Australian Innovation System Report 2012 Compendium of Program Updates


DEPARTMENT OF INDUSTRY, INNOVATION, SCIENCE, RESEARCH AND TERTIARY EDUCATION (DIISRTE)



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DEPARTMENT OF INDUSTRY, INNOVATION, SCIENCE, RESEARCH AND TERTIARY EDUCATION (DIISRTE)

Australian Space Research Program


The Australian Space Research Program (ASRP), announced in 2009, provides $40 million over four years through a competitive merit-based grants program to eligible consortia. The program is now fully committed with 14 projects funded under four rounds. It will conclude on 30 June 2013. The objective of the ASRP is to develop Australia’s niche space capabilities by supporting space-related research, innovation and skills in areas of national significance or excellence. The ASRP provides funding across two streams:

  • Stream A supports student projects and educational activities.

  • Stream B supports collaborative space research and innovation projects.

An interim evaluation of the program conducted in 2012, confirmed its value in bringing together the Australian space industry and research communities and providing an important mechanism to encourage collaboration.

Automotive Transformation Scheme


The $3 billion, 10-year, Automotive Transformation Scheme (ATS) encourages the competitive investment and innovation needed in the Australian automotive industry as it becomes economically and environmentally sustainable. The ATS provides assistance to participants for the production of motor vehicles and engines, and for investment in allowable research and development (R&D), and plant and equipment.

The ATS is focused on innovation, providing assistance payments of up to 50 percent of investment in allowable R&D, whilst investment in plant and equipment receives assistance payments of up to 15 percent. The ATS provides capped assistance for investment in R&D, plant and equipment, and production, as well as uncapped assistance for production. Capped assistance is set at $1.5 billion for Stage 1 (2011 to 2015) and $1 billion for Stage 2 (2016 to 2020). Uncapped assistance is provided for the production of vehicles from 2011 to 2017.


Business Online Services


In April 2007, the Council of Australian Governments (COAG) asked the Small Business Ministerial Council (SBMC) to develop a single, national way for businesses to register for an Australian Business Number and a business name (BN).

In April, 2008, the Council presented COAG with a business name for the concept.

In October 2008, COAG approved the council’s recommendation to set up the ABN BN Registration Project. The project is one of 27 COAG reform priorities aimed at helping businesses to be more productive and cut the cost of meeting government regulations.

Business Online Service (BOS) is part of the ABN BN Registration Project and will be released in several stages.

Business Online Service has two parts:


  • Australian Business Licence and Information Service (ABLIS), which will be a national service for businesses to help them find information such as business licences and supporting forms. Businesses will be able to find this information by using wizards and search functions, and

  • the Australian Business Account (ABA), which has been developed to help businesses manage their ongoing business interactions with all levels of government.

As of July 2012, the ABA has been released and the ABLIS will be released in the first quarter of 2012/13.

Business.gov.au


The Australian Government’s business website business.gov.au provides a portal for business information and tools to start, grow and close a business in Australia.

The website is a whole-of-government service that helps businesses to easily navigate all levels of government to find compliance information and government assistance.

business.gov.au (formerly Business Entry Point) was established in 1997 as part of the More Time for Business initiative.

 As at July 2012, business.gov.au has:



  • Averaged over 2 million visits and searches per month to all services; 20 million ABN searches a month and 35,000 planning tools downloaded a month.

  • Released Live Chat help service in conjunction with the Small Business Support Line.

  • Released the Advisor Finder service, helping businesses find their nearest government funded business advisor for expert one-on-one advice.

  • Added the new Emergency Management & Recovery topic which includes information about preparing for, taking action during and recovering from emergencies. The topic includes checklists and templates to assist businesses create their own Emergency Management Plan.

  • Released an iPad app version of the Emergency Management & Recovery Plan template.

  • Added a new Innovation topic which helps businesses become more competitive and adaptable.

Website for further information:

www.business.gov.au

Clean Technology Food and Foundries Investment Program


The Clean Technology Food and Foundries Investment Program is a $200 million competitive, merit-based grants program to support Australian food and foundry manufacturers to maintain competitiveness in a carbon constrained economy. This program will provide grants for investments in energy efficient capital equipment and low emission technologies, processes and products.

Website for further information:



www.ausindustry.gov.au/programs/CleanTechnology/CTFFIP/Pages/default.aspx

Clean Technology Innovation Program


The Clean Technology Innovation Program is a $200 million competitive, merit-based grants program to support applied research and development, proof of concept and early stage commercialisation activities that lead to the development of new clean technologies and associated services including low emission and energy efficient solutions, that reduce greenhouse gas emissions. The program is targeted at non tax exempt companies as well as wholly or majority owned Commonwealth or State Government bodies (i.e. electricity companies). It provides grants between $50,000 and $5 million on a co-investment basis of one dollar of government funding for each one dollar of the applicant’s investment. Applications involving collaboration with other partners (including international) are encouraged.

Website for further information:



www.ausindustry.gov.au/programs/CleanTechnology/CleanTechnologyInnovation/Pages/default.aspx

Clean Technology Investment Program


The Clean Technology Investment Program is an $800 million competitive, merit-based grants program to support Australian manufacturers to maintain competitiveness in a carbon constrained economy. This program will provide grants for investments in energy efficient capital equipment and low emission technologies, processes and products.

Website for further information:



www.ausindustry.gov.au/programs/CleanTechnology/CleanTechnologyInvestment/Pages/default.aspx

Clean Technology Program


The $1.2 billion Clean Technology Program is a central element of the Australian Government's Clean Energy Future plan announced in July 2011.

The $1.2 billion Clean Technology Program consists of three elements:



  • $800 million Clean Technology Investment Program;

  • $200 million Clean Technology Food and Foundries Investment Program; and

  • $200 million Clean Technology Innovation Program.

Website for further information:

www.cleanenergyfuture.gov.au

Clothing and Household Textile (Building Innovative Capability) scheme


The $112.5 million Clothing and Household Textile (Building Innovative Capability) scheme (BIC scheme) provides grants for innovative clothing and household textile activities. Grants are for research and development, including innovative product design activities, innovative process improvements, market research, and some industrial property rights expenditure. Grants are available on an entitlement basis and will fund up to 50 percent of the total eligible expenditure. This scheme concludes in 2016.

Website for further information: www.ausindustry.gov.au/programs/manufacturing/bic-scheme/Pages/default.aspx


Collaborative Research Networks (CRN) program


The Collaborative Research Networks (CRN) program is providing up to $81.1 million of assistance for 15 projects from mid 2011 until mid 2016.

The CRN program assists less research-intensive higher education institutions develop their research capacity and adapt to a research system driven more strongly by performance outcomes by teaming up with other institutions in areas of common interest.

The CRN program is one part of the suite of reforms to higher education and research. The CRN program complements these other reforms of the research block grants system, which include a greater emphasis on collaboration between institutions and the business and non-government research sectors.

Website for further information:



www.innovation.gov.au/Research/CollaborativeResearchNetworks/Pages/default.aspx

Commercialisation Australia


Commercialisation Australia is an important component of the Australian Government’s 10 year vision - Powering Ideas: an innovation agenda for the 21st century. It will receive $278 million over the five years to June 2014, with ongoing funding of $82 million per year thereafter.

Commercialisation Australia aims to build the capacity of, and opportunities for, Australia’s researchers, entrepreneurs and innovative firms to convert ideas into successful commercial ventures, enhancing Australia’s participation and competitiveness in the global economy and generating commercial returns from Australia’s significant investment in public sector research.

Commercialisation Australia consists of four components:


  • Skills and Knowledge offers grants of up to $50,000 to purchase expert advice and services. This component is most suited to people new to commercialisation - researchers, individuals and small companies - who know their IP has commercial potential, but who don’t know what to do next. Case Managers and Volunteer Business Mentors help participants identify what specialist advice they most need and where to access it. Participants in the Skills and Knowledge component can apply for other components of the program at any time. Applicants need to match the grant funding on an 80:20 basis, where the applicant contributes 20%.

  • Experienced Executives provides grants of up to $350,000 over two years (up to $175,000 per year) to engage an experienced Chief Executive Officer or other executive. This component is designed to give small innovative firms and people new to business the experienced management skills they need. Participants in the Experienced Executives component can apply for other components of the program at any time. Applicants need to match the grant funding on a 50:50 basis.

  • Proof of Concept grants from $50,000 up to $250,000 to assist with establishing the commercial viability of a new product, process or service. Applicants need to match the grant funding on a 50:50 basis.

  • Early Stage Commercialisation provides grants from $50,000 up to $2 million to undertake activities focused on bringing a new product, process or service to market. Applicants need to match the grant funding on a 50:50 basis.

Each successful applicant will be assigned a Case Manager to guide them through the commercialisation process and to facilitate access to experienced business mentors and other support.

Website for further information:



www.commercialisationaustralia.gov.au.

Cooperative Research Centres Impact Study


The department commissioned the Allen Consulting Group (ACG) to undertake a study on the economic, social and environmental impacts of the CRC program. The study quantified known impacts from 117 CRCs (or 62% of all CRCs). From a range of products, processes, technologies, and services it was estimated that almost
$14.5 billion of gross direct economic impacts have accrued as a result of CRC program. This includes $8.6 billion of impacts already materialised and a further
$5.9 billion of imminent impacts estimated to occur over the next five years.

Recognising that the direct economic impacts are likely to be spread throughout the economy in a number of different, complex and unexpected ways, the ACG estimated the broader, economy wide impacts of the CRC program by using the Monash Multi-Region Forecasting model (MMRF). The MMRF model is a computable general equilibrium model of the Australian economy and has been used in a wide range of policy studies, including the analysis of state tax reforms, the National Reform Agenda and the Garnaut Climate Change Review. This analysis accounts for interconnections and relationships that exist throughout the economy. The analysis identified the direct and indirect impacts of CRCs generated a net economic benefit of $7.5 billion that equates to a contribution of around 0.03 percentage points to Australia's GDP per annum (approximately $278 million per annum).

Importantly, these figures understate the total impact of the program as the model does not account for non-monetary benefits that have accrued from investment and innovation stemming from CRCs, which include:


  • environmental benefits (impacts on land, ecosystems, pollutants, plants, animals and biodiversity);

  • social benefits (health and wellbeing of individuals, creating networks, jobs, increased collaboration, training and innovation capacity); and

  • preparedness (climate and other hazards mitigation strategies and biosecurity; such as planning for hazard events that allow society and industry to consider mitigation and adaptation strategies to protect livelihood and avoid losses).

Other broad benefits also include the productivity and efficiencies gained from a better trained and educated workforce (4,400 postgraduate degrees have been awarded to CRC trained students); the increased scientific networks between researchers and end users, including international engagement; increased business diversity and job creation; the general wellbeing and health of the community and environment.

Senator Chris Evans released the impact study during National Science Week and the report is now available from the CRC program web site.

Website for further information:

www.crc.gov.au

Sample case studies of CRC:

1) Collaboration: CRC for High Integrity Pork:

Dr Brian Luxford from Rivalea (Australia’s largest pork production company) explains the value of the Pork CRC in the following quote taken from the earlier Pork CRC’s exit report

The CRC with its emphasis on collaboration has provided significant opportunities for interaction with both other producers and scientific groups. The benchmarking program established by the CRC is one example. This program provides a forum where producers can jointly seek solutions to improve productivity. The development of the base funding model has brought additional researchers utilizing Rivalea’s facilities. This has provided additional opportunities for exchange of ideas”.

Across its three programs, the Pork CRC has imminent impacts that accrue over $300 million to the value of the industry over the next 15 years.

2) Commercialisation and Training: The CRC for Rail Innovation:

The Rail CRC has developed a range of products, processes and services with imminent economic impacts. Some include the following:


  • the development of fatigue software which will reduce fatigue related injuries in the rail industry and improve driver performance. The impact is anticipated to begin occurring in 2014, with annual savings attributable to the CRC of
    $10.2 million; and

  • improving knowledge of best learning practice for drivers and developing new and effective delivery methods which will increase the speed of entry of new drivers to the workforce, improve safety, reduce training times and associated salary costs. This will be achieved through the use of simulators to accelerate driver training and improving route knowledge acquisition and promote the case for driver only operations with an emphasis on safety. The impact is anticipated to begin occurring in 2013, with annual savings attributable to the CRC of $35.6 million.

3) Preparedness/Social/Environment:

  • The CRC for National Plant Biosecurity undertakes research into agriculture pest surveillance and risk prevention to reduce the probability of entry of plant biosecurity threats to our environment and plant industries. The software, hardware, training, and education services developed by the CRC have a total estimated benefit of at least $26 million per year over 20 years.

  • The Bushfire CRC activities result in a reduction in the marginal cost of service delivery, reduction in loss of life, reduction in fire related injuries, improved community health, reduction of property losses and reduction of community anxiety.

Cooperative Research Centres program


Cooperative Research Centres (CRC) program is a long standing government initiative that supports end user driven partnerships between publicly funded researchers and end users to address clearly articulated, major challenges facing Australia, many of which are global challenges.

The CRC program also supports international collaboration. CRCs are encouraged to engage globally and much of the research undertaken by CRCs is world leading. In 2010-11, CRCs reported 431 collaborative alliances with 45 countries. CRC international collaborations are diverse and include: participation in CRCs as a contributing participant, joint research projects and commercialisation, access to research facilities and infrastructure, participation in international committees and advisory boards, workshops and training sessions, and study tours, student placements and exchanges.

The program supports the foundations of long term competiveness in a given sector through its contributions to driving innovation through applied research, capacity building (e.g. skills formation and workforce development) and other activities that transcend the needs of individual partners. Since the program commenced in 1991, 196 CRCs have been funded. The Australian Government has committed more than $3.5 billion in CRC program funding. Industries, universities, government, not for profits, and international organisations have committed a further $11.4 billion in cash and in kind contributions.

The Australian Government will provide more than $150 million to 37 CRCs in 2012 13.

Website for further information:

www.crc.gov.au

CRC Star Award 2012


Two Cooperative Research Centres (CRCs) received the 2012 CRC STAR Award for outstanding collaboration with small to medium enterprise:

  • HEARing CRC with Polaris Communications Pty Ltd to combat hearing loss; and

  • CRC for Infrastructure and Engineering Asset Management with Mainpac Pty Ltd to make businesses more sustainable.

The CRC STAR award recognises outstanding achievement in SME engagement by CRCs. The 2012 awards were presented by Australia’s Chief Scientist, Professor Ian Chubb AC, on behalf of Senator Chris Evans, Minister for Tertiary Education, Skill, Science and Research during the Australian Collaborative Innovation Awards Dinner in Adelaide on 16 May 2012.

Website for further information:



minister.innovation.gov.au/chrisevans/MediaReleases/Pages/AwardforoutstandingCRCcollaborationswithbusiness.aspx

Early Stage Venture Capital Limited Partnership Program


The Early Stage Venture Capital Limited Partnership (ESVCLP) program, commenced in 2007. The program aims to stimulate investment in Australia's early-stage venture capital sector by offering flow-through tax treatment and tax-exempt returns for both domestic and foreign investors in an ESVCLP fund. ESVCLPs are venture capital funds structured as limited partnerships that make equity investments to fund the growth of start-up and expanding Australian businesses with assets of up to $50 million. As at 30 June 2012, there were 11 registered ESVCLPs with $120 million in committed capital. Since inception of the program in 2007, $27 million has been invested by ESVCLPs in eligible Australian businesses, including $17.5 million in 16 businesses during 2011-12.

Website for further information:



www.ausindustry.gov.au/programs/venture-capital/esvclp/Pages/default.aspx

Focusing Australia’s Publicly Funded Research Review


During 2011 a taskforce undertook a review of Australia’s publicly-funded research system - the Focusing Australia’s Publicly Funded Research Review. The review addressed issues such as: the roles of publicly funded research agencies; the appropriateness of the current level and balance of public funding for different types of research; the utility of the current public funding arrangements including the role of the National Research Priorities in meeting national priorities and needs; the value of a long-term strategy to provide collaborative research infrastructure; and options to develop performance measures to evaluate publicly funded research programs.

The review made four major recommendations, all of which were accepted by government. These recommendations were:



  1. That an Australian Research Committee be established to develop, among other responsibilities, a national research investment plan to cover the full range of research activities, including human capital, infrastructure and collaborations.

  2. That the department consult with the research sector and other relevant stakeholders on changes to the existing National Research Priorities.

  3. That the department undertake a feasibility study on possible approaches for developing a rigorous, transparent, system-wide Australian research impact assessment mechanism, separate from Excellence in Research for Australia, to evaluate the wider benefits of publicly funded research.

  4. That consideration be given to initiatives to encourage, recognise and reward collaboration between universities and industry and other end users.

The Minister released outcomes of the review – Maximising the innovation dividend: review key findings and future directions – on 3 November 2011, and the review’s recommendations are now being implemented.

Website for further information:



www.innovation.gov.au/Research/Pages/FocusingAustraliasPubliclyFundedResearch.aspx

Green Car Innovation Fund


The $500 million Green Car Innovation Fund (GCIF), supported projects that enhanced the research, development and commercialisation of Australian technologies that significantly reduce fuel consumption and/or greenhouse gas emissions of passenger motor vehicles. Supported projects include: GM Holden’s new Cruze small car; Toyota Australia’s hybrid Camry and global engine line; an EcoBoost engine for Ford’s Falcon; Orbital Australia developing direct-injection technologies for the rapidly expanding Chinese market; and SMR Automotive Australia developing innovative, light-weight, vehicle mirrors. The GCIF was closed to new applicants on 27 January 2011.

IBM Research and Development Laboratory


On 14 October 2011 Senator the Hon Kim Carr, then Minister for Innovation, Industry, Science and Research, and the Premier of Victoria jointly launched the IBM Research and Development Laboratory located at the University of Melbourne. The Australian Government will provide $22 million over six years from 2010/2-11 toward the establishment of the Laboratory.

The Laboratory will undertake research and development in collaboration with the University of Melbourne, CSIRO, National ICT Australia and Australian industry aligned to our national research priorities. Research will focus on the key issues facing Australia, and current projects include: Bio Nano Sensors for Accelerated Drug Discovery; Victorian Information Network for Emergencies; Machine Learning for Characterisation of Geothermal Targets; and the SenseT – Tasmanian Sensor Network.

The laboratory is a new model for public/private collaboration on research which will foster innovation. The Government recognises the benefits that may be obtained by linking university and public sector research with a very significant technology and research-based global company that has the capacity to commercialise research outcomes. The Laboratory will enhance Australia’s ability to attract and retain key researchers and provide new opportunities for Australian PhD students to work in a commercially focused R&D organisation. The project is expected to attract 150 researchers over the six year period.

Industry Innovation Councils


Industry Innovation Councils (Councils) were formed to contribute to building a strong culture of innovation in Australian industry and perform a leadership role in transforming targeted industries.

The focus of Councils is innovation to improve productivity, competitiveness, skills and sustainability. They:



  • provide strategic advice on innovation priorities to the Minister,

  • champion innovation in industry; and

  • build connections and collaborate with other innovation initiatives and organisations.

Councils’ activities aligned with the Government’s aim ‘to make innovation a way of life’ as articulated in Powering Ideas: an Innovation Agenda for the 21st Century (p.1).

The terms of the Councils are as follows:



  • Pulp and Paper Industry Innovation Council concluded on 27 July 2011

  • Future Manufacturing Industry Innovation Council concluded on 30 June 2012

  • Textile, Clothing and Footwear Industry Innovation Council concluded on 30 June 2012

  • Steel Industry Innovation Council concludes on 30 December 2012

  • Automotive Industry Innovation Council concludes on 31 December 2012

  • Built Environment Industry Innovation Council concludes on 31 December 2012

  • Space Industry Innovation Council concludes on 31 December 2012

  • Information Technology Industry Innovation Council concludes on 30 June 2013

For further information on the Industry Innovation Councils go to:

www.innovation.gov.au/industryinnovationcouncils

Innovation Investment Follow-on Fund


The Australian Government’s Innovation Investment Follow-on Fund (IIFF) is a temporary, targeted and timely response to the lack of venture capital available to high potential innovative companies during the global financial crisis. The program was implemented in August 2009 and will run for three years. To 30 June 2012, $59.3 million (of total program funding of $64.4 million) had been paid to fund managers for follow-on investment in these companies.

Website for further information:



www.ausindustry.gov.au/programs/venture-capital/iiff/Pages/default.aspx

Innovation Investment Fund


The Innovation Investment Fund (IIF) commenced in 1997. It is a venture capital co-investment program that aims to develop fund managers, encourage the growth of new companies that are commercialising R&D, create a medium term self sustaining funding pool, and develop a self sustaining early-stage venture capital industry in Australia. The program supports fund managers to invest in early-stage companies commercialising Australian R&D. It involves co-investment of government and private sector capital. Of the 16 licensed funds under IIF, only seven have the capacity to make new and follow on investments, as the other nine have come to the end of their investment period. The IIF funds support the development of early-stage companies in a variety of sectors, including biotechnology, internet, information technology and telecommunications, industrial/energy and medical.

On 7 December 2011, the Australian Government announced the fourth funding tranche of the IIF, Round 3. Under this tranche the Commonwealth would match up to $100 million of private investment in venture fund managers. This would result in $200 million of venture capital being available for early-stage investments.

Website for Further information:

www.ausindustry.gov.au/programs/venture-capital/iif/Pages/default.aspx

Joint Research Engagement Grant – Engineering Cadetships


Prime Minister Julia Gillard and then Minister for Innovation, Industry, Science and Research Senator Kim Carr announced the Joint Research Engagement – Engineering Cadetships on 9 December 2011.

The JRE Grant – Engineering Cadetships will enable participating higher education institutions to support the research training costs associated with higher degree by research students undertaking a cadetship in areas of engineering or science. Cadetships will involve a combination of formal research training (research doctorate or research masters) with the institution and concurrent employment by a business to carry out R&D activities. The initiative will take advantage of the R&D Tax Incentive to encourage companies to build innovative capacity within their workforces with firms that engage cadets able to claim eligible expenditure under the R&D Tax Incentive.

Participating institutions will receive an additional $5,000 per student annually to supplement the research training costs for each domestic student participating in the program. This funding will enable the institution to customise the student’s research training experience to enhance their career prospects as well as to increase overall collaboration between universities and industry to strengthen R&D outcomes.

The initiative is a new element within the existing JRE scheme which encourages linkages between universities and end-users. The JRE Grant - Engineering Cadetship scheme will run from 2012 to 2015 with the Australian Government providing $12.75 million from within the JRE scheme over this period. Approximately 265 commencing engineering cadetships are expected to be delivered per year (about 1000 in total) at a cost of $5,000 per place.

Delivery of the initiative commenced in March 2012. Thirty-five of the 41 universities have participated in the 2012 allocations.

Websites for further information:



archive.innovation.gov.au/ministersarchive2011/carr/MediaReleases/Pages/249MILLIONFORUNIVERSITYBUSINESSRDPARTNERSHIPS.html

www.innovation.gov.au/Research/ResearchBlockGrants/Pages/JointResearchEngagement.aspx

Mission-based compacts


Powering Ideas, the government’s innovation agenda announced in the 2009-10 Budget, flagged the introduction of mission-based compacts with universities to facilitate the distribution of performance-based funds, align institutional activity with national priorities, and build research capacity and international competitiveness. Compacts outline the relationship between the Commonwealth and individual universities and provide a framework for jointly achieving the government’s reform agenda and institutions’ individual missions.

Universities, in consultation with government, articulated in the compacts their unique roles in Australia’s innovation system by aligning institutional activity with national priorities. Compacts recognise the value of institutional autonomy, promote excellence, and support growth while facilitating greater specialisation within the sector and greater diversity of missions.

Discussions with universities during 2011 focused on individual institutions’ strategies to support government policy and progress the quality of research, research training and innovation.

Compacts were finalised with universities in late 2011 and cover the period 2011-13. Universities that are eligible to receive performance funding had their compact tabled in Parliament in accordance with subsection 30-25(4) of the Higher Education Support Act 2003 in February 2012. The compacts and a summary report of the compacts were published on the Innovation website.

Website for further information:

www.innovation.gov.au/Research/MissionBasedCompacts/Pages/default.aspx

New Air Combat Capability-Industry Support Program


DIISRTE administers elements of the New Air Combat Capability-Industry Support Program (NACC-ISP) on behalf of the Defence Materiel Organisation (DMO). NACC-ISP provides funding to Australian companies and research organisations to support the development of new or improved capabilities that may enhance their ability to win work in the production, sustainment and follow-on development phases of the Joint Strike Fighter (JSF) Program. The program, which opened to applications in August 2011, was allocated funding of $8.2 million over four years to 2014. Program funding and grant payments are managed by the DMO.

Website for further information:



www.enterpriseconnect.gov.au/who/defence/Pages/NewAirCombatCapabilityIndustrySupportProgram.aspx

Policy development on Australia’s use of satellites


The Australian Government released the Principles for a National Space Industry Policy on 26 September 2011. The Principles were developed to establish a framework for Australian space policy and space priorities. The Principles will guide the development of a comprehensive national space industry policy which will provide a clear understanding of what our interests and objectives are for space, and a mechanism to identify those interests and act in a coordinated manner to pursue them.

The Principles:



  1. Focus on space applications of national significance;

  2. Assure access to space capability;

  3. Strengthen and increase international cooperation;

  4. Contribute to a stable space environment;

  5. Improve domestic coordination;

  6. Support innovation, science and skills development; and

  7. Contribute to national security and economic well-being.

The Space Policy Unit is coordinating a whole-of-government project to develop the Principles for a National Space Industry Policy into a fully-fledged policy for strengthening Australia’s use of satellites. Australia’s Satellite Utilisation Policy will undergo consultation with key stakeholders before likely release in 2013.

Website for further information:



www.space.gov.au.

Pooled Development Funds Program


The Pooled Development Funds (PDF) was introduced in 1992. The program is designed to increase the supply of capital to growing Australian small and medium sized enterprises by providing PDFs and their shareholders with tax benefits on the income and capital gains derived from their equity investments. PDFs are venture capital funds structured as companies that make equity investments in start-up and expanding Australian businesses with assets of up to $50 million. The program closed to new applicants in June 2007 and has been replaced by the Early Stage Venture Capital Limited Partnerships program. As at 30 June 2012, 40 PDFs remained registered. Approximately $850 million has been invested by PDFs in eligible Australian businesses since the program began in 1992, including $2.1 million in 15 businesses during 2011-12.

Website for further information:



www.ausindustry.gov.au/programs/venture-capital/pdf/Pages/default.aspx

Pre-seed Fund


The Pre-Seed Fund (PSF) program was introduced in 2001 to increase the commercialisation of promising research opportunities within Australian universities, Cooperative Research Centres and Australian public sector research agencies. The Commonwealth committed $72.7 million to the program and in 2002 four managers were licensed. To 30 June 2012 $68.7 million of this had been drawn by the four managers with an additional $29.7 million of program money coming from private investors.

Website for further information:



www.ausindustry.gov.au/programs/venture-capital/psf/Pages/default.aspx

R&D Tax Incentive


The R&D Tax Incentive is a targeted, generous and easy to access entitlement program that helps businesses offset some of the costs of doing R&D. The Program aims to encourage businesses to conduct more R&D and it better targets activities that are likely to deliver wider benefits to the economy. It is a broad-based entitlement program. This means that it is open to firms of all sizes in all sectors who are conducting eligible R&D. It provides more generous rates of support for businesses, especially small and medium-sized firms, than the R&D Tax Concession that it replaced.

The two core components are:



  • a 45 percent refundable tax offset to eligible entities with an aggregated turnover of less than $20 million per annum

  • a non-refundable 40 percent tax offset to all other eligible entities.

Website for further information:

www.ausindustry.gov.au/programs/innovation-rd/RD-TaxIncentive/Pages/default.aspx

Sustainable Research Excellence


Sustainable Research Excellence (SRE) provides block grants on a calendar year basis to eligible higher education providers. SRE was announced in the 2009 Budget. Its objectives are to help address an identified shortfall in funding the indirect costs associated with receiving a competitive research grant (e.g. ARC or NHMRC) and will support universities to build and maintain research excellence. By 2013-14 SRE will provide ongoing, indexed funding of more than $334 million.

Access to 80 percent of SRE funding is conditional on universities participating in Excellence in Research for Australia (ERA) and in a costing exercise.



  • ERA is undertaken by the ARC and identifies areas of research excellence. Its use in SRE will ensure support of research excellence where ever it occurs.

  • The costing exercise (known as Transparent Costing) identifies differences in indirect costs of research at individual universities. Its use in SRE facilitates greater accountability for higher education providers’ use of public investment in research and helps their capacity to strategically manage resources to meet costs associated with research activities.

Website for further information:

www.innovation.gov.au/Research/ResearchBlockGrants/Pages/SustainableResearchExcellence.aspx

Textile, Clothing and Footwear Strategic Capability Program


The Textile, Clothing and Footwear Strategic Capability Program (TCF SCP) provides competitive, merit based grants to projects that support innovative capability in the TCF industries at the enterprise and workplace level. The TCF SCP will contribute one dollar for every dollar contributed. This program runs to June 2015.

Seventeen innovative industry projects have been supported under funding rounds one and two of the program.

Website for further information:

www.ausindustry.gov.au/programs/manufacturing/tcf-scp/Pages/default.aspx

Textile, Clothing and Footwear Small Business Program


The Textile, Clothing and Footwear Small Business Program (TCF SBP) provides grants to eligible TCF small businesses to improve their business enterprise culture. Competitive, merit-based grants up to $50,000 are available to eligible TCF small businesses that have fewer than 20 employees, have a minimum turnover of $100,000 and can provide a minimum cash contribution to the project of 25% of eligible expenditure. Funding of $2.5 million is available per year under the TCF SBP up to the end of the 2015-16 financial year.

Website for further information:



www.ausindustry.gov.au/programs/small-business/tcf-sbp/Pages/default.aspx

The Research Workforce Strategy


The Research Workforce Strategy was launched on 19 April 2011 and continues to provide a framework for the Government to meet Australia’s research workforce challenges. The strategy covers the decade to 2020, considering the key challenges and opportunities for Australia’s research workforce and mechanisms to address them.

The overarching objective of the strategy is to develop a strong and productive research workforce to support the Government’s reform agenda for innovation and higher education in Australia and contribute to the productivity gains which will ultimately underpin Australia’s future prosperity under an innovation economy. The implementation of the strategy over the next decade will involve collaboration between governments, universities and other research training providers and public and private researcher employers.

The current focus of work on the RWS includes: research training quality taking into consideration the submissions to a consultation paper released in 2011; a second examination of the full cost of research training in Australian universities; research career support including the development of a communication platform; and a number of funded projects.

Website for further information:



http://innovation.gov.au/Research/ResearchWorkforceIssues/

The Steel Transformation Plan


The Steel Transformation Plan (STP) is a $300 million program operating over six payment years from 2011–12 that aims to encourage investment, innovation and competitiveness in the Australian steel manufacturing industry in order to assist the industry to transform into an efficient and economically sustainable industry in a low carbon economy. This will be achieved in a way that improves environmental outcomes and promotes the development of workforce skills in the Australian steel manufacturing industry.

The STP contains two elements, the first is a $300 million entitlement (self-assessment) scheme (the Plan) that will operate over the five payment years from 2012-13. The second is the competitiveness assistance advance payments up to the value of $164 million in 2011-12. Entitlements under the Plan will be reduced by the value of any advance payments made.

It will provide support payments of up to 40 percent of investment in eligible innovation, whilst eligible investment will receive support payments of up to 25 percent. Eligible corporations under the STP are required to demonstrate progress towards achieving improved environmental outcomes and workforce skills development.

The STP targets large steel manufacturers of carbon steel from cold ferrous feed and manufacturers of integrated iron and steel that produced a minimum of 500,000 tonnes of crude carbon steel in the 2009-2010 financial year and the financial year preceding the application.

The Steel Transformation Plan 2012, the legislative instrument that contains the administrative details of the Steel Transformation Plan, came into operation on 1 May 2012.

Website for further information:



www.innovation.gov.au/Industry/CleanEnergyFuture/Pages/SteelTransformationPlan.aspx

Venture Capital Limited Partnership Program


The Venture Capital Limited Partnership (VCLP) program was introduced in 2002.The program is designed to increase foreign investment in the Australian venture capital market by offering flow-through tax treatment and an exemption from capital gains tax for eligible foreign investors in a VCLP fund. VCLPs are venture capital funds structured as limited partnerships that make equity investments to fund the growth of start-up and expanding Australian businesses with assets of up to $250 million. As at 30 June 2012 there were 43 registered VCLPs with $5.9 billion in committed capital, of which 30 percent represents capital invested by foreign investors. Since the inception of the program, $2.29 billion has been invested by VCLPs in eligible Australian businesses, including $313 million in 84 businesses during 2011-12.

Website for further information:



www.ausindustry.gov.au/programs/venture-capital/vclp/Pages/default.aspx

Workforce Innovation Program


(Discontinued from 1 July 2012)

The Workforce Innovation Program (WIP) has sought to promote a workforce development approach to address industry skill needs by focusing on the development of skills and management to create an innovation culture in Australian workplaces.

It has provided support for the development of ‘skills for environmental sustainability and contributed towards the strengthening of the training systems support for emerging technologies. With a strong focus on strong dissemination of project outcomes and tools to stakeholders, best practice workforce development approaches have been instilled into Australia’s training culture and systems.

An example of a recent achievement under WIP is a project which succeeded in driving business growth with interactive media.

The Interactive Skills Integration Scheme (ISIS) funded under WIP through DIISRTE and the Victorian Government’s Department of Business and Innovation sought to show the value of interactive media skills to different industry sectors such as mining, health and education. The project has realised some real commercial outcomes and to learn about the project and its outcomes, please go to the website.

Website for further information:



www.creativeinnovation.net.au/Features/Industry-transformation/Driving-business-growth-with-interactive-media-skills-.html

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