WHILE it started with great energy, the National Innovation Summit held in
Melbourne last week ended as something of a damp squib. Business and research
leaders arrived genuinely surprised and pleased at the similarity of the ideas
for action they brought to the table. But their enthusiasm and solidarity was
smothered by a typically bureaucratic response from the Australian
Government鈥攜et another committee to report on options to the industry
minister.
More than 500 delegates attended, most of them having paid A$1250 for
the privilege of discussing the importance of innovation to Australia鈥檚 economic
and social future. There was plenty of support for the carefully considered
reports of the pre-summit working groups recommending action from government,
researchers and business.
In his opening speech, industry minister Nick Minchin told delegates how
important innovation was to Australia鈥檚 economic future. At the end he returned
to thank them for their efforts. But any who expected purposeful action were
disappointed. The only thing he promised was further discussion鈥攁n
implementation group which will take until August to draw up recommendations for
an action plan. That hardly reflects the urgency expressed in the delegates鈥�
speeches.
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The scale of the problem was made very clear. Overseas speakers and local
experts all echoed the obvious鈥攖hat nations which do not embrace the
knowledge economy have very poor economic prospects. Prime Minister John Howard
put his seal of approval on the summit as guest speaker at its dinner. But he
pointedly failed announce any significant initiatives. Hunter Valley textile
workers received much more from Cabinet last week than the national innovation
system.
Education minister David Kemp assured the forum the government is committed
to a rich and diverse system of higher education, but the muttering around me
suggested there is much more diversity these days than richness. The head of the
Australian Vice-Chancellors Committee, Ian Chubb, didn鈥檛 mince words about the
neglect of research and education. 鈥淎ustralia fiddles while the world is
learning,鈥� he quipped.
University scientists weren鈥檛 the only ones who were outspoken about the
damage being done to the system鈥檚 research capacity by budget cuts. They were
firmly supported by business leaders. Chris Knoblanche, the Australian head of
consulting firm Arthur Anderson, told the meeting that science is 鈥渓osing the
battle for talent鈥�. As a business consultant, he lamented the fact that too many
bright young people were heading into business rather than research careers.
鈥淏efore long, business will have nothing to sell.鈥�
The consensus between research and industry even extended to the science
community calling for incentives to stimulate business innovation. The National
Tertiary Education Union (NTEU) sought increased public investment in higher
education as well as incentives for private sector research鈥斺�滳lear policy
directions with real dollars attached in the forthcoming budget,鈥� NTEU president
Carolyn Allport said.
Sadly, the best those who attended the summit can hope for is an action plan
early next year and the possibility of real dollars in the following year鈥檚
pre-election Budget.
AUSTRALIAN innovation was given a decidedly mixed report card at the summit.
The most cheering feature was the performance of new companies based on
university or CSIRO research. A study by university consulting
agencies鈥攏ow turning over about a quarter of a billion dollars and
obtaining more than 100 patents each year鈥攆ound that about 15 new
companies a year are spinning off from academic research. CSIRO had a similar
tale to tell.
By contrast, Jane Marceau, head of the Australian Expert Group in Industry
Studies at the University of Western Sydney, tabled a report entitled
Innovation in Australian Businesses which showed the devastating effect of
the 1996 decrease in the tax concession for research in industry. Manufacturing
research funding fell 10 per cent in the following year and a further 18 per
cent in the year after that. Research spending and employment are believed to be
falling still.
Marceau says that BHP, which operates Australia鈥檚 largest private sector
research organisation, shed more than 100 scientists last year. Australia and
New Zealand now rank with Iceland and Poland on the index of business research
personnel as a fraction of all researchers. Now, that is not good news.