The Australian Government's Innovation Report

EXECUTIVE SUMMARY
With total funding of $8.3 billion over the 10 year period from 2001-02 to 2010-11, the Backing Australia’s
Ability initiative is the largest and most comprehensive single set of programmes and measures put in place
by an Australian Government in support of science and innovation. It targets three key elements of the
innovation system: strengthening our ability to generate ideas and undertake research, accelerating the
commercial application of ideas, and developing and retaining Australian skills.
The 2006-07 Innovation Report is the sixth Innovation Report since the announcement of Backing Australia’s
Ability. It follows the final year of funding under the initial Backing Australia’s Ability – An Innovation Action Plan
for the Future (2001) package. Support for new measures, as well as a wide range of existing programmes, is
now being delivered under Backing Australia’s Ability – Building our Future through Science and Innovation (2004).
The Backing Australia’s Ability themes continue to remain a relevant and unifying feature of the Australian
Government’s investment in science and innovation. This report provides an opportunity to reflect on the
considerable achievements of Australian Government departments and agencies against these themes over
2005-06, along with their progress in addressing broader national goals through their implementation of the
National Research Priorities.
The report additionally presents the findings of the third Australian Innovation Scorecard, comparing
Australia’s innovation performance to that of other countries in the OECD. It thus provides a broader global
context for Australia’s innovation activities and a means of tracking our progress in an increasingly competitive
global economy.
Finally, the report outlines the important role that key institutions and strategic planning processes are playing
in informing the future of Australian science and innovation and ensuring that Australia remains well-placed
to reap the rewards of its investments in years to come.
Initiatives for a dynamic national innovation system
Strengthening our ability to generate ideas and undertake research
Australian Government agencies reported considerable progress in 2005-06 in achieving research and
development (R&D) outcomes consistent with their missions. Highlights included:
• The Commonwealth Scientific and Industrial Research Organisation (CSIRO) reported five new spinoff
companies formed during the year, taking the market value of its spin-off portfolio to record levels,
and generated record revenues ($37.1 million) from its intellectual property assets. CSIRO also reported
an ongoing focus on building long-term collaborative partnerships with industry, government agencies
and universities and developing critical mass in key areas through its National Research Flagships.
• The Defence Science and Technology Organisation marketed over 40 technologies during 2005-06. It
additionally entered into two new alliance agreements with industry, placed 78 research agreements and
entered into 12 collaborative arrangements across a wide range of disciplines.
• The Australian Nuclear Science and Technology Organisation completed construction and operation
approval of the new OPAL reactor. The facility will commence routine operation in early 2007 and,
with world-class instrumentation, will be a leading regional centre for researchers in Australia and
internationally to work and collaborate in fields such as biology, materials science and food science.
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