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Value of Science and Technology Australia’s National Science Agency Value of science and technology Opportunities for Australia to overcome innovation challenges and realise greater value from innovation investments November 2020 About CSIRO Futures Copyright At CSIRO Futures we bring together science, technology and © Commonwealth Scientific and Industrial economics to help you develop transformative strategies Research Organisation 2020. To the extent that tackle your biggest challenges. As the strategic permitted by law, all rights are reserved, and no advisory arm of Australia’s national science agency, we part of this publication covered by copyright may are uniquely positioned to transform complexity into be reproduced or copied in any form or by any clarity, uncertainty into opportunity, insights into action. means except with the written permission of CSIRO. Acknowledgement Disclaimer CSIRO acknowledges the Traditional Owners of the CSIRO advises that the information contained in this land, sea and waters, of the area that we live and publication comprises general statements based on work on across Australia. We acknowledge their research and stakeholder consultation. The reader is continuing connection to their culture, and we pay advised and needs to be aware that such information our respects to their Elders past and present. may be incomplete or unable to be used in any specific situation. No reliance or actions must therefore be made on that information without seeking prior Citation expert professional, scientific and technical advice. CSIRO Futures (2020) Value of science and To the extent permitted by law, CSIRO (including its technology. CSIRO, Australia. This report was employees and consultants) excludes all liability to authored by Katherine Wynn, Stephanie Lukins any person for any consequences, including but not and Beni Delaval with contributions from limited to all losses, damages, costs, expenses and business, government and research leaders. any other compensation, arising directly or indirectly from using this publication (in part or in whole) Image credits and any information or material contained in it. Cover Masaaki Komori https://unsplash.com/@ gaspanik; p2 Benjamin Punzalan https://unsplash.com/@ Accessibility benjaminpunzalan; p4 Harry Cunningham https://unsplash. CSIRO is committed to providing web accessible com/@harrycunnningham1; p6 Victoria Priessnitz https:// content wherever possible. If you are having unsplash.com/@victoriapriessnitz; p7 Jack Bassingthwaighte difficulties with accessing this document, https://unsplash.com/@j_bzl; p12 Fusion Medical Animation please contact [email protected]. https://unsplash.com/@fusion_medical_animation; p15 Louis Reed https://unsplash.com/@_louisreed; p19 Denes Kozma https://unsplash.com/@deneskozma; p20 Vlad Kutepov https://unsplash.com/@kvtepov; p31 William Moreland https://unsplash.com/@relentlessjpg; p37 Alex Eckermann https://unsplash.com/@alexeckermann; p39 Andy Hutchinson https://unsplash.com/@andyhutchinson; p40 Silas Baisch https://unsplash.com/@silasbaisch; p57 Hans- Peter Gauster https://unsplash.com/@sloppyperfectionist Contents Stakeholders consulted ....................................................................................................................................3 Executive summary ............................................................................................................................................4 1 Introduction .....................................................................................................................................................7 1.1 This report .......................................................................................................................................................................... 7 1.2 The Australian context ....................................................................................................................................................... 9 1.3 Benefits of science and technology innovation for businesses.................................................................................... 13 2 Challenges and opportunities ............................................................................................................... 21 2.1 Business investment ......................................................................................................................................................... 21 2.2 Commercialising R&D ...................................................................................................................................................... 23 2.3 Skills, knowledge and capability ..................................................................................................................................... 28 2.4 Adoption and diffusion ....................................................................................................................................................32 2.5 Social and environmental impacts ...................................................................................................................................35 3 Conclusion and the need for action ................................................................................................... 41 Appendix A: Concepts and definitions ..................................................................................................42 Appendix B: The innovation cycle ...........................................................................................................44 Appendix C: Challenges with measuring and interpreting value creation............................46 Appendix D: Highlights of Australian innovation .............................................................................. 47 Appendix E: The productivity paradox .................................................................................................56 1 2 Value of science and technology Stakeholders consulted We thank the following stakeholders Sarah Hunter Chief Economist, Oxford Economics who provided their valuable insights during the development of the Professor Paul Jensen Deputy Dean, Faculty of Business and Economics, Value of science and technology report: University of Melbourne Mark Johnson Dan Bailey A/g General Manager, Strategic Policy Division, Impact Monitoring and Evaluation Specialist, Department of Industry, Science, Energy and Resources Performance & Evaluation, CSIRO Dr Thomas Keenan Antonio Balaguer Director, Tractuum Assistant Manager, Analysis and Insights Division, Department of Industry, Science, Energy and Resources Dr Danielle Logue Associate Professor of Innovation, Professor Hugh Bradlow Entrepreneurship & Strategy, President, Australian Academy of Technology University of Technology Sydney and Engineering Sue-Ellen Luke Dr Kate Cameron Director of Technology, Innovation and Business A/g Chief Executive Officer, Characteristics, Australian Bureau of Statistics Office of Industry Innovation and Science Australia Dr Benjamin Mitra-Kahn Mary Cavar General Manager and Chief Economist, IP Australia Executive Manager (Melbourne), Productivity Commission Phil Morle Partner, Main Sequence Ventures Rowan Conway Head of Mission Oriented Innovation Network, Victoria Savage UCL Institute for Innovation and Public Purpose Assistant Director, Australian Bureau of Statistics Dr Anne-Maree Dowd Dr Jack Steele Executive Manager, Director, Science Impact and Policy Performance & Evaluation, CSIRO Dr Abrie Swanepoel Luci Ellis A/g General Manager, Analysis and Insights Division, Assistant Governor (Economic), Department of Industry, Science, Energy and Resources Reserve Bank of Australia Razib Tuhin Dr Cathy Foley Manager, Analysis and Insights Division, Chief Scientist, CSIRO Department of Industry, Science, Energy and Resources Professor Joshua Gans Professor Beth Webster Jeffrey Skoll Chair in Technical Innovation and Director of the Centre for Transformative Entrepreneurship, University of Toronto Innovation, Swinburne University Professor Martin Green Professor Hugh Williams Director, Australian Centre for Advanced Melbourne Business School and Photovoltaics, University of New South Wales The University of Melbourne Emeritus Professor Roy Green Innes Willox Deputy Vice-Chancellor (Innovation & Enterprise), Chief Executive, Australian Industry Group Special Advisor and Chair UTS Innovation Council, Dr Marcus Zipper University of Technology Sydney Director, CSIRO Manufacturing 3 Executive summary Science and technology have always Science and technology innovation played a key role in supporting helps improve productivity, can provide Australia’s growth and productivity. social and environmental benefits, However, with a weak economy and builds resilience, and enhances COVID-19, science and technology international competitiveness. are now more critical than ever. The CSIRO Australian National Outlook 2019 report showed Australia is at a crossroads, with one path While Australia’s economic track record has been towards a slow decline and another towards a more impressive, recent years have seen slowing economic positive future of strong and inclusive growth. growth and productivity, and low economic complexity. By engaging in solution-focused collaboration, and Australia has also witnessed significant structural shifts committing to continuous improvement, Australia can both nationally and internationally, and now COVID-19 build an innovation-led future. Australia has shown has introduced additional
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