The Australian Government's Innovation Report

• The Cooperative Research Centres (CRC) Programme reported continuing strong performance in
building long-term strategic linkages and collaborations between industry, universities and government.
In 2004-05 (most recent data available) there were 1177 companies involved in the programme,
including 679 small to medium-sized enterprises and 498 large businesses. During the year CRCs
undertook over 600 research contracts and consultancies from industry and other end-users, earning
almost $53 million, and reported over 4000 license agreements and creation of 12 spin-off
companies.
The year also saw some significant new developments focused on the venture capital industry:
• Following a review of the Australian venture capital industry in 2005, the Australian Government
announced measures to improve access to capital as part of the 2006-07 Budget. Measures include: the
establishment of a new investment vehicle, the Early Stage Venture Capital Limited Partnership that
will progressively replace the Pooled Development Funds Programme; enhancements to the existing
Venture Capital Limited Partnership regime; and additional funding for a third round of the successful
Innovation Investment Fund Programme.
Developing and retaining Australian skills
In 2005-06 Australian Government departments and agencies reported a number of activities supporting
Australia’s capacity to develop and retain skills. A continuing focus has been on engaging young people in
science and innovation and attracting, nurturing and retaining talent. Highlights included:
• Students performed strongly in the International Science Olympiads with Australia maintaining its
ranking amongst the best competing countries. Australia was placed 6th out of 48 in biology, 20th out
of 66 in chemistry and 14th out of 77 in physics.
• The Questacon Smart Moves Programme travelled extensively during 2005-06 through regional and
rural secondary schools in Queensland, Northern Territory, South Australia, Tasmania and New South
Wales. A total of 371 schools were visited and 82 400 secondary students participated in the
programme.
• 25 new Federation Fellowships were announced in May 2006. Of the fellowships awarded, five were
awarded to expatriate Australians who will leave international organisations to return home, and two
were awarded to foreign nationals who will bring their expertise and talent to Australia.
The year also saw significant progress on work that will inform future skills strategies:
• The Australian Government commissioned an audit of science, engineering and technology (SET)
skills to examine trends in their supply and demand. A summary report was provided in June 2006,
which raised a number of issues including, among others: recruitment difficulties in many engineering
and some science disciplines; static or declining participation in the enabling sciences in school and in
post-school settings; and concerns regarding the quality of SET career advice. Further work has been
commissioned by the Minister for Education, Science and Training to investigate key areas, including
the engagement of pre-school and primary school children with SET, the factors that influence people
to seek out and stay in SET careers, and career opportunities for early to mid-career researchers
in Australia.
National Research Priorities
Australia has four National Research Priorities that are designed to focus research effort and investment in
areas that will deliver significant economic, social and environmental benefits to the Australian community.
Australian Government research and research funding organisations are required to maintain plans which
show their progress in implementing the priorities in their activities. This is the third year that departments
and agencies have reported their efforts and this report includes a series of examples which demonstrate
their progress.
Executive Summary 15