Text size
Default
Large

In The Loop - The Newsletter of the Australian Business Foundation

July 2010

Vol. 30

/content_images/253/gr_clint.jpgLess than one month from the Federal election, the Foundation is closely watching the party policy announcements to see what the future holds for Australian innovation policy under either a Gillard or Abbott Government.

Over the past few years, the Federal Government has allocated an additional $3.1 billion in innovation-related spending, the creation of Enterprise Connect, Commercialisation Australia and the introduction of the hotly debated R&D Tax Credit. This is welcomed but there is still much of the 10 year innovation agenda envisaged by the Cutler Review to be actioned.

Despite the enormous spending cuts in the UK, the Cameron/Clegg Government continues to invest in the UK’s newly established National Innovation Research Centre, which is pushing the next wave of innovation research, particularly at the level of the workplace and the firm.….Why?

 

Because despite the enormous fiscal challenges faced in the UK, this initiative is vital for the long term prosperity and productivity growth of the nation. A nation that can’t momentarily relax with the luxury of a resources boom.

Whatever the outcome of this election, the Foundation is firmly  committed to continuing to provide its evidence-based research to the next Government arguing for investment in boosting business innovation and productivity, and providing Australian enterprises with the skills and capabilities to transform themselves and compete in an uncertain and turbulent global economy.

Clint McGilvray
External Relations Manager
Australian Business Foundation

Business Innovation: What's on the horizon for the Gillard Government?

/content_images/537/New_Image.JPGLast week, the Foundation hosted Senator Kim Carr, Minister for Innovation, Industry, Science and Research to discuss the future of business innovation under a Gillard Government. This working lunch comprising a cross section of business leaders, policymakers and academics provided a unique opportunity to not only be a sounding board for the Minister, but to provide vital feedback on the past innovation policies of the Rudd/Gillard Government.

Over lunch, the Minister reaffirmed his desire to remain in his current portfolio if the Gillard Government is returned.

'Global Megatrends' – driving new connections between science and industry..

/content_images/540/Megan_Clark_thumb.jpgRecently, the Foundation hosted Dr Megan Clark, Chief Executive of CSIRO for a working lunch to hear and discuss the ‘global megatrends’ that CSIRO have identified through the analysis of over 100 trends by around 40 scientists and business development staff across CSIRO. These ‘mega trends’ generated by economic, social & environmental factors will shape the way we live, work and play in the future. The focus of the discussion at the lunch event was how each of these megatrends will impact on Australian businesses over the next 5 to 10 years.The five core ‘mega trends’ are:

More from less- A world of limited resources. The increased demand through economic and population growth and the need for resource use efficiency.

A personal touch – Personalisation of products and services. The growth of the services sector is being followed by a wave of innovation through tailoring and targeting services.

On the move – Urbanising and increasing mobility in jobs, homes, commuting to work and global travel. Our world is on the move.

Divergent demographics – Problems in OECD countries through ageing along with lifestyle and diet related health problems vs. poor countries facing food shortages and high fertility rates.

i World – Digital and Natural Convergence. Everything in the natural world will have a digital counterpart. Computing power is rising and more devices are being connected to the internet, with what effects

To read more on this topic: http://www.csiro.au/resources/Our-Future-World.html  

Dr Clark also addressed CSIRO’s current priorities and achievements and the fresh approaches being taken to engage with business, particularly smaller firms.

United States Studies Centre Research Program on Innovation

The United States Centre at the University of Sydney, with funding from the Merck Foundation, has embarked on a research program on innovation. This first phase has focused on two comparative research projects on the development of the biotechnology industry in San Diego and Australia. 

The Australian Business Foundation was asked to contribute to an expert working group to help the United States Studies Centre Research Program on Innovation scope and frame the next phase of their innovation research program. The following key points of commentary were made about forging successful industries from science and technology- based discoveries.

  • Partnering small start-ups with large established pharmaceutical companies by activating the social and professional networks of key individuals.

  • Forging social networks and partnerships based on co-location in a geographical area can be an antidote to remoteness from major markets or sources of finance.

  • Serendipity rules- co-location allows serendipitous opportunities to be resourced and acted on speedily between researchers and the business community. The importance of engaged communities of practice providing an eco-system of people, ideas and new funds.

  • Australia does not lend itself to geographical clustering in the medical services and biotech sector, despite its evident expertise and success stories. More accurately viewed as a distributed partnership model or virtual community of practice, not a geographical cluster.

  • Best strategy for Australian biotech industry suggested as helping small companies to grow into medium companies, rather than attracting or creating large flagship multinational enterprises.

  • Need for proof of concept facilities to help move from discovery to commercial reality. Less focused on undertaking new R&D and more on absorbing and using new knowledge.
For more information on the United States Studies Centre’s research program on innovation, contact its Director Professor Bruce McKern, who is also Professor of International Business at the University of Sydney and Visiting Fellow, Hoover Institution, Stanford University email: bruce.mckern@sydney.edu.au  

Regions, Cities and Clusters – the latest thinking from 5 European experts....

/content_images/543/JTomaney.jpgThe Australian Business Foundation had the pleasure of co-hosting with Monash University a visit to Australia by five leading European experts on new international models of regional and urban development. This delegation was led by Professor John Tomaney, Director for the Centre for Urban and Regional Development Studies, University of Newcastle, UK and visiting Professor at Monash University. 

Professor Tomaney is undertaking a research project for the Foundation on new global patterns of local and regional development and their relevance for Australia. In addition to Professor Tomaney, the other acclaimed European regional development specialists sharing their insights with practitioners and policy makers in Melbourne and Sydney on 10th and 11th June were: 

  • Professor Andres Rodriguez-Pose, London School of Economics

  • Dr Ronald Hall, Directorate- General for the Regional Policy, European Commission, Brussels

  • Andrew Lewis, Director, the Northern Way, Newcastle upon Tyne, UK

  • Professor Philip McCann, University of Groningen, Netherlands.
Among the more provocative ideas canvassed in these discussions were:
  • Outside big cities, more investment in R&D is wasteful; there are greater benefits for other regions and localities to invest in the absorption of knowledge, not its creation.

  • It is not the size of cities that counts, but their level of connectivity to knowledge and opportunities elsewhere.

  • Connectivity and mobility are key, not industry clusters per se.

  • In a contest between investing in hard infrastructure vs skills and capabilities, go for skills every time.

  • Regional policy should focus on identifying opportunities for growth, not dealing with decline. The challenge is to animate all actors (not just government) – use the capacity of all actors to capitalise on the strengths of particular places.
 To follow progress on these debates, keep in touch with the Foundation’s regional development research project with Professor John Tomaney and with another Foundation study on the Future of Australian Cities by George Bougias, Dr Anand Kulkarni and Tim Black. For more information, please contact Clint McGilvray at clint.mcgilvray@abfoundation.com.au

Calling all Case Studies….

Two of the current research projects being conducted by the Australian Business Foundation are seeking case examples from Australian enterprises to test out the realities of their investigations.  We need business case studies for:

 

Green Chrysalis: Innovation towards Australia’s New Economy, by Professor Stuart White and colleagues of UTS Institute for Sustainable Futures. 

Does your business have something to say about: how you are responding to the new problems and opportunities presented by a ‘green’, low-carbon economy and what innovative practices you are introducing as a result?  

Business Model Innovation and the Development of Australian Firms by Don Scott Kemmis of the Australian Centre for Innovation, University of Sydney.  

Have you changed your company by redefining you competitive advantage and opportunities for growth either in what you are offering to whom and/or how you profitably deliver that offering? 

If so, then Stuart White or Don Scott Kemmis need you. To volunteer as a potential case study company for either of these projects, please contact Clint McGilvray at clint.mcgilvray@abfoundation.com.au  

Warren Centre calling….

The Warren Centre for Advanced Engineering has put out a call to its friends to find its next Chief Operating Officer, as the well-known and highly regarded incumbent, Robert Mitchell departs in August for a new venture. http://sydney.edu.au/warrencentre/front_page.html

Our Sponsors...

The Australian Business Foundation is principally sponsored by its founder, the NSW Business Chamber, and supported by corporate members Deloitte Australia; IBM Australia; Standards Australia; Telstra; the Department of Innovation, Industry, Science and Research; the Department of Education, Employment and Workplace Relations; NSW Industry and Investment (NSW); and the Department of Innovation, Industry and Regional Development (Victoria).

The last word...

If you or your organisation is working on a product, service, research project or event that furthers new thinking on Australia's business competitiveness, innovative capacity and opportunities from a knowledge-based economy, please contact us and we will spread the word! If you have comments, questions, suggestions, please contact us:

Australian Business Foundation
Level 12, 83 Clarence Street
Sydney NSW 2000
Ph: (02) 9350 8102
Fax: (02) 9350 8199
clint.mcgilvray@abfoundation.com.au
www.abfoundation.com.au