Letter of Transmission

1. The Secretary's review 1999-2000

2. The Department

3. A summary of the Department's roles and the new reporting framework

4. Analysis of performance for Outcome 1

5. Analysis of performance for Outcome 2

6. Analysis of performance for Outcome 3

7. People management

8. Management and accountability

9. External scrutiny and legal matters affecting the Department

A1. Staffing statistics

A2. Occupational health and safety

A3. Freedom of information

A4. Payments to advertising and market research organisations

A5. Consultancies

A6. Performance against actual results against outcomes and outputs

A7. Financial statements

A8. The Higher Education Contribution Scheme

A9. Discretionary grants

A10. Glossary and acronyms

Contents | Previous | Next  

Section 1. Description 
Section 2. Our strategic priorities 
Section 3. Effectiveness indicators
Section 4. Other activities that broadly support Outcome 3 
Section 5. Summary of the achievements against this outcome

 

Outcome 3 - Australian institutions advance the knowledge base, contribute to the national innovation system and participate effectively in the global development of knowledge and skills

Section 1 - Description

Commonwealth investment in higher education research and research training supports the development of new knowledge. This is necessary to support the long-term growth and competitiveness on which Australia’s prosperity and living standards depend. It encourages universities to be active partners with enterprises and other research organisations, facilitating the flow of knowledge, people and expertise, locally and internationally. Investment in research training, one of the vital functions of the higher education system, ensures growth of the trained researcher workforce and the ongoing transfer of knowledge and technique.

The Government is also committed to fostering opportunities for Australians in the international community through its support of international education and training initiatives. Its leadership in the global development of knowledge contributes to the recognition of Australia as a culturally, scientifically, technologically and intellectually sophisticated country.

The total resources invested in Outcome 3 are set out in Table 21.

Table 21. Resources invested in Outcome 3

Contribution of Outputs to Outcome 3

This Outcome covers the research and research training components of the higher education sector and the internationalisation of the Australian post-compulsory education system. It has three Output Groups:

• Funding higher education research training;
• Funding higher education research activities; and
• Internationalisation of Australian education and training.

The first two Output Groups, Funding higher education research training and Funding research activities contribute to an effective research and research training system. This system contributes to the national innovation system, expands the knowledge base and helps Australia participate effectively in the global development of knowledge and skills.

Funding for higher education research activities includes the range of grants that are available on a peer-reviewed, competitive basis to individuals and research teams and also as block grants to higher education institutions.

The third Output Group focuses on the Department’s international activities. This includes Australian Education International, government to government work on international education, the recognition of overseas qualifications and a range of smaller initiatives. Some items contribute directly to the global development of knowledge and skills. These include: the exchange of ideas internationally with key partners in education and training cooperation and reform; participation in a range of international forums; the provision of scholarships; marketing of education services overseas; and ensuring that overseas qualifications are recognised in a structured and consistent way.

There were a number of measures disclosed in the 1999-2000 Budget affecting Outcome 3 and these are detailed in the Education, Training and Youth Affairs Portfolio Budget Statements 1999-2000.

Details of actual performance against the performance indicators provided for each output group in the Education, Training and Youth Affairs Portfolio Budget Statements 1999-2000 can be found in Appendix 6.

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Section 2 - Our strategic priorities

Two strategic priorities were identified in the Education, Training and Youth Affairs Portfolio Budget Statements 1999-2000:

• Produce a policy discussion paper on the increasing importance of knowledge and canvass ways to best support research and research training in Australia; and
• Consolidation of the new arrangements for promotion and marketing of Australian education overseas.

Priority 1: Produce a policy discussion paper on the increasing importance of knowledge and canvass ways to best support research and research training in Australia

The Government released its White Paper Knowledge and Innovation: A policy statement on research and research training in December 1999. This followed the earlier release of the discussion paper New Knowledge, New Opportunities in June 1999 and an extensive consultation process concerning the framework for university research and research training.

The reforms outlined in the policy statement will ensure that the research and research training undertaken in Australia’s universities continues to be world class. They will also make sure that the new knowledge generated is effectively linked to innovation in Australian industry. The key elements of the new framework include:

• an enhanced role for the Australian Research Council and an invigorated national competitive grants system;
• performance-based funding for research student places and research activity in universities, along with allocative formulas and transitional arrangements designed to ensure that all universities are able to compete effectively under the new arrangements. The new Research Training Scheme will fund research training places in institutions according to this three-part formula: the number of research students completing their degrees (50 per cent), the institutions’ research income (40 per cent) and publications output (10 per cent). The new Institutional Grants Scheme will provide institutions with block grants which give them the flexibility and autonomy to manage their own research activities and set their own priorities. Funds will be allocated according to a formula which recognises institutions’ success in attracting research income (60 per cent), attracting research students (30 per cent), and publications output (10 per cent). These two schemes will be fully implemented from calendar year 2002;
• 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.

Priority Two - Consolidation of the new arrangements for promotion and marketing of Australian education overseas

Education exports contribute more to the Australian economy than wool exports and are comparable to wheat. The estimated contribution for 1999 is $3.1 billion. A nationally coordinated and strategically focused approach is necessary to retain and enhance Australia’s share of the international student market.

The past year has seen the Department’s new arrangements consolidated with early signs of increased participation by international students in 2000-2001. Major achievements in 1999-2000 include:

• successful implementation of the Study in Australia 2000 generic marketing campaign in Asia, Europe and Latin America;
• participation in a range of major promotions overseas in both existing and emerging markets;
• establishment of an interdepartmental committee to promote a coordinated whole-of-government approach to Australian involvement in international education;
• education export seminars held for the Australian international education and training sector;
• successful involvement by the Department’s offshore Education and Training Counsellors in government to government matters and marketing of Australian education services in China, India, Indonesia, Taiwan, Japan, Korea, Malaysia, Thailand and Vietnam;
• production of a range of information materials to assist overseas students in their choice of study destination for distribution through Australian Education Centres overseas;
• continuing promotion of the Department and its services to the education export industry; and
• progress towards the establishment of an interactive Study in Australia web site to provide advice to international students considering Australia as a study destination.

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Section 3 - Effectiveness indicators

The Department assesses the achievement of Outcome 3 using the following indicators. The first six indicators are stated in the Portfolio Budget Statements 1999-2000. An additional seven have been included as useful further indicators:

1. Extent of collaborative university-industry links;
2. Incidence of international research collaboration;
3. Unemployment experience by level of educational attainment (reporting against this indicator can be found in Chapter 5 relating to Outcome 2);
4. Australia’s share of world research papers;
5. Level of trade in education and training and professional services;
6. Strength of relationships with key partners;
7. Contribution of higher education to Australian R&D performance;
8. International comparison of R&D expenditure and activity levels;
9. Numbers of research students and completions;
10. Numbers of research-only and research and teaching staff;
11. Recognition in Australia of overseas qualifications;
12. Assistance to overseas trained Australian residents; and
13. International recognition of Australian qualifications.

In future years these indicators will be expanded to include reforming regulation of the overseas student industry.

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Extent of collaborative university-industry links

The Strategic Partnerships with Industry - Research and Training Scheme is the major programme designed to encourage the development of university research-industry links. Details of the Scheme’s commencing grants and overall programme for 1998-2000 are:

Table 22. Strategic Partnerships with Industry - Research and Training:
Commencing Industry Partner Cash and In-kind Contributions for 1998-2000

Table 23. Strategic Partnerships with Industry - Research and Training:
Overall Programme Industry Partner Cash and In-kind Contributions for 1998-2000

Incidence of international research collaboration

The Large Grants Scheme, the International Researcher Exchange Scheme (which commenced in 1999) and The Strategic Partnerships with Industry - Research and Training Scheme are the major programmes that support international research collaboration:

Table 24. Large Grants Scheme: Commencing projects involving international collaboration for 1998-2000

Table 25. International Researcher Exchange Scheme: Fellowships and awards 1999-2000

Table 26. Strategic Partnerships with Industry - Research and Training: Commencing projects involving international collaboration for 1998-2000

Australia’s share of world research papers

The latest available data shows that in five years up to 1997, Australia’s share of world research papers was 2.7% when averaged across all disciplines. Australia’s share in specific disciplines is shown in Table 27. When data is normalised for population, Australia ranks 10^th in research paper production, higher than the US, Germany and Japan.

Table 27. Australia’s share of world research papers by discipline.

Source: S&T Analysis Section, Department of Industry, Science and Resources, derived from ISI and OECD data

This data was reported in the Portfolio Budget Statements 1999-2000. No more recent data has since become available.

Level of trade in education and training and professional services

During 1999 there was a return to growth in the international education and training sector.

The 1999 earnings estimate of $3 085m is an increase of 4.9 per cent over the revised 1998 estimate of $2 942 m. It comprised estimated expenditure of $1 562m (50.6 per cent) paid on direct institutional fees and $1 523m (49.4 per cent) on goods and services such as accommodation, food and transportation. Fees paid by overseas students on Australian courses delivered offshore are not included in the estimate as accurate data are not available.

The total number of international students enrolled in Australian education institutions (both in Australia and in Australian higher education courses delivered in other countries) rose by seven per cent from 147 136 in 1998 to a new high of 157 834 in 1999. This reversed the three per cent decline in 1998 attributed to the impact of the Asian economic downturn.

Strong growth occurred in the higher education sector. The number of overseas students enrolled in Australian higher education institutions located offshore is up by 35 per cent. The English Language Intensive Courses for Overseas Students sector has made a small recovery of seven per cent after a 25 per cent decline in 1998. Small declines of three per cent have occurred in the vocational education sector and eight per cent in the schools sector.

Figure 1 illustrates the growth in the number of international students studying both in Australia (onshore) and in Australian higher education courses delivered in other countries (offshore) between 1993 and 1999.

Click here to see figure 1 (Opens in a new window, close the window to return.)

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