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The Benefits from RIRDC's R&D

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The Benefits from RIRDC's R&D The Benefits from RIRDC’s R&D Submission to the Productivity Commission Inquiry into Rural Research and Development Corporations RIRDC Contact Details Rural Industries Research and Development Corporation Level 2, 15 National Circuit BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: 02 6271 4100 Fax: 02 6271 4199 Email: [email protected]. Web: http://www.rirdc.gov.au 25 June 2010 Abbreviations ABARE Australian Bureau of Agricultural and Resource Economics AGO Australian Greenhouse Office ARLP Australian Rural Leadership Program ATTIA Australian Tea Tree Industry Association BCR Benefit-cost ratio BMP Best management practices CIE Centre for International Economics CME Chicken Meat Program CRDC Cotton Research and Development Corporation CRRDCs Chair of the Rural Research and Development Corporations CSIRO Commonwealth Scientific and Industrial Research Organisation DAFF Australian Government Department of Agriculture, Fisheries and Forestry DCCEE Department of Climate Change and Energy Efficiency DMSO Dimethyl sulfoxide EAD Emergency animal disease EM Electromagnetic induction FSANZ Food Standards Australia New Zealand FTAs Free trade agreements FWPA Forest and Wood Products Australia GRDC Grains Research and Development Corporation GVP Gross value of production GWRDC Grape and Wine Research and Development Corporation HAL Horticulture Australia Limited IMF International Monetary Fund IRR Internal rate of return JVAP Joint Venture Agroforestry Program JVFHS Joint Research Venture for Farm Health and Safety ii Contents Abbreviations .............................................................................................................................................. ii Executive Summary .................................................................................................................................. vii Introduction .............................................................................................................................. vii RDCs respond to an opportunity and a challenge .............................................................. vii RIRDC’s Operations ................................................................................................................ vii The rationale for RDCs and RIRDC’s activities ................................................................... vii The balance between public and private investment in rural R&D ............................... viii Wide community benefits from RIRDC’s activities .......................................................... viii The effectiveness of RIRDC .................................................................................................. viii Impediments to RIRDC’s effective functioning ................................................................... ix RIRDC’s role in broader public interests ............................................................................... ix 1 Introduction and outline of this submission ................................................................................... 1 2 RIRDC, national innovation priorities and the Commission’s terms of reference .................. 3 2.1 Background: why RDCs? .......................................................................................................... 3 The opportunity ......................................................................................................................... 3 The challenge .............................................................................................................................. 3 RDCs and RIRDC ...................................................................................................................... 5 2.2 RIRDC and the Commission’s terms of reference ................................................................. 5 Economic and policy rationale for government involvement ............................................. 5 Balance between public and private investment ................................................................... 9 Effectiveness of current RDC model ....................................................................................... 9 Impediments to efficient operation of RDC model ............................................................. 10 How does agriculture differ from other sectors of the economy? .................................... 10 RDCs role in broader public interests ................................................................................... 10 3 Overview of RIRDC and its activities ............................................................................................ 12 3.1 Overall research structure ...................................................................................................... 12 Three portfolios ........................................................................................................................ 13 3.2 RIRDC successfully manages a wide range of industries and activities ......................... 14 3.3 RIRDC’s evaluation framework ............................................................................................ 15 Evaluation outcomes ............................................................................................................... 16 3.4 RIRDC’s investment framework ........................................................................................... 18 Portfolio investment ................................................................................................................ 18 Program investment ................................................................................................................ 19 Project selection ........................................................................................................................ 19 3.5 Some important implications of RIRDC’s approach .......................................................... 20 RIRDC responds to government policy needs .................................................................... 20 RIRDC works at the applied end of the innovation chain ................................................. 20 Ensuring benefits are available industry wide .................................................................... 21 3.6 RIRDC’s collaboration activities ............................................................................................ 21 3.7 Stakeholder views of RIRDC’s performance ....................................................................... 23 4 New and emerging industries .......................................................................................................... 26 iii 4.1 The New Rural Industries portfolio ...................................................................................... 26 What are new rural industries? ............................................................................................. 26 RIRDC’s role ............................................................................................................................. 26 The research needs of new rural industries ......................................................................... 28 Wider benefits arising from research into, and establishment of, new rural industries .................................................................................................................................. 29 4.2 Evaluation outcomes ............................................................................................................... 29 4.3 Case study: olives .................................................................................................................... 30 Water use efficiency and climate adaptation in the olive industry .................................. 31 Health benefits of Australian olive oil .................................................................................. 31 4.4 Case study: tea tree oil ............................................................................................................ 32 Research on the health benefits of tea tree oil ...................................................................... 32 4.5 Case study: native foods ......................................................................................................... 33 Researching the health benefits ............................................................................................. 33 4.6: Case study: kangaroos ................................................................................................................. 34 Health benefits of eating kangaroo ....................................................................................... 34 Reducing greenhouse gas emissions ..................................................................................... 35 4.7: Case study: climate adaptation ................................................................................................... 35 4.8 Case study: addressing Indigenous disadvantage .................................................................... 36 5 National rural issues .......................................................................................................................... 37 5.1 The National Rural Issues portfolio ...................................................................................... 37 Solid public good foundation ................................................................................................ 37 5.2 Evaluation results ...................................................................................................................
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