Demand Policy for InnovationThe Australian Experience

Carol Bellettini

Innovation Division

Department of Innovation, Industry, Science and Research

Overview

1. Australian Government Innovation Agenda

2. The climate change challenge

3. Pre-commercial procurement of R&D

4. Access to public sector information

5. Policy learnings

Demand Side Innovation Policy

Measures that Increase demand for innovation Improve conditions for the uptake of innovation Improve the articulation of demand to spur

innovation and support diffusion

Broad based approach considering the full scope of the innovation cycle

1. Powering Ideas

10 year agenda to strengthen the innovation system and make Australia more productive and competitive

Themes Research Capacity and Skills Business Innovation Collaboration Governance

Innovation Inputs – How do we compare?

The figure compares Australia with the top 5 OECD countries for each indicator (normalised to 100)

Innovation Outputs – How do we compare?

The figure compares Australia with the top 5 OECD countries for each indicator (normalised to 100)

Energy Efficiency

Carbon Price

Renewable Energy

Land Sector

2.

How the carbon price works

The Clean Technology Program

Part of the Australian Government’s 2011 Clean Energy Future

The A$1.2 billion Clean Technology Program to help manufacturers improve their energy efficiency and transition to clean technology innovation activity

Three elements:

Clean Technology Investment Program (A$800m over 7 years)

Clean Technology Food and Foundries Investment Program (A$200m over 6 years)

Clean Technology Innovation Program (A$200m over 5 years)

Clean Technology Innovation Program

To support the research, development, proof of concept and early stage commercialisation activities of new products, processes and services

Clean technology innovation projects should help industries become more competitive and so transition to a low carbon future

3. Smart SME Market Validation Program

$28 million grants program to support SMEs to undertake research and development that meet specified needs of Victorian public sector entities

Demand-side policy Seeks to rectify a problem in the public sector Encourages the private sector to find innovative ways to

address demand Promotion and marketing to public sector entities and SMEs

to generate interest, support and participation

Identification of technology

problems (TRS) by Vic Govt entities

Call forProposals

Assessment & awarding of grants

Feasibility Study stage

Solutions developed by SME for host

agency in a Proof of Concept stage

Review & assessment of FS reports

Review & assessment of TRS

How does it work?

Health Market Validation Program

$15 million competitive grants program to encourage innovation in health care

Seeking solutions to healthcare challenges – real customer demand

Benefits to Victorian public health sector organisations SMEs Victoria community

4. Public Sector Information – Creative Commons

Information underpins innovation activity

Barriers to information hinder the innovation process, reduce efficiencies and diminish social outcomes

Information released under a Creative Commons license

5. Policy Learnings

Hybrid policy design

Experiment!

Integrate approaches to challenges

Evaluation is important

Department of Innovation, Industry,

Science and Research

Industry House

10 Binara Street

Canberra City, ACT 2601, Australia

Telephone +61 2 6213 6000