The Prime Minister's Science, Engineering and Innovation Council met for the fourth time on Friday, 25 November 1999, with the Prime Minister chairing. Among the issues discussed were:
- Innovation in Established Businesses
- The National Innovation Summit
- The Australian Wine Industry
- Science and Technology Awareness
- Nanotechnology
In opening the presentation Dr Ed Tweddell noted that there is a tremendous amount of hidden innovation within established businesses. The challenge is for government and industry to facilitate change, and to encourage a new momentum towards a "true development culture".
Dr Tweddell proposed ways in which Government could create a supportive environment for building cultures of innovation in established businesses, namely to excite the community; educate managers; enable access to expertise and enterprise capital; and encourage investment.
Members discussed the research and development tax concession scheme proposing new options for consideration. They acknowledged that the issues of the tax concession was likely to be a key issue raised at the Innovation Summit in February 2000.
Members acknowledged that innovation will provide the only long term competitive advantage for both emerging new businesses and those now existing. They also acknowledged there is scope to raise Australian industry's appreciation of innovation.
Mr Bob Savage (Chair, Innovation Summit Steering Committee) in opening the presentation noted the Summit represents a partnership that is essential if Australia is to create a national vision for innovation. Parts of business, he noted, do not yet accept innovation as part of its future operating strategy. A fundamental shift in business culture and thinking was crucial for industry to survive and benefit from innovation.
The role of leadership was crucial as was the need for vision. Industry, the research community and government need to work together to sell the message of innovation and its role in Australia's future. By delivering an consistent message, Government can promote the opportunities brought about by a cohesive and consistent effort.
His co-presenter, Professor Brian Anderson, noted the three interrelated and interdependent themes around which the Summit is developing its activity.
The first theme, that of creating a competitive environment, is concerned with developing the right climate for innovation thus enhancing Australia's competitive edge in the international marketplace. He noted the prerequisite of better coordination among governments and their need to streamline bureaucratic processes to enable a whole-of-government facilitation of cultural change.
The second theme, investing in new ideas focuses on raising business investments in R&D and improving the commercialisation of Australian innovations. Business needs to recognise that their outlays on R&D are seen as investment, not expenditure, and are fundamental for long-term sustainable growth.
The last theme, building industry-research linkages focused on the need to encourage the separate components of the national innovation system to form strong networks so as to better understand each other's needs and capabilities to work in harmony. Not only might these linkages operate domestically but also internationally so as to encourage local adaptation of international technology.
Members agreed the Summit should aim to mobilise the views of involved Australians, and distil the legitimate concerns of industry and the research community.
Members considered whether some companies' current focus on profits rather than research and development is having a detrimental effect. The discussion noted that companies continue to focus on short term measures rather than the role of innovation in providing sustainable, long-term growth. R&D is only a part of the innovation cycle and greater returns could be achieved by encouraging a culture shift.
Risk taking was identified as an issue and its importance as a factor central to innovative results in both public and private sectors was widely accepted. Another trend was acknowledged, that of "cooperating to compete", whereby businesses work together achieve results that would be not attainable by individual firms.
In his presentation Professor Peter Høj analysed the recent growth and success of the wine industry, and asked whether the lessons learned could be extended to other, similar, industries. In so doing he commented on the industry's value to Australia; its attributes; its ability to change to meet changing circumstances; the industry's development and use of a plan, Strategy 2025; success factors; and, the range of innovation practices adopted within the sector.
Mr Robin Day, a Director of Pernod Ricard, provided some examples and case studies including mechanical harvesting and pruning, the adoption of a new irrigation technique called Partial Root Zone Drying, and the important role of clustering of research institutions such as at the Waite campus.
Other innovations have included improvements in benchmarking through wine shows, including using overseas judges as a way of gathering views on overseas wine tastes; the 'research-to-practice' program which brings researchers and industry into closer contacts; and better methods of improving access to research outcomes, through commercialisation, the Australian Wine Research Institute analytical service, and DNA typing to improve label integrity.
Members proposed some factors behind the industry's success. These include 'bottom-up' development of industry plans and directions, taking into account Australian conditions for viticulture, rather than trying to mimic overseas styles. The production of a consumer product, rather than an intermediate good, had also allowed the industry to define its directions more easily. Other members commented on the industry's willingness to share pre-competitive research outcomes and technology, and the concentration of R&D in a strong cluster in Adelaide. The rapid communication of ideas which were not successful has also been as important as the rapid adoption of successes.
Other factors include the high and growing international reputation of the industry and the impetus its spread is having on the regeneration of rural communities. Its low water usage, and its 'clean green' image are also important. Finally, Australia's brand recognition overseas is high, and is an important part of the industry's international competitiveness and success.
Professor Vicki Sara spoke of the contribution of a science literate society to the success of a knowledge based economy. She noted the ability of such a society to engage in informed debate and public policy issues and contribute to good national decisions.
Mr Robyn Williams of the ABC Science Unit spoke of the pervasiveness of science and the two forms in which it is usually expressed - one for the expert and one for the everyday living and fulfilment. He noted that the Sydney 2000 Olympics will succeed or otherwise on the strength of scientific training techniques, drug testing, expert time keeping and the science which underpins the instant, world wide media coverage. He added comments on the technological advances in cricket broadcasting. He displayed the Sydney 2000 Olympic Torch as a symbol of national sporting achievement and aspiration which owes much to Australian science. He explained its design principles, and the roles of science and technology in its design and precision manufacturing.
Mr Les Hosking of the Sydney Futures Exchange spoke on the critical importance of Australia's capital market to the performance of the economy. He noted those markets' growth and development is dependent upon science and technology, and that the viability of science and technology, in turn, is critically dependant on the health of capital markets.
Mr Julian Cribb of CSIRO's National Awareness Program explained the factors central to a National Science Awareness Strategy, one targeting government, industry, the media and community as well as the education sector.
In opening discussion the Prime Minister spoke of the new Prime Minister's Prize for Science and of the two Minister's Prizes for Achievement in Science that would provide an encouragement to young scientists to continue to strive for excellence.
Members spoke of the need for a well coordinated national approach to awareness, for Ministers and other leaders to become champions of science and for well-recognised Australians to take roles as science 'Ambassadors'.
Dr Bruce Cornell (Senior Vice-President and Chief Scientist AMBRI Pty Ltd) noted two major changes that will influence the way Australians work. First, is the change in the boundary between classical and quantum physics at the level of nanotechnology, and the second, the expanding linkages between nanotechnology and biology. The effect is breaking down traditional discipline barriers in the education system, as one of science's fundamental tools changes. As an example of the impact of the technology, by 2020 the relationship governing the amount of the information which can be placed on a chip will run into a barrier at the molecular scale. Governments are responding to these new frontiers. For example the USA has increased its levels of public investment in nanotechnology from $US116m in 1996-97 to $US500m in 1999-00.
Dr Cornell acknowledged the levels of government support for work in nanotechnology to date including through the CSIRO, with grants from the Industrial Research and Development Board and latterly from the Co-operative Research Centres program. Australian excellence had built on the considerable levels of intellectual property and its well-funded science base. He recognised Australia's excellent foundation in nanotechnology and gave examples such as the University of New South Wales' quantum computer initiative in conjunction with the USA Los Alamos National Laboratory. This work will break through the barriers on miniaturisation of transistor size and cost that will be encountered in 5-10 years time. He noted that quantum computing will radically alter the next generation of computer technology underpinning every sector of today's economy.
CSIROs work on carbon nanotubes was acknowledged as was that of Elast-EonTM on the tri-leafet heart valve. He noted that the technology used by Cochlear Ltd includes the nanoscale bio-material interface between the metal electrode implanted in the cochlea and the nerve endings it stimulates.
Australia is hampered in its development by a lack of infrastructure normally provided in the USA and Europe by major corporations. Such facilities provide a ‘toolbox' for smaller companies, allowing them to access equipment and skills.
In discussion members acknowledged Australia's strengths in biology could be enhanced should stronger links be made with physics through nanotechnology. They noted a need to identify ways both to stimulate entrepreneurship, and to develop an environment in which future developments in nanotechnology would add value to the Australian economy. Australia was confronted with a challenge in identifying the areas in which to focus.