Knowledge and Innovation: A
policy statement on research and research training
This Policy Statement sets out the
Commonwealth Government’s framework for Australia’s higher education research
and research training capability. It reflects the significant investment in research and
research training the Government provides through our higher education institutions, with
almost $1.3 billion of direct funding for research available in 2000. This funding
sustains much of Australia’s basic research effort, provides for the training of our
postgraduate research students and for specific research grants funded on the
recommendation of the Australian Research Council (ARC), as well as providing institutions
with the infrastructure to carry out research and research training activities.
The release of the public discussion paper New
Knowledge, New Opportunities in June 1999 provided the basis for extensive community
debate about the framework for university research and research training. This statement
is the Government’s response to that consultative process. It announces major changes
to current arrangements for funding of higher education research in Australia. At a time
of Budgetary restraints, these changes make best use of the available resources to ensure
that our research and research training undertaken in Australian universities can aim at
and achieve excellence.
The discussion paper identified
significant strengths in Australia’s research capacity. Submissions, consultations
and other evidence gathered during the consultative process highlighted the considerable
and diverse research strengths of our higher education institutions. Of particular note is
the growth in research collaboration among universities and with industry, both within
Australia and with our international counterparts.
Most contributors to the consultation
process agreed that Australia cannot afford to be complacent in relying on our past and
present research achievements. Competition is strengthening on a global basis and
Australia’s competitiveness and attractiveness to investors is increasingly
determined by our relative knowledge capabilities. Research—as a key source of
knowledge and new ideas—is central to success in the global knowledge economy.
However, the discussion paper identified
several deficiencies in the current structure and performance of higher education research
and research training:
government funding incentives do
not sufficiently encourage diversity and excellence;
research in our universities is
too often disconnected from the national innovation system;
there is too little concentration
by institutions on areas of relative strength;
research degree graduates are
often inadequately prepared for employment; and
there is unacceptable wastage of
private and public resources associated with long completion times and low completion
rates for research degree students.
Nothing in the process of public
consultation diminished these concerns. Higher education institutions generally welcomed a
shift in the structure of incentives that would promote and reward a greater diversity of
approaches to research. Most supported incentives that would encourage increased
collaboration with enterprises in the design, conduct and application of research and
related training of research students, while maintaining a strong commitment to basic
research.
Consultations on the concept of the national
innovation system and the contribution which higher education research institutions can
make to it gave rise to a wide appreciation of the possibilities. There was a strong
interest in the commercialisation of scientific research findings through equity shares,
patents and other mechanisms for realising returns on intellectual property. The social
value of research in the humanities and social sciences was also strongly argued.
Significantly, there was agreement that
perceptions of student and employer dissatisfaction with the quality of research training
ought to be specifically addressed, together with a willingness to work with industry to
achieve improvements in this area. There was general acceptance of the need to improve
student completion rates and times to graduation, whilst recognising the Government’s
responsibility to provide information on completions, to encourage such a focus.
Our universities have a crucial role
in the national research and innovation system. They are major contributors to the
generation and transmission of knowledge in Australia. Many of our leading researchers
have world standing in their fields of research, enhancing Australia’s reputation as
a serious and credible contributor to the global development of knowledge. Our
universities are the key providers of training and professional development for our future
researchers.
The focus of this policy statement is on the
conduct of research and research training as an integral part of our higher education
system, whose objectives are to:
inspire and enable individuals to
develop their capabilities to the highest potential throughout their lives (for personal
growth and fulfilment, for effective participation in the workforce and for constructive
contributions to society);
advance knowledge and
understanding;
aid the application of knowledge
and understanding to the benefit of the economy and the society;
enable individuals to adapt and
learn, consistent with the needs of an adaptable knowledge-based economy at local,
regional and national levels; and
enable individuals to contribute
to a democratic, civilised society and promote the tolerance and debate which underpins
it.
Within this system the challenge is to
ensure that our university research and research training system is appropriate to our
social, economic and cultural goals as we move into the 21st century.
The Government appreciates that the
return on investment from research is long-term. The social and technological progress of
humanity is underpinned by the discovery and dissemination of knowledge, critical scrutiny
of argument and evidence, creative design, clever application and an entrepreneurial
culture. A vigorous research base makes an essential contribution to a democratic,
learning society. This same research base is vitally important to the economic development
of the country. The producers of knowledge are critical players in our national innovation
system, providing the ideas and techniques which can be transformed into economic
advancement.
Central to the Government’s reforms to
the higher education research system is a concern to ensure that Australia has a higher
education research system that will allow it to enhance its global role as a creator and
transmitter of knowledge while being able to respond to the rapid changes taking place in
the way knowledge is being generated and applied. This will only occur in an environment
which values a commitment to the pursuit of truth and the rigorous analysis of argument
and evidence; where open debate and critical questioning are valued along with a
willingness to consider alternative views on their merits; and where those within it
appreciate their mutual responsibility for the sharing of knowledge and the value it
brings to the wider community.
The Government’s reforms will ensure
that universities will continue to be places where discovery and creativity are fostered
and encouraged, and places where ideas are discussed freely and critically in a spirit of
openness and tolerance. They will be places where Australian and overseas enterprises will
seek to locate their research and development investments and which will attract the best
quality Australian and international students. The nation’s young researchers and
researcher-in-training will be nurtured in an environment which provides relevant
experience, delivers high quality learning and values creativity and talent.
Australia’s research graduates will be sought after for their abilities to operate
anywhere in the world at standards consistent with best practice.
The Government is therefore seeking to
develop a research and research training system which will:
ensure Australia is able to
maintain and develop its research competence and international credibility across a wide
range of fields of knowledge;
facilitate the provision of
diverse, high quality research training environments;
encourage the expansion of the
total national investment in research;
expand opportunities and choice
for research students;
enable research organisations to
respond flexibly to changes in the development of and demand for knowledge;
secure and strengthen
Australia’s internationally regarded basic research effort;
support the development and
dissemination of knowledge for its own sake as well as the social and cultural benefits it
will bring to the wider community;
extend the contributions of higher
education research to the national innovation system through closer links with industry;
and
make more effective and visible
the impact of research and research training on national economic competitiveness, social
problem solving and community well-being.
Basic research, which is a keystone of
innovation, has a strong foundation in Australia. Public investment in government and
higher education R&D as a proportion of GDP is strong by international standards, with
Australia ranked third of OECD countries. This investment has resulted in Australia
producing 2.5 per cent of the world’s knowledge, well above our population base and
share of world trade. This is an outstanding achievement by Australia’s institutions
and their researchers. Much of this knowledge production is considered to be at the
forefront of research in its field, producing outcomes which exert an influence
internationally.
However, as well as contributing to the
world’s stock of knowledge, Australian researchers also need to contribute this
knowledge to the internationally competitive industries that will ensure sustainable
economic growth and provide secure jobs and rising living standards for all Australians.
The benefits of the information age cannot be realised fully unless Australia has access
to the 97.5 per cent of knowledge that it does not produce.
Even though there has been a substantial
increase in overseas science and technology linkages by the Australian higher education
sector over the past fifteen years, these interactions are largely occurring within the
academic community. To capitalise on the benefits that knowledge brings us, stronger
connections need to be made between the producers of knowledge and the users of their
research—both internationally and domestically.
Building on a strengthened effort in basic
research, this exchange of knowledge between researchers and the users of research must be
a defining characteristic of Australia’s higher education research system. This will
involve greater participation of users in determining priorities for funding and
performing research. Strong links to the innovation system will provide for greater
movement of researchers across the various research settings, able to take advantage of
specialist knowledge regardless of whether it exists within institutions or in commercial
settings. The linkages should also extend to the provision of research training, where
students will learn skills in both academic and industrial environments.
The culture of university research also
needs to better recognise and reward the partnerships made with other members of the
national innovation system. By doing so, it should become more entrepreneurial, seeking
out opportunities in new and emerging fields of research that will provide social,
cultural and economic benefit. Australia’s researchers are well used to producing
truly excellent work. An entrepreneurial approach is needed to harness the full cycle of
benefits from their endeavours through commercialisation, where appropriate. This culture
of entrepreneurship needs to be the context for the training of our research students, and
indeed all students.
Changes are therefore needed to the way
research is funded and organised across the sector and within institutions. The Government
expects to see greater diversity across the system as some universities focus on achieving
international excellence across a wide range of fields, while others focus on excellence
in particular strengths, including by building on their links with their regions, and
assisting their local economies to grow through strategically targeted research.
By being alert to emerging opportunities,
more entrepreneurial in their focus, flexible in their organisation and more responsive to
business needs, institutions should attract more private investment. Their ability to
develop new ideas and move quickly to apply them would then create a reinforcing cycle of
opportunities, investment and rewards which can be shared by individual researchers and
research teams. Through more strategic use of intellectual property rights, institutions
would have scope to access revenue streams, royalty benefits, or equity shares for
themselves and their researchers.
The Government recognises that there is a
need to attract greater venture capital to enable commercialisation to operate
successfully. In proportion to GDP, our business expenditure on R&D (BERD) is below
the ratios for large industrialised countries, ranking 11th out of 17 OECD countries.
Following the recommendations of the Ralph Review of Business Taxation, the Government is
addressing the lack of venture capital available to finance commercialisation through
reforming the taxation system. Overseas pension funds and domestic superannuation funds
managed through a pooled development fund are to be exempted from capital gains tax on
investment in venture capital projects. These measures, in conjunction with decisions to
reduce capital gains tax and a lowering of the rate of corporate taxation, should boost
the funding available for emerging enterprises at all stages of their development. This
should reduce the need for Australian ideas to be taken overseas to be realised and
facilitate growth in knowledge-based jobs.
At the same time, the Government wishes to
maintain Australia’s performance in basic research and to ensure our universities
remain places where creativity and discovery are fostered, and knowledge is valued for its
own sake. To do other than this would not only undermine the fabric of our institutions,
but may result in research graduates who are lacking in the vision necessary for knowledge
breakthroughs in all fields of endeavour. Australia needs talented researchers who can be
the ideas powerhouses for the nation.
Public funding for research will reflect the
critical role that governments play in supporting basic research and nurturing a research
culture. Public funding will encourage and support excellence across the breadth of the
research enterprise, especially through the competitive allocation of grants for
individual investigator-initiated projects on the basis of peer review and through
mechanisms which encourage and support collaboration when necessary.
The Government has adopted the
following principles for the funding of higher education research and research training:
Excellence
Arrangements for allocating public funds
should focus on the achievement of world-class research and research training to ensure
that Australia develops and maintains high quality and innovative research which is
respected in a global context. Flexible and responsive programmes should support the
varied needs and opportunities of research. Institutions should be encouraged to
concentrate their resources so as to build a critical mass in their areas of particular
strength, thus providing the optimal conditions for maintaining research excellence over
the long term. Individual researchers and research teams should have access to an
environment that fosters excellent research.
Institutional autonomy and responsiveness
Institutions should be free to determine how
they function and contribute to the generation, preservation, transmission and application
of knowledge. They should be able to set their own priorities in terms of the research
they choose to conduct and how it is conducted, as well as selecting those best suited to
undertake research and research training. The research base should be diverse in terms of
the fields in which research is undertaken, the settings in which it takes place and the
perspectives that inform its conduct. Institutions should be able to increase their
responsiveness to global market opportunities.
Student choice
Institutions should be responsive to the
varying needs, interests and circumstances of students. Students should be able to make
choices about where they undertake their research training, with whom they work and obtain
supervision, what research they do while training, and the ways by which they undertake
their research. They should be able to make informed decisions on the basis of publicly
available information on the range of institutional research environments available to
them and be assured about their quality.
Linkage and collaboration
The policy framework should encourage and
reward the development of an appropriately entrepreneurial culture in which researchers
and the various institutions collaborate among themselves, across the world and with other
players in the innovation system. Collaboration should encompass the sharing of knowledge,
technique, expertise and research infrastructure and take varying forms, including
cooperative projects and student and staff exchanges. Universities should have policies
and structures in place to facilitate the commercialisation of discoveries, with
particular regard to regional spin offs. Key among these is the development of an
entrepreneurial culture among researchers.
Transparency, contestability and
accountability
The processes for allocating funds for
research and research training should be competitive in nature, as simple as possible to
administer, and be readily intelligible to researchers, institutions, students and the
wider community. All funding allocation decisions should be free from conflict of
interest. The claims made by researchers and institutions regarding their performance
should be open to scrutiny and verification. Taxpayers should be able to identify how
public funds have been used and to what effect. The true costs of research and
responsibility for meeting those costs should be apparent.
Clearly, there are many challenges
ahead in achieving such a vision for research. This statement sets out the mechanisms by
which this can be achieved, and sets the direction for higher education research and
research training for the 21st century.