The Australian Government's Innovation Report
The Australian Government's Innovation Report
The Australian Government's Innovation Report
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CHAPTER 1 – Science and innovation – advancing our abilities<br />
<strong>Innovation</strong>, the exploitation of knowledge and ideas to produce new or improved products, processes, services<br />
or organisational forms, is a major driver of the productivity gains that underpin sustained economic growth<br />
and contribute to enhanced social well-being. It is a key source of competitiveness in global markets and<br />
enhances preparedness for future challenges and opportunities.<br />
Australia’s innovation system is comprised of the human capital, knowledge, networks, infrastructure and<br />
institutions that act together to support the innovation process. <strong>The</strong> <strong>Australian</strong> Government plays an active<br />
and important role in this system by supporting each of these elements, implementing measures and removing<br />
barriers to enhance their interaction and effectiveness, and promoting the positive economic conditions in<br />
which innovation can flourish.<br />
<strong>The</strong> <strong>Australian</strong> Government’s significant investment in strengthening the national innovation system recognises<br />
its capacity to contribute to an improved quality of life for all <strong>Australian</strong>s. It backs the skills, knowledge and<br />
ideas that are the foundation of innovative enterprise and strengthens the pathways through which their<br />
potential economic, social and environmental benefits can be realised.<br />
<strong>The</strong> <strong>Australian</strong> Government’s investment in science and innovation:<br />
an overview<br />
<strong>The</strong> <strong>Australian</strong> Government has invested at record levels in science and innovation, with expenditure in<br />
2006-07 through the Budget and special appropriations estimated at $5.97 billion 1 . Over the past decade,<br />
<strong>Australian</strong> Government support for science and innovation has grown at an average rate of 1.9% per year in<br />
real terms.<br />
<strong>Australian</strong> Government support for science and innovation can be grouped into four main categories: support<br />
for major government research agencies, support for research and development (R&D) and innovation in the<br />
business sector, support for research and research training in the higher education sector, and support for<br />
major science and technology programmes involving more than one sector of the economy (multi-sector).<br />
Table 1 identifies <strong>Australian</strong> Government support for science and innovation under these categories over the<br />
period 1996-97 to 2006-07.<br />
In 2006-07, nine government agencies delivered science and innovation programmes on behalf of the<br />
<strong>Australian</strong> Government. <strong>The</strong> Department of Education, Science and Training is a lead agency, accounting for<br />
around 55% of the government’s total expenditure on science and innovation. Other key players include the<br />
Department of Industry, Tourism and Resources (21.9%), the Department of Health and Ageing (7.8%), the<br />
Department of Defence (5.7%), the Department of the Environment and Heritage (4.5%), the Department<br />
of Agriculture, Fisheries and Forestry (4.1%) and the Department of Communications, Information<br />
Technology and the Arts (0.7%).<br />
1<br />
This is an estimate of <strong>Australian</strong> Government spending on its research agencies and programmes with an immediate and direct objective of<br />
enhancing Australia’s science and innovation performance and capability.<br />
Chapter 1 - Science and innovation – advancing our abilities 17