Government to invest $1.1bn in new innovation agenda

The federal government will invest $1.1 billion over four years to help place innovation at the heart of the Australian economy.

Prime Minister Malcolm Turnbull has laid out the plans in a new innovation statement. The government’s new National Innovation and Science Agenda aims to improve Australia’s poor standing on measures including business-research collaboration.

As part of the strategy, the government will invest to promote innovation and entrepreneurship, help overturn the risk-adverse nature of Australian entrepreneurs and support the teaching of science, maths and computing in schools.

Planned investments include a $200 million CSIRO Innovation Fund to support investments in spin-off and start-up companies based on research from the group.

On the education side, $127 million has been allocated for university research, $84 million to support the teaching of STEM subjects in schools and $13 million to help improve the participation of women and girls in STEM fields. In total, the agenda includes 20 initiatives.

To help encourage a culture of risk-taking and address what new Innovation Australia Chair Bill Ferris sees as a fear of failure that is hampering local innovation, the government plans to introduce incentives including tax offsets for early-stage investments and a reduction in the default bankruptcy period to just one year from three.

The Australian Parliament’s Trade and Investment Growth Committee has meanwhile launched an inquiry covering Australia’s future in research innovation. The committee will investigate how the research and innovation sector can better assist in tackling Australia’s geographic, economic and labour challenges.

“Research and innovation is central to Australia’s international competitiveness,” committee chair Ken O’Dowd MP said.

“The Chief Scientist, Professor Ian Chubb, recently described innovation as the core business of the entire country and suggested it should be pursued strategically and creatively through every part of public policy.”

Reactions to the government’s new initiative from Australia’s science and technology sectors have largely been positive.

Internet Australia CEO Laurie Patton welcomed what he termed as Malcolm Turnbull’s ambitious commitment to innovation.

“In his short time as our Prime Minister, Malcolm Turnbull has provided much needed encouragement to those of us who believe Australia can truly become a great innovation nation,” he said.

“Today’s Innovation Statement provides a comprehensive framework that will help our entrepreneurs now and in the future become world class. It confirms at the highest level of government the need for Australia to embrace an internet-driven digital future.”

But he cautioned against allowing the major political parties to turn innovation into a “politician’s toy” in the upcoming elections, noting that a bipartisan, collaborative approach is needed in this area.

Internet Australia has called for the establishment of a Digital Future Forum that would bring together the government and the opposition with organisations representing the science and technology sectors.

Australian Academy of Science Secretary for Science Policy Professor Les Field noted that the policy places science and innovation at the centre of Australia’s future.

“The academy is delighted that the government intends to strongly support strategic investment in Australia’s scientific research infrastructure. We also welcome the new Global Innovation Strategy which will enable Australian scientists and science to be a part of the excellent science and innovation being done around the world,” he said.

“For a long time Australia has lagged behind many other countries when it comes to commercialising ideas from universities and research organisations. With this agenda, the Turnbull Government has recognised that innovation is key to Australia’s future.”

Microsoft Australia has also welcomed the new policy. Managing Director Pip Marlow commented that the government’s Innovation Statement addresses many of the issues that the company has been advocating as being key for helping Australia embrace innovation.

“I am delighted to see this package of policies and reforms because a comprehensive suite of measures will be required if we are going to be able to compete with innovation leaders like the US, Israel, the UK and Singapore,” he said. “However, it will be important that all parties work together on ensuring that policies are improved and implemented, rather than thrown out over political differences.”

TechnologyOne founder Adrian Di Marco commented that while the initiatives announced by the government seem very positive on the surface, “it is important that the government takes a long-term view, and is committed long-term to these initiatives. What we don’t want is a change of heart, like what happened with the forestry industry years ago, which saw the industry implode and many investors hurt”.

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