Building More Effective Links Between Academic Researchers and Regulators

Dr Michael SchaperDeputy Chairman

Australian Competition & Consumer Commission

michael.schaper@accc.gov.au or michael.schaper@gmail.com

SEAANZ “SME Policy Forum”31 January 2012

University of Notre Dame, Fremantle

Overview

1. The ACCC’s Role

2. What Do We Both Want?

3. What Are the Problems?

4. Moving Forward: A Possible Future Research Agenda

The ACCC’s Role

Education, information, outreach and consultation targeting:

• potential business operators

• existing business community

• business & legal advisers

Enforcement of the Act, industry codes and related matters

Referrals to other agencies/dispute settlement bodies (i.e. consumer protection bodies, OFMA, Victorian Small Business Commissioner)

No policy/legislative role

Some limited research engagement (research network, working papers, regulatory conference, postgraduate students, ARC partnerships, specific projects)

In A Perfect World….

““Good theory, policy, laws, administration and Good theory, policy, laws, administration and regulation are derived from vigorous research”regulation are derived from vigorous research”

Professor Robert Blackburn, Kingston University; editor, International Small Business Journal (2010)

““There’s nothing as practical as a good theory”There’s nothing as practical as a good theory”Professor Charles Matthews, ICSB President (2010)

The Ideal: What Do We Both Want?

Govt Academia

RelevanceRecognitionUse of one’s own skillsResearch outputsFunding

Information, analysisBetter decisionsExternal validationEvidence-based policy options

Developing Practical, Effective Policy

“I have come across many academics who tell me that they are working in areas of public policy of the utmost importance – health care, housing need, workforce participation, early childhood development – yet shuffle uncomfortably when I ask exactly what policy changes they would introduce to address the problems which they have so carefully analysed.”

Peter Shergold (2011)

Chancellor, University of Western Sydney

Former head, Department of Prime Minister & Cabinet

Source: Shergold, P. (2011) “Seen But Not Heard” Australian Literary Review (in The Australian newspaper), vol.6 no. 4, May, pp.3-4.

What Is Government Seeking From Researchers and Academics?

• Existing knowledge: Ability to summarise/explain existing body of data

• Extending knowledge: new research that sheds more light

• Programme and policy ideas: Generation of new policy options

• Programme and policy assessment: Independent critical analysis of existing programs, approaches, intervention tools

Problems, Pitfalls and Perils

• Timelines• Methodology• Usage of data• Understanding agency needs and drivers• Client-driven research• Transaction or relationship?

Timelines

• Academic years versus bureaucratic years• The three-year PhD: timely or too long?• The challenge posed by corporate researchers

Methodological Issues• Evidence-based research can help drive enforcement, policy,

regulation

Nature of data collection• Often requires systemic, large-scale quantitative data• Longitudinal data often preferred • Sampling frames an ongoing issue• Case studies have limited value

Theory- or practice-driven results?• Theory development useful in developing conceptual models which

can be subsequently applied in the field by agencies• However, important to also generate practical research outcomes

(such as problem identification, generation of possible solutions)

Data Usage

Intellectual property of research outputs• Who owns the outcomes of research? How is it to be

shared between agency needs and researcher desires?

Access to in-house data sources• Confidentiality often an issue

Published or private?• How will the research be utilised and disseminated?

Understanding Agency Needs

Researchers need to understand the differences within government:• Policy and regulatory/enforcement bodies• Statutory agencies and departments• State, federal and local• Jurisdictional boundaries

Working out who makes the decisions:• Ministers & ministerial offices• Parliament• Intra-agency decision-making

…and who they are accountable to

…and don’t forget…

• Bounded rationality of decision-makers

• Ideological biases affect receptivity to research findings

• “Common knowledge” is often built from many influences

(Lomas 2000)

The Great Trap for Academics: Self-Driven, Not Client-Focused, Research

Traditional researcher’s approach:

Do you have a transactional or relationship-building focus?

“…so you should fund this idea”

Researcher unilaterally wishes

to explore particular issue

Researcher unilaterally wishes

to explore particular issue

Govt seen only as repository of grants and other funding

Govt seen only as repository of grants and other funding

A More Effective Govt-Academia Research Agenda

Evidence-based research critical…although original new ideas sometimes also neededNeed to partner with government/regulators…and some fundamental questions need to be asked:

- What are we seeking to accomplish? (eg reduce disputes between consumers and businesses)

- Who will this research benefit, and how? (eg regulators, new business operators, consumers, industry advocates?)

- What do we need to do to turn research evidence or ideas into tangible practices?

SectoralDemography

•Size•Scope

•Industry•Performance benchmarks

•Comparators to SME population

SectoralDemography

•Size•Scope

•Industry•Performance benchmarks

•Comparators to SME population

Franchisees & Franchisors• Demographic,

psychographic & other profiles

•Perceptions, attitudes & motivations

•Life pre- and post-franchising

Franchisees & Franchisors• Demographic,

psychographic & other profiles

•Perceptions, attitudes & motivations

•Life pre- and post-franchising

New & Emerging Models

•Social franchising•Micro-franchises

•Professions

New & Emerging Models

•Social franchising•Micro-franchises

•Professions

An Example: ExtendingFranchising Knowledge

Disputation•Types of dispute•Resolution tools

Disputation•Types of dispute•Resolution tools

Long-termEvolution

•Life cycles•Growth

Long-termEvolution

•Life cycles•Growth

Compliance & Regulatory Issues

•Levels of knowledge•Compliance rates•Use of legal rights

Compliance & Regulatory Issues

•Levels of knowledge•Compliance rates•Use of legal rights

Legal Trends• Applications of new

powers•Judicial interpretation

•Other jurisdictions

Legal Trends• Applications of new

powers•Judicial interpretation

•Other jurisdictions

Building Better Relationships With Public Agencies

Substantial capacity exists to improve linkages between public sector and research community

However, greater understanding needed of public sector requirements and attitudes

Some key issues to look at:- Practicality v. theory development- Timeframes- Customer (client) – driven research- Publication & usage of data- Moving beyond a transactional relationship to embedded, long-term

mutual assistance: the Griffith-ACCC and Melbourne Uni examples

Further Reading

Amara, N.; Ouimet, N. & Landry, R. (2004) “New Evidence on Instrumental, Conceptual, and Symbolic Utilization of University Research in Government Agencies” Science Communication, Vol.26 No.1, pp.75-106.

Landry, R.; Lamari, M. & Amara, N. (2003) “The Extent and Determinants of the Utilization of University Research in Government Agencies” Public Administration Review, Vol.63 No.2 (March), pp.192-205.

Lomas, J. (2000) “Connecting Research and Policy” Isuma: Canadian Journal of Policy Research, Spring, pp.140-144.

Shergold, P. (2011) “Seen But Not Heard” Australian Literary Review (supplment to The Australian newspaper) vol.6 no. 4, May, pp.3-4.

Webber, D.J. (1987) “Legislator’s Use of Policy Information” American Behavioral Scientist, Vol.30 No.6, pp.612-631.