THE NATIONAL INVESTMENT IN RESEARCH Professor Vicki Sara Chair, Australian Research Council
National Innovation System Public Research Institutes Knowledge Creativity Flow Private Enterprise Universities
Science Linkage 3.0 Science Linkage 1.5 0.0 Israel US Canada Australia UK World Sweden Nethlnd Finland Japan Taiwan
New Economy is Dependent on Basic Scientific Research 18 16 14 12 10 16.76 New Economy 10.17 8 Old Economy 6 4 2 0 0.08 0.08 0.35 1.39 Misc Machinery Motor Vehicles & Parts Misc Manufacturing Biotechnology Pharmaceuticals Semiconductors & Electronics
The Research Continuum Long Time to Produce Benefit Short High Risk Low Economic, Social, Environmental Benefit
Private Sector Patents Depend on Publicly- Funded Research About 96% of Australian scientific papers cited in private sector Australian-invented US patents are from publiclyfunded institutions Private Sector 3.6% Hospitals (All) 12.0% 45.7% University Other Govt 4.2% 16.0% CSIRO 18.5% Univ. Affiliated Med. Center
What role should we expect of government? To support a fundamental base of knowledge and expertise To improve interfaces between researchers and users To support the supply of highly trained and skilled researchers
Annual Number of Scientific Research Papers per Million Population 1600 1400 1993-1997 1200 1000 967 800 600 400 200 0 Switzerland Israel Sweden Denmark Finland Canada Netherlands United Kingdom New Zealand Australia Norway United States Belgium France Germany Australia produces 2.7% of the world s scientific research papers. Normalised for population, Australia s share ranks it tenth in the world. Source: Australian Science and Technology at a Glance 2000
International Patenting Performance 100,000 USA US patents granted in 1998 10,000 1,000 100 10 New Zealand Switzerland Sweden Belgium Finland Denmark Austria Norway Singapore Ireland Taiwan Korea Netherlands Australia Spain UK Canada Italy France Germany Japan 10 100 1,000 10,000 GDP 1996 (US$ billion) Australia actual = 800 shortfall = 548
Australia s Expenditure on R&D Percentage of GDP Ranking Gross Expenditure 1.64% 14/25 countries Government Agencies and Universities 0.85% 4/25 countries Business Expenditure 0.79% 19/25 countries Figures are for 1996-97 (latest available) Source: 2000-2001 S&T Budget Statement (Australia)
Summary of Government Initiatives - 1999 The Virtuous Cycle: Working together for health and medical research Double NHMRC Funding Review of Business Taxation Venture Capital Knowledge and Innovation: A Policy Statement on Research and Research Training Strategic Framework
Summary of Government Initiatives - 2000 Innovation Unlocking the Future & The Chance to Change Creating an ideas culture Generating ideas Acting on ideas
The Role of the ARC Econom ic Social Environm ental Benefits Public Research Institute Linkage Private Enterprise University Research Discovery
ARC Discovery Programme Innovation Investment Fund ARC Linkage Programme (SPIRT) Commercialising Emerging Technologies Programme (COMET) Cooperative Research Centres Programme (CRCs)
ARC Linkage Programme - SPIRT Large Companies 57% Small/ Medium Enterprises 43% Participation in CRGs Large Companies 49% Small/ Medium Enterprises 51% Participation in APA(I)s
Cooperative Research Centres Programme Collaborative links between industry, research organisations, educational institutions and government agencies Focus on commercial outcomes Usually unincorporated joint venture between participants (though can be incorporated companies) Usually based within universities Research in natural sciences or engineering Industry-relevant education and training experience for graduate and postgraduate students
Commercialising Emerging Technologies Programme (COMET) Aims to improve performance in the commercialisation of research and development D evelopment of tailored assistance programs by private sector case managers Develop business plans or market research to compete for equity funding from venture capital fund managers and business angels Assistance is between A$20,000 - A$50,000 with A$100,000 cap
Innovation Investment Fund (IIF) D evelop small, new-technology companies to commercialise research and development; D evelop a self-sustaining, early-stage, technologybased venture capital industry; D evelop fund managers with experience in the early-stage venture capital industry; and Establish in the medium term a "revolving" or selffunding program.
Key Factors Research quality Business receptors Linkages Venture capital Management skills Regulatory and business environment
Structural and Cultural Barriers Academic environment Culture Reward systems Researchers as entrepreneurs Intellectual property ownership and management