Research and Development in Australia. Structure and Policy.
The Macroeconomic similarities shared by Australia and Italy provide a solid foundation for a positive bilateral relationship in Research and Development (R&D). While both nations boast world class universities and cutting edge research facilities, their national economies are characterized by an identical GDP per capita and by a private sector composed of mostly small and medium sized enterprises rather than large corporations.
Australian strength and commitment to applied research is evidenced by high university standards and the vast presence of Australian scientists in the world’s leading laboratories. Australia dedicates 1.6% of it’s GDP to R&D, a figure well above the OECD medium.
However, private sector funding falls below due to the lack of large companies.
While manufacturers contribute 10.75 % to the GDP, only 19% of companies are sufficiently ‘technological’ to benefit from investment in substantial R&D.
The Australian system is innovative, yet it lacks the capacity and drive to market it’s results for commercial ends. The 38 Universities together with the public research bodies (CSIRO, AAD, ANSTO) form the systems’ central pillar. The very nature of Australia explains this strong public component.
The geographic size, the length of the coastline, the wealth of primary resources and the unique and fragile bio-diversity and eco-system pose many challenges for the State and Federal Governments and in turn create scientific opportunity, discovery and progress.
See Table 1 for details on public and private funding for research and university formation.
Note: Private Funds also come from foreign sources, namely the USA.
Prior to 1990, Public Research bodies were fully and directly state financed. They have since been encouraged to seek funding from private sources. This trend developed and today private funds surpass public contributions by 8%. Even so the notable public investment in first level research is seemingly irrevocable by Governments, as it is widely considered not only a source of knowledge, but of national pride.
Much of the general research is carried out within the 38 universities and public research bodies are concerned with more specific projects.
The CSIRO (Commonwealth Scientific and Industrial Research Organisation) is Australia’s principal research body and with a staff of 6500 is one of the largest and most varied on the globe. In 2001-2002, the CSIRO Budget totalled more than 900 million, 615 of which was directly government funded. It is primarily concerned with ‘first level’ scientific research. Evidenced by its many publications (7200 between 1995-1999) and domestic and international networks, the CSIRO is also considered a significant player in private ventures, on both a collaborative and advisory basis.
The other major public research bodies are sector specific. The largest after CSIRO, is the Defence Science and Technology Organization that conducts only research in Defence. It has a staff of 2100 and an annual budget of approximately AUD$250m. Research in Geological and Mineral exploration is conducted by AGSO- Geo Science Australia.
Nuclear research by the Australian Nuclear Science and Technology Organisation and Marine research by the Australian Institute of Marine Science.
Table 2 shows that agricultural, veterinarian and environmental sciences receive 37% of public research spending. While Engineering totals 17.1% and Biology 10.6%. 43.9% of the private contribution goes to engineering and 30.9% to ITC (see below.) The disciplines were group listed in accordance with AQBS 2005.
Chemistry includes engineering aspects. Biology includes food sciences and the bio-technological industry. ITC involves information sciences, software development and communications. Engineering involves automatics, electronics, metal works and new materials.
It is interesting to compare spending to the previous year (2000-01). There was a sharp decline in spending in Jurisprudence (-41%) and ITC (-19.3%) and strong increases in Mathematics (+30%), Physics (+22%) and Chemistry (+21.8%).
In Private Spending there were notable increases for Engineering, Agriculture and Medicine (25%) and most significantly for Earth Sciences (+56%; due to equipment development).
The decline in Private Spending for Physics (-13%) was more than compensated by the above mentioned public funding. In other OECD nations the biological sciences and biotechnology received the greatest boost in funds (30%).
The Australian National Research Program.
Part of the public funding is dedicated to research activities within Universities, the amount depends on project accounts and student numbers, while the remaining funds sponsor research grants managed and deliberated by public bodies such as the Australian Research Council (ARC) and the National Health and Medical Research Centre. In May 2004, The Prime Minister John Howard launched the strategic research package, Backing Australia’s Ability 2 (BAA2) with a funding plan of $AUD 5.3 billion (3,2 billion euro) over 5 years from July 2006. The Governments intention is to continue the work commenced in 2001 with Backing Australia’s Future1. The original project received 3 billion from July 2001-June 2006 with the intention to stimulate applied research and to improve the national capacity to benefit from the commercialisation of results. The specific goals of BAA2 favour scientific innovation compatible with the growing and changing needs of the nation. As part of the package the ARC will oversee the National Competitive Grants Program worth $AUD 3 billion.
The Cooperative Research Centre will receive $AUD 1 billion for applied research. Since 1990, the Centre has acted as an umbrella to a network of applied research bodies whose focus is establishing ties between private industry and universities and other research bodies.
These projects demonstrate the ambition of creating greater opportunities in innovation. The CSIRO will receive $AUD 305 million (70% of its funding total) from the government package, while the NHMRC will receive $AUD 200 million for extended research in the health sector.
Furthermore, Private Companies that intend on innovating their processes and/or final products can take advantage of a tax break equal to 125% of their spending on research and development.