CSIR and Australian Industry: 1926–49 Article Number: HR20012 Year: 2020 Journal: Historical Records of Australian Science URL
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Swinburne Research Bank http://researchbank.swinburne.edu.au Author: Garrett Upstill, Thomas H. Spurling and Terence J. Healy Title: CSIR and Australian industry: 1926–49 Article number: HR20012 Year: 2020 Journal: Historical Records of Australian Science URL: http://hdl.handle.net/1959.3/458202 Copyright: Copyright © 2020 CSIRO. The peer-reviewed accepted manuscript is hosted here for open access with the permission of the publisher. This is the author’s version of the work, posted here with the permission of the publisher for your personal use. No further distribution is permitted. You may also be able to access the published version from your library. The definitive version is available at: https://doi.org/10.1071/HR20012 Swinburne University of Technology | CRICOS Provider 00111D | swinburne.edu.au Powered by TCPDF (www.tcpdf.org) (Accepted manuscript submitted to HRAS August 2020) CSIR and Australian industry: 1926-1949 Garrett Upstill*, Thomas H. Spurling and Terence J. Healy Centre for Transformative Innovation, Swinburne University of Technology *Corresponding author [email protected] Abstract The primary function of CSIR, founded in 1926, was to promote primary and secondary industries in Australia. In its first decade CSIR developed a successful model for delivering research of benefit to the primary sector. The period from the late 1930s was characterised by the expansion of CSIR, notably into secondary industry research, and its wide-ranging and effective response to the industry and government demands during the Second World War. In the post-war years CSIR placed increasing emphasis on longer term underlying research as the way to benefit Australian industry. This shift raised problems for technology transfer to the secondary industry sector; it also shaped the agenda of CSIR’s successor organisation, CSIRO, in the decades after its formation in 1949. Introduction This is the third paper in a series: previous papers have looked at the relationship between the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and Australian industry during the periods 1949 to 19791 and 1980 to 2000.2 The Council for Scientific and Industrial Research (CSIR), the immediate predecessor of CSIRO, was established in 1926 as a federal statutory authority. Its primary function, as set out in its Act was: the initiation and carrying out of scientific researches in connexion with, or for the promotion of, primary or secondary industries in the Commonwealth. 3 This wording, from the Institute of Science and Industry Act 1920,4 stayed in the legislation for CSIR and CSIRO until 1978.5 In this paper we discuss how CSIR carried out this function – research to promote Australian industry – over the period till 1949, when CSIRO took over its powers and functions and its research program. 1 Upstill (2019). 2 Upstill and Spurling (2020). 3 Commonwealth of Australia (1926). 4 Commonwealth of Australia (1920). 5 In 1978 the Act was amended to include ‘encouraging or facilitating the application or utilisation of the results of such research’ as a separate function. In the 1986 revision of the Act the first two functions, research and technology transfer, were designated to be CSIRO’s primary functions. 1 We analyse CSIR’s relationship with Australian industry against the background of a changing economic environment and national and international events. This is critical to understanding the way CSIR, heavily dependent on federal government funding, interpreted its legislated mandate, conducted its research program and managed its relationship with Australian industry. We address three slices of CSIR’s history. The next section looks at the period 1926-1936 which covers the formative organisation-building years of CSIR and its almost exclusive focus on primary industries. The following section addresses the period 1937-1945 which covers CSIR’s expansion into secondary industry research and its response to the all-enveloping demands of the Second World War. Then we look at the post- war period and the organisation’s direction-setting before it was reconstituted as CSIRO in 1949. In the final section we draw out the findings of this analysis and the implications for the development of CSIRO. We draw on previous studies of CSIR, notably the commissioned history by Boris Schedvin,6 as well as papers by White,7 Currie and Graham8 and Home9 and CSIROpedia10 and employ new data from the organisation’s annual reports. Our focus is CSIR’s relationship with Australian industry. A model that worked: CSIR and Australian primary industry 1926-1937 CSIR replaced the Institute of Science and Industry, a federal scientific research agency established in 1920. The Institute had achieved modest success, notably through its work on prickly pear, hardwood timbers, and paper from eucalyptus trees but it foundered due to lack of funding and weaknesses in organisational design. By 1926 it was widely agreed that it was time for a durable well-structured replacement. Introducing the CSIR legislation to parliament Prime Minister Stanley Bruce said: Certainly the institute has not been a complete failure, as some people would suggest, but I think everyone recognises that the time has come when it should be reorganized and placed on a different basis. 11 Bruce drove the creation of CSIR. In 1925 he convened a conference of senior academic, industrial and political leaders to discuss the structure and operations of a new federal agency and drew on the advice of the head of the UK Department of Scientific and Industrial Research who visited Australia.12 He also invited two men who were to shape the development of CSIR over the next two decades, George Julius and David Rivett, 13 to help draft the legislation for CSIR. Under its 1926 Act, CSIR was established as a statutory authority administered by a Council comprising ”three members nominated by the Minister and appointed by the Governor-General, one of whom the Governor- General shall appoint to be the Chairman; the Chairman of each State Committee constituted under this Act; 6 Schedvin (1987) 7 White (1976) 8 Currie and Graham (1971) 9 Home (1988) 10 CSIROpedia (2020) 11 Bruce (1926) 12 Heath (1926) 13 William Newbiggin, the third member of the original CSIR Executive Committee was also involved. 2 and such other members as the Council, with the consent of the Minister, co-opts by reason of their scientific knowledge.” The three members appointed by the Governor-General served as the Executive Committee of the Council and were responsible for day-to-day management of CSIR. The Committee comprised George Julius (Chairman of the Council ), David Rivett and William Newbiggin. Newbiggin died in 1927 and was replaced by Arnold Richardson (Table 1). In 1927, Rivett became Chief Executive and the sole full-time member of the Executive Committee 14 and the only member located in Melbourne, where CSIR had its headquarters. The three men had complementary skills. Julius was a successful consulting engineer with well-honed commercial and political skills; 15,16 Rivett, later a Fellow of the Royal Society, was a distinguished scientist and administrator well connected in Australian and British scientific circles,17,18 and Richardson was a proven academic administrator and a leading agricultural researcher. Table 1 about here CSIR was founded at a time when Commonwealth revenue was benefiting from the wool boom of the mid- 1920s. Funds were put aside in a Treasury trust account as a financial buffer for the first few years. Even so it faced financial pressures during the straitened years of the Great Depression and required supplementary injections of funding from government agencies and other sources.19 An early challenge for CSIR related to State-Federal rivalry, namely that under the Australian Constitution responsibilities for agriculture were generally retained by the States. This matter was resolved at a special meeting with State representatives in 1927 which acknowledged a legitimate role for CSIR in rural research because of the size and cross-border nature of many agricultural problems, as well as the benefits of additional concentrated and specialised effort.20 This outcome carried the proviso that ‘State departments accepted exclusive responsibility for dissemination of agricultural and husbandry techniques’.21 (This followed the approach of early advocates for federal government involvement in rural research, 22 based on the US model of a Bureau of Agriculture plus a system of land grant universities and state-based experimental stations.) For CSIR it meant technology transfer23 to rural industries was largely the responsibility of state- funded rural extension agencies The economic setting 14 David Masson, Rivett’s mentor, had advised him at a meeting in March 1926 that he ‘considered the job too big for part time’ notwithstanding Prime Minister Bruce’s view (mindful of state politicians’ views) ‘that appointing three full time Directors was politically impossible’.(Rivett (1926) Julius’s persuasive efforts with both Bruce and Rivett led to the latter becoming full-time Chief Executive on 1 January 1927. 15 White (1976). 16 Currie and Graham (1971). 17 White (1976). 18 Rivett (1972). 19 Schedvin (1987) pp. 117-121. 20 White (1976) p. 634. 21 Schedvin (1987) p. 66. 22 Quick (1901). 23 By the term “technology transfer” we refer to all modes by which scientific knowledge generated in a research organisation may be transferred to industry and the marketplace. 3 In the mid-1920s Australia faced chronic balance of payments pressures, underpinned by its war debt to the United Kingdom and aggravated by swings in commodity prices and the terms of trade (Figure 1). The rural sector dominated Australian exports and wool exports alone accounted for almost 40% of the total (Figure 2). Figure 1 about here Figure 2 about here It was expected that CSIR would give priority to primary industries in its research. Indeed, the notion that science and technology could improve the productivity and scope of Australia’s rural industries had been a driving factor behind the creation of CSIR.