SIA  has read with great interest the Cutler Green Paper “Venturous Australia” and congratulates the Panel on producing a wide ranging report. Its response is as follows:

•    SIA is supportive of the report’s recommendations for changing the tax concession for R&D and the extension of this program to overseas corporations operating in Australia.

•    Whilst acknowledging that the report has called for greater collaboration between PFRAs and industry, SIA is disappointed that the report has not explored more comprehensive mechanisms to facilitate this, including examination of schemes trialled overseas. The proposed pilot linkage voucher scheme, though welcome, will not itself bring about the necessary cultural change in industry.

•    SIA is supportive of the proposals to review patent law and to enable a more cooperative procedure to develop for the use by Australian industry of the outcomes of PFRA research.

•    SIA supports the full funding of PFRA research and the raising of support for public sector research to the proportion of GDP allocated to it in the mid 1990s.

•    SIA is concerned by the report’s suggestion that research block funding to universities should be based on success in winning national competitive grants and on publications in highly ranked journals. It does not believe that this will adequately reward universities that foster active collaboration with the private sector. Research funds received from industry and level of innovative activity (as measured by the “Proof-of-Concept” metric previously described by the SIA) should be part of the distribution formula, especially in the sciences, applied sciences and engineering.

•     SIA is disappointed that the report has not specifically addressed the low number of STEM graduates presently produced. These graduates are at the heart of innovative developments in many areas of industry and Australia currently underproduces them on a per capita basis. A similar comment can be made about technicians with science and engineering backgrounds. The Science Industry’s growth is presently severely constrained by skills shortages.

•    Though alluded to frequently throughout the report, SIA is disappointed that a School for Instrumental Science (or similar) being established at least one of our leading higher education institutions is not one of the recommendations. It is precisely the lack of such a focused curriculum that leaves our Higher Education system mired in the 1980s in terms of curriculum offerings whilst the economy is demanding (and not getting) graduates with skills and learnings based on current technology and techniques.

•    SIA cautions that in identifying areas of national challenge for innovation, the report may encourage an overly narrow focus on R&D. It should be appreciated that making progress in the areas identified calls on complementary competencies, particularly those associated with scientific measurement.

29 September 2008