Committee for Economic Development of Australia7 July 2009

National Innovation Forum

Senator Kim CarrMinister for Innovation, Industry, Science and Research

Research and innovation budget

$4,000

$4,500

$5,000

$5,500

$6,000

$6,500

$7,000

$7,500

$8,000

$8,500

$9,000

2000-0

1

2001-0

2

2002-0

3

2003-0

4

2004-0

5

2005-0

6

2006-0

7

2007-0

8

2008-0

9

2009-1

0

Source: DIISR

25%increase}

$ millions

The long view: China

0%

5%

10%

15%

20%

25%

30%

35%

1820 1870 1913 1950 1973 2001 2006

China’s share of global GDP1990 international Geary-Khamis dollars

Source: Maddison (2003)

The long view: UK, US, Germany

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1820 1870 1913 1950 1973 2001 2006

UK-US-German share of global GDP1990 international Geary-Khamis dollars

Source: Maddison (2003)

Business R&D as a share of GDP

Australia and China

Source: ABS, OECD, MOST

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

China

Australia

Trend{

Committee for Economic Development of Australia7 July 2009

National Innovation Forum

Senator Kim CarrMinister for Innovation, Industry, Science and Research

-7

-6

-5

-4

-3

-2

-1

0

1

Me

xico

Jap

an

Ge

rma

ny

Cze

ch R

ep

.

Ne

the

rla

nd

s

Au

stri

a

Italy

Hu

ng

ary

UK

Sp

ain

US

Po

rtu

ga

l

Ca

na

da

Be

lgiu

m

Gre

ece

Fra

nce

Sw

ed

en

Sw

itze

rla

nd

No

rwa

y

Ko

rea

Po

lan

d

Au

stra

lia

-7

-6

-5

-4

-3

-2

-1

0

1Per cent Per cent

Note: Czech Republic quarterly growth is an estimate based on preliminary through the year data.

Economic growthMarch quarter GDP growth

Unemployment ratesMay 2009

* April 2009

** March 2009

*** December 2008

Stimulus effect on GDP growth

-1.2

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

Dec-08 Mar-09

-1.2

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

Without stimulus Actual

Per cent Per cent

Stimulus effect on unemployment

3

4

5

6

7

8

9

10

11

Jun-07 Jun-08 Jun-09 Jun-10 Jun-11

3

4

5

6

7

8

9

10

11

Pre-stimulus Post-stimulus

Forecasts

Per cent Per cent

Source: ABS and Treasury

Business R&D follows GDPOECD annual growth divided by SD

-1

0

1

2

3

4

5

6

7

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

GDP BERD

A new Super Science Initiative to explore the knowledge frontier

$160.5 million for Super Science - Space and Astronomy

$387.7 million for Super Science - Marine and Climate

$504.0 million for Super Science - Future Industries

$27.2 million for 100 new Super Science Fellowships

$11.3 million in support for Questacon

More support for world-class university research

$512.0 million for the Sustainable Research Excellence in Universities initiative

A new Joint Research Engagement program, replacing the Institutional Grants Scheme

$52.0 million to establish Collaborative Research Networks

$51.7 million to increase the Australian Postgraduate Award

$35.8 million for Excellence in Research for Australia

$51.6 million to improve the indexation of research block grants

More support for Australia’s business innovators

A new R&D Tax Credit

Simpler, more generous, and more predictable

45 per cent refundable credit for small Australian firms

40 per cent non-refundable credit for all other firms – including internationals

Worth up to $1.4 billion a year to business

Plus $65.0 million to extend the R&D Tax Offset in 2009-10

More support for Australia’s business innovators

A new Commonwealth Commercialisation Institute

$196 million over four years, and $82 million a year thereafter

To support the commercialisation of new ideas from business, universities and public research agencies

To build capacity and attract private sector investment

Consultations on design under way

Committee for Economic Development of Australia7 July 2009

National Innovation Forum

Senator Kim CarrMinister for Innovation, Industry, Science and Research