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Slide 2 AUSTR(AL)IA Slide 3 Police in Austria were pressed into action to help capture a kangaroo that went walkabout after jumping out of its enclosure near the town of St Veit. Kangaroo on walkabout in Austria Slide 4 Slide 5 Basic comparative data for Austria and Australia AustriaAustralia GDP B300700 Population M8.220.7 Area K SqKm847700 Population Growth % 0.51.4 Exports B130132 Industrial Structure S68/P2/I30S71/P12/I16 Slide 6 Slide 7 Comparative STI Data I AustriaAustraliaOECD Investment in knowledge %GDP 3.54.04.8 Investment in mach/eqpt %GDP 8.0 7.0 R&D Intensity2.41.72.2 Bus R&D Intensity2.41.32.2 Share of Services BERD %? (EU -15)4728 Health R&D %GDP0.040.10.13 Doctoral Graduation % of age cohort 2.11.71.3 HRST % empl31(48)38 (59F) Slide 8 Slide 9 Slide 10 Australian Research Funding and Performance System - II Slide 11 Mechanisms of Government Research Funding Business Tax concession Other Innovation Support (Commercial Ready) ($M) 766 460 GRAs CSIRO DSTO Other 676 394 487 Universities Performance-based block funding ARC NHMRC CRC 1282 605 623 183 Slide 12 Major Steering Mechanisms in a Pluralistic System National priorities environment and sustainability, health, security and frontier technologies, shaping all R&D funding and performing programs The Backing Australias Ability program providing an additional investment of 31b over the 10 years to 2010, supporting research, commercialisation and skill development High-level advice through PMSIEC Coordination of Ministries through the CCST The Cooperative Research Centre Program which requires an equal input from industry to focus R&D on progress towards utilisation and commercialisation. There are currently 56 CRCs The Government Research Agencies (GRAs) Source: Keenan/PREST Slide 13 Government Research Agencies (PROs) CSIRO broad remit to support industry, economy, environment and society - annual budget 600M Defence S&T Orgn - 250M ANSTO nuclear research and science, 100M Geosciences Australia - 85M Antarctic Division - 60M Broadly responsible to relevant Minister and accountable for budget through Senate Estimates Committee Triennial funding Autonomous in strategy, programs and management Slide 14 Slide 15 CSIRO developed a National Flagship Program to be funded from their own budget + industry collaborators/investors Flagships - energy, food, light metals, preventative health, water, oceans, climate change Outcome-oriented detailed R&D and pathway to market strategy and planning Budget grew with Govt support to a minimum 10M/Flagship/year University researchers invited to be involved through a collaboration fund GRAs an illustration of their operation Slide 16 Lessons from STI Policy Research 1.The characteristics of STI policy and the influence of STI research have been essentially determined by the prevailing policy/political perspective. 2.Lessons from STI policy and mechanisms that have (and havent) worked. 3.Towards a more strategic positioning of STI research Slide 17 What is EBPM? An approach that helps people make well-informed decisions about policies, programmes and projects by putting the best available evidence from research at the heart of policy development and implementation (CERI/OECD, 2004) Slide 18 But we are faced with different types of problems Type 1 responsibility for solving a problem rests solely with government Type 2 responsibility for solving a problem rests with both the government and the governed Type 3 no feasible solution to a problem exists, so government and governed must work together to deal with a situation that neither can change, at least in the short term Slide 19 Key Issues I The Nature of Policy-Making The Interface of Policy-making with Politics Power/Influence versus Rationality The Power of Myths Slide 20 Key Issues I The Nature of Policy-Making The Interface of Policy-making with Politics Power/Influence versus Rationality The Power of Myths Slide 21 Four Periods of STI Research 1.The Humboldtian Era ( cf Ben Martin ) 2.The Keynesian Era 3.The neo-liberal era 4.An Emerging New Era? Slide 22 The Keynesian Era 1945-75 Vannevar Bush model autonomous, well-funded research; scientists in charge STI Research Focus Size of GERD Peer review Coordination and concentration Priority-setting Contribution of research to the economy Slide 23 The Neo-Liberal Era 1975-20?? New public management model principal-agent theory, moral hazard STI Research Focus Delegation Evaluation Technological Innovation Commercialisation New ventures/venture capital Industrial clusters Slide 24 An Emerging New Era 20??- Good Governance model strategic, outcome- focused, joined up, inclusive, horizontal management of interdependencies, adaptive policy- making STI Research Focus? Productivity of R&D and knowledge Capturing IP Systems theory-based approaches Priority-setting Generation of broad, flexible knowledge platforms Slide 25 Lessons from STI policy and mechanisms - Wentworth Group Australia Key Determinants of STI Policy Influence - clear, simple language no qualifiers - focus on solutions, not problems - work within existing political framework - work across existing structures and institutions Slide 26 Lessons from STI policy and mechanisms - II ENSO Forecasting Centers Pacific & Africa Key Determinants of STI Policy Influence - Convening - Translating - Collaborating - Mediating (Cash, Borck and Pratt, Countering the Loading-Dock Approach to Science and Decision-Making) Slide 27 Towards a more Strategic Positioning of STI Research 1.More explicit and committed engagement with policy-makers 2.Mechanisms to more purposively shape agenda-setting and the language of debate on key public issues 3.Developing a well-managed STI Collaboration database on STI policy interventions and their effectiveness Slide 28 The Recent Review of the Australian Innovation System http://www.innovation.gov.au/innovationreview Slide 29 Recent Review of NIS 1.The Context - change of Govt after 11 years - a series of reviews of education, universities, industrial relations, the federal system of government, the tax system, emissions trading, the auto and TCF industries, and the CRC program - declining investment and performance, particularly in the past 5 years: A decline by 25% of Govt funding for R&I as % of GDP Investment in education declined as a % of GDP while other OECD countries were massively increasing theirs A zero increase in multi-factor productivity 2. Not a system review no assessment of performance beyond these broad parameters Slide 30 The Reviews Perspective on Innovation Innovation is commonly described as creating value by doing things differently. From this viewpoint we can only identify innovation after the event. If we are going to influence innovation outcomes we need an active appreciation of the dynamic processes associated with innovation that lead to change. Thus the focus should be on innovating and being innovative. Slide 31 Areas of Focus Innovation in business People and skills (HR) National research excellence Information and market design (IP, information systems, creative industries) Tax Market facing programs Innovation in government National priorities for innovation Governance of the innovation system Slide 32 Major Recommendations (72 in all) Make innovation central to all policy and programs Foster business innovation Restore Govt funding for S&I to 0.75% of GDP (1993 level) Transform the R&D tax concession into a tax credit Restore full funding for University research Drive innovation within government through an Advocate for Government Innovation Establish a system of national innovation priorities Governance through a National Innovation Council Source: Foresight Nanotech Institute