuing development of the Schools Online Th esaurus (ScOT) system that describes the subject matter of online content and helps teachers search for content that is suitable for the curriculum requirements of their jurisdiction. • developing the intellectual property rights management system CRISP (Content Rights Information System Project). • involving 30 curriculum expert teachers in content design workshops and educational reviews, and 97 schools, 2 239 students and 97 teachers across Australia and New Zealand in in-school content evaluations. • working with the Australian Film Commission to develop learning objects from products that have been developed for broadband including iconic Australian fi lm resources. Th ese products will be made available by June 2006. www.thelearningfederation.edu.au

Chapter One: Initiatives for a dynamic national innovation system 61 Students get hands on with new online learning tools

Indigenous students at the small Boggabilla Central School in far northern New South Wales are enjoying the benefi ts of a suite of online learning materials that aim to deliver schools nationwide with the very best in education available across a range of priority curriculum areas. Th e Le@rning Federation: Schools Online Curriculum Content Initiative has been supported with $34.1 million from the Australian Government and funding matched by each of the states and territories. Th e initiative has also been expanded across the Pacifi c with the support of the New Zealand Government and is now being enjoyed by thousands of students here and overseas. Th e initiative’s learning objects have been embraced by schools everywhere for their ability todeliver educational outcomes in a more interesting and visually stimulating way. In addition to visual elements, the learning objects provided online also include a range of audio supported activities which have been a real boost for students who would otherwise struggle due to low literacy.

National Youth Science Forum Th e National Youth Science Forum (NYSF) brings together industry and education partners to inspire and guide Year 12 students towards careers in science, technology, engineering and related disciplines. Each year 282 students from around Australia are selected to attend the forum – a two-week residential programme in Canberra that mixes hands-on scientifi c activities, debates, guest lectures and personal development workshops to stimulate and broaden their understanding of what it means to work in science. Students visit a wide range of institutions including the Australian National University and its research schools, CSIRO laboratories, Tidbinbilla Deep Space Network and the Australian Defence Force Academy. Later in the year presentations are given in each capital city by universities to help students develop the confi dence to live and study elsewhere. Some students are also off ered a place at youth science programmes in Canada, South Africa, England, Russia and Sweden, and invited to return as staff in next year’s NYSF after leadership training. Photo credits: National Youth Science Forum www.nysf.edu.au

Photo credits: National Youth Science Forum Photo credits: National Youth Science Forum 62 Backing Australia’s Ability Left to right: Andrew Lin, Dustin Stuart, Programme Director Dr Geoff Salem, Left to right: Rachel Eff eney, Casey Handmer, Tom Molomby, Team Leader Elizabeth New, Harry Yan, Team Leader Tony Kwan, and Kim Zhou. Alexander Zhang, Programme Director Dr Kate Wilson and David Yang. The Smart Olympiads Physics, biology and chemistry Th ousands of Australian students competed in 2004 in the qualifying examinations for the Australian Science Olympiads (ASO), an exciting science education programme off ered by non-profi t organisation Australian Science Innovations with the support of the Department of Education, Science and Training and pharmaceutical company Merck Sharp & Dohme. 75 competitors were selected to be ASO scholars: participants in a unique, intensive residential training school designed to extend their skills and knowledge, stimulating their passion for science. Th irteen scholars joined Australia’s teams to the prestigious International Science Olympiads – the Olympic Games for Science – held annually in diff erent countries. Th is year, biology was held in China, chemistry in Taiwan and physics in Spain. Th e training and representation of the 2005 biology team will form the focus of an ABC documentary to air in early 2006. Twelve of Australia’s 13 competitors were awarded medals including four gold. Australia maintained its ranking amongst the best competing countries and placed eighth out of 50 in biology, seventh out of 59 in chemistry and 16th out of 77 in physics. www.aso.edu.au

Top row left to right: Programme Director Dr Nick Hagan, Team Leaders Sarah Jones and Edward d’Auvergne. Bottom row left to right: Joy Th ompson, Heli Simpson, Emma Leitinger, and Anna Wang.

Chapter One: Initiatives for a dynamic national innovation system 63 Mathematics and informatics In 2004 Australian teams participated in the International Mathematical Olympiad and International Olympiad in Informatics, both in Athens. Th e mathematics team was particularly successful, winning a gold medal, a silver medal, two bronze medals and an honourable mention. In 2005, the mathematics team travelled to Merida, Mexico while the informatics team travelled to Novy Sacz, Poland. Professor Peter Taylor, Executive Director of the Australian Maths Trust which administers Australia’s involvement in the International Mathematical Olympiad, acknowledged the Australian Government’s commitment of $1.8 million for three years to support the Australian Maths Trust and Australian Science Olympiads as well as the teams representing Australia at the Olympiads. www.aso.edu.au

Higher education

Th e number of students undertaking science, engineering and innovation based courses will have a direct impact on Australia’s capacity to create and adapt to new technologies. As table 8 below illustrates, the numbers of university students graduating from science and engineering subjects fl uctuated from year to year but shows a steady trend upwards, with the exception of 2003. Th e number of tertiary graduates in science rose signifi cantly from 9 284 in 1988 to 16 369 in 2003, an increase of 43%. Th e number of graduates in engineering also increased from 6 365 in 1988 to 9 241 in 2003, an increase of 31%. However over this period, science and engineering graduates as a percentage of all Australian graduates declined slightly from 19.2% to 17.7%.

Table 8: Australian tertiary graduates in science and engineering, 1988 to 2003

Australian Teritary Graduates in Science Australian Teritary Graduates in Engineering

Australian Teritary Graduates in Science and Engineering as a percentage of Teritary Graduates 20,000 20

19.2 19.3 18.8 18.8 18.7 18.7 18.4 18.5 18.5 18.4 18.1 18.3 17.6 17.6 17.5 17.7 16,000 16

12,000 12

8,000 8 16,918 16,644 16,369 Number of graduates 14,932 14,633 14,196 14,113 13,679 4 13,538 13,292 12,457 7 8 8 2 % of total Australian tertiary graduates 4,000 11,589 4 10,55 9,470 9,429 9,414 9,284 9,218 9,241 9,203 9,180 9,01 8,73 8,72 8,71 6 9 8,172 7,569 6,981 6,365 6,22 6,02 5,940

0 0 2 3 1988 1989 1990 1991 199 199 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Source: DEST, derived from unpublished data provided by the University Statistics Unit, DEST in July 2005.

64 Backing Australia’s Ability 2 000 Additional Targeted University Places Funding of $151 million was provided for 2 000 additional targeted university places in 2002 with a priority on mathematics, science and information and communications technology. Th e allocation came to its peak in place numbers in 2005, when the total number of places was 5 469. Bids for places were assessed on their approaches to teaching and learning and whether these were designed to meet the needs of industry and attract talented students to careers in science and technology. Courses with Backing Australia’s Ability places include: • Bachelor of Science/Bachelor of Computer Science; • Bachelor of Telecommunications Engineering; • Bachelor of Science/Bachelor of Education; • Bachelor of Computer Systems Engineering; • Bachelor of Information Management; • Bachelor of Engineering (Bioinformatics); • Bachelor of Engineering (Photovoltaics & Solar Energy); • Bachelor of Science Nanotechnology; and • Diploma in Innovation Management.Th e programme extension through Backing Australia’s Ability – Building Our Future through Science and Innovation will provide additional funding of $199.5 million over fi ve years from 2006-07 to maintain this number of places.

Table 9: Australian PhD graduates in science and engineering, 1988 to 2003

Australian PhD graduates in science Australian PhD graduates in engineering Australian PhD graduates in science and engineering as a percentage of total Australian PhD graduates

1,000 60

900 50.6 50 800 45.3 46.4 43.6 43.3 43.0 42.7 41.8 42.3 42.5 700 40.9 40.4 38.2 40 37.2 35.8 35.6 600

500 30

400 928 834 816 Number of PhD graduates 794 784

766 20 300 746 625 0 587 % of total Australian PhD graduates 200 55

423 10 414 1 394 392 393 390 345 33 303 292 290

100 280 281 258 176 104 83 85 115 119 105 163 0 0 9 8 0 1988 198 1990 1991 1992 1993 1994 1995 1996 1997 199 1999 200 2001 2002 2003

Source: Science and Innovation Analysis Section, DEST, derived from unpublished data provided by the University Statistics Unit, DEST.

As shown in table 9 above, the numbers of Australian PhD graduates also trended upward from 1988 to 2003. Despite an increase of 54.4% in the numbers of PhD students undertaking science and 70% in engineering, the percentage of these students compared to all Australian PhD graduates decreased from 50.6% in 1988 to 35.6% in 2003. Th is decrease continues the negative trend over this period despite the brief spike upwards in 1994.

Chapter One: Initiatives for a dynamic national innovation system 65 Research Training Scheme Th e Research Training Scheme (RTS) is strengthening Australia’s knowledge base and research capabilities by providing block grants to eligible higher education providers to support training for students undertaking Doctorate and Masters Degrees by research. It is also enhancing the quality of research training provision in Australia, improving the responsiveness of providers to the needs of their research students, encouraging providers to develop their own research training profi les and improving the effi ciency and eff ectiveness of research training. RTS funding rose from $540.8 million in 2004 to $552.2 million in 2005. http://www.backingaustraliasfuture.gov.au/guidelines/documents/rts_guide.pdf Regional Protection Fund Th e Regional Protection Fund (RPF) helps protect designated regional higher education providers from losses they incur in total Research Training Scheme (RTS) and Institutional Grants Scheme (IGS) grants against their 2001 indexed baseline. Th e RPF was established in 2001 and has been extended through Backing Australia’s Ability – Building Our Future through Science and Innovation until 2007-08. Funding under the programme is limited to $3 million annually indexed to current prices. Funds are distributed to designated providers in proportion to their relative losses against their combined RTS and IGS loss against their indexed 2001 benchmark. http://backingaus.innovation.gov.au/2004/research/regional_protection.htm Postgraduate Education Loans Scheme (now the Higher Education Loan Programme) Th e Postgraduate Education Loans Scheme (PELS) provided loans to eligible students from 2002-04 who were enrolled in fee-paying, postgraduate non-research courses. It was designed to remove barriers to national investment in education, training and skills development and increase enrolments in fee-paying postgraduate and non-research courses. Th e Higher Education Loan Programme (HELP) replaced PELS in January 2005 as part of the government’s higher education reform package, Our Universities: Backing Australia’s Future. HELP includes a new loan programme called FEE-HELP which has replaced the PELS scheme and a number of other small loans schemes that assist people to pay tuition fees. PELS students who commenced their course of study prior to 1 January 2005 are able to access FEE-HELP for that course of study under pre-2005 PELS eligibility criteria until the end of 2008, or until they complete or discontinue their course of study. FEE-HELP will make loans for tuition fees more broadly available to fee paying students, including undergraduate students and will enable Australian citizens and holders of a permanent humanitarian visa who are not in a Commonwealth supported place (previously known as a HECS place) to obtain loans to pay all or part of their tuition fees. It will ensure that most students who wish to accept a full fee paying place in a course are not prevented from doing so by being unable to pay their fees up front. Th e total value of a student’s fees that can be repaid using FEE-HELP is $50 000 over the student’s lifetime. Th is FEE-HELP limit is indexed each year. www.backingaustraliasfuture.gov.au Australian Postgraduate Awards programme Th e Australian Postgraduate Awards (APA) programme supports postgraduate research training in the higher education sector and provides fi nancial support to postgraduate students of exceptional research promise who undertake their higher degree by research at an eligible Australian higher education provider. APAs are available for a period of two years for a Masters by research degree, or three years, with a possible extension of six months, for a Doctorate by research degree. APA holders receive an annual stipend and may

66 Backing Australia’s Ability also be eligible for other allowances. Many students receiving APAs are also funded through the Research Training Scheme. Participating institutions are provided with funding for continuing awards and a notional number of new awards each year. In 2006, 1 561 new awards will be provided. Th e allocation of awards to institutions refl ects their overall research performance. Th ere are approximately 5 100 students on APA scholarships at any given time. In 2005, total funding for the scheme was $91.18 million, which will increase to $93.12 million in 2006. From 2006, under the reform package Our Universities: Backing Australia’s Future, the number of new APA scholarships awarded each year will be adjusted to accommodate population growth. Th is will ensure that postgraduate research opportunities do not decrease on a per capita basis as the population grows. www.dest.gov.au/sectors/research_sector/programmes_funding/programme_categories/fellowships_ awards_prizes/australian_postgraduate_awards_scheme.htm Endeavour International Postgraduate Research Scholarships Th e Endeavour International Postgraduate Research Scholarships (Endeavour IPRS) programme was established to maintain and develop international research linkages. It aims to attract top quality international postgraduate students to areas of research strength in the Australian higher education sector and support Australia’s research eff ort. Endeavour IPRS are available to successful international applicants for a period of two years for a masters by research degree or three years for a doctorate by research degree, with the possibility of a one year extension. Th e scholarship covers the student’s tuition fees and health insurance premiums for the student and their dependants. A notional number of scholarships are off ered to eligible Australian higher education providers who then make their own selection of international student scholars in accordance with the Commonwealth Scholarship Guidelines. Th ere are approximately 1 000 students on Endeavour IPRS at any given time. In 2005, approximately 330 new scholarships were awarded at a cost of $18.1 million. Th is cost is expected to be similar in 2006. Th e Endeavour IPRS is promoted, along with the remaining Endeavour scholarships, by notifying foreign embassies in Australia and Australian Posts off shore and alerting Australian higher education providers who then perform their own application and selection process. http://www.dest.gov.au/sectors/international_education/programmes_funding/programme_categories/ international_scholarships_exchanges/default.htm

Gaining and retaining skills

It is important that Australian researchers are provided with the opportunity to develop their skills and expertise to a world standard. As part of this process it may be necessary to pursue research endeavours outside of Australia. At the same time a number of skilled migrants are leaving their countries of origin to seek opportunities in Australia. Th is “brain circulation” ensures that our brightest researchers are exposed to cutting edge research environments so that they may bring this knowledge and skill back to Australia. From the period 1999-00 to 2003-04, Australia has gained 21 986 computing professionals, 4 314 building and engineering professionals, 3 585 electrical and electronics engineers and 2 244 mechanical production and plant engineers.

Chapter One: Initiatives for a dynamic national innovation system 67 Table 10: Net gains in scientists and engineers through migration – by selected occupation, 1999-2000 - 2003-04

Chemists 615 Geologists & Geophysicists 690 Life Scientists 911 Environment & Agricultural Science Professionals 567 Medical Scientists 915 Other Natural & Physical Science Professionals -814 Building & Engineering Professional 4,314 Architects & Landscape Architects 1,291 Quantity Surveyors 626

Catographers & Surveyors 191 Civil Engineers 2,072 Electrical & Electronics Engineers 3,585 Mechanical Production & Plant Engineers 2,244 Mining & Materials Engineers 619 Engineering Technologists 1,201 Other Building & Engineering Professionals 2,574 Computing Professional 21,986 Mathematicians & Statisticians & Actuaries 234

-5,000 0 5,000 10,000 15,000 20,000 25,000 Net gains

Source: DEST, derived from unpublished data provided by DIMIA in June 2005.

Federation Fellowships Th e Australian Research Council’s Federation Fellowships are highly prestigious awards designed to build world class research capability in Australia. Th e fellowships are designed to support and encourage researchers to stay in or return to Australia by providing an internationally competitive salary. On 15 June 2005 the Minister for Education, Science and Training announced 24 new Federation Fellowships with funding commencing in 2005. Of these, four are to expatriate Australians who will leave international Dr Brendan Nelson and Professor Peter Hoj (right), ARC Chief Executive Offi cer congratulates 2005 Federation Fellow, Professor organisations to return home, and fi ve are to foreign Hilary Charlesworth (centre) from the Australian National University. nationals who will bring their experience and talent to Photo credits: ARC Australia. Th e new fellowships bring the total number of fellowships awarded under the scheme to 94. Skilled Immigration Immigration initiatives were introduced in 2001 under Backing Australia’s Ability to increase the number of ICT skilled people entering and retained in Australia through the permanent migration and temporary entry programmes. Migrants entering under the General Skilled Migration programme are awarded additional points on the General Skilled Migration points test where their occupation is on the Migration Occupations in Demand List (MODL) and Dr Brendan Nelson congratulates 2005 Federation Fellow, Associate their applications are subject to priority processing. Th e Professor Matthew England from Th e University of New South Wales. Photo credits: ARC MODL is reviewed by the Department of Employment

68 Backing Australia’s Ability and Workplace Relations (DEWR) biannually. In April 2001, a large number of ICT occupations were added to the MODL. In December 2003, due to an overall reduced demand for ICT workers, the Department of Immigration and Multicultural and Indigenous Aff airs (DIMIA), in consultation with DEWR, removed all ICT specialisations from the MODL. Th is measure, along with changes in skills assessment procedures followed by the Australian Computer Society, has resulted in the number of successful ICT applicants continuing to decline in 2003-04 and 2004-05. At 30 June 2005, the proportion of grants to primary applicants who were ICT professionals had fallen to 26%. On 15 December 2005, the MODL was extended to include fi ve ICT specialisations which have been identifi ed by DEWR as being in national demand. Th ese specialisations are SAP, Siebel, E-commerce security, network security and Certifi ed Information Systems Security Professional (CISSP). Electronic lodgement has been made available to certain General Skilled Migration applicants. Th e facility is currently available to overseas students who are recent graduates from an Australian education institution and who are applying for General Skilled Migration while in Australia. Electronic lodgement is also available to all applicants for the Skilled Independent Regional (SIR) (Provisional) visa — including ICT professionals. Electronic lodgement will be extended to other General Skilled Migration visas in the future. Th e electronic lodgement of applications for all temporary business (long stay) visas, including temporary resident ICT workers, has been in place since November 2003. Th e 2004-05 take-up rate of electronic visa lodgement was 64%.

Fostering entrepreneurship and awareness of science and innovation

Th e Australian Government off ers a number of programmes which are aimed at increasing the profi le of science and innovation in Australia. Th is includes an emphasis on the dissemination of science and innovation information to the public to ensure that any potential benefi ts arising from research may be fully captured and implemented swiftly. National Innovation Awareness Strategy Th e National Innovation Awareness Strategy (NIAS) was announced under Backing Australia’s Ability to help build a culture that appreciates and rewards science and innovation. Th e programme is jointly managed by the Department of Industry, Tourism and Resources and the Department of Education, Science and Training. A review conducted in 2003 found that NIAS was successful in eff ectively reaching a number of target audiences which included youth, the general community, businesses, politicians and scientists. Th e Australian Government is providing $25.8 million under Backing Australia’s Ability – Building Our Future through Science and Innovation from 2004-05 to 2010-11 to continue key science awareness elements of NIAS. NIAS – Science Connections Programme Th e Science Connections Programme (SCOPE) is the science awareness component of the Australian Government’s fi ve-year, $35 million National Innovation Awareness Strategy (NIAS), an initiative of Backing Australia’s Ability. SCOPE promotes the benefi ts that science, engineering and innovation bring to Australia. Its objectives are to: • increase awareness of the roles that science, technology and innovation play in contributing to our social well-being and the environmentally sustainable growth of our economy; • highlight the outstanding contributions to science and science education made by our researchers and science teachers; • support nationally signifi cant science outreach programmes; and • encourage young people to consider continuing studies in science, mathematics and engineering beyond the compulsory years of schooling, and to consider entry into science-based careers.

Chapter One: Initiatives for a dynamic national innovation system 69 Achievements in 2004-05 include: • Th e award of the 2004 Prime Minister’s Prizes for Science to fi ve outstanding scientists and science teachers, with the major award, the Prime Minister’s Prize for Science, being presented to Professor Graeme Clark, the inventor of the bionic ear. • National Science Week – a successful celebration of science in August 2004, with highlights including funding of over $400 000 to 35 National Science Week projects, and an extended national tour by the Sleek Geeks, Dr Karl Kruszelnicki and Adam Spencer. • With funding from SCOPE, the Australian Institute of Physics is implementing a variety of activities to mark the International Year of Physics in 2005. • Schools demonstrated a continuing demand for participation in the University of Newcastle’s Science and Engineering Challenge, including in new states: Victoria, South Australia and Tasmania. Th e challenge reached 198 schools in 2004 and the university estimates this will increase to more than 330 in 2005. NIAS – Department of Industry, Tourism and Resources Th e National Innovation Awareness Strategy – Department of Industry, Tourism and Resources (NIAS-ITR) is part of the $35 million, fi ve-year initiative under Backing Australia’s Ability to build a culture that appreciates and rewards innovation and science. It aims to raise understanding of the importance and commercial potential of innovation, especially among SMEs and young Australians. It also encourages business decision- making that refl ects an informed understanding of innovation, and attracts young people into innovative and entrepreneurial careers. 2005-06 is the fi nal year of the programme. In 2004-05, competitive grants awarded under NIAS included: • Wheat Belt Area Conservation – Fostering Youth Entrepreneurship in Regional Australia – to deliver nine workshops in agricultural Western Australia to encourage enterprise thinking amongst 18 to 35 year olds. • Young Achievement Australia – to continue the expansion of the Business Skills Programme in schools. • Youth2Youth – to conduct a series of pilot entrepreneurial skills workshops in metropolitan, regional and remote Australia. • Schools Entrepreneur of the Year (Prince Alfred College) – to run a South Australia based multi- school pilot competition where students undertake an entrepreneurial initiative and are judged by their peers. • Society of Automotive Engineers - Australia – to run an innovation awareness promotional programme to complement the Formula SAE-A Competition. • CSIRO Education – 20 innovation and entrepreneurship presentations aimed at teachers and senior secondary students on subjects such as genetically modifi ed foods, nanotechnology and pharmaceuticals. Business plan competition grants are also a part of NIAS. Th ey help participants to gain valuable real-life experience and to establish new, innovative and entrepreneurial companies. NIAS-ITR has funded competitions in 13 tertiary institutions. Other NIAS grants include support for the Australian Science Festival, the Australian Innovation Festival, and the ABC to use its broadcasting abilities (primarily via radio) to promote innovation across the community. In particular, NIAS funding is going toward the Catapult project aimed at young Australian entrepreneurs (www.abc.gov.au/catapult). www.innovation.gov.au

70 Backing Australia’s Ability Device breathes new life into the offi ce environment

Australian innovator, Dr Chris Field, has designed a brick that can be inserted into buildings to allow the natural passage of air while also reducing noise from the outside by up to 85%. Th e material is environmentally friendly because it uses no power – just a patented confi guration of passive resonators. It can even be made transparent to allow natural illumination. Dr Field’s work has won him one of 16 places at Fresh Innovators – a National Innovation Awareness Strategy funded national initiative to bring the work of early career innovators to public attention. As a result the material, called Silenceair, was awarded the ABC’s inaugural New Inventors Invention of the Year.

Questacon – The National Science and Technology Centre Questacon delivers creative interactive exhibitions, programmes and face-to-face science performances across Australia to increase awareness of science and innovation through inspirational learning experiences. Exhibitions also travel overseas to help market and raise Australia’s education and research capability. Highlights of 2004-05 include: • two new exhibitions: Mini Q – Fun for 0-6 year olds; and Strike A Chord – Th e Science of Music. • 1 419 968 visitors to exhibitions and programmes both overseas and in Australia, including regional and rural Australia (2% increase on previous year). • the Shell Questacon Science Circus, which enabled Australians in regional and rural areas to experience a high quality, portable science centre in their own communities. It is also the training ground for science communication graduates. • Indigenous Outreach, which worked with remote communities to develop appropriate science and

technology awareness programmes. Students learn how to be an autonomous robot during a Questacon Smart Moves presentation. www.questacon.edu.au Photo credits: Questacon Questacon Smart Moves Questacon Smart Moves is designed to raise awareness of science, technology, innovation and related careers in regional and rural secondary schools. In 2004-05, the programme travelled to 302 schools in Western Australia, Tasmania and Victoria, as well as northern and central Queensland and the Northern Territory. Nearly 62 500 students participated in the programme over the year. Next year it will travel to Tasmania, New South Wales and Western Australia. Th e third Questacon Smart Moves youth conference, the Invention Convention, was run in July 2005. Th irty Host of the ABC TV show Th e New Inventors, Mr James O’Loghlin, participants and 25 mentors attended together with guest with delegates at the 2005 Questacon Smart Moves Invention speakers from all around Australia. Th e convention gives Convention in Canberra. Photo credits: Questacon

Chapter One: Initiatives for a dynamic national innovation system 71 aspiring youth entrepreneurs the opportunity to learn new business and entrepreneurial skills and to network with established young entrepreneurs. Th e next event is expected to run in July 2006. An external evaluation of the programme is scheduled for 2006-07. Ongoing internal evaluations, including student exit surveys and teacher opinions, show that 98% of students and 94% of teachers are pleased with the programme, and that 94% of teachers believe it has had a positive impact on their students. http://smartmoves.questacon.edu.au

A typical Questacon Smart Moves presentation in regional Victoria during Term 1, 2005. Photo credits: Questacon

72 Backing Australia’s Ability CHAPTER TWO: National Research Priorities

Th e Australian Government’s National Research Priorities (NRPs) enable signifi cant long-term benefi ts to Australia by increasing research eff orts in key areas. Th e four National Research Priorities, An Environmentally Sustainable Australia, Promoting and Maintaining Good Health, Frontier Technologies for Building and Transforming Australian Industries, and Safeguarding Australia, are designed to: • focus investment on research in key areas that can deliver signifi cant economic, social and environmental benefi ts to Australia; • build on our national research strengths while seeking new opportunities in emerging areas; and • provide a catalyst for the formation of teams and networks of researchers across many disciplines in Australia and internationally. A National Research Priorities Standing Committee, chaired by the Chief Scientist, was established early in 2005. It meets at least once a year to assess agencies’ progress in implementing the NRPs and to report to government. It will also develop medium to longer-term policy concerning the NRPs, including a process for an independent review of their impact, in 2006-07. Th e committee fi rst met in March to discuss agencies’ revised NRP implementation plans and 2003-04 progress reports. Th e reports showed the good progress being made with NRP implementation and with the number of strategic collaborations that are occurring, as these will develop the critical mass needed to make the priorities eff ective. A particular feature of the impact of the NRPs is the focus given to enhancing collaboration. Th ere are many examples of where agencies have increased their collaboration with other agencies based on mutual interest in certain NRPs, as well as much international collaboration related to NRP activity. During 2003-04, in its second full year of operation, the NRPs initiative has been embraced by all government- funded research-producing and research-funding bodies, many of which have indicated a strong positive outcome from the prioritisation of the national research eff ort. Th e following examples come from agency reports of their progress with implementing the NRPsin 2004-05. Only a small snapshot of activities is provided, however a full description of progress is available at www.dest.gov.au/priorities.

Priority – An Environmentally Sustainable Australia

Goal: Water – a critical resource Scarcity and overuse of irrigation system: Th e Australian Centre for International Agricultural Research engages in research partnerships with a number of countries that experience similar environmental challenges to Australia. Th ese projects are leading to signifi cant gains in forestry, biocontrol and crops/livestock genetic improvements with high benefi t-cost ratios. International research collaborations on water and soil management techniques over the last 12 months are improving Australia’s understanding in a range of Erosion of river bank at Loess Plateau in China. Photo credits: ACIAR

Chapter Two: National Research Priorities 73 areas including institutional arrangements for water management, more effi cient allocation of scarce irrigation water to crops, soil acidity and salinity, and approaches to revegetation and reduction of degradation. Water resource management in India has been improved through an assessment framework for analysing water institutions. Water management in India relies on allocating this scarce resource to the competing demands of agriculture, industry and urban needs. Helping water managers to develop improved strategies is being introduced through a focus on more accurate information collection. A key aspect of this research has been identifying and developing methods for creating improved links between formal water resource management institutions and informal groups involved in irrigation and water allocation. Empirical survey and assessment techniques, including guidelines for working with irrigators, were introduced. A similar

Women gathering at a waterhole in India. framework will be used to help develop water allocation Photo credits: ACIAR strategies in the Krishna Basin, to support the recently convened Krishna Basin Tribunal. Improved water use effi ciency - best management practice - Cotton RDC: Th e Cotton RDC’s investment in plant breeding and biotechnology since the early 90s has positioned the Australian cotton industry as a world leader. Th e industry now has access to Australian-bred varieties that sit at the top end of market quality requirements, produce the world’s highest yields and incorporate genes that resist the crop’s number one insect enemy, Helicoverpa. Th e plant breeding programme has produced a return of over $5 billion to the Australian cotton industry since 1984 and a benefi t to cost ratio of 86:1 – that’s worth around $250 000 each year for each cotton farmer in Australia. Th is outstanding contribution to the profi tability and environmental performance of the Australian cotton industry was recognised when it was awarded the ‘Australian Government Prize for Rural Innovation’. Th is prestigious award was presented by the Deputy Prime Minister the Hon Mark Vaile MP, during a ceremony at Parliament House in September 2005. Th e Australian cotton industry has also been supported by the Best Management Practices (BMP) environmental management programme, developed by Cotton RDC and based on an intensive examination of the impact of pesticides on rivers in cotton growing areas. Th e programme is a collaboration with Land & Water Australia and the Murray-Darling Basin Commission. Th e industry has embraced the BMP programme. About 60% of Australian cotton is grown on BMP-accredited farms and 96% of growers see it as essential to their

Photo credits: Australian Government Department of Agriculture, future. Today BMP covers all major aspects of integrated Fisheries and Forestry. pest management, on-farm management of chemical application, storage and handling of pesticides and

74 Backing Australia’s Ability petrochemicals, as well as farm design, land and water management. Th e industry is now taking steps to extend BMP beyond the farm gate to the whole cotton supply chain. It has helped improve water use effi ciency and profi tability, and has eliminated contamination of rivers by endosulfan – a potent pesticide. Water trading: In December 2004, the Australian Bureau of Agricultural and Resource Economics released its report Trading with the environment: using water options to meet environmental demands. Th e report suggests that an options contract written against irrigators’ announced allocations could be used to provide water for the environment at a substantially lower cost than government purchase of general security entitlements. It concludes that this approach has a number of advantages over the alternatives. Irrigators can retain their permanent entitlement as a hedge against the risk that the pool of water resources available them will decline in the future. Th e purchase of an options contract also allows government to acquire environmental water without having to make the initial capital outlay to purchase entitlements. Goal: Transforming existing industries Large scale chlorophyll concentrations: Th e Australian Institute of Marine Science (AIMS) has analysed extensive data on surface chlorophyll concentrations in the Great Barrier Reef World Heritage Area to provide researchers and managers with improved information on regional and temporal patterns of nutrient availability. Chlorophyll concentrations are used as a proxy measure for this availability. Further work to validate satellite-based ocean colour imaging as a measure of chlorophyll is being undertaken as part of the reef water quality protection plan. Chlorophyll data is part of a long-term and regularly updated dataset that is used by managers and researchers. For example, regional and temporal data were used by researchers and the Great Barrier Reef Marine Park Authority to design the marine monitoring programme that supports the reef water quality protection plan. Th e programme enabled researchers to detect subtle long-term Chlorophyll A MODIS image showing the complex structure of coastal and lagoonal waters of the Great Barrier Reef. changes in chlorophyll levels, nutrient availability and Photo credits: AIMS water quality. Feeding up Port Lincoln’s tuna industry: In 1988, Port Lincoln in South Australia relied on exports of wild catch Southern Bluefi n Tuna to Japan, which brought in only $2 to $4 a kilogram. When the industry’s wild catch quota was decreased from 13 000 to 5 265 tonnes, an industry worth some $14 million faced bleak prospects. Th e Fisheries Research and Development Corporation (FRDC) was tasked by the Tuna Boat Owners of Australia to explore whether smaller tuna caught wild could be transferred to cages and farmed in the open ocean off Port Lincoln. Th rough research supported by the FRDC and other interested parties, a method was found to bring tuna safely into cages and wean them onto a specially developed feeding regime. A decade later, Port Lincoln’s wild farmed tuna is one of Australia’s wealthiest fi sheries worth Photo credits: Australian Government Department of Agriculture, more than $300 million and attracting $30-$40 a kilo Fisheries and Forestry. in Japan.

Chapter Two: National Research Priorities 75 Th e benefi t/cost ratio for the FRDC’s investment in the project is estimated at more than 44:1. Th e technology has been sold internationally and is being adapted for use with other Australian fi sh species. Delivering innovation in grain production: For the past six years, the area of Western Australia used to grow grains has remained the same. What has changed is that grain production from the same area of soil has increased by 50%. Across the nation, innovation has delivered such dramatic productivity increases that grain production in Australia has doubled in the past 15 years, from 22 million tonnes in 1990 to almost 44 million tonnes in 2004-05. Th ere are many reasons for the success of the $8 billion industry, but the overarching factor is the contribution of the Grains Research and Development Corporation (GRDC) in funding breakthrough research and promoting industry adoption of the resulting technologies. Photo credits: Australian Government Department of Agriculture, Fisheries and Forestry. Th ese include better weed management, no till farming, better crop establishment techniques and crop agronomy, with the GRDC also funding the development of a suite of improved seed varieties. Adoption of these tools and techniques by the Australian grains industry has underpinned increases in yields of 2.5% a year over the past 20 years compared to increases of 2.3% in Canada and 0.6% in the United States. A recent survey showed that 67% of Australian grain growers recognised the benefi ts they had reaped from GRDC-related activities in the past fi ve years and 76% credited the GRDC with addressing threats to their long-term sustainability. Goal: Overcoming soil loss, salinity and acidity Geoscience Australia worked in partnership with state and territory government survey organisations and the CRC for Landscape Evolution and Minerals Exploration (CRC LEME) to produce a range of geoscience information and approaches that are enhancing understanding of the Earth’s layer of weathered and transported materials (regolith). For example, the geochemical baselines project delivered reports on Central Gawler geochemical baselines and regolith thickness — information essential for natural resource management, land use planning and environmental protection. A range of maps, models, datasets, and reports were delivered in collaboration with CRC LEME that enhanced the information base for natural resource management in a variety of regions throughout Australia. Managing drainage in Western Australia’s wheat belt: CSIRO research into the eff ectiveness of deep open drains used to treat dryland salinity in the wheat belt continues with fi eld trials, modelling and analyses undertaken with partners in research, government and the farming community. Some 12 000 kilometres of deep open drains have been installed to date. As a key member of the CRC for Landscape Environments and Mineral Exploration, CSIRO has also found acid waters occur in over half of the drains, with elevated concentrations of heavy metals, uranium and rare earths carrying the potential for negative off -site environmental impacts. Farmer standing and inspecting fi eld of wheat. Photo credits: Malcolm Paterson.

76 Backing Australia’s Ability Guidelines for the improved design and eff ectiveness of deep open drains are helping land managers, drainage consultants and farmers to design better deep drainage systems and return land to cropping, minimising social confl ict over drainage eff ectiveness and reducing maintenance costs. Th e evaluation of drain geochemistry has been integrated into regional drainage risk assessment models by Western Australian state natural resource management agencies. Acid drainage water management options will now focus on technologies appropriate to regional land managers. Community based schemes will be incorporated into regional drainage management policy. Goal: Reducing and capturing emissions in transport and energy generation Geoscience Australia continues its work to develop the technical requirement of carbon dioxide storage (geosequestration) for Australia as part of the CRC for Greenhouse Gas Technologies. It is researching areas in southeast Queensland, eastern New South Wales, the Otway Basin in Victoria, and the Perth Basin in Western Australia to identify potential pilot sites for carbon dioxide injection. Geoscience Australia is also assisting in work on a proposed pilot site in the Otway Basin. Th e agency participates in the Intergovernmental Panel on Climate Change on Geosequestration and the Carbon Sequestration Leadership Forum. Numerous Geoscience Australia projects contributed towards an improved understanding of the impact of climate change and variability at the regional level. For example, the Antarctic geoscience project improved understanding of the role of Antarctica in the global climate system. In addition to the agency’s work with the Torres Strait CRC and Coastal CRC, a range of other initiatives have contributed to this National Research Priority goal including the following projects: • seabed mapping and characterisation; • geosciences for coastal waterway management; • greenhouse gas advice; • risk assessment methods; • national risk assessments; • geodetic operations; • space geodesy and geomagnetic; and • geophysical networks. Modelling the effects of transport emissions: In February 2005, the Bureau of Transport and Regional Economics (BTRE) released its paper Is the world running out of oil? A review of the debate. In analysing the key factors that aff ect the supply of oil and reviewing the debate about oil depletion, primarily from an international perspective, the paper has increased understanding of the factors aff ecting the supply and price of oil and the longer-term challenges facing transport sector fuel supply. Modelling responses of urban freight patterns to greenhouse abatement scenarios: Released by BTRE in October 2004, this report presents the results of applying a policy model to simulate the eff ects on greenhouse gas emissions from trucking in Sydney, given various abatement scenarios. Th e research shows that, using the model, answers can be given on the detailed eff ects of transport policy measures on emissions in Sydney. Just as importantly, it points to methods that can be used to build such a model in other cities and, in turn, urban transport policies which better address abatement measures for greenhouse gas emissions.

Chapter Two: National Research Priorities 77 Dr Neville Exon (Geoscience Australia) and ship captain, Mr Taylor, Location map. Areas studied by Geoscience Australia in the southern Gulf of talk to the media before the survey departed. Carpentaria. New reefs were identifi ed in areas A, B, C and D during April 2005. GA Photo credits: Geoscience Australia survey 238 shows reefs identifi ed by Geoscience Australia during 2003. Photo credits: Geoscience Australia and the Department of the Environment and Heritage - National Oceans Offi ce Goal: Sustainable use of Australia’s biodiversity Australia’s marine biodiversity: Geoscience Australia provides geoscience information to the Department of Environment and Heritage and other government environmental managers to help manage Australia’s estuaries, coasts and open ocean areas. A signifi cant outcome in 2004-05 was the discovery of a new coral reef province in the southern part of the Gulf of Carpentaria that extends for over 100 kilometres northwest from Mornington Island and may include as many as 50 separate reefs. Many of the reefs support live hard corals and a thriving array of sea-life including sponges, soft corals and shellfi sh. Th e reefs are now being analysed Survey equipment on board the research vessel, Southern Surveyor to determine their age and origin. During the year, the Photo credits: Geoscience Australia agency also completed a national bioregionalisation project over the Australian Marine Jurisdiction for the National Oceans Offi ce (now the Department of Environment and Heritage). Geoscientifi c mapping of the sea fl oor is used as a proxy for biologic habitats as well as an indicator of sea fl oor stability. Documenting our biodiversity: Th e Australian Biological Resources Study (ABRS) funds taxonomic and biogeographic research and training for the scientifi c documentation of Australia’s biodiversity. Th is work is necessary for the conservation and sustainable use of Australia’s biodiversity. Taxonomic investigations during the year included research on such diverse organisms as kangaroo beetles, orchids, smut fungi, sea anemones, fl atworms and zooanthellae (microalgae). Investigations have also gathered new information about groups of environmental or economic signifi cance, such as cyanobacteria, fungi of native plants, aphids, fl ies, Th ese newly hatched tree crickets (Torbia species) protect themselves from predators by mimicking ants. earthworms, tapeworms, reptiles and minor marine phyla. Photo credits: B.Kuchlmayr, © Australian Biological Resources Study.

78 Backing Australia’s Ability Only 13 of the aphid species recorded for Australia are endemic; about 40 may have Elythanthera brunonis, the Blue Enamel Orchid. Th e genus is one arrived without human assistance; and the remainder were probably introduced with of the large number of plant groups that occurs only in south-west their host plants. Western Australia. Photo credits: M.Fagg, © Australian National Botanic Gardens. Photo credits: S.Schmidt, © Australian Biological Resources Study. Results of these investigations will contribute to future publications such as Flora of Australia and online sources of information including the Australian Faunal Directory and Flora of Australia Online. ABRS will also make much of this information available through the Australian Biodiversity Information Facility data portal, which is currently under development. Th is portal will provide real-time access to a wide range of biodiversity data held and maintained by individuals and institutions throughout Australia. Successful transfer of sponge aquaculture to Indigenous communities: Th e Australian Institute of Marine Science (AIMS) is researching ‘low-technology’ sponge aquaculture for remote and Indigenous communities in collaboration with communities in Palm Island, Torres Strait and Arnhem Land. Th e research focuses on fi ve species of sponges common to these areas, all of which exhibit diff erent fi bre/skeletal qualities and target diff erent sectors of the commercial bath sponge industry. Technology is AIMS researcher measures sponge growth rates on a small-scale sponge farming experiment. being transferred to the communities through workshops Photo credits: AIMS and traineeships, as well as through reports to Indigenous communities and stakeholders including the Indigenous Land Council, the Australian Government Department of Agriculture, Fisheries and Forestry, Coolgaree Community Development Employment Programme, Torres Strait CRC and Torres Strait Regional Authority. Several Indigenous communities in remote and regional Australia have adopted sponge culture techniques developed under the project. Th ese communities are now working to develop sponge farms, providing them with new economic and educational ventures.

Sea sponge arrays are one alternative being investigated in the search for a sustainable low tech sponge aquaculture industry for northern Australia. Photo credits: AIMS

Chapter Two: National Research Priorities 79 Goal: Developing deep earth resources Finding new petroleum exploration opportunities: No wells had ever been drilled in the Bremer Sub-basin (located off shore of Albany, Western Australia) and there had been no exploration activity in the area since 1974. In 2004, Geoscience Australia completed a dredging programme and retrieved rock samples from 45 sites, with associated studies revealing that petroleum generation had occurred in the sub-basin. In late 2004, 1 300 line kilometres of new seismic data was acquired under contract across the Bremer. Geoscience Australia also purchased the licensing rights to 2 224 line kilometres of existing seismic data from the sub- basin. All the new and reprocessed data was made available to industry at the release of two new Bremer Sub- basin permits in April 2005. Within a month of being released, the data package had been requested by six exploration companies, indicating a signifi cant interest in exploration opportunities. A second frontier region was also examined – the Vlaming sub-basin located off shore of Perth in Western Australia, where there had been no signifi cant exploration activity since 1993. Th e last acreage release in the region was in 2000, but no bids were received. Geoscience Australia identifi ed the poor quality of existing seismic data as being the key exploration risk in the region, and to redress this risk, reprocessed 2 000 line kilometres of seismic data from 10 earlier surveys and acquired a further 200 line kilometres of new data. Th e outcome of the Vlaming work was the release in April 2005 of two new off shore permits, which are being currently assessed by industry. Finding new mineral exploration opportunities: New results obtained in 2004–05 are impacting mineral exploration in a number of regions across Australia through a better understanding of mineral potential and the controls of mineralisation. An example of this impact is the increase in exploration expenditure in South Australia, where expenditure is at an 18 year high. In the Gawler Crawton in South Australia, collaborative studies provided the fi rst crustal scale imaging of the Olympic Dam mineral system using seismic techniques. Th e results have provided new insights into the geological factors that control the location of this giant copper-uranium deposit and will improve exploration models for this deposit’s type elsewhere. Th e work has underpinned 29 successful industry bids for state funding to underwrite drill testing of prospects in the Gawler region. In Central Australia, a major collaborative geophysical study between Western Australia, Northern Territory and Geoscience Australia of the gold bearing mineral systems of the Tanami Province attracted substantial industry support and funding that enabled the planned seismic survey to be extended from 400 line kilometres to 700 line kilometres. Th e new data will be used to develop a three-dimensional geological model of the Tanami Province that will improve understanding of the geological controls on gold mineralisation in the survey area and better focus exploration in this poorly exposed part of Australia. Research undertaken in the predictive mineral discovery Cooperative Research Centre (pmd*CRC) in the Eastern Goldfi elds of the Yilgarn Craton, Western Australia, has been embraced by the industry, particularly the new 3D geological models of the major structural controls on gold mineralisation. Th ese models provide a framework to explain the broad scale distribution of gold deposits, as well as some of the local controls in major fault systems. Th e fourth edition of the Magnetic Map of Australia, which was released in November 2004, incorporates vast amounts of new onshore data as well as, for the fi rst time, off shore data. Multi-national study in Iran: Understanding the structure of oil reservoirs helps oil companies optimise oil production and maximise recoveries while minimising the number of production wells. As oil reserves are being depleted, the ability to extract more oil from existing reservoirs has signifi cant economic benefi ts. CSIRO researchers have been working at the Asmari Limestone oil reservoir in Iran as part of a major multinational study. Th e international application and endorsement of CSIRO-developed methodologies also enhances CSIRO’s profi le in a globalised industry. Th e research has been carried out in collaboration with the Institut Français du Pétrole and has been supported by a consortium of major oil companies including the National Iranian Oil Company, BP, Total, Statoil, Norsk Hydro and Petronas.

80 Backing Australia’s Ability Goal: Responding to climate change and variability Value-adding from sea surface temperature data: Australian Institute of Marine Science (AIMS) researchers collect sea surface temperature (SST) data and process it into products for CSIRO Marine and Atmospheric Research and the National Oceanic and Atmospheric Administration in the USA. Th e SST products are used to support the national ocean modelling work of CSIRO, the Bureau of Meteorology and the Australian Navy. Th e Great Barrier Reef Marine Park Authority has used a composite product based on AIMS data to develop a prototype application to monitor temperatures associated with coral bleaching on the Great Barrier Reef. A NOAA AVHRR sea surface temperature image of the Southern Corals reveal the last 100 year’s history of Indian Ocean Great Barrier Reef showing the East Australian Current and complex circulation: Porites corals from the Cocos Islands have temperature patterns in the Swains group of reefs. Photo credits: AIMS been used by a team from the Australian Nuclear Science and Technology Organisation, James Cook, Wollongong and Queensland universities to chart the circulation of the Indian Ocean over the past century. Ocean circulation plays a key role in climate change. Th e bands of calcium carbonate that build up in coral can tell when the coral was formed. From these bands, the research team has established an annual chronology for Cocos corals covering most of the 20th century. In the fi rst stage of the collaboration, a set of corals of known age (including coral collected by Charles Darwin) was analysed to determine the carbon-14 value in surface waters around the Cocos Islands. Th is value is similar to those for the eastern Indian Ocean and adjacent seas, and is much higher than those for the north-western Dr. Scott Smithers from James Cook University standing on modern Indian Ocean. For the most recent study, annual bands of Porites microatolls on the reef fl at at the western end of South Island Cocos corals were analysed for radiocarbon for the period of the Cocos Islands. Photo credits: ANSTO from 1955 to 1985. Th e recent results confi rm their previous observation of carbon-14 distribution within the Indian Ocean, suggesting that surface waters reaching Cocos are derived from the far western Pacifi c via Indonesian currents and are not infl uenced by southeast fl ow from the Arabian Sea, as other researchers recently proposed. Indeed, for most of the study interval, there is good agreement between the carbon-14 values for Cocos and those for Watamu (Kenya), suggesting that the South Equatorial Current carries carbon-14-elevated water rather than carbon-14-depleted water across the Indian Ocean. Th is implies that oceanic ‘up welling’ in the north western Indian Ocean is spatially confi ned and therefore calls into question previous assumptions held by oceanographers as to the role of the Indian Ocean within the global ocean circulation model.

Chapter Two: National Research Priorities 81 Methane in ancient Antarctic ice: links between human activity and greenhouse gases: Australian scientists are heading for Antarctica hunting confi rmation that human activity really is to blame for soaring levels of greenhouse gases. Scientists already know atmospheric methane levels have increased since the dawn of the industrial revolution. ‘Methane is a considerable player in the greenhouse gas game, second only to carbon dioxide,’ said the team’s leader, Andrew Smith. ‘It’s about 20 times more potent than carbon dioxide in its ability to trap heat, however there is much less [methane] in the atmosphere.’ Dr Smith, from the Australian Nuclear Science and Technology Organisation (ANSTO) at Lucas Heights, said there was still much to learn about the roles of human and natural activity in increasing atmospheric levels of the gas. Heading for Antarctica (ANSTO). ‘Th e planet naturally produces methane,’ he said, noting Photo credits: ANSTO there was evidence of several methane “spikes” during the Earth’s geological history. For example, there was a sharp increase in methane levels some 12 500 years ago, before human activity could have had any impact. Along with another ANSTO colleague, two scientists from the Australian Antarctic Division and another from New Zealand, Dr Smith camped at Law Dome, a peak rising 1 400 metres above the Antarctic coast. Th ey drilled down 250 metres, retrieving ice that fell as snow over hundreds of years, trapping air bubbles dating back to 1 750. Methane collected from the bubbles will later be processed to retrieve carbon, which will be examined in the ANTARES particle accelerator at Lucas Heights. Dr Smith said that every methane source produced a gas with atoms with diff erent ratios of certain carbon isotopes. By literally counting the atoms, one by one, the sources of atmospheric methane could be identifi ed and quantifi ed over the past 250 years. If the growth of methane from human activity matches the rise in atmospheric methane, scientists would fi nally have a smoking gun linking human activity to greenhouse gases.

Priority – Promoting and Maintaining Good Health Goal: A healthy start to life Study of Australian children’s development: Th e highlight of the Australian Institute of Family Studies’ research in 2004-05 was the completion and launch of the fi rst wave data from Growing up in Australia: the Longitudinal Study of Australian Children. Early published fi ndings included an annual report and papers on childhood obesity, reading, and post-partum maternal health and well-being. A comprehensive research analysis programme was developed, with some analysis to be done by institute researchers and some by members of the consortium undertaking the study. Th e data set is available to approved external researchers who agree to abide by conditions set out in a licensing agreement. By the end of 2004-05, more than 20 requests had been received for access to the data. In December 2004, the institute published the report of its Fertility Decision Making Study. Th e institute also made signifi cant contributions to the Australian Government’s review of child support undertaking the fi rst- ever Australian research on post-separation parenting patterns. Th e institute continued to host the National Child Protection Clearing House, the Australian Centre for the Study of Sexual Assault, and the Stronger Families Learning Exchange. Goal: Ageing well, ageing productively Controlled release technology: Th e Australian Nuclear Science and Technology Organisation (ANSTO) is developing an innovative technique for encapsulating and releasing a wide range of active molecules from ceramic micro- and nano-particles. A key feature is the production of particles with a defi ned microstructure, which can be designed to have specifi c dose release rates to suit commercial requirements.

82 Backing Australia’s Ability In 2004-05 fi ve provisional patents were fi led, a business venture set-up to commercialise the controlled-release technology and partnerships developed with a wide range of companies, local and overseas, to explore the commercial potential of the technology. Th e technology has applications in many areas including drug delivery, home care products (detergents), oral care products (toothpaste), agriculture (biocide/herbicide), food (fl avours), veterinary (antigen) and other healthcare (biomedical applications). In 2005 ANSTO also initiated collaboration with the Ian Wark Research Institute to increase the stealth of nanoparticles in the blood stream for intravenous injection and ultimately Controlled Release CeramiSpheresTM, (ANSTO) for targeting tumours for cancer treatment. Photo credits: ANSTO Th e new business venture – which has as its principal target medical applications but will alsomarket the technology for application in non-medical areas – has signifi cantly increased the project’s commercial potential. Th e new provisional patents have strengthened the organisation’s intellectual property portfolio and confi rmed its leading position in the fi eld. Th e medical applications of ANSTO’s controlled release technology stand to benefi t all Australians. Progress toward corneal implants: Good vision is critical to a full and independent lifestyle. Ophthalmic devices such as corneal implants (inlays and onlays) off er accurate vision correction with great convenience to the wearer and without permanent damage to the eye. CSIRO, in partnership with the Vision CRC, has developed polymers suitable for application as corneal implants. Th ese provide a real alternative to spectacles, contact lenses and laser based refractive surgery for permanent vision correction. Th e polymers have previously shown good stability and biological responses in long-term animal trials. Over 2004-05, the polymer was implanted into human eyes in a phase one clinical trial with promising results which will accelerate product development. Plans are currently being made to progress this technology into a phase two clinical trial. Goal: Preventive healthcare Aboriginal well-being: Over the last year the Australian Institute of Aboriginal & Torres Strait Islander Studies (AIATSIS) health fellows (in combination with inter- institutional colleagues) completed four CRC for Aboriginal Health (CRCAH) commissioned review papers on the social determinants of health, and provided input into the Illicit Drug Use and Policing Protocols Project, including good practice examples for diff erent policing jurisdictions. Th e health fellows contributed towards the development of fi ve CRCAH research programmes: Healthy Skin, Primary Health Care, Chronic Disease, Social Determinants and Social and Emotional Well-being. National and international links focusing on Indigenous resilience within the CRCAH programme areas of social Pluto the dog whose vision has been improved, with Professor and emotional well-being and social determinants were Kristina Narfstrom. also developed. Photo credits: NHMRC. Gene therapy to correct blindness: Scientists have dreamed of importing healthy copies of genes into people to correct inherited diseases such as retinitis pigmentosa (blindness), cystic fi brosis and muscular dystrophy. However, it is diffi cult to fi nd safe ways to insert the new, healthy gene into cells. Gene therapy has proven to be the most promising technology for treating hereditary disorders when the genetic defect is known. National Health and Medical Research Council funded research used gene therapy techniques to correct one form of childhood-onset of retinitis pigmentosa. Th e research team used a small, genetically engineered and harmless virus to carry a healthy copy of the missing gene into the retinal pigment cells of the eye. Th e research started in a mouse and after proving successful, progressed to Briard dogs. By using gene therapy the vision in a number of Briard dogs was improved and it is hoped that human gene therapy trials will begin in the next two to three years.

Chapter Two: National Research Priorities 83 Imaging to improve diagnosis of brain infections: Current tests, such as CT and magnetic resonance imaging scans, cannot easily distinguish between brain abscesses (bacterial infection) and brain tumours. A National Health and Medical Research Council funded study however showed that magnetic resonance spectroscopy could easily distinguish between tumours and infection. It could even identify which type of bacteria caused the infection. As a result, those patients with abscesses can avoid risky general anesthesia and brain surgery – the usual treatment for tumours – and instead be treated with antibiotics.

Professor Tania Sorrell and Dr Lavier Gomes, reviewing an MR spectrum of a patient with a brain abscess. Photo credits: NHMRC.

Goal: Strengthening Australia’s social and economic fabric Indigenous capacity building for exotic ant management: CSIRO, in collaboration with numerous Indigenous organisations and communities, has continued to implement world-class eradication and management programmes throughout the Top End of the Northern Territory for some of the world’s worst invasive ant species. Work has been conducted by local non-ant specialists in collaboration with CSIRO staff . Th ese programmes have resulted in economic benefi ts to communities through the elimination of infrastructure repairs required due to damage caused by ants, social benefi ts in the form of reduced health risks and increased capacity to deal with such outbreaks, environmental benefi ts from the elimination of major Myrmecia gulosa (Bull ant) on top of its nest. Th is worker has environmental threats, and a much higher community detected a predator, or prey while foraging. Th eir acute eyesight enables them to detect large intruders over a metre away. awareness of the issues associated with exotic ant species. Photo credits: J Green, CSIRO Entomology. Focus on regions and the link to promoting health and well-being in Australia: Th e regional research team at the BTRE has made signifi cant progress in improving our understanding of regional economic and other indicators and is helping to shape regional policy development. Currently researching a fourth and fi fth topic in the Focus on regions series, bureau researchers have: • examined industry structures and trends at a regional level and explored the link between industry structure and regional economic growth; • analysed a range of statistics about skills and qualifi cation trends in Australia’s regions; and • made a strong case for adopting taxable income as the best available indicator of economic activity in Australia’s regions. Th e team is currently researching the issue of wealth and its distribution in the regions and will publish a new report Focus on Regions 4: Social Capital in late 2005. In a similar theme, the bureau is also looking at the economic and relative cost of living in urban, rural and remote areas of Australia, and in 2006, will commence work which will focus on Tasmania and shed some light on the factors driving the island state’s recent and continuing economic turnaround.

84 Backing Australia’s Ability BTRE researcher Lucy Williams checks regional supermarket prices. Small locally owned supermarkets are the main source of everyday Photo credits: BTRE groceries for much of regional Australia. Photo credits: ANSTO Priority – Frontier Technologies for Building and Transforming Australian Industries

Goal: Breakthrough science Marine research for new drugs and early warnings of pollution: Th e Australian Institute of Marine Science (AIMS), University of Aberdeen and London School of Pharmacy have collaborated to clone DNA from marine resources into the bacterium E.coli in a bid to obtain a sustainable supply of new drug leads from the sea. Th e signifi cance of this breakthrough is enormous as for the fi rst time drug companies can be confi dent of access Drs. Paul Long (ULSOP) and Walt Dunlap (AIMS) examine E.coli to economic supplies of drug precursors for clinical colonies cloned with marine DNA. development. Photo credits: AIMS AIMS has also developed early warning indicators of pollution using DNA micro-array technology to develop microbial indicators. Th e use of sensitivity to pollution in microrganisms allows researchers to detect pollution stress before more obvious impacts become apparent. Magnesium manufacture opens new markets: CSIRO has joined less than a handful of companies around the world capable of producing magnesium sheet. Th e new technology is based on applying a twin roll casting technique – used extensively in the aluminium industry – to the production of magnesium alloy sheet. CSIRO has signed an exclusive option to licence the technology process with Magnesium International Ltd. Under the agreement, Magnesium International Ltd will work with CSIRO on scaling-up the technology for full commercial production. Th e agreement also brings with it an imminent customer order from one of the world’s leading manufacturers of CSIRO’s Peter Kean and Daniel East with magnesium sheet samples. personal communication devices. Photo credits: Mark Fergus.

Chapter Two: National Research Priorities 85 Goal: Frontier technologies New technology to culture marine compounds for development of new drugs: Collaborative research at the Australian Institute of Marine Science (AIMS) has successfully overcome the diffi culty of producing economic supplies of marine compounds for clinical investigation. In recently completed experiments, researchers transferred the DNA responsible for producing a biologically active compound from a complex organism into an easily cultured bacterium, enabling the culture of a sustainable supply of target metabolites through microbial fermentation. Th is new knowledge will eliminate one of the major hurdles to big pharmaceutical investment in natural marine products for developing new drugs, and suggests that there is a reliable, sustainable and economic means to produce the marine resources for clinical trials. Immediate evidence of the value of this research is the increase in applications to access the AIMS sample library and chemistry expertise. Thinking Systems: Th e Australian Research Council (ARC) and the National Health and Medical Research Council have fi nalised arrangements for a new funding initiative – Th inking Systems. Th e initiative, which is being formally conducted under the ARC’s Special Research Initiatives scheme, will support research into thinking systems which crosses sectors, institutions and research disciplines to open up new frontiers. Its aim is to support novel, innovative and cross-disciplinary research at some or all of the intersections of neuroscience, genetics, proteomics, cognitive science and information technology. Total funding of $10 million over fi ve years will be made available for the initiative. Th e maximum amount of funding for any one project will be $750 000 a year averaged over the life of the project (one to fi ve years). Goal: Advanced materials Immobilising radioactive waste: Th e treatment and safe storage of wastes is one of the most important challenges in the nuclear industry today. Developing and commercialising the technology to ‘immobilise’ radioactive wastes is one of the Australian Nuclear Science and Technology Organisation’s (ANSTO) major priorities, and a major agreement has been signed with Nexia Solutions to help clean up plutonium waste in the United Kingdom. Impure plutonium waste stored at Sellafi eld has been considered intractable due to its diverse and complex chemistry. In 2001, ANSTO was challenged to come

A glass-ceramic wasteform for immobilisation of nuclear waste up with a solution. Th e organisation’s unique synroc (ANSTO). technology mimics the action of geochemically-stable Photo credits: ANSTO minerals in the Earth’s rocks which for billions of years have rendered inert naturally-occurring radioactive materials such as uranium and thorium. ANSTO has devised a synroc glass-ceramic matrix designed specifi cally to imprison the Sellafi eld waste and is working with Nexia Solutions to develop the process towards long-term storage and permanent disposal. Th e relationship between ANSTO and Nexia Solutions is a long-term commitment. In March 2008, a full- scale non-radioactive demonstration line is to be commissioned as a precursor to the full radioactive line, which will be a pilot for other plutonium waste initiatives in the UK and elsewhere. Extending the life of steam turbines: Th e blades in the low-pressure steam turbines that generate electricity in power stations are over a metre long and spin at more than 3 000 rpm. Even tiny water droplets condensing from steam strike with a force that erodes the leading edges of the blades. With an average power station running four to eight turbines, each with about 160 blades worth $10 000 to $15 000 each, the cost of removing and replacing damaged blades can run into millions of dollars. To extend their life, a technique for repairing the damage without having to remove the blades is being developed at the Industrial Research Institute Swinburne (IRIS) and CSIRO Manufacturing Science and Infrastructure Technology. Th e technique uses laser technology to clad the blades with a hard-wearing cobalt- based alloy, Stellite 6TM. Late last year in a trial run, six blades from the Torrens Island Power Station in Adelaide were repaired using the technique.

86 Backing Australia’s Ability Photo credits: ANSTO Photo credits: ANSTO

To test the eff ectiveness, ANSTO performed residual stress measurements which allowed the in-service behaviour of engineering components to be more accurately modelled and predicted. ANSTO measured through-thickness stresses using neutron diff raction analysis, then applied X-ray diff raction analysis to measure surface stress. Th ese techniques produced complementary results and together demonstrated that signifi cant tensile and compressive residual stresses were being generated in the blades due to the cladding process itself. Th ese high stresses had the potential to accelerate fatigue resulting in premature cracking, thereby reducing the life of the blade. To rectify this, IRIS and CSIRO applied a post-weld heat Photo credits: ANSTO treatment (PWHT) to the laser-clad blades. Further residual stress measurements showed that PWHT minimised residual stress gradients in the repaired section of each blade, thereby reducing the potential for accelerated fatigue. No adverse eff ects have been recorded to date. Th is work has been sponsored by a group of Australian power stations and undertaken within the CRC for Welded Structures. With the new strain scanner ANSTO commissioned for the Open Pool Australian Light- water reactor (OPAL), work will be able to be performed 10 times faster and on much larger samples. Goal: Smart information use Helping reduce obesity: In a study partly funded by the National Centre for Excellence in Functional Foods, CSIRO has demonstrated that protein is more satiating than high glycemic index carbohydrates and that all proteins appear to be equal whether dairy (whey and casein) or plant derived (gluten and soy). Th e social benefi t is a potential reduction in obesity by increasing the protein content of various manufactured foods by using whatever form of protein is technically and economically most suitable for the product. Monitoring the status of the Great Barrier Reef: Long-term quantitative data on corals, algae, reef fi shes and crown-of-thorns starfi sh from annual surveys spanning more than a decade have been collated from reefs covering nearly the entire Great Barrier Reef World Heritage Area. Th ese data are summarised and made available to the Great Barrier Reef Marine Park Authority and to the public via the internet. In December 2004, the Australian Institute of Marine Science released Long-term monitoring of the Great Barrier Reef status report No. 6 in CD format, which included video material and photos as well as access to more interactive data summaries. Th ese data have also been the basis of a number of management reports and peer-reviewed scientifi c papers.

Chapter Two: National Research Priorities 87 Coral cover on core survey reefs, as estimated from video records, is the basis for one of seven key performance measures used to assess the authority’s success in achieving its goals and outcomes for managing the Great Barrier Reef. Th ese reef fi sh and benthos surveys have also been used to design an eff ective monitoring programme for the new system of representative areas on the Great Barrier Reef. Monitoring the marine environment: All Australian Institute of Marine Science temperature logger data, representing more than 10 million records, are now available on the web. Approximately 130 loggers are spread across 65 sites, Crown-of-thorns starfi sh distribution is one aspect of coral reef ecology regularly surveyed by AIMS Reef Monitoring team. from Papua New Guinea to Bundaberg, and are changed Photo credits: AIMS once a year by a network of volunteers and collaborators. Additional data from the Solitary Islands Marine Park are included on behalf of the NSW Marine Park Authority. Th ese data have been synthesised and made available to fellow researchers, and to the public, with the support of CRC Reef. Data from the logger programme continue to be used in a wide range of research areas, including climate change, the eff ects of line fi shing, benthic monitoring, introduced species and sea bird nesting research projects conducted by a range of research organisations. Location-specifi c temperature thresholds have been developed for coral DNA probing facilitates diff erentiation of microbial cells with varying levels of pollution sensitivity. Image shows the abundance of reefs using these data, and are used on behalf of the Great a specifi c bacterial group from Antarctic marine biofi lms. A quantitative comparison between sites can be used to detect Barrier Reef Marine Park Authority with automatic weather changes due to pollution stress. Th e utility of this method has been tested in tropical samples. stations and satellite products to monitor the risk of coral Photo credits: AIMS bleaching on the Great Barrier Reef. Goal: Promoting an innovation culture and economy Centre for research risk analysis methodologies: A new Centre of Excellence for Risk Analysis is being established by the Bureau of Rural Sciences to research risk analysis methodologies. Th e centre will also build on Australia’s expertise in managing the biosecurity risk of imports. Consultation with stakeholders on the structure and objectives of the centre has already been undertaken together with advertising for expressions of interest from organisations to host the centre. Community accessibility to land use information: Catchment authorities, researchers, local government, industry and community groups now have greater access to land use information thanks to new Bureau of Rural Sciences products. Th e Land use mapping for Australia interactive website and CDROM will improve community access to information produced through the Australian Collaborative Land Use Mapping Programme. Indigenous knowledge systems and intellectual property: Th e Australian Institute of Aboriginal and Torres Strait Islander Studies has increased its research outputs on Indigenous knowledge systems and intellectual property. A joint research project with the International Property Institute of Australia (University of Melbourne) resulted in substantial reports on the legal analysis of lodgement, access and reproduction of materials held by cultural institutions, and a review of the content, effi cacy and evolution of Indigenous knowledge centres in Australia and overseas. Th e Australian Collaboration Project Stage 1—which profi led success in local Aboriginal organisations—was completed and a two volume report produced. Funding and recruitment for an expanded stage 2 programme has been fi nalised with approximately nine study sites earmarked for fi eldwork and profi ling in 2005-06. Outputs will include: • identifi cation of structural/business/cultural factors underwriting successful local Aboriginal and Torres Strait Islander organisations;

88 Backing Australia’s Ability • major reports outlining results and public discussion papers arising from activities of the lead researcher and research offi cer dedicated to the externally funded project; and • public profi ling of these successes and fi ndings including multi-media products. Exchanging information and sharing resources: e-Research Support is a pilot initiative under the Australian Research Council’s (ARC) Special Research Initiatives scheme. It aims to overcome barriers to e-research methods across all research disciplines by encouraging open exchange of information, sharing of resources and better use of existing ICT infrastructure. Th e scheme was developed following consultations with stakeholders during June and July 2004. Applications for funding opened on 7 January 2005. Because the scheme was designed to foster collaboration among researchers across diff erent sectors in Australia, funding support was made open to a number of publicly funded research agencies that are not eligible for support under the ARC’s National Competitive Grants Programme. Applications closed on 23 March 2005 and 73 were received. Of these, 98.6% indicated their activity would address an area of National Research Priority. Th e selection process was fi nalised in July 2005. Priority – Safeguarding Australia Goal: Critical infrastructure Spatial data infrastructure to underpin counter terrorism and critical infrastructure protection initiatives: In 2004-05, Geoscience Australia used its geospatial intelligence capability to help develop, maintain and refi ne its ability to model and analyse the consequences of critical infrastructure failure and interdependencies within the energy sector. Input was also provided to the Australian Government Senior Offi cers Group, the Built Environment Expert Advisory Group (endorsed by the Critical Infrastructure Advisory Council), the National Spatial Information for Network Security working group, and the Energy Infrastructure Assurance Advisory Group. Natural hazards risk assessment framework: In collaboration with key stakeholders, Geoscience Australia developed a draft national risk assessment framework for risk assessment models, methods and databases. Th e agency developed engineering damage models for fl ood, earthquake and wind, and initial reports on national assessments of risks from major, sudden-impact natural hazards — information critical for improving infrastructure protection. Th e most comprehensive natural hazard risk assessment ever undertaken of an Australian city wasalso conducted in Perth by Geoscience Australia, in partnership with the Bureau of Meteorology and Western Australian state and local government agencies. A report of the assessment, Natural hazard risk in Perth, was launched by the Parliamentary Secretary to the Minister for Industry, Tourism and Resources, the Hon Warren Entsch MP in June 2005. It details the risk of natural hazards to Perth and recommends a number of strategies to minimise damage. In May 2005, the Australian Government announced a four-year budget measure to develop the Australian Tsunami Warning System (ATWS). Th e system, which will begin to be built in 2005-06, will be a joint operation between Geoscience Australia, the Bureau of Meteorology, Emergency Management Australia and the Department of Foreign Aff airs and Trade. Already, signifi cant improvements to Australia’s tsunami warning capability have occurred. Geoscience Australia now exchanges real-time seismic waveform data with the Malaysian Meteorological Service and has a new seismographic station on Christmas Island. ATWS is one of several national initiatives that will contribute internationally to regional earth monitoring and alert initiatives. Research into bushfi res and other natural hazards: Th e Bureau of Meteorology Research Centre contributes to Bushfi re CRC programmes related to fi re danger and fi re behaviour, including smoke plume and haze behaviour, where wind-change climatologies and associated forecast products have been developed. Th e centre’s graded forecasts of the Fire Danger Index were supplied to forecast offi ces for evaluation during the year, and the national smoke management advice system was further developed to assist fi re and emergency agencies responsible for burns, wildfi res and hazardous incidents. Research on natural hazards such as thunderstorms and volcanic ash also led to enhanced availability of information for the aviation industry and community. Similarly, development of rainfall estimation systems assists with the prediction and warning of extreme hazardous events such as fl ash fl oods and land-falling tropical cyclones, generally contributing to the quality and eff ectiveness of the Bureau’s services.

Chapter Two: National Research Priorities 89 Goal: Understanding our region and the world National and international research networks: Th e Australian Institute of Aboriginal and Torres Strait Islander Studies has completed and presented a range of research papers and seminars related to regional and international treaties, agreements and protocols. Th e organisation’s researchers engage in national and international networks which focus on the interaction between Indigenous people and ‘settler’ societies, while presentations and participation in a range of initiatives mobilises information (especially in digital format) which profi les Indigenous communities in international portrayals of wider Australian society. Monitoring Australia’s ocean currents: CSIRO has implemented an ocean ‘nowcasting’ system that publishes daily updates on the present state of Australia’s regional seas. Data from many satellites, robotic buoys that plumb the ocean depths, surface drifting buoys and coastal tide gauges are assembled by an automatic system. Updates are published at www.marine.csiro.au and distributed to the Bureau of Meteorology, the Royal Australian Navy and the Australian Maritime Safety Authority (AMSA). AMSA uses the information when responding to incidents at sea, including search and rescue, oil-spills, drift of disabled vessels and prosecution of marine polluters, and credits the system as essential to saving lives. Th e Navy uses the information for safeguarding its fl eet and optimising operations. Recreational users include the winner of the 2004 Sydney to Hobart yacht race. Goal: Protecting Australia from invasive diseases and pests Protecting Australia from pest and disease incursions: Th e Australian Centre for International Agricultural Research (ACIAR) invests in agricultural research to assist developing countries meet and maintain trade and quarantine requirements relating to pests and diseases. Th is is in line with Australia’s international development cooperation policies and benefi ts both developing partner countries and Australia from projects designed to give protection from invasive diseases and pests. A number of developing countries in the Asia-Pacifi c A marketplace in Vietnam. region are giving greater recognition to the importance Photo credits: ACIAR of food safety, animal and crop health and biosecurity measures as a means of realising their agricultural potential in domestic and export markets. Th ese priorities also contribute to Australia’s need to maintain and enhance its agricultural and food health and safety status. Collaboration in research and development is an intrinsic feature of ACIAR’s operations. Th ese partnerships include research providers and other parties both in Australia and in developing countries and covers both joint cash contributions and in kind commitments. Projects may be designed to align with research being undertaken by organisations such as Cooperative Research Centres or Rural Research and Development Corporations to achieve wider partnerships and critical mass in research delivery. For example, ACIAR is funding an important study into the management of classical swine fever and foot and mouth disease at the village level in Lao PDR. Th is project is being undertaken with the Australian Animal Health Laboratory and CSIRO and has provided Australians with experience in handling disease outbreaks. A jointly funded project with Queensland University is collecting and examining wild strains of Newcastle disease virus and their DNA to help determine the molecular fi ngerprints of disease strains that are circulating in South East Asia. Th is will help to address the potential for future outbreaks in Australia. New projects are also being developed including surveillance techniques for foot and mouth disease, avian infl uenza and classical swine fever in Indonesia in partnership with the Australian Animal Biosecurity CRC. Rapid responses to emerging diseases: Th e National Health and Medical Research Council is establishing a framework to allow rapid responses to emerging infectious diseases that aff ect Australia. In 2004, the Council’s established schemes funded 125 projects. Th e council expanded the membership of its Urgent Research Working Party to include senior offi cials representing Australian agencies involved in pandemic infl uenza preparedness planning, including Australia’s Chief Medical Offi cer. Opportunities for collaborative activities were also explored, including with the Australian Biosecurity Cooperative Research Centre for Emerging Infectious Disease.

90 Backing Australia’s Ability Goal: Protecting Australia from terrorism and crime Strengthening national security and better protecting our critical infrastructure: Th e Attorney General’s Department has a broad engagement with business on national security issues, with particular programmes for the critical infrastructure sectors. Th e Department also has coordination roles in protective security, counter- terrorism and emergency management, especially with regard to prevention, preparedness, response and recovery. A national fi rearms management system is being investigated to improve Australia’s management of fi rearms from the point of import or manufacture to the point of export or destruction. Th e system will improve the ability of law enforcement agencies to identify and prevent the diversion of legal fi rearms into the illicit market and their subsequent use in crime. Counter-terrorism initiatives: As the lead agency for protecting Australia from terrorism and crime, the National Security Science and Technology Branch (based in the Department of the Prime Minister and Cabinet) brings together agencies and research providers to better coordinate and focus counter-terrorism research. Th e Branch comprises members from the Defence Science and Technology Organisation, CSIRO, the intelligence community and the Australian Federal Police. It provides information to Australia’s research community about the needs of the counter-terrorism community through presentations at various fora, calls for proposals for projects funded through the Research Support for Counter-Terrorism programme and direct discussions and participation in agency planning sessions with the research community. A broad spectrum of activities has been undertaken under the Research Support for Counter-Terrorism programme, with a signifi cant increase in counter-terrorism work being undertaken in publicly funded research agencies. During 2004-05 the unit led negotiations to develop an overarching treaty agreement with the USA to facilitate cooperative science and technology research on aspects of domestic security. Bushfi re arson project: Bushfi res are a fact of life in Australia and each summer they threaten to impact on our communities. Most bushfi res are caused by people, deliberately or accidentally. Research being undertaken by the Australian Institute of Criminology (AIC) is showing how an increased understanding of bushfi res and the people who light them can help reduce the threat to Australian communities. Th e project’s fi rst major report, Bushfi re arson: A review of the literature was released in December 2004 and focused on the motives that drive people to commit arson. Th e report represents the most comprehensive treatment of the topic ever produced. Th e AIC is backing up the report with the regularBushFIRE arson series – one page fact sheets covering a broad range of issues and highlighting new research in the arson fi eld. Th e AIC has also established Australia’s fi rst online bibliographic database on arson, a centralised source of knowledge for stakeholders, policy makers and researchers. During 2004-05, AIC researchers gathered bushfi re data from fi re services and land management agencies throughout Australia. Th e analysis of over 450 000 records covering 20 diff erent agencies will produce for the fi rst time a complete picture of bushfi re patterns across all states and territories. Conducted in partnership with the ACT Department of Justice and Community Safety and with funding from the Bush Cooperative Research Centre, the bushfi re arson project is a great example of how the Cooperative Research Centre scheme is bringing government and industry together to tackle issues facing Australia.

AIC bushfi re arson project. Photo credits: AIC

Chapter Two: National Research Priorities 91 Reducing and preventing high tech crime: Th e AIC, in conjunction with the Australian High Tech Crime Centre, is producing a national educational package for judges and lawyers on understanding computer forensic evidence. Evidence collected from forensically examined computers is increasingly important in resolving criminal and civil court cases. Many records are also derived from computers, and judges and lawyers need to understand the ways in which information may be recorded by electronic devices. Th e project is unique in that it brings together law enforcement personnel, computer forensic experts and the AIC’s specialist high tech crime research analyst Reducing and preventing high tech crime. to produce a series of modules on computers as a source Photo credits: Picture courtesy of the Australian High Tech Crime Centre. of evidence. Goal: Transformational defence technologies Enhancing satellite communications: Communications infrastructure is expensive and can involve large installations. Technologies which increase the capacity of existing infrastructure can extend the life of assets and improve their performance. CSIRO, in conjunction with the Defence Science and Technology Organisation, has extended the Australian Defence Force’s satellite communications capability with the development of an advanced multiband feed system. Th is new system exploits the ability of the Optus C1 satellite to operate simultaneously at several bandwidths. Th is enhanced capability has now been incorporated into the BAE Systems Parakeet Transportable Satellite Terminal which, until now, could only operate at one frequency band at a time. Th e new system allows the Parakeet terminals to operate at two bandwidths simultaneously allowing faster and more reliable communications between defence personnel who may be operating in diffi cult and dangerous environments. Decoding ocean currents and temperatures: A global ocean forecast system with enhanced resolution around Australia has been developed by the Bureau of Meteorology, CSIRO and the Royal Australian Navy in a project called BLUElink. Th is system is being evaluated before operational implementation and will provide routine short-range forecasts of ocean currents and temperature. A BRAN (the BLUElink ocean ReANalysis) was initiated in December 2004 and completed in April 2005 using re-analysis and real-time analyses from the European Centre for Medium-Range Weather Forecasts. A technique being developed to combine high-resolution multi-satellite observations with buoy observations of sea surface temperature will provide a new high-resolution sea-surface temperature dataset and products for the Australian region. Th e Australian Government relies heavily on the expertise and capabilities of a range of organisations in guiding the development of policies and strategies for Australia’s future well-being, as well as evaluating the eff ectiveness of on-going and previous initiatives.

Enhanced NOA remotely sensed image to show diff erences in ocean Scientists work on deploying a ‘bunyip’ for the collection of data on water temperature. the microstructure of currents and temperature in the water column. Photo credits: CSIRO. Photo credits: CSIRO.

92 Backing Australia’s Ability CHAPTER THREE: Informing the future

Key institutions

Australian Bureau of Statistics Monitoring and evaluation Commonwealth government science and technology priorities are open to public scrutiny in a variety of ways—for example through annual reports of departments, research agencies and funding bodies, portfolio budget statements and the work of parliamentary committees. Formal evaluation programmes are also in place. Each year at Budget time, the government releases detailed information on the funding of programmes and incentives for science and innovation. Th rough the Australian Bureau of Statistics (ABS), Australia has one of the world’s best systems for collecting highly reliable statistics on innovation, R&D and related topics. Th ese are prepared to conform with OECD standards which enables broad international comparisons to be made. A major innovation survey has been conducted for the 2003 reference period with survey results released on 17 February 2005 in Innovation in Australian Business, 2003 (ABS Cat. no. 8158.0). Th e survey scope covers most Australian market sectors and includes businesses identifi ed as having fi ve or more employees. Th e main topics covered include: innovation activities and outputs, cooperation and linkages, sources of information, technology transfer, innovation barriers and innovation expenditure. A key focus of this survey was to provide reliable data that can enable the assessment of the impacts of innovation on the productivity and performance of businesses. Th is will be achieved through the linking of business innovation data to other sources of productivity and performance data (both ABS and non-ABS). For many years the ABS has conducted R&D surveys of businesses, higher education institutions, and government and not for profi t organisations. Th e major topics covered by these surveys include resources devoted to R&D (both fi nancial and human) and expenditure by a range of variables (such as industry, location, business size and source of funds). Th e ABS is compiling an information and communication technology (ICT) satellite account for 2002-03 following strong external interest in gaining a more detailed understanding of the sources of supply of ICT goods and services and the use of such products. Results of this work are expected to be available late in 2005. Satellite accounts enable attention to be focused on a certain fi eld, within the context of the balanced supply and use framework of the Australian National Accounts. An ICT satellite account enables data on all of the ICT goods and services produced and consumed by all industries to be brought together, thereby enabling better measurement and analysis of the impacts of these activities on the economy. www.abs.gov.au

Chapter Three: Informing the future 93 Chief Scientist Dr Batterham was Australia’s Chief Scientist for six years (two full terms) and completed his appointment on 31 May 2005. During 2004-05, Dr Batterham was executive offi cer of the Prime Minister’s Science, Engineering and Innovation Council and chaired the council’s non-ministerial standing committee. He was chair of the National Research Priorities Standing Committee and the committee to oversee publicly funded research agencies performance assessment process. Dr Batterham was appointed to the expert advisory group working on the development of a Research Quality Framework for publicly funded research and was a member of the National Collaborative Research Infrastructure Strategy Advisory Committee, the Australian Research Council Board, the Cooperative Research Centres Committee, the Coordination Committee on Science and Technology, and the Science Prizes Committee. His work also included providing a focus on building research excellence, collaboration and networking through his many public engagements. Th e position of Chief Scientist continues to be of great importance. Th e Australian Government looks to the Chief Scientist for advice that is current and covers the full spectrum of science, technology and innovation, including goals and priorities for national investment. www.dest.gov.au/chiefscientist Prime Minister’s Science, Engineering and Innovation Council Th e Prime Minister’s Science, Engineering and Innovation Council (PMSEIC) is the Australian Government’s principal source of independent advice on issues related to science, engineering and innovation. It is chaired by the Prime Minister. PMSEIC normally meets twice a year, however due to the Australian Government election in October 2004, PMSEIC met once during 2004-05 in March 2005. At the March meeting, Council heard reports on growing technology-based SMEs, opportunities for Antarctic and southern ocean science and nanotechnology. Th e agenda for the Council’s 14th meeting in December 2005 covered biodiscovery, the role of creativity in the innovation economy, tsunamis and opportunities for Australia arising from Asia’s scientifi c and economic growth. Non-ministerial members include the Chief Scientist and leaders of many scientifi c, educational and business organisations. Th e Council’s terms of reference are to: • advise on important issues in science, technology, engineering and relevant aspects of education and training. Th is includes their relationship to economic growth, employment creation, the development of new industries and the sustainable development of new resources; • examine the contribution of science, technology and engineering to the innovative capacity and economic and social development of Australia; • enhance awareness in the community of the importance of science, technology and engineering for Australia’s economic and social development; • examine Australia’s science and engineering resources and the eff ectiveness of their organisation and use; and • examine Australia’s science and engineering infrastructure and its eff ectiveness in applying science and technology to the economic and social development of Australia. http://www.dest.gov.au/pmseic

94 Backing Australia’s Ability Australian Biotechnology Advisory Council Th e Australian Biotechnology Advisory Council was announced in March 2002 and currently comprises 11 members drawn from the research, business, industry, health, agriculture and environment sectors. Th e Council’s role is to: • provide high-level independent advice on the role of government, industry and research in biotechnology development in Australia to the Ministerial Council on Biotechnology (including on further development and implementation of the National Biotechnology Strategy); • advise on important biotechnology issues, including in relation to economic growth, employment creation, the development of new industries and the sustainable development of new resources; and • undertake work as requested through working groups to advise on government policies and programmes in support of biotechnology development in Australia. Key activities to date include: • advising and assisting with the mid-term and fi nal evaluations of the National Biotechnology Strategy in 2003 and 2004; • advising the Australian Government Ministerial Council on Biotechnology on the importance of continued government assistance for early stage biotechnology development; • providing input to the development of the National Research Priorities; and • providing input on identifying biotechnology capabilities for a National Capability Statement on Biotechnology. Key activities for 2005-06 include: • advising government on issues relating to current government reviews relevant to the sector; and • providing direction on the development of a national 10 year strategic plan for biotechnology and other initiatives aimed at strengthening national eff orts on biotechnology development. Dr Michael Panaccio, Senior Venture Capitalist for Starfi sh Ventures Ltd, took over as chair of the Council from 2005. Former chair, Professor John Hearn, will stay on as a member through 2005. In 2005 four new members were appointed to replace retiring members: • Dr Jackie Fairley, Chief Operating Offi cer, Starpharma Pty Ltd; • Dr Eric Huttner, General Manager, Diversity Arrays Technology; • Associate Professor Andrew Sinclair, Murdoch Children’s Research Institute; and • Professor Anthony Weiss, Director of Molecular Biotechnology, University of Sydney. www.biotechnology.gov.au Commonwealth, State and Territory Advisory Council on Innovation Th e Commonwealth, State and Territory Advisory Council on Innovation (CSTACI) was established by Commonwealth, state and territory industry ministers in February 2000. Th e Council has a targeted and strategic approach to industry innovation issues and seeks to contribute to the eff ectiveness, integration and coordination of the national innovation system. Th e Council comprises a senior representative of each Commonwealth, state and territory industry department and one from the state and territory innovation council or equivalent. Various chief scientists also attend and the New Zealand government is an observer at meetings. Meetings were hosted by Victoria in November 2004 and South Australia in July 2005. Council members agreed to a strategic agenda for the CSTACI at the July 2005 meeting with various jurisdictions taking responsibility.

Chapter Three: Informing the future 95 The Industry Research and Development Board Th e Industry Research and Development (IR&D) Board is an independent statutory body supported by a number of committees. Th rough its committees, the Board helps administer Australian Government programmes designed to encourage and support innovation in industry. Th e Board aims to increase the level of R&D and innovation in Australian industry and improve the commercial success of these activities. Its functions include: • providing technical assessments, merit rankings and monitoring applications under the Commercial Ready programme, the Pharmaceuticals Partnerships Programme, the Industry Cooperative Innovation Programme, the Renewable Energy Development Initiative and the Motor Vehicle Producers R&D Scheme; • administering the R&D Start programme, the Biotechnology Innovation Fund, the Commercialising Emerging Technologies programme, the Innovation Investment Fund, the Renewable Energy Equity Fund, and the Pre-Seed Fund; • administering aspects of the R&D Tax Concession; • providing technical advice on the progress of applications and the eligibility of applicants; • monitoring the administration, delivery and performance of programmes for which it has responsibility and advising the minister of outcomes; • providing advice to the minister on industry innovation assistance measures; • studying issues, opportunities, trends and performance relating to industry research, development and innovation; • promoting and marketing industry innovation activities, programmes and benefi ts by acting as ambassadors for industry innovation; • maintaining the eff ectiveness and integrity of programmes for which it has responsibility; and • collecting and analysing data on programme performance and assessing whether programmes are meeting their objectives. Th e Board may comprise up to 15 members including an ex-offi cio member from the Department of Industry, Tourism and Resources. Board members are drawn largely from the private sector and bring extensive technical skills and experience across a wide range of industry sectors. Th e Board’s chair is Mr David Miles, Consultant to Corrs, Chambers, Westgarth and chair of Uniseed. www.ausindustry.gov.au Business/Industry/Higher Education Collaboration Council Th e Business/Industry/Higher Education Collaboration Council advises the Minister for Education, Science and Training on ways to increase collaboration between the higher education sector and other public and private business, industry, community and educational organisations. Council members are leaders from key industry associations and the higher education sector and bring together a wealth of Australian expertise. Th ree key areas of focus are greater business/industry involvement in the higher education sector, collaboration between Australian universities and the interface between higher education and vocational education and training. Council members have formed a work plan for 2004-06 that raises the profi le of collaboration issues such as: • skills (and capabilities) mapping, re-skilling and educational responsiveness; • graduate skills information for employers; • intellectual property and knowledge exchange networks; • the tax system and philanthropy in higher education; and • attracting overseas R&D investment to Australia’s higher education system. Th e Council met three times in the past fi nancial year – in August and November 2004 and April 2005. 96 Backing Australia’s Ability National Innovation Council Th e National Innovation Council assists the Minister for Industry, Tourism and Resources and the Department for Industry, Tourism and Resources to communicate the benefi ts of innovation to students, SMEs and the community. It provides strategic guidance to the operation and direction of National Innovation Awareness Strategy programme and is chaired by Mr David Miles.

Looking ahead In addition to the vital work being conducted by Australia’s key institutions, Australian Government departments are also working on a series of initiatives to assess our current research capacity and to develop strategies which will promote further growth and diversifi cation. Although the investment provided through the total Backing Australia’s Ability package has signifi cantly increased the levels of visibility and funding in areas of science and innovation, further careful planning must be undertaken to ensure that Australia remains a highly innovative society and continues to maximise its investment in research and development. Amongst this multitude of strategic planning activity, there are three processes currently underway which will have a signifi cant aff ect on Australia’s future research and development landscape. Th ese are the development of an outcomes framework for Backing Australia’s Ability, a research quality framework which will be applied to publicly funded research, and an audit of science, engineering and technology skills in Australia. Th rough these strategic processes Australia will be better placed to seize opportunities and contribute eff ectively on the world stage. Backing Australia’s Ability outcomes framework Backing Australia’s Ability represents an investment in science and innovation of $8.3 billion over 10 years to 2011. Th is is a signifi cant investment by the Australian Government which requires evaluation at a range of levels. Th ere is an increased trend internationally to shift the focus away from the programme level evaluation of innovation support to higher level evaluations. While data are still required to determine the effi ciency and eff ectiveness of innovation programmes, there is much value in looking at the assessment of impact at the higher level. Evaluating the strategy used for Backing Australia’s Ability poses the questions, “is it working or not?” and “what is the impact?” Th e development of a robust whole-of-package evaluation strategy is ground breaking work for Australia. Th e Department of Education, Science and Training is at the early stages of developing an outcomes framework and has looked at models both nationally and internationally to progress the ideas around this task. Measuring the impact of Backing Australia’s Ability will require more than statistics or numbers and will include case studies and qualitative as well as quantitative information to populate an outcomes framework that demonstrates the social, economic and environmental benefi ts to Australia. Research quality framework for publicly funded research In May 2004 the Prime Minister announced the establishment of quality and accessibility frameworks for publicly funded research as part of Backing Australia’s Ability – Building Our Future through Science and Innovation. Th e aim of the research quality framework (RQF) is to improve the assessment of the quality and impact of publicly funded research. Th e RQF will: • be transparent to government and taxpayers so that they are better informed about the results of the public investment in research; • ensure that all publicly funded research agencies and research providers are encouraged to focus on the quality and relevance of their research; and • avoid a high cost of implementation and imposing a high administration burden on research providers.

Chapter Three: Informing the future 97 Th e RQF will provide the basis for distributing research resources in Australia including research block funding for universities, publicly funded research agencies and research funding councils. Any additional research resources will be distributed on the basis of RQF outcomes to reward the highest quality research, wherever it occurs. In December 2004, the Minister for Education, Science and Training announced an expert advisory group chaired by Sir Gareth Roberts, Head of Wolfson College, Oxford University, to provide expert advice on developing the RQF. Th e group met for the fi rst time in March 2005 and released an issues paper to initiate discussions. Approximately 165 submissions were received in response to the paper and around 370 stakeholders participated in public consultations. Front from left to right: Professor Peter Sheehan, Professor Sir Gareth Roberts, Professor Anne Edwards. Back from left to right: Th e group released the RQF advanced approaches paper Professor Alan Pettigrew, Dr Evan Arthur, Dr Michael Barber, Dr in May 2005 to support discussions at the national Ian Smith, Professor Peter Høj, Professor Paul Callaghan, Professor Ian Chubb, Dr Robin Batterham, Mr Phil Clark (Professor Ross stakeholder forum, held on 2 June 2005. Some 100 key Milbourne was not present at time of photograph). Photo credits: DEST stakeholders with experience in, or responsibility for, research assessment including those from universities, peak industry bodies, the Learned Academies, relevant state and federal government departments, the Council of Australian Postgraduate Associations and the Indigenous Higher Education Advisory Council attended the forum. Th e group met for the second time immediately following the forum and endorsed a series of agreed features for the RQF model as well as questions for ongoing analysis and discussion. At its third meeting, the group agreed to release the preferred model paper in September 2005, which contained details of the preferred RQF model and issues surrounding its implementation. Th e group is expected to provide fi nal advice to the minister on the preferred RQF model in 2005. Th e minister has already agreed on a timeline for implementation by 2007, to follow refi nement and technical work (including modelling of fi nancial implications) throughout 2006. Th e fi rst reporting period for the RQF is expected to be 2008. www.dest.gov.au/resqual/default.htm Audit of science, engineering and technology skills Th e Department of Education, Science and Training is currently conducting an audit of science, engineering and technology (SET) skills to analyse skills issues in these areas and determine how skills needs may be addressed. Th e audit involves wide ranging consultations and addresses issues such as demand and supply of SET skills, young Australian’s perceptions about learning science, migration issues, career paths, industry views and training quality. Th e full audit report will be available in early 2006 and will inform ongoing policy development designed to address SET skills shortages. Analysis of the supply of skills from all levels of education is also a key part of the audit as detailed in the discussion paper available at www.dest.gov.au/setsa. Venture Capital Review A review into Australia’s venture capital industry was announced by the Minister for Industry, Tourism and Resources in May 2005 and an expert group is currently undertaking the task. Th e review will assess the contribution of the venture capital industry to the Australian economy and the impact of current government initiatives in supporting venture capital investment. A total of 59 submissions have been received from industry stakeholders, including fund managers, academics, superannuation funds, asset consultants and individuals. As well as reviewing the written submissions, the group has completed face-to-face consultations with a range of industry representatives in Melbourne, Sydney and Canberra.

98 Backing Australia’s Ability APPENDICES

Appendix 1 Major fl ows of funding for R&D in Australia, 2002-03

Appendix 2 Overview of Australia’s gross domestic expenditure on R&D (GERD) – by sector of performance, 1978-79 to 2002-03

Appendix 3 Overview of Australia’s gross domestic expenditure on R&D (GERD) – by source of funds, 1978-79 to 2002-03

Appendix 4 Backing Australia’s Ability 10 year funding as announced in the Backing Australia’s Ability - Building Our Future Th rough Science and Innovation press kit in May 2004

Appendix 5 Overview of Australian Government support for science and innovation – at current prices, 1995-96 to 2005-06

Appendix 6 Overview of R&D in regions – by state and territory, 2002-03

Appendix 7 2005 Federation Fellows

Appendix 8 National Research Priorities and associated goals

Appendix 9 Cooperative Research Centres

Appendix 10 Co-funded Centres of Excellence

Appendix 11 ARC Centres of Excellence

Appendix 12 ARC Centres

Appendix 13 ARC Special Research Centres

Appendix 14 Rural Research and Development Corporations

Appendices 99 APPENDIX 1

Major fl ows of funding for R&D in Australia, 2002-03

SOURCES OF FUNDING Business $6,271m Australian Government $4,613m

State/Territory and local governments $826m Other Australian Overseas $609m $523 million

$104m $324m $174m $5,937m $630m $1,256m $2,938m

$248m $189m $147m

Australian Government Higher education State/Territory Private non-profit Business $1,531m $3,430m governments $951m $360m $6,571m

SECTORS OF PERFORMANCE

Source: Science and Innovation Analysis Section, DEST, based on ABS R&D data. Source: Science and Innovation Analysis Section, DEST, based on ABS R&D data.

100 Backing Australia’s Ability APPENDIX 2

Overview of Australia’s gross domestic expenditure on R&D (GERD) – by sector of performance, 1978-79 to 2002-03

Sector of Performance 1978-79 1981-82 1984-85 1986-87 1988-89 1990-91 1992-93 1994-95 1996-97 1998-99 2000-01 2002-03 Current Prices ($million) Business 245.8 373.7 731.1 1,288.6 1,798.3 2,099.8 2,861.9 3,508.3 4,234.7 4,094.7 4,982.6 6,571.4 Government 469.9 714.7 955.3 1,154.9 1,352.3 1,704.0 1,823.9 1,976.1 2,064.3 2,043.0 2,355.8 2,482.2 Commonwealth 321.2 514.8 669.4 786.5 869.6 1,034.0 1,155.4 1,193.3 1,266.6 1,179.4 1,404.8 1,531.3 State 148.7 199.9 285.9 368.4 482.7 670.0 668.5 782.8 797.7 863.6 951.0 950.9 Higher Education 325.5 452.5 685.7 881.7 1,072.9 1,332.8 1,695.2 1,829.6 2,307.6 2,555.1 2,789.8 3,429.6 Private non-profi t 12.6 20.9 43.5 49.1 53.3 85.4 101.9 152.7 185.8 225.3 289.0 359.5 TOTAL 1,053.8 1,561.8 2,415.6 3,374.3 4,276.8 5,222.0 6,482.9 7,466.7 8,792.4 8,918.1 10,417.1 12,842.7 Chain Volume Measures ($million at 2002/03 prices) Business – – – 2,275.1 2,836.4 2,918.0 3,784.6 4,481.2 5,141.1 4,762.9 5,291.1 6,571.4 Government – – – 1,897.6 2,006.7 2,303.6 2,327.6 2,437.5 2,430.3 2,318.4 2,487.9 2,482.2 Commonwealth – – – 1,292.3 1,290.4 1,397.9 1,474.5 1,471.9 1,491.2 1,338.4 1,483.6 1,531.3 State – – – 605.3 716.3 905.8 853.1 965.6 939.1 980.0 1,004.3 950.9 Higher Education – – – 1,529.1 1,696.8 1,894.3 2,251.6 2,344.4 2,796.4 2,942.6 3,007.9 3,429.6 Private non-profi t – – – 89.7 85.5 120.6 136.4 197.4 226.2 259.0 306.9 359.5 TOTAL – – – 5,791.5 6,625.4 7,236.5 8,500.1 9,460.6 10,594.0 10,283.0 11,093.7 12,842.7

Source: Science and Innovation Analysis Section, DEST, based on ABS R&D data including unpublished data provided to the section in September 2005. Appendices

101

826.2 609.2 523.2 826.2 609.2 523.2 6270.9 6270.9 5,439.4 4,613.2 5,439.4 4,613.2 2002-03 12,842.7 12,842.7

811.1 493.4 361.7 856.6 532.0 384.1 4,821.1 4,741.0 3,929.9 5,119.6 5,006.9 4,150.3 2000-01 10,417.1 11,042.5

738.5 422.6 226.1 838.1 486.7 263.0 4,091.6 4,177.8 3,439.3 8,918.1 4,759.3 4,741.0 3,903.0 1998-99 10,250.1

666.8 384.5 180.6 785.0 465.9 219.3 4,203.9 4,023.3 3,356.5 8,792.4 5,103.7 4,736.6 3,951.6 1996-97 10,525.5

328.3 145.2 834.3 420.7 185.5 676.4 4,369.3 3,535.0 9,383.4 3,451.0 3,542.2 2,865.8 7,466.7 4,408.0 1994-95

255.7 118.1 736.9 339.6 156.2 577.4 4,156.7 3,419.9 8,423.9 2,851.9 3,257.2 2,679.8 6,482.9 3,771.4 1992-93

64.2 89.2 141.4 791.9 201.0 585.8 3,877.5 3,085.6 7,153.0 2,148.2 2,868.2 2,282.4 5,222.0 2,985.3 1990-91

91.2 57.0 89.9 626.9 144.2 422.5 3,421.6 2,794.6 6,465.7 1,781.5 2,305.8 1,883.3 4,235.5 2,809.9 1988-89 Current Prices ($million)

83.9 29.0 51.2 527.4 145.5 321.0 3,258.6 2,731.2 5,665.4 1,251.8 1,983.2 1,662.2 3,347.9 2,210.1 1986-87 Chain Volume Measures ($million at 2002/03 prices) Chain Volume

– – – – – – – 58.6 26.0 674.3 262.4 1,648.6 1,386.2 2,407.5 1984-85

– – – – – – – 32.4 16.1 975.6 178.7 319.5 1,154.3 1,522.2 1981-82

– – – – – – – 13.5 16.8 806.1 666.0 140.1 217.5 1,053.8 1978-79 Commonwealth State Commonwealth State Source of funds Government Other Australian Overseas TOTAL Government Other Australian Overseas TOTAL Business Business Source: Science and Innovation Analysis Section, DEST, based on ABS R&D data provided in September 2005. in September based on ABS R&D data provided DEST, Analysis Section, Science and Innovation Source: APPENDIX 3 APPENDIX gross domestic expenditure on R&D (GERD) – by source of funds, 1978-79 to 2002-03 Overview of Australia’s

102 Backing Australia’s Ability APPENDIX 4

Backing Australia’s Ability 10 year funding as announced in the Backing Australia’s Ability - Building Our Future Through Science and Innovation press kit in May 2004

Initial Additional 10 Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 5 Yr Total 7 Yr Total Total ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m)

COMMERCIALISATION R&D Start – 41.9 117.6 174.7 200.7 534.9 R&D Start reprioritisation -16.2 -3.1 -19.3 Innovation Access Programme - Industry – 9.1 10.7 14.2 15.9 49.8 Innovation Access Programme reprioritisation -2.0 -6.0 -8.0 Biotechnology Innovation Fund 5.0 5.0 10.0 – – 20.0 Commercial Ready Programme 5.5 16.7 185.1 200.0 214.0 221.0 221.0 1063.3 1640.7 10.0 10.0 10.0 10.0 – 40.0 COMET 3.8 13.3 17.4 17.8 18.2 17.9 11.6 100.0 140.0 Biotechnology World Class Centre 1.5 3.8 5.0 6.2 7.5 24.0 National Stem Cell Centre (a) 0.0 0.0 7.0 6.5 6.2 5.5 5.2 30.4 54.4 Cooperative Research Centres (CRC) Programme (b) – – 55.0 57.0 64.0 44.9 64.3 31.3 43.0 -5.0 227.0 127.5 354.5 3.7 12.6 12.6 12.6 9.6 50.9 Pre-Seed Fund (c) – – 7.6 6.6 5.6 4.6 3.6 27.8 78.7 Information Technology Online (ITOL) 1.0 3.0 3.0 3.0 3.0 13.0 13.0 Building on IT Strengths (BITS) Incubator 13.0 11.0 8.0 4.0 – – – 36.0 36.0 New Industries Development Programme (NIDP) Mark II 5.1 5.2 5.2 5.2 1.0 21.7 New Industries Development Programme III – – 3.1 3.0 3.1 3.2 1.6 14.0 35.7 RESEARCH AND DEVELOPMENT 19.2 92.5 142.8 205.4 276.5 736.4 ARC National Competitive Grants Programme (a) -0.4 -1.4 273.5 286.8 296.0 301.9 307.9 1464.2 2200.6 26.8 47.7 68.7 89.3 104.5 337.0 Research Infrastructure Block Grants – – 106.6 108.7 110.9 113.1 115.3 554.5 891.5 Systemic Infrastructure Initiative 26.3 53.2 54.4 55.5 56.6 246.0 Major National Research Facilities Programme (e) 5.0 20.0 30.0 50.0 50.0 155.0 National Collaborative Research Infrastructure Strategy 1.9 15.1 100.3 102.7 104.9 107.3 109.7 542.0 943.0 Innovation Access Programme - International Science and Technology – 7.5 8.5 10.2 11.1 37.2 International Science Linkages – – 10.5 10.8 11.0 11.4 11.7 55.5 92.7

Appendices Developing Quality and Accessibility Frameworks for Publicly Funded Research 1.1 1.7 – – – – – 2.8 2.8 Regional Protection Funding (d) 3.0 3.1 3.1 3.2 – – – 12.4 12.4

103

7.2 -2.9 21.0 15.1 57.1 38.8 34.1 20.0 ($m) -36.6 Total Total 200.0 193.3 449.0 184.3 350.5 305.0 8331.8 4970.7 1821.2 10 Year 10 Year

7.2 0.0 21.0 11.4 25.8 38.8 20.0 ($m) 200.0 126.3 390.0 199.5 925.9 305.0 5348.0 2955.4 7 Yr Total Additional

3.7 -2.9 67.0 59.0 31.3 34.1 ($m) -36.6 184.3 151.0 895.3 2983.8 2015.3 Initial 5 Yr Total

– – – – 1.8 5.2 2.5 ($m) 30.0 26.2 90.0 39.9 615.8 151.6 50.0 1028.3 2010-11

– – – – 1.8 5.1 3.3 ($m) 30.0 25.7 80.0 39.9 603.7 196.1 50.0 1064.5 2009-10

– – – – 1.8 5.0 4.5 ($m) 30.0 25.3 70.0 39.9 591.9 180.7 50.0 1027.6 2008-09

– – 2.1 1.8 4.9 5.8 5.0 ($m) 29.0 24.8 70.0 39.9 566.3 210.2 50.0 1047.6 2007-08

– 5.4 2.1 1.7 4.7 5.6 5.0 ($m) 28.0 24.2 80.0 39.9 566.3 187.3 40.0 1003.7 2006-07

– – – – 7.3 2.0 1.7 9.0 0.6 7.5 5.0 ($m) -0.7 27.0 24.0 32.0 40.8 39.9 10.8 556.5 206.4 35.0 -15.9 1076.6 2005-06

– – – 193 8.3 1.0 0.6 1.0 6.4 0.3 6.3 7.5 5.0 ($m) -0.6 26.0 17.7 20.6 38.7 39.5 899.4 481.4 30.0 -11.7 2004-05

202 1.2 5.8 7.4 ($m) -3.6 -7.7 -0.6 12.0 36.8 33.0 617.7 413.9 2003-04

8.8 4.0 1.2 5.8 7.2 ($m) -2.0 -0.5 34.9 24.7 395.5 298.3 148.6 2002-03

4.5 6.0 0.7 4.3 4.5 0.7 ($m) -0.5 33.1 13.9 170.8 265.2 145.3 2001-02

(d)

(d) (h) (a) (j)

(d) (a) (g) (f) (i) is section of the table shows the total funding for the Australian Research Council’s National Competitive Grants Programme and the Cooperative Research Centres (CRC) Programme over this period. It includes base funding and additional funding provided through BAA. through includes base funding and additional provided this period. It over Programme (CRC) Centres Research and the Cooperative Programme Grants Competitive National Council’s Research the total funding for Australian is section of the table shows Th Th CSIRO National Flagship Initiative Health and Medical Research - overhead infrastructure support Building on IT Strengths (BITS) Advanced Network ICT Centre of Excellence R&D Tax Concession R&D Tax R&D Tax Concession R&D Tax Research Support for Counter Terrorism SKILLS DEVELOPMENT Questacon - Smart Moves Questacon - Raising Science Awareness Strategy National Innovation Awareness Science Connections Programme in Government Schools Science, Maths and Technology in Innovation and Skills Technological Mathematical, c, Scientifi Fostering Schools Government University Places 2000 Additional Targeted Boosting Innovation, Science, Mathematics and Technology Teaching Boosting Innovation, Science, Mathematics and Technology Online Curriculum Content PELS Attracting ICT Workers National Biotechnology Strategy and Australia Total Funding for the ARC and CRC Total ARC National Competitive Grants Programme Cooperative Research Centres (CRC) Programme APPENDIX 4 continued 4 APPENDIX 2001-02 to 2005-06 numbers (orange) are as announced for BAA in the 2001-02 Budget. Th ere have been some movements between years since then but it remains approximately a $3 billion package. 2004-05 to 2010-11 numbers (blue) include continuing BAA initiatives and a $3 billion package. 2004-05 to 2010-11 numbers (blue) include continuing BAA initiatives remains approximately years since then but it between been some movements have ere Th as announced for BAA in the 2001-02 Budget. 2001-02 to 2005-06 numbers (orange) are together. grouped in the 2004-05 budget are been merged or refocused that have Programmes in 2006-07) and the 2004-05 Budget. Programme and $41 million for the R&D Start Programme $62.5 million for the CRC ($275 million for ARC, decisions in the 2003-04 Budget may not sum due to rounding Totals Funding of the period 2006-07 to 2010-11. over directly, to the centres ($124.7 million) in addition to the funding provided Excellence of ($27.5 million) and the ICT Centre Stem Cell Centre National will allocate funding to the Programme Grants National Competitive e (a) Th (including base funding) is $556.5 million in 2005-06 and $566.3 2006-07. funding for the ARC Total research. and Cabinet to fund targeted counter-terrorism Minister to the Department of Prime this programme from will also be provided four years $7.2 million over year total includes the amount committed in 2001- e 5 Th years. not the sum of respective totals are and 7 year the 5 year under the programme, le with expenditure to better align the funding profi to later years been moved because BAA funds have Programme, the CRC (b) For ($65 million). ($62.5 million) and 2004-05 Budget total is the additional funds committed in 2003-04 Budget and the 7 year 02 Budget Thover 10 August 2001 rephrased in programme was is $6.4m in 2001-02, $16.9m 2002-03, $21.8m 2003-04, 2004-05 and $11.8m 2005-06. years when BAA was announced as follows: five over with $78.7 million fund was originally provided Pre-Seed e (c) Th to a loan programme. a grant programme ect the change from to refl years included in BAA. that was not previously (d) Continues an existing programme in 2005-06 is $97.3 Infrastructure phased MNRF funding of $40.7 million in 2005-06, total for and Systemic re With of funds. for earlier expenditure announcement of BAA in 2001-02 to allow phased since the government’s for MNRF has been re (e) Funding Strategy. Infrastructure Research National Collaborative in 2006-07 under the with funding of $100.3 million provided is compares Th ned million. Th refi e ned since this date. refi been Budget and have at the announcement of BAA in 2001-02 the best estimates available were fi gures ese the 125% tax concession. Th set and streamlining tax concession, the off include the premium gures (f) R&D tax concession fi with $80 million for 2006-07. is compares estimate is $77 million in 2005-06. Th for this 2004-05 to 2010-11). An estimated $373 million will be provided from being provided Estimates (with a total of $93.2 million year in the Forward for this funding is already 2005-06 as provision a budget impact beyond does not have for this programme (g) Resourcing the next four years. Liability over Benchmark to those states/territories that trigger an Enrolment programme funded within the general allocations for universities. now in 2006-07 to 2010-11 is an estimate of the nominal cost these places that are (h) Funding 2005-06 in this table as the not been included beyond estimates have continues, however for PELS Funding announced in the 2003-04 Budget. initiative Future Australia’s - Backing FEE-HELP as part Universities of the Our has not been integrated into a new loan facility, (i) PELS a separate initiative. being funded through now are of this programme objectives (j)

104 Backing Australia’s Ability Initial Additional 10 Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 5 Yr Total 7 Yr Total Total ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) ($m) CSIRO National Flagship Initiative (d) 30.0 35.0 40.0 50.0 50.0 50.0 50.0 305.0 305.0 Health and Medical Research - overhead infrastructure support 26.0 27.0 28.0 29.0 30.0 30.0 30.0 200.0 200.0 Building on IT Strengths (BITS) Advanced Network (d) 8.3 7.3 5.4 – – – – 21.0 21.0 4.5 8.8 12.0 17.7 24.0 67.0 ICT Centre of Excellence (a) – – 24.2 24.8 25.3 25.7 26.2 126.3 193.3 R&D Tax Concession (f) 6.0 4.0 -3.6 20.6 32.0 59.0 R&D Tax Concession – – 80.0 70.0 70.0 80.0 90.0 390.0 449.0 Research Support for Counter Terrorism (a) 1.0 2.0 2.1 2.1 – – – 7.2 7.2 SKILLS DEVELOPMENT Questacon - Smart Moves 0.7 1.2 1.2 0.6 – 3.7 Questacon - Raising Science Awareness 1.0 1.7 1.7 1.8 1.8 1.8 1.8 11.4 15.1 National Innovation Awareness Strategy 4.3 5.8 5.8 6.4 9.0 31.3 Science Connections Programme 0.3 0.6 4.7 4.9 5.0 5.1 5.2 25.8 57.1 Science, Maths and Technology in Government Schools 33.1 34.9 36.8 38.7 40.8 184.3 Fostering Scientifi c, Mathematical, Technological Skills and Innovation in – – – – – – – 0.0 184.3 Government Schools (g) 13.9 24.7 33.0 39.5 39.9 151.0 2000 Additional Targeted University Places (h) 39.9 39.9 39.9 39.9 39.9 199.5 350.5 Boosting Innovation, Science, Mathematics and Technology Teaching 6.3 10.8 5.6 5.8 4.5 3.3 2.5 38.8 38.8 Online Curriculum Content 4.5 7.2 7.4 7.5 7.5 34.1 34.1 PELS (i) 0.7 -2.0 -7.7 -11.7 -15.9 -36.6 -36.6 Attracting ICT Workers -0.5 -0.5 -0.6 -0.6 -0.7 -2.9 -2.9 National Biotechnology Strategy and Biotechnology Australia (d) 5.0 5.0 5.0 5.0 – – – 20.0 20.0 Total 170.8 395.5 617.7 899.4 1076.6 1003.7 1047.6 1027.6 1064.5 1028.3 2983.8 5348.0 8331.8 Total Funding for the ARC and CRC (j) ARC National Competitive Grants Programme 265.2 298.3 413.9 481.4 556.5 566.3 566.3 591.9 603.7 615.8 2015.3 2955.4 4970.7 Cooperative Research Centres (CRC) Programme 145.3 148.6 202 193 206.4 187.3 210.2 180.7 196.1 151.6 895.3 925.9 1821.2

2001-02 to 2005-06 numbers (orange) are as announced for BAA in the 2001-02 Budget. Th ere have been some movements between years since then but it remains approximately a $3 billion package. 2004-05 to 2010-11 numbers (blue) include continuing BAA initiatives and decisions in the 2003-04 Budget ($275 million for ARC, $62.5 million for the CRC Programme and $41 million for the R&D Start Programme in 2006-07) and in the 2004-05 Budget. Programmes that have been merged or refocused in the 2004-05 budget are grouped together. Totals may not sum due to rounding (a) Th e National Competitive Grants Programme will allocate funding to the National Stem Cell Centre ($27.5 million) and the ICT Centre of Excellence ($124.7 million) in addition to the funding provided to the centres directly, over the period 2006-07 to 2010-11. Funding of $7.2 million over four years will also be provided from this programme to the Department of Prime Minister and Cabinet to fund targeted counter-terrorism research. Total funding for the ARC (including base funding) is $556.5 million in 2005-06 and $566.3 million in 2006-07. (b) For the CRC Programme, because BAA funds have been moved to later years to better align the funding profi le with expenditure under the programme, the 5 year and 7 year totals are not the sum of the respective years. Th e 5 year total includes the amount committed in the 2001- 02 Budget and the 7 year total is the additional funds committed in the 2003-04 Budget ($62.5 million) and 2004-05 Budget ($65 million). (c) Th e Pre-Seed fund was originally provided with $78.7 million over fi ve years when BAA was announced as follows: $6.4m in 2001-02, $16.9m in 2002-03, $21.8m in 2003-04, $21.8m in 2004-05 and $11.8m in 2005-06. Th is programme was rephrased in August 2001 over 10 years to refl ect the change from a grant programme to a loan programme. (d) Continues an existing programme that was not previously included in BAA. (e) Funding for MNRF has been re phased since the government’s announcement of BAA in 2001-02 to allow for earlier expenditure of funds. With re phased MNRF funding of $40.7 million in 2005-06, total funding for MNRF and Systemic Infrastructure in 2005-06 is $97.3 million. Th is compares with funding of $100.3 million provided in 2006-07 under the National Collaborative Research Infrastructure Strategy. (f) R&D tax concession fi gures include the premium tax concession, the tax off set and streamlining the 125% tax concession. Th ese fi gures were the best estimates available at the announcement of BAA in the 2001-02 Budget and have been refi ned since this date. Th e refi ned estimate is $77 million in 2005-06. Th is compares with $80 million for 2006-07. (g) Resourcing for this programme does not have a budget impact beyond 2005-06 as provision for this funding is already in the Forward Estimates (with a total of $93.2 million a year being provided from 2004-05 to 2010-11). An estimated $373 million will be provided for this programme to those states/territories that trigger an Enrolment Benchmark Liability over the next four years. (h) Funding in 2006-07 to 2010-11 is an estimate of the nominal cost of these places that are now funded within the general allocations for universities. (i) PELS has not been integrated into a new loan facility, FEE-HELP as part of the Our Universities - Backing Australia’s Future initiative announced in the 2003-04 Budget. Funding for PELS continues, however estimates have not been included beyond 2005-06 in this table as the objectives of this programme are now being funded through a separate initiative. (j) Th is section of the table shows the total funding for the Australian Research Council’s National Competitive Grants Programme and the Cooperative Research Centres (CRC) Programme over this period. It includes base funding and additional funding provided through BAA.

APPENDIX 5

Overview of Australian Government support for science and innovation – at current prices, 1996-97 to 2005-06

Cash outlays ($m) Accrual expenses ($m)

ACTUAL COST INCURRED IN YEAR ($m) est. actual budget est. 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 INTRAMURAL EXPENDITURE ON SCIENCE & INNOVATION Major Australian Government research agencies · Defence Science & Technology Organisation 254.9 212.1 221.3 237.6 261.0 275.0 283.4 293.9 314.4 329.7 · CSIRO 444.5 466.8 475.4 500.0 496.7 509.6 532.1 568.6 577.1 593.9 · Other R&D agencies 279.8 256.4 244.2 272.5 338.3 385.9 402.7 441.5 399.2 400.1 SUB-TOTAL 979.2 935.3 940.9 1,010.1 1,096.0 1,170.5 1,218.1 1,304.1 1,290.7 1,323.7

EXTRAMURAL EXPENDITURE ON SCIENCE & INNOVATION Business enterprise sector · Industry R&D Tax Concession 525.0 420.0 370.0 460.0 510.0 370.0 416.0 406.0 456.0 491.0 · Other R&D Support 58.2 20.0 60.1 176.9 176.8 237.9 158.6 230.8 62.6 87.4 · Other Innovation Support 69.6 120.4 166.6 112.0 124.7 284.3 244.4 216.3 358.8 396.3 SUB-TOTAL 652.8 560.4 596.7 748.9 811.5 892.2 818.9 853.1 877.4 974.7

Higher Education Sector · Australian Research Council - - - - 247.8 265.8 298.3 394.4 481.4 556.5 · Performance Based Block Funding - - - - 942.5 1,012.5 1,086.5 1,172.2 1,179.0 1,251.3 · R&D Support under Former Funding Framework 1,610.5 1,675.4 1,737.2 1,775.9 ------· Other R&D Support 2.7 2.5 2.5 15.7 614.0 598.9 588.0 594.8 589.1 449.5 SUB-TOTAL 1,613.2 1,677.9 1,739.7 1,791.6 1,804.3 1,877.2 1,972.8 2,161.4 2,249.5 2,257.3

Multi-Sector · NHMRC and other health 167.0 174.5 194.6 186.5 309.7 248.3 273.7 369.0 419.5 431.9 · Cooperative Research Centres 142.3 144.3 142.3 137.5 139.7 145.3 148.6 201.1 194.0 208.2 · Rural 126.0 140.5 150.2 138.2 141.3 197.5 204.3 210.7 193.7 207.2 · Energy and the environment 11.4 25.2 8.9 11.8 20.9 33.6 29.1 35.8 43.4 63.7 · Other science support 24.7 28.7 12.1 7.0 6.7 12.5 38.4 49.3 54.9 71.4 SUB-TOTAL 471.4 513.2 508.1 481.0 618.3 637.2 694.1 866.0 905.4 982.4

TOTAL SUPPORT 3,716.6 3,686.8 3,785.4 4,031.6 4,330.1 4,577.1 4,704.0 5,184.5 5,323.0 5,538.1 Appendices

Source: DEST, Science and Innovation Budget Tables 2005-06.

105 (%) n/a 1.57 1.88 1.32 2.29 1.36 1.93 1.31 4.66 1.69 % of GSP $ n/a 623.1 734.8 439.5 733.8 574.8 518.1 596.4 646.3 2,179.8 Per capita s 88.7 247.3 118.4 704.9 price 4,163.3 3,608.8 1,670.5 1,120.0 1,120.9 Current $million 12,842.7 Gross domestic R&D expenditure (%) n/a 0.03 0.12 0.01 0.01 0.03 0.00 0.01 0.06 0.05 % of GSP $ 2.5 4.0 0.5 6.7 n/a 11.4 47.1 11.5 26.7 17.4 Per capita 9.6 6.1 0.2 1.3 8.6 3.5 76.2 22.4 231.5 346.1 prices Current $million Private non-profi t Private non-profi (%) n/a 0.37 0.45 0.45 0.53 0.36 0.53 0.30 2.32 0.45 % of GSP $ n/a 148.4 175.7 151.1 169.0 151.9 141.9 137.6 172.6 1,085.9 Per capita n/a 67.7 27.3 991.9 863.2 574.3 258.0 296.1 351.1 prices 3,429.6 Current $million Higher education (%) n/a 0.10 0.09 0.20 0.20 0.13 0.07 0.32 0.05 0.13 % of GSP $ n/a 40.5 34.7 67.2 63.3 55.4 18.4 21.9 47.8 148.3 Per capita 8.8 7.1 4.5 96.6 29.4 270.7 170.3 255.3 108.1 950.9 prices Current $million State/territory government (%) n/a 0.10 0.19 0.12 0.46 0.11 0.86 0.23 1.95 0.20 % of GSP $ n/a 40.0 76.3 38.9 45.7 77.1 147.7 229.8 103.9 912.1 Per capita 1.5 89.1 20.6 267.4 375.0 147.7 225.5 109.7 294.9 prices 1,531.3 Current $million Australian Government (%) n/a 0.96 1.02 0.54 1.09 0.73 0.48 0.44 0.28 0.87 % of GSP $ n/a 382.7 400.9 179.9 349.8 310.3 127.5 199.9 133.2 330.7 Per capita 60.9 39.7 43.1 79.2 683.6 533.8 605.1 prices 2,557.1 1,968.9 6,571.4 Current $million Business Location NSW Vic Qld SA WA Tas NT ACT & Ext Terr Overseas Total Source: ABS, R&D data, September 2005. ABS, R&D data, September Source: APPENDIX 6 APPENDIX 2002-2003 Overview of R&D in regions—by state and teritory,

106 Backing Australia’s Ability APPENDIX 7

2005 Federation Fellows

Professor Geremie Barme - China’s heritage and the city as spectacle. Host institution: Australian National University.

Professor Alan Bond - Integration of electrochemistry and green chemistry: A roadmap for scientifi c innovation. Host institution: Monash University.

Professor John Bowman - Role of an ancient genetic programme in the elaboration of plant architecture. Host institution: Monash University.

Professor Hilary Charlesworth - Building democracy and justice after confl ict. Host Institution: Australian National University.

Professor Tom Davis - Constructing the building blocks for future nanomaterial design: Self-assembly and information storage in synthetic macromolecules. Host institution: University of New South Wales.

Associate Professor Matthew England - Genesis of Australian climate extremes in southern hemisphere extra-tropical ocean atmosphere. Host institution: University of New South Wales.

Professor Sheila Fitzpatrick - Russia (Th e Soviet Union) and Australia in the 20th and 21st centuries. Host institution: University of Melbourne.

Professor Bryan Gaensler - Th e origin and evolution of cosmic magnetism. Host Institution: University of Sydney.

Professor John Hartley - Uses of multimedia: Citizen consumers, creative participation and innovation in Australian digital content. Host institution: Queensland University of Technology.

Professor John Hodges - Human long-term memory and social cognition: An integrated cognitive neuroscience approach. Host institution: University of New South Wales.

Professor Michael Keane - Understanding and modelling individual choices in applied economics. Host institution: University of Technology, Sydney.

Dr Cameron Kepert - Advanced molecular nanomaterials. Host institution: University of Sydney.

Associate Professor Bostjan Kobe - New approaches to functional and structural genomics. Host institution: University of Queensland.

Professor Philip Maini - Multiscale modelling: Applications to the biomedical sciences. Host institution: University of Sydney.

Appendices 107 Dr Larry Marshall - Optical semiconductors for next-generation lasers, optical processors and integrated optical chips. Host institution: Macquarie University.

Professor John Mattick - Th e genomic planning of complex organisms. Host institution: University of Queensland.

Professor Barry Muddle - Design in nanostructured materials – formation and stability of nanostructure in light alloys and light metal hybrids. Host institution: Monash University.

Associate Professor Paul Mulvaney - Energy conversion and signal transduction in nanomechanical systems. Host institution: University of Melbourne.

Dr Andrew Parker - Th e diversity and assembly of optics in nature. Host institution: University of Sydney.

Professor Mark Randolph - Geotechnical engineering solutions for deep-water oil and gas developments. Host institution: University of Western Australia.

Professor Brian Schmidt - Understanding the evolution of the universe. Host institution: Australian National University.

Professor Richard Shine - Ecology and evolution in dynamic systems: a new approach to conserving Australian biodiversity. Host institution: University of Sydney.

Professor Jeremy Smith- Neutron scattering in biology. Host institution: Australian Nuclear Science and Technology Organisation.

Professor David Vaux - Molecular control of apoptosis and protein homeostasis. Host institution: LaTrobe University.

108 Backing Australia’s Ability Appendix 8

National Research Priorities and associated goals

Priority – An Environmentally Sustainable Australia Goal: Water – a critical resource Goal: Transforming existing industries Goal: Overcoming soil loss, salinity and acidity Goal: Reducing and capturing emissions in transport and energy generation Goal: Sustainable use of Australia’s biodiversity Goal: Developing deep earth resources Goal: Responding to climate change and variability

Priority – Promoting and maintaining good health Goal: A healthy start to life Goal: Ageing well, ageing productively Goal: Preventive health care Goal: Strengthening Australia’s social and economic fabric

Priority – Frontier technologies for building and transforming Australian industries Goal: Breakthrough science Goal: Frontier technologies Goal: Advanced materials Goal: Smart information use Goal: Promoting an innovation culture and economy

Priority – Safeguarding Australia Goal: Critical infrastructure Goal: Understanding our region and the world Goal: Protecting Australia from invasive diseases and pests Goal: Protecting Australia from terrorism and crime Goal: Transformational defence technologies

Appendices 109 Appendix 9

Cooperative Research Centres

Manufacturing technology CAST Cooperative Research Centre http://www.cast.crc.org.au/

CRC for Advanced Composite Structures http://www.crc-acs.com.au/

CRC for Construction Innovation http://www.construction-innovation.info/

CRC for Functional Communication Surfaces http://www.crc-fcs.com/crcsmartprint/display.asp?entityid=1576

CRC for Intelligent Manufacturing Systems and Technologies http://www.crcimst.com.au/

CRC for MicroTechnology http://www.microtechnologycrc.com/CRC/crcmicro.nsf

CRC for Polymers http://www.crcp.com.au/

CRC for Railway Engineering and Technologies http://www.railcrc.cqu.edu.au/crc_webpage_view.asp?WPID=13

CRC for Welded Structures http://www.crcws.com.au/

CRC Wood Innovations http://www.crcwood.unimelb.edu.au/

CRC for Biomedical Imaging Development (Website not available)

CRC for Advanced Automotive Technology (Website not available)

Information and communication technology Australasian CRC for Interaction Design http://www.interactiondesign.com.au/

110 Backing Australia’s Ability Australian Photonics CRC http://www.photonics.com.au/

Australian Telecommunications CRC http://www.telecommunications.crc.org.au/

CRC for Enterprise Distributed Systems Technology http://www.dstc.edu.au/

CRC for Integrated Engineering Asset Management http://www.cieam.com/

CRC for Sensor Signal and Information Processing http://www.cssip.edu.au/

CRC for Smart Internet Technology http://www.smartinternet.com.au/SITWEB/index.jsp

CRC for Spatial Information http://spatialinfocrc.org/

CRC for Technology Enabled Capital Markets (Capital Markets CRC) http://www.cmcrc.com/

Mining and energy CRC for Clean Power from Lignite http://www.cleanpower.com.au/

CRC for Coal in Sustainable Development http://www.ccsd.biz/

CRC for Greenhouse Gas Technologies http://www.co2crc.com.au/

CRC for Landscape Environments and Mineral Exploration http://crcleme.org.au/

CRC for Predictive Mineral Discovery http://www.pmdcrc.com.au/

CRC for Sustainable Resource Processing http://www.csrp.com.au/

CRC Mining http://www.crcmining.com.au/

Appendices 111 Parker CRC for Integrated Hydrometallurgy http://www.parkercentre.crc.org.au/

Agriculture and rural based manufacturing Australian Biosecurity CRC for Emerging Infectious Disease (ABC: EID) http://www1.abcrc.org.au/

Australian Sheep Industry CRC http://www.sheep.crc.org.au/

Cotton Catchment Communities CRC http://www.cotton.pi.csiro.au/

CRC for an Internationally Competitive Pork Industry (Website not available)

CRC for Beef Genetic Technologies http://www.beef.crc.org.au/?fl ashver=7

CRC for Bioproducts http://www.bioproducts.org.au/

CRC for Innovative Dairy Products http://www.dairycrc.com/

CRC for Innovative Grain Food Products http://www.grainfoodscrc.com.au/default.aspx

CRC for Sugar Industry Innovation through Biotechnology http://www.crcsugar.com/

CRC for Sustainable Aquaculture of Finfi sh http://www.aquafi ncrc.com.au/

CRC for the Australian Poultry Industries http://www1.poultrycrc.com.au/

CRC for Tropical Plant Protection http://www.tpp.uq.edu.au/

CRC for Value Added Wheat http://www.wheat-research.com.au/

CRC for Viticulture http://www.crcv.com.au/

112 Backing Australia’s Ability Environment Bushfi re CRC http://www.bushfi recrc.com/

CRC for Antarctic Climate & Ecosystems http://www.acecrc.org.au/

CRC for Australian Weed Management http://www.weeds.crc.org.au/index_fl ash.html

CRC for Coastal Zone, Estuary and Waterway Management http://www.coastal.crc.org.au/

CRC for Contamination Assessment and Remediation of the Environment (Website not available)

CRC for Greenhouse Accounting http://www.greenhouse.crc.org.au/

CRC for Irrigation Futures http://www.irrigationfutures.org.au/

CRC for National Plant Biosecurity (Website not available)

CRC for Plant-based Management of Dryland Salinity http://www1.crcsalinity.com/

CRC for Sustainable Forest Landscapes http://www.forestry.crc.org.au/

CRC for Sustainable Tourism http://www.crctourism.com.au/

CRC for the Biological Control of Pest Animals http://www.pestanimal.crc.org.au/

CRC for the Great Barrier Reef World Heritage Area http://www.reef.crc.org.au/

CRC for Tropical Rainforest Ecology and Management http://www.rainforest-crc.jcu.edu.au/

CRC for Tropical Savannas Management http://savanna.ntu.edu.au/

Appendices 113 CRC for Water Quality and Treatment http://www.waterquality.crc.org.au/

Desert Knowledge CRC http://www.desertknowledge.com.au/

Environmental Biotechnology CRC http://www.ebcrc.com.au/

eWater CRC http://www.ewatercrc.com.au/

Molecular Plant Breeding CRC http://www.molecularplantbreeding.com/

Medical science and technology CRC for Aboriginal Health http://www.crcah.org.au/

CRC for Asthma and Airways http://www.asthma.crc.org.au/

CRC for Chronic Infl ammatory Diseases http://www.crccid.com.au/

CRC for Cochlear Implant and Hearing Aid Innovation http://www.bionicear.org/crc/index2.html

CRC for Diagnostics http://diagnosticscrc.org/

CRC for Oral Health Science http://www.dent.unimelb.edu.au/dsweb/research/crc_vcohs.html

CRC for Vaccine Technology http://www.crc-vt.qimr.edu.au/

The Vision Cooperative Research Centre http://www.visioncrc.org/

114 Backing Australia’s Ability Appendix 10

Co-funded Centres of Excellence Australian Centre for Plant Functional Genomics http://www.acpfg.com.au/

Australian Stem Cell Centre www.stemcellcentre.edu.au

National ICT Australia www.nicta.com.au

Appendices 115 Appendix 11

ARC Centres of Excellence

ARC Centre of Excellence for Advanced Silicon Photovoltaics and Photonics http://www.pv.unsw.edu.au/research/advancedsilicon.asp

ARC Centre of Excellence for Autonomous Systems http://www.cas.edu.au/home.html

ARC Centre of Excellence for Biotechnology and Development (website not available)

ARC Centre of Excellence for Free Radical Chemistry and Biotechnology (website not available)

ARC Centre of Excellence for Integrative Legume Research http://www.cilr.uq.edu.au/index.php

ARC Centre of Excellence for Mathematical and Statistical Modelling of Complex Systems http://www.complex.org.au/

ARC Centre of Excellence for Quantum-Atom Optics http://www.acqao.org/

ARC Centre of Excellence for Quantum Computer Technology http://www.ph.unimelb.edu.au/marc/about/about_CoE.htm

ARC Centre of Excellence for Ultrahigh-bandwidth Devices for Optical Systems http://www.cudos.org.au/

ARC Centre of Excellence in Antimatter-Matter Studies http://www.positron.edu.au/

ARC Centre of Excellence in Cultural and Media Industries http://www.bpm.fi t.qut.edu.au/projects/coe/

ARC Centre of Excellence in Design in Light Metals (website not available)

ARC Centre of Excellence in Electromaterials Science (website not available)

ARC Centre of Excellence in Ore Deposits http://fcms.its.utas.edu.au/scieng/codes/index.asp

116 Backing Australia’s Ability ARC Centre of Excellence in Plant Energy Biology http://www.plantenergy.uwa.edu.au/

ARC Centre of Excellence in Structural and Functional Microbial Genomics (2005) (website not available)

ARC Centre of Excellence in Vision Science http://vision.anu.edu.au/

Centre of Excellence for Coral Reef Studies http://www.coralcoe.org.au/

Centre of Excellence in Coherent X-ray Science http://www.coecxs.org/

Appendices 117 Appendix 12

ARC Centres ARC Centre in Bioinformatics http://bioinformatics.org.au/

ARC Centre for Complex Dynamic Systems and Control http://www.eng.newcastle.edu.au/eecs/cdsc/

ARC Centre for Complex Systems http://www.accs.edu.au/

ARC Centre for Functional Nanomaterials http://www.arccfn.org.au/index.html

ARC Centre for Kangaroo Genome http://kangaroo.genomics.org.au/public/

ARC Centre for Nanostructured Electromaterials http://www.uow.edu.au/science/research/nsem/

ARC Centre for National Centre for Solar Energy Systems http://solararc.anu.edu.au/

ARC Centre for Perceptive and Intelligent Machines in Complex Environments http://www.pimce.edu.au/

ARC Centre for Structural and Functional Microbial Genomics (2003) (website not available)

118 Backing Australia’s Ability Appendix 13

ARC Special Research Centres Centre for Applied Philosophy and Public Ethics http://www.cappe.edu.au/

Centre for Cognitive Science and Cognitive Neuropsychology (Macquarie Centre for Cognitive Science) http://www.maccs.mq.edu.au/

Centre for Cross-Cultural Research http://www.anu.edu.au/culture/

Centre for Environmental Stress and Adaptation Research http://www.cesar.org.au/

Centre for Functional and Applied Genomics (Institute for Molecular Bioscience) http://www.imb.uq.edu.au/

Centre for Green Chemistry http://www.chem.monash.edu.au/green-chem/

Centre for Multiphase Processes http://www.multiphase.newcastle.edu.au/

Centre for Offshore Foundation Systems http://www.cofs.uwa.edu.au/

Centre for Ore Deposit Research http://fcms.its.utas.edu.au/scieng/codes/index.asp

Centre for Particle and Material Interfaces (The Ian Wark Research Institute) http://www.unisa.edu.au/iwri/

Centre for Research on Ecological Impacts of Coastal Cities http://www.eicc.bio.usyd.edu.au/home/

Centre for the Molecular Genetics of Development http://www.cmgd.adelaide.edu.au/index.html

Centre for Ultra-Broadband Information Networks http://www.ee.mu.oz.au/research/cubin/

Appendices 119 Particulate Fluids Processing Centre http://www.pfpc.unimelb.edu.au/

Special Research Centre for the Subatomic Structure of Matter http://www.physics.adelaide.edu.au/cssm/

Tectonics Special Research Centre http://www.tsrc.uwa.edu.au/

120 Backing Australia’s Ability Appendix 14

Rural Research and Development Corporations and Companies

Statutory RDCs Cotton Research and Development Corporation www.crdc.com.au

Fisheries Research and Development Corporation www.frdc.com.au

Forest and Wood Products Research and Development Corporation www.fwprdc.org.au

Grains Research and Development Corporation www.grdc.com.au

Grape and Wine Research and Development Corporation www.gwrdc.com.au

Land & Water Australia www.lwa.gov.au

Rural Industries Research and Development Corporation www.rirdc.gov.au

Sugar Research and Development Corporation www.srdc.gov.au

Industry-owned companies

Australian Egg Corporation Limited www.aecl.org.au

Australian Pork Limited www.apl.au.com

Australian Wool Innovation Limited www.wool.com.au

Dairy Australia www.dairyaustralia.com.au

Horticulture Australia Limited www.horticulture.com.au

Appendices 121 Livecorp Limited www.livecorp.com

Meat and Livestock Australia www.mla.com.au

122 Backing Australia’s Ability