ENERGISING THE SOUTH EAST MELBOURNE INNOVATION PRECINCT

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1 ENERGISING THE SOUTH EAST MELBOURNE INNOVATION PRECINCT STRATEGIC PLAN SUMMARY A Working Initiative of the CSIRO, Monash University, Australian Synchrotron, the State Government of Victoria Australia, Small Technologies Cluster and Councils of Greater Dandenong, Kingston, Knox and Monash. 1/17 October 2009

2 ENERGISING THE SOUTH EAST MELBOURNE INNOVATION PRECINCT (SEMIP) STRATEGIC PLAN SUMMARY Melbourne s South East has an ambitious goal based on the region s key strengths and acknowledged potential: to become internationally recognised as the innovation business and knowledge capital of the Asia Pacific. Achieving this vision requires research and development organisations, businesses and Victorian and local governments to jointly establish a dynamic hub of manufacturing, science services, advanced materials, engineering and medical/health knowledge intensive industries. Victoria s major manufacturing region, South East Melbourne is under pressure from global trends such as manufacturing jobs going offshore and export markets adversely affected by a stronger Australian dollar. The race to innovate is critical and speed to market is essential for gaining a competitive edge. Innovation assists competitiveness by boosting development of new or enhanced products and services, and increasing productivity though improved processes and organisational arrangements. Geographically defined by the municipalities of Greater Dandenong, Kingston, Knox and Monash, the South East region has some of Victoria s best publicly funded research and development organisations and technology and knowledge based businesses. However, many organisations operate in isolation, rely on relatively few suppliers or customers to generate ideas for product or service improvements, and are unaware of knowledge sources or discoveries elsewhere that could help improve competitiveness. The South East Melbourne Innovation Precinct (SEMIP) Strategy will expand upon existing regional innovation capabilities and networks by implementing initiatives that improve interactions between businesses and between businesses and researchers, provide streamlined access to business innovation services, and build a sense of place that fosters an entrepreneurial culture and attracts people to invest, work and live in the region. The SEMIP Partners; CSIRO, Monash University, Australian Synchrotron, the Victorian State Government, Small Technologies Cluster and Councils of Greater Dandenong, Kingston, Knox and Monash are engaging with businesses and other agencies in the region to create opportunities for innovation. This will include opportunities for businesses and researchers to share knowledge and explore ideas and new applications for future growth, participate in trials such as prototyping and feasibility projects, and access publicly funded infrastructure and services. In the medium to longer term, the strategy will attract new businesses to the region and enable existing businesses to create more jobs and expand export markets. The SEMIP Strategy will enable the region to become a leading destination for learning, working, living and investing and consolidate its claim as the Innovation Business and Knowledge Capital of the Asia Pacific. 2/17

3 ENERGISING THE SOUTH EAST MELBOURNE INNOVATION PRECINCT STRATEGIC PLAN SUMMARY BACKGROUND In April 2008, the CSIRO, Monash University and Australian Synchrotron joined forces with the Victorian Government Department of Innovation, Industry and Regional Development to prepare a strategic plan for the economic development of the South East Melbourne Innovation Precinct (SEMIP). The Plan was developed with the Small Technologies Cluster and Councils of Greater Dandenong, Kingston, Knox and Monash in consultation with Industry. The aim was to establish the Precinct as a dynamic hub of manufacturing, science services, advanced materials, engineering, and medical/health knowledge intensive industries. For initial planning purposes, the Precinct was geographically defined by the municipalities of Greater Dandenong, Knox, Kingston and Monash and serviced primarily by Monash University, CSIRO and Australian Synchrotron. VISION South East Melbourne is internationally recognised as the Innovation Business and Knowledge Capital of the Asia Pacific. STRATEGIC THEMES To realise the vision, the partners developed initiatives within three strategic themes: 1. Connecting and Interacting 2. Accelerating Business Innovation 3. Exciting Places for People to Learn, Work, Live, and Invest. 3/17

4 STRATEGIC THEME 1 CONNECTING AND INTERACTING This theme will foster a no obligation, knowledge sharing, problem solving, open innovation environment that encourages businesses and researchers to explore new frontiers in science, technology, and business operations and processes. Key objectives Increase connections and interactions between precinct stakeholders Increase early stage interactions between company R&D and university/csiro R&D Encourage companies and research bodies to share non competitive IP and technology to stimulate clever new applications. Initiatives Knowledge Clubs: For discussing business innovation and exploring possible uses of new knowledge and technologies. Tailored to specific industry sectors or interests, these reflect local research expertise and industry challenges. Innovation Showcase and Open Day(s): Will showcase the precinct s innovation capabilities, initially focusing on publicly funded research and its potential for innovation in business, then expanding to industry innovations. Future Products Demonstration Pilot(s): Will apply technologies and processes to areas of business and research interest. May include feasibility studies, computer modelling, prototyping, market and product testing. 4/17

5 STRATEGIC THEME 2 ACCELERATING BUSINESS INNOVATION This theme will strengthen the innovation capabilities of individual businesses and researchers by providing businesses with services directly related to securing a competitive edge. This will attract new business and employment opportunities. Key Objectives Enable companies to apply knowledge, science and technology, improving performance and global competitiveness Encourage leading knowledge intensive businesses with commercial, research or educational synergies to locate within the region Facilitate greater access to publicly funded innovation infrastructure, people and expertise. Initiatives Business Innovation Portal: Will help businesses find appropriate assistance, capabilities, facilities and people. Knowledge and Technology Access Program: Will help businesses and industry sectors access research and training infrastructure. Researcher in Business Initiative: Will enable secondment of CSIRO or university researchers to work on specific technology solutions or strategies. Regional Industry Research Engagement Protocol: Will foster simpler, more productive relationships between businesses and publicly funded research organisations. Investment Attraction: Coordinated investment strategy will attract innovative, knowledgeintensive businesses to the region and support current businesses to grow. 5/17

6 STRATEGIC THEME 3 EXCITING PLACES FOR PEOPLE TO LEARN, WORK, LIVE AND INVEST This theme will establish world class regional facilities and environments that attract and retain businesses and create attractive and exciting places for people to learn, live, invest and work. Key Objectives Foster an entrepreneurial culture that encourages people to invest and work in the region Provide education and training opportunities aligned to business growth Assist industrial, commercial, residential and community developments that support business and employment opportunities Maintain and strengthen regional innovation assets, including science and technology infrastructure and people Promote the region as a leader in education, research and development, and business innovation. Initiatives Market Development and Promotion: Will define and articulate the region s strengths to increase business participation and innovation. Innovation Governance Forum and Secretariat: High level business and government forum will influence regional planning and foster business and education engagement initiatives. Innovation Hubs: Will support designated flagship centres within the precinct that showcase exemplary facilities and services for facilitating innovation. Innovation Business and Knowledge Growth Fund: Seed funding for projects within the three themes, to accelerate the rate of innovation activity. 6/17

7 GLOBAL CONTEXT FOR ACTION Approximately 25 km from the Melbourne CBD, the municipalities of the South East have grown rapidly since the 1960s. Today the character of the South East is changing, new service industries are growing, traditional manufacturing is being enhanced by new technologies, the pattern of jobs is changing and there is a feel that the SE is a metropolis in its own right. In an increasingly connected world, South East Melbourne s economy and its future prosperity is directly linked to how well its industries, firms and people can respond to the world s major challenges. These include: Globalisation Competitive pressures from low cost countries means that businesses, particularly manufacturers, cannot compete by producing low value added products. The race to innovate is critical and the speed to market can be a major difference in gaining the competitive edge. Innovation is the key to competitiveness resulting in new or enhanced products and services, or increasing productivity though improved processes and organisational arrangements. Small economies can compete by being smarter at how they leverage the assets around them. Increasingly this means new forms of collaborations, including open source innovation where people share knowledge and problem solving ideas to compete against much larger economies. Health and Ageing The ageing population has implications for the workforce and industry growth. As older workers retire, competition for skilled workers increases, favouring employers and communities that offer attractive career choices and lifestyles. Pressure on healthcare services due to greater demand and the high costs of developing and providing new treatments, drugs and technologies means that innovations that can facilitate prevention and early diagnosis are in demand, as are treatments that extend healthy, productive working lives. Sustainability Responses to climate change and peak oil issues emphasise efficient use of resources, particularly energy and water. There is growing interest in recycling, environmentally responsible construction materials, waste reduction and energy efficiency measures and using R&D to improve production processes. Many firms now view sustainability as a strategic edge. Urbanisation and Liveability Population growth puts pressure on communities and threatens lifestyle expectations. Reliance on cars increases congestion and makes business more expensive and time consuming. The growth of cities raises concerns about recreation and cultural facilities, community services, security, noise, and employment opportunities. Economies need to address issues of place in order to attract people to live, work and invest. 7/17

8 LOCAL CONTEXT FOR ACTION SOUTH EAST MELBOURNE INNOVATION PRECINCT STRENGTHS Victoria s premier location for advanced manufacturing, complemented by a strong business services sector and firms along the entire value chain. Australia s largest university, Monash (~26,000 students and ~4,500 staff on the Clayton campus): comprehensive research and teaching portfolio, including prestigious Medicine, Chemistry, Engineering and Business Economics faculties and international connections. CSIRO s largest site in Australia (~700 staff, growing to ~1100 by 2012): materials science and engineering, mineral processing, and medical and health technologies. Australian Synchrotron: unique capabilities including materials characterisation and medical imaging. Australia s largest health services network, Southern Health, including a prestigious teaching hospital (Monash Medical Centre). Melbourne Centre for Nanofabrication: state of the art instrumentation for nano and micro scale fabrication. Internationally competitive R&D and research infrastructure with private and public incubators and specialist technology centres. Entrepreneurial businesses culture and local governments that support business innovation. Easily navigable road system An educated and skilled workforce, and a diverse multi cultural population. Quality residential, recreational and educational facilities. SOUTH EAST MELBOURNE INNOVATION PRECINCT CHALLENGES Building an innovation brand, recognised heart or central hub, and promoting the precinct s unique strengths. A strong brand and sense of place is crucial in marketing to potential businesses, investors, residents, workers and students. Businesses and publicly funded research organisations have traditionally had a mixed history of working well together. Businesses are often not aware of the capabilities of our researchers and would like easier access to these knowledge sources. Businesses tend to prefer to collaborate with suppliers, customers or clients and to adapt existing knowledge and technologies, however this may limit their access to new knowledge that researchers have developed. Good business developments also mean access to professional and commercial support services, such as venture capitalists, lawyers and business analysts, not just the latest technologies or processes. Risk capital is needed to encourage experimentation, development and adoption of new technologies. Urban and industrial renewal requires coordinated, informed and flexible Government planning options to support facility investments and related matters. 8/17

9 SOUTH EAST MELBOURNE INNOVATION PRECINCT OPPORTUNITIES AND BENEFITS FOR STAKEHOLDERS Benefits for Businesses Better relationships with knowledge and innovation sources leading to opportunities for new business collaborations and global markets. An environment that supports innovation, attracts workers, suppliers and clients, and facilitates investment. A cohesive brand recognisable in global markets. Increased access to world class research expertise and facilities such as Monash University and CSIRO. Enhanced access to students and future employees. Benefits for Universities and other higher education and research bodies Improved industry engagement, particularly at an early stage, as a result of enhancing the impact of university research. Better understanding of business issues and more effective paths to market for research discoveries aligned with business interests. Broader education for students, increasing post education options and encouraging early access to potential employers. Potential for new teaching modes such as internships and guest lecturers from industry. Benefits for CSIRO Enhanced impact of CSIRO research, assisting Australian business and industry to grow. Opportunities to showcase expertise and address business concerns, especially in relation to major world challenges such as environmental sustainability. Stronger relationships with other research providers and industry to achieve greater impact. Opportunities to bring CSIRO technologies to a broader customer base. Benefits for Governments (local, state and national) Opportunities to promote the precinct as a leader in business innovation, demonstrating the value of new innovation activities and partnerships. Support for economic development objectives through attracting value adding businesses and investments to the region. Enhanced local community amenities. New job opportunities and an enhanced entrepreneurial culture. Benefits for Major R&D Facilities like the Australian Synchrotron and Small Technologies Cluster Opportunities to improve access to markets, research providers and users for development and manufacture of high technology products. 9/17

10 SOUTH EAST MELBOURNE INNOVATION PRECINCT INDUSTRY PROFILE The South East Melbourne Innovation Precinct is home to 56,000 registered businesses. Almost 9,800 have five or more employees, including 234 large businesses (200+ employees), which are the initial target for growing the innovation base, and 2400 manufacturing businesses. Many of the region s 14,000 business services firms are integral to manufacturing. Dominant SEMIP industries Manufacturing (e.g. chemicals, pharmaceuticals, plastics, machinery, equipment, medical, environmental and transport) Retail Property and business services (including scientific research, engineering design and consultancy, testing and analysis, computer systems design, accountancy, marketing and legal services) Construction. The next most common industry sectors are transport and storage, finance and insurance, communications services, and wholesale trade. Most employment is found in the above industries and in health, education and community services. There is relatively little clustering of similar businesses, and all municipalities have a reasonable business mix. Throughout the precinct, pockets of industrial activity are surrounded by established residential sectors. There is a high degree of industry renewal. While green field development sites are still available, particularly in outer areas, renewal is also occurring in more established areas. The Precinct s uniqueness in an industry context comes from its strong manufacturing base and equally strong business services sector, good quality industrial sites and high quality amenities conducive to a good working environment. A Snapshot of Flagship Companies and Enterprises Located within the Precinct: Toyota Engineering Design Centre Leica (previously Vision Systems) Varian Australia Pty Ltd Advanced Polymer Technology Australasia Pty Ltd ABB Australia Pty Ltd Robert Bosch (Australia) Pty Ltd Nestle Australia Ltd BMW Group Australia Dulux Australia Telstra Corporation Limited Marand Precision Engineering Mercedes Benz Australia/Pacific Pty Ltd Universal Biosensors Biota Holdings Limited Siemens Ltd SEMMA (South East Melbourne Manufacturers Alliance) Davey Water Products AMTIL (Australian Manufacturing Technology Institute Limited) MiniFAB (Aust.) Pty Ltd Southern Health, including hospitals and medical research institutes VCAMM Victorian Centre for Advanced Materials Manufacture 10/17

11 SOUTH EAST MELBOURNE INNOVATION PRECINCT INDUSTRY DYNAMICS Innovation active businesses in the precinct (those who had introduced a new or significantly changed product, service or process in the last three years or planned to do so in the next three years) were asked to comment on the innovation dynamics in the precinct, with a view to understanding both what is important for innovation to thrive, and also what might hinder innovation. The responses focus around location, type of innovation activity, and collaborative activity. Location Location is important in deciding where to establish or grow a business. Businesses look for attractive business/industrial parks that can accommodate business needs and growth, surrounded by parks, landscaping or retail areas with good road systems. They value access to skilled labour, and proximity to a reasonable supplier mix and a large industry leader, supplier or customer. Innovation active businesses require accessible public transport for their employees, smooth local traffic management to facilitate local movements and access to the Melbourne CBD, as well as efficient access to Melbourne air & sea ports for national and international connections and trade. Innovation Type Innovation related activities include: Continual scanning and interest in undertaking R&D, mainly in house or with suppliers and customers. Development as a priority including adapting current knowledge or technologies to make new products. Leveraging the best ideas from around the globe. Close collaboration in house between research and market development staff. Licensing new technologies and using them for new applications. Design as an important factor in product development. Internet is an important source of knowledge. Outlaying highest spending on business acquisitions or joint ventures as a means to acquire new knowledge and technologies, including ventures with public research organisations. Participating in industry associations networking and knowledge exchange activities. Collaboration Activity The extent to which innovation active firms collaborate with local suppliers or research institutions when developing new products, services or processes depends heavily on whether the collaboration will enhance their competitiveness and contribute to increased market share and profitability. A potential partner or collaborator s location is less important than competitive quality and cost. However, most regional businesses say approximately half their suppliers are located in the region. In summary: Collaborations varied from providing informal feedback to participating in a strategic joint problemsolving activity. Experiences with public research organisations were mixed and needed to watch out for a clash in expectations over time, cost and personnel involvement to ensure a successful outcome for both sides. Many business stakeholders and commentators have a high regard for Australia s research and technical competence, and excellent facilities. Limited understanding of engagement terms can result in unacceptable costs, timeframes and legal/administrative requirements. Businesses want to know more about new knowledge, technologies and facilities available in public research organisations. 11/17

12 CAPABILITIES The key capabilities of CSIRO and Monash University will support the Precinct s growth as a dynamic hub for regional economic development and business innovation. These capabilities fit well with the region s current and emerging capabilities and major business issues and its strengths in materials, engineering, medical and scientific, monitoring, measuring and analytical systems. A Snapshot of Specialist Centres and Facilities Located in the Precinct: Sustainability and Urban Development Energy, water, waste, transport, construction, housing, natural environment Health and Ageing Medical, security, sport and recreation Business Systems Services And Support Platforms Communications, logistics, finance and risk, platform technologies such as nanotechnologies Education, Business and Community Technology transfer, public affairs, events, seminars Centre for Green Chemistry Australian Stem Cell Centre Monash Centre for Policy Studies (CoPs economic modelling) CSIRO SME Engagement Centre: dedicated to linking SMEs to R&D providers Monash Sustainability Institute Australian Regenerative Medicine Institute Monash Centre for Electron Microscopy CSIRO Growth Partnerships Scheme Institute for Railway Technology Monoclonal Antibodies Facility Melbourne Centre for Nanofabrication CSIRO Excellence Awards Maintenance Technology Institute Monash Health Research Precinct Nanoscience Institute CSIRO science briefings and workshops Accident Research Centre High throughput protein production and crystallisation Small Technologies Cluster Monash University Cultural Program Centre for Excellence in Light Metals Proteomics and monoclonal antibody production Australian Synchrotron Monash e Research Centre Monash University Science, Maths and Technology Education Coal Gasification Facility Animal models (mice, sheep, zebra fish, nonhuman primates) Monash Micro Imaging (light microscopy) Monash University Industry Engagement and Research Commercialisation teams Victorian Node of the Recombinant Protein Feeder Facility World class and world scale wind tunnel Victorian node of AusScope 12/17

13 SEMIP IMPLEMENTATION PLAN SEMIP Steering Group activities prior to October 2009 included: 1. SEMIP Steering Group Members: align current activities with the SEMIP vision, themes and objectives establish priorities for collaborative projects using current resources identify appropriate criteria for developing the business case for implementing the Strategy gain in principle agreement from all Foundation Parties to continue developing collaborative initiatives. August October 2008 Completed 2. SEMIP to endorse a list of priority projects for implementation that could be pursued with current resources and agree actions to deliver. November 2008 Ongoing 3. MOU signed between the Australian Synchrotron, Monash University, CSIRO, DIIRD (on behalf of Victorian Government), Small Technologies Cluster and Councils of Greater Dandenong, Kingston, Knox and Monash committing to the development of the South East Melbourne Innovation Precinct, and including a contribution to the Innovation Business and Knowledge Growth Fund. October 2009 Completed 4. Interim Innovation Governance Forum and Secretariat established with secondments from the parties or other stakeholders to work on establishment functions and search for inaugural Forum members SEMIP Business Action Plans committees formed and work commenced Launch of SEMIP Initiative, coinciding with the first major initiative (Knowledge Clubs Pilot) October 2009 March SEMIP Program of Theme initiatives launched and progressively rolled out Progressive announcements of SEMIP initiatives, attendance, performance and impact reported and promoted Year Three Review of SEMIP initiative /17

14 CRITICAL STAKEHOLDERS Foundation Parties: CSIRO, Monash University, Australian Synchrotron, the State Government of Victoria, Small Technologies Cluster and Local Government Councils of Greater Dandenong, Kingston, Knox and Monash Foundation Parties are providing the initial leadership, commitment and momentum required to demonstrate ways to forge new relationships with industry and drive economic growth through innovation. Each has nominated a senior strategic officer as the organisation s precinct advocate. Research and Development Providers: Foundation Parties CSIRO, Monash University The region s specialist research centres will forge new relationships with industry. They will participate in strategic initiatives that reflect regional capabilities and strategic industry issues, initially focusing on materials, green chemistry, biomolecular and health, statistical and computational modelling and systems, imaging, optics and sensors. Each has nominated a senior officer to coordinate precinct activities. Co Partners in Research and Development: Intermediaries and Other Public and Private R&D providers Foundation Party expertise will be complemented by R&D providers such as Swinburne and Deakin universities, specialist laboratory services such as the Small Technologies Cluster, commercialisation services such as VCAMM, product development companies such as MiniFAB and networking and referral services such as SEMMA, AMTIL and the CSIRO SME Engagement Centre. Strategic Business and Industry Partners Foundation Parties will recruit major businesses in the region to be flagship enterprises to help direct Innovation Precinct strategies and initiatives. These companies sustain large networks of smaller businesses in their supply chains and help shape the region s innovation culture. People The Precinct will be more than a cluster of institutions, laboratories and businesses in close proximity. Human capital will be critical. Foundation Parties will ensure that key people are identified from business, research and government to be spokespeople for the innovation capabilities of the region as well as their own organisations. Government: Local, State and Commonwealth All three tiers of government will help build an environment that encourages innovation through good policy and planning, provision of public infrastructure, legislative/regulatory reform and direct funding and service delivery programs. The Victorian Government will liaise with other government agencies to align activities that affect Precinct development. Foundation Parties will work closely with local councils to align regional economic development strategies and initiatives. 14/17

15 MEASURES OF SUCCESS More local businesses participating in innovation networking functions More business to business, business to research, research to research, research to community and business to community interactions Increased investment and new leading businesses attracted to the region High level support professionals moving into designated innovation hubs More local companies exporting, or replacing imports New jobs in the region Increased level of R&D by businesses in the region Increased business access to university and CSIRO facilities and expertise More leading businesses engaging with publicly funded research organisations in innovation activities. 15/17

16 GOVERNANCE AND MANAGEMENT IMPLEMENTATION OF THE STRATEGY The Foundation Parties have proposed establishing an Innovation Governance Forum and Secretariat akin to the Committee for Melbourne, with members drawn from flagship companies, Monash University, CSIRO and others in the region. This entity would reflect regional priorities and operate on a committee basis serviced by a secretariat. It would engage specialist advisors to undertake activities such as preparing business cases for major capital and grants initiatives. The Forum and Secretariat would pursue the strategic vision: South East Melbourne is internationally recognised as the Innovation Business and Knowledge Capital of the Asia Pacific. Initial priorities include forming industry led working groups to focus on each strategic theme and develop appropriate business action plans. Expressions of interest from industry and other stakeholders would be welcomed. FUNDING The SEMIP Foundation Parties propose to collectively provide initial funding for the Forum, Secretariat and initial projects. Additional funding for major projects based on detailed business cases would come from public and private sources. 16/17

17 PRELIMINARY IMPLEMENTATION PLAN SEMIP Steering Group activities prior to October 2009 included: aligning current activities with the Innovation Precinct vision, themes and objectives establishing priorities for collaborative projects using current resources identifying appropriate criteria for developing the business case for implementing the Strategy gaining in principle agreement from all Foundation Parties to continue developing collaborative initiatives. At the SEMIP launch in October 2009, an MOU committing to the development of the South East Melbourne Innovation Precinct, and including a contribution to the Innovation Business and Knowledge Growth Fund, was signed by the Australian Synchrotron, Monash University, CSIRO, DIIRD (on behalf of the Victorian State Government), Small Technologies Cluster and local Councils of Greater Dandenong, Kingston, Knox and Monash. A detailed action plan with phased implementation of initiatives within each of the strategic themes has been agreed and work has commenced on the development of those initiatives. CONTACT INFORMATION For more information on the SEMIP Strategic Plan and how to become involved, please contact us or visit our website. Address: Website: enquiries@semip.org.au South East Melbourne Innovation Precinct (SEMIP) Department of Innovation, Industry & Regional Development Policy and Coordination GPO Box 4509RR Melbourne Victoria 3001 Australia SEMIP Partners: The SEMIP initiative is a unique partnership including the CSIRO, Monash University, Australian Synchrotron, the State Government of Victoria Australia, Small Technologies Cluster (STC) and Councils of Greater Dandenong, Kingston, Knox and Monash. 17/17

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