Knowledge and
Innovation:

Foreword

Six months ago, I released a discussion paper on research and research training titled New Knowledge, New Opportunities. This paper outlined the Government’s vision for the future of higher education research in Australia, a future in which strong economic and jobs growth, cultural development, and a capacity to solve social problems, is underpinned by a strong and vibrant research base. The discussion paper noted that we are in the midst of two great research-based technological revolutions—in biotechnology—and communications and information technology.

We must ensure that Australia keeps pace with the global revolution in knowledge production and its use; is an attractive site for research and development investment; and provides opportunities for our best and brightest researchers and innovators. Universities and their researchers will play a crucial role in achieving this goal. Not only will they be the leaders in producing fundamental knowledge, they will also be instrumental in disseminating new knowledge to the community, and provide training for the researchers of tomorrow.

To enable university research to maximise its potential, the discussion paper was built around a number of themes: the need to support and reward research excellence; to build critical mass in areas of opportunity; to capitalise on the returns on our investment in research; and to promote the role of universities in regional economic, social and cultural development. The discussion paper proposed a policy and funding framework for research and research training with the following features:

• an invigorated national competitive grants system to be administered by a restructured, strengthened and independent Australian Research Council;

• an enhanced strategic and priority setting role for institutions in relation to research and research training;

• research scholarships designed to provide research students with greater choice and influence in relation to their research training environment; and

• incentives to reward institutional diversity, strong strategic focus, enhanced collaboration with other participants in the research and innovation systems, and research training environments that are responsive to the needs of students and employers.

Since the release of the discussion paper, the Government has announced further initiatives to enhance our nation’s research capabilities. The response to the report of the Ralph Committee on business taxation represents a fundamental and far-reaching shift in the nation’s capacity to support knowledge-based and emerging enterprises. The decisions to halve the rate of capital gains tax and to exempt overseas pension funds from tax on gains made from venture capital projects will provide enormous opportunities to boost emerging enterprises at all stages in their development and facilitate growth in knowledge-based jobs.

This Policy Statement also complements the Government’s initiatives arising from the Wills report on health and medical research, and provides the foundation to support further Government action, including in relation to the Review of the Science Base, currently being undertaken by the Chief Scientist, and the National Innovation Summit scheduled for February 2000.

There has been an extensive process of consultation with universities, researchers, industry groups, Commonwealth and State agencies in relation to the discussion paper. I thank the many individuals and organisations who participated in this process and have thereby contributed to the development of this Policy Statement. It has been enhanced by their input.

This Statement announces major changes to the current arrangements for funding of higher education research in Australia with the aim of achieving the objectives outlined in the discussion paper. These changes make the best use of available resources to ensure that the research and research training undertaken in Australian universities continues to be world class and that the new knowledge it generates is effectively linked to innovation in Australian industry. The Government’s measures have been informed by the consultation process. The new framework provides for:

• a strengthened Australian Research Council and an invigorated national competitive grants system;

• performance-based funding for research student places and research activity in universities, with allocative formulae and transitional arrangements designed to ensure that all universities are able to compete effectively under the new arrangements;

• the establishment of a broad quality verification framework supported by Research and Research Training Management Plans; and

• a collaborative research programme to address the needs of rural and regional communities.

The Prime Minister has outlined his vision of Australia as a 'Can Do' country that can turn ideas and invention into income and jobs in Australia, for Australians. He has highlighted that it is important to encourage our bright young people to consider science as a career and to create better career opportunities in Australia for our best researchers. This will enhance Australia's capacity to build new knowledge and convert endowments and ideas to our national advantage, to the benefit of all Australians.

In this Policy Statement, the Government has delivered the foundations that underpin the realisation of this vision.

DAVID KEMP

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