3. About the case
• The economic annual growth rate in the last decade
reached 3.5% and low levels of unemployment.
• The enabling environment and how to increase the
effective research and commercialization of research
• The government initiative in 1990s
• 1997 – Investment for Growth
• 1999 – Knowledge and Innovation (new policy for
funding framework for Universities)
4. About the case
• Government injected money for improving health and
medical research
• new capital gains tax (CGT) to encourage risk taking and
entrepreneurship.
• Setup of the Innovation Investment Fund (IIF)
• 2000 – Business council of Australia – Assessment of the
innovation system
• 2004 – Backing Australia’s Ability (5 years strategy for
science, research and innovation
5. About the case
• 2004 – Backing Australia’s Ability (5 years strategy
for science, research and innovation
• Strengthen Australia’s ability to generate ideas
• Accelerate commercial applications of these ideas
• Develop and retain skills
• After spending 2.9 billion $ on the five years
program
6. About the case
• After spending 2.9 billion $ on the five years program
• Lacked strategic effectiveness
• Lack of policy focus and collaborative thinking of the
government
• ABS-DITR Survey (2006) – focus limited to technological
innovation rather than institutional and operational
innovation
• CEDA (2007) – shortcomings of the strategy that require
urgent attention
7. 1- What Aspects of the Australian
economy were the concerns of
the 1990s directed at?
8. 1- What Aspects of the Australian
economy were the concerns of the 1990s
directed at?
• Poor track record of commercialization of
research
• Strong track record on scientific research
• Brain Drain
10. 2- Which institutions within the national
innovation system were seen as failing?
• Government
• Science and technology institutes
• Educational institutes
11. 3- Which of the linkage between
institutions within the national
innovation system were seen as
inadequate?
12. 3- Which of the linkage between
institutions within the national innovation
system were seen as inadequate?
• Linkage between Government and firms
• Linkages between Science and technology
institutes and firms and industry
• Linkage between Educational institutes and
Science and technology institutes and firms.
13. 4- What is meant by
commercialization of
research?
14. 4- What is meant by
commercialization of research?
• Research commercialization is the process of
introducing a new product or service based on a
research done by universities.
16. 5- How can one have a strong
record of scientific research and
relatively poor record of
innovation?
17. Scientific Research Record vs
Innovation Record in Australia
• Although Australia enjoys levels of expenditure on research and
development and education compared to other OCED countries.
• Australia had a relatively poor track record on commercialization
of research, this because of:
• The reluctant of academics, that their research has a profit.
• The lack of well-developed venture capital provision that was
available.
• These inadequacies may lead to a “brain drain” as young
scientists, researchers and entrepreneurs left their county for
less risk averse environments.
18. 6- Draw a diagram that shows the
institutions affected by the
Australian government’s strategy
“Backing Australia’s Ability”
19. Backing Australia’s Ability
Initiative
Government
Financial
Institutions
Science &
Technology
Institutions
• Committee of Economic Development of
Australia
• Commercializing Emerging Technology
Program
• Australian Labor Government
• Australian Research Council
• Australian Universities
• Cooperative Research Centers Program
• Centers of Excellence in ICT and
Biotechnology
• Innovation Investment Fund
• Business Council of Australia
20. 6- What does the digram indicate
about the extent to which the
strategy affected Australis’s
national innovation system?
21. Impact on Innovation
Process
• It lacked strategic effectiveness:
• Lack of policy focus and collaborative thinking in
government, public agencies, businesses and
academic institutions with major gaps at both
strategic and operational levels.
• “Patterns of Innovation in Australian Business”
identified the focus being limited to technological
innovations, rather than organizational and
institutional innovations.
22. 7- What is venture capital?
What is the connection between
venture capital and innovation?
23. What is VC?
Venture Capitals are
Specialist financial institutions which takes an
equity stake in firms in order to provide funding for
major developments at early production stages
24. VC & Innovation
“Innovation is an expensive process” O’Sullivan,
2005
Without covering the cashflow gap, we may not
exit the valley of death
25. 8- In terms of its national
innovation system, why should a
country be concerned about a
lack of venture capital?
26. VC & National Innovation
Systems
Even if we have a good flow of new innovative ideas,
we will lack strategic effectiveness
if they were not commercialized fast enough
27. 9- What features of Australia’s national
innovation system are likely to be
improved as a result of the measures
taken in the late 1990s and early 2000s?
28.
29. Government Initiatives
• “Investment for growth “ statement 1997
• Review of effectiveness of country’s science, engineering &
technology supporting base of innovations effectiveness (by Chief
Scientist). 1999
• Publishing “ Knowledge and Innovation” white paper. 1999
“university”
• Double of National Health & Medical research council annual
budget by 2005 (extra $614 million ).
• National Innovation Summit 2000
• Backing Australia’s Ability 2004 ($2.9 billion over 5 years)
30. Government à S&T
institutions
• Double of National Health & Medical research council
annual budget (extra $614 million ).
• $736 million Australian research council
• $246 million university infrastructure upgrade
• $176 million ICT & Biotechnology center of excellence
• Increase university places, online learning, Boost skills
by immigration
32. Government àIndustry
• $ 337 million infrastructure projects
• Incentives , R&D expansion in companies ($115 million over
5years)
• Assist small companies (START scheme $535 million , direct
grant)
• COMET program doubling
• $227 million for Cooperative research centers program
• $100 million for Innovation Access Program (Biotech,
Agriculture)
33. Australia’s National Innovation
System Improvements
• Focus on Innovation strategic planning.
• Solid presence in some emerging science and technology fields.(e.g. ICT & Biotech)
• Government financed R&D expenditure is high by international standards.
• Stimulate idea generations by focusing on technological innovations.
• Stimulation of innovation-driven entrepreneurship.
• Strengthening of IP protection framework
• Broadening base of skills for science & Innovation.
• Increasing focus on education systems à Develop innovation skills.
34. Australia’s National
Innovation System Successes
Products of the system earning returns for Australia internationally include :
• Google Maps,
• Biota’s flu treatment (Relenza),
• CSIRO’s polymer bank notes,
• wireless networking technology,
• CSL’s anti-cancer vaccine (Gardasil),
• Cross Market Surveillance Service’s stock market fraud detection system,
• Cochlear’s bionic ear.
35. 10- What were some of the
weaknesses of the “Backing
Australia’s Ability” strategy which
required urgent attention and focus?
37. Australia’s National
Innovation System Weakness
• “Poor business innovation culture, average to poor management
performance”
• Lack of focus on operational side of Innovation
• Large firms with commodity focus (agricultural and mining commodities,
basic metals, food, tourism and education-related travel services).
• Understanding of difference between local and foreign customers,
suppliers and competitors (Globally oriented business models).
• Seeking local market competitive advantages and Barriers to SMEs
Innovations export.
• New to market innovations impact over new to firm innovations. (NTM >
4x NTF > 2-8x Non innovators “export”).
38. Australia’s National
Innovation System Weakness
• Lack of access to additional funds (VC), Poor networking and
collaboration with industry , external expertise.
• Obstructive government policies and regulations. (Cochlear
case extra 14 m > EU).
• To encourage innovation, tax rating, risk taking, broader
business environment, procurement to drive innovation across
the economy.
• Investment in human capital and skills. (e.g. Management skills,
Education).
• Knowledge infrastructure. (ICT platform).
