Challenges for Australian Research and Innovation UTS Innovation Roundtable

1. Challenges for Australian Research and InnovationUTS Innovation Roundtable UTS Innovation Roundtable Sydney John H Howard, Roy Green, UTS 10 April 2019

2. What has been driving Australian Economic Growth in the Postwar Era? UTS Innovation Roundtable

3. All good and comforting …but there are big risks … • Low value creation from commodity production – and impacted by global trends • Very low levels of investment in research, development, innovation, particularly Engineering and Technology • Carry forward implications of de-funding the TAFE sector – ongoing skills shortages • Australian culture of complacency and isolationism – why change? • Plethora of business assistance programs creates a culture of entitlement and de-risking: “Where do I get my grant/subsidy?” • There are notable exceptions and successes of course • Inability of Commonwealth Government to develop a consistent and coherent innovation narrative – • Emergence of separate ”sector” narratives and structures - Agriculture (farming), Health, Mining, Defence. • Growth Centre Model not being allowed to develop • Differ from State narratives • Decline in Government support for R&D (Commonwealth and State) UTS Innovation Roundtable

4. Commonwealth Support for R&D peaked in 2011-12 $10.102b total $9.066b total UTS Innovation Roundtable

5. Five and half years, six Ministers • Ian McFarlane, Minister for Industry, 18 Sep 2013 to 23 Dec-14, Minister for Industry and Science, 23-Dec-14 to - 15-Sep-15, 726 days (2 years) • Christopher Pyne, Minister for Industry, Innovation and Science, 21-Sep-15 - 19-Jul-16, 302 days (0.8 years) • Greg Hunt, Minister for Industry, Innovation and Science, 19-Jul-16 - 24-Jan-17, 189 days (0.5 years) • Arthur Sinodinos, Minister for Industry, Innovation and Science, 24-Jan-17 - 20-Dec-17, 330 days (0.9 years) • Michaelia Cash, Minister for Jobs and Innovation, 20 December 2017 - 28 August 2018, 191 days (0.5 years) • Karen Andrews, Minister for Industry, Science and Technology, 28 Aug 2018 – 10 April 2019 Incumbent, 225 days (0.6 years) Responsibilities for tertiary education flip back and forward to Education Portfolios UTS Innovation Roundtable

6. Some bright spots • Universities starting to do “heavy lifting” in research – probably outstripping business expenditure • Most State/Territory Governments have strong innovation agendas • Emergence of innovation ecosystems around universities and research organisations • Universities leveraging assets to invest • Strong support form State Governments • Commonwealth City Deals • But there is an apparent mismatch between business requirements for research outputs and the production of research output UTS Innovation Roundtable

7. But is there a Mismatch of Research Priorities? Current business focus on research in ICT, Engineering, Technology, Health and Medical Sciences Good collaboration examples in Engineering Current university major expenditure focus on Medical and Health – lower focus on Engineering Source: ABS UTS Innovation Roundtable

8. Australia’s Research Output is Heavily Concentrated in Medical Research and Psychology Because this is where the money is? This will continue with support for the Medical Research Future Fund, as in 2019-20 budget How much will be commercialised – in Australia? Health and Medical Research Personnel tend to dominate the policy landscape – e.g.. ARC UTS Innovation Roundtable

9. And this Goes for Universities Research Output … Go8: 2009-2018 Health and Medical particularly concentrated in the Go8 UTS Innovation Roundtable

10. .. And the ATN Group: 2009-2018 … Stronger focus and growth in engineering, materials science in the ATN Group Note very strong focus and growth in engineering, materials science UTS Innovation Roundtable

11. … as well as the IRU Group: 2009-2018 … IRU Group also focused on Medical UTS Innovation Roundtable

12. … and to some extent in the Corporate Sector …Australia’s Small Number of Research Active Companies CSL, a Government Spinout, the most research active followed by miners and other pharma companies Global companies are research active in Australia UTS Innovation Roundtable

13. Multinationals do collaborate … particularly in Health Medical … UTS Innovation Roundtable

14. … but not so much in Engineering, Technology, Maths … UTS Innovation Roundtable

15. … and even less in Agriculture and Environment … UTS Innovation Roundtable

16. … and Mining – including China UTS Innovation Roundtable

17. So where to now? UTS Innovation Roundtable

18. How to get more effective engagement • Build foundation for trust and ongoing relationships • Who should they be? University Staff? Consultants? Businesses? • What is the role of intermediaries, brokers, consultants? • Establish principles for effective transactional relationships – • Codes of conduct • Best Practice • Develop protocols for meaningful memoranda of understanding • Enter into Affiliation Agreements that are meaningful and flexible • Establish principles and protocols for alliances and joint ventures in teaching and research – e.g. • research institutes and centres • Establish principles and protocols for long term research partnerships • Multi party • Develop contemporary guidelines for university involvement in corporate vehicles to undertake and commercialise research, teaching, outreach • Address controlling and non-controlling equity in companies • Broader adoption of the CRC model (outside the CRC Program) – e,g Northern Australia CRC • Professional development strategies for Chairs/CEOs/Research Directors Research Centres, Institutes • Think about new/evolving university models • All (39) Australian public universities look alike (unified national system) – suboptimal • But they do differ – UNSW, Macquarie, (Engineering), Usyd, Newcastle (Clinical, Oncology) • Encourage development of more diverse system – as in Europe and particularly Germany – eg. • Research intensive universities – Go8 and IRU well positioned • Technology Stream - ATNs + Swinburne going down this track • TAFE already positioned as “industry facing” – offering Assoc. Degrees • Rural and Regional Universities – special focus on environment, • agriculture and regional development • Integrate Universities and TAFE/VET into State “Tertiary Education Systems” (as in the US) UTS Innovation Roundtable