Catching the Wave: Can we make it

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Catching the Wave Can we make it?
80 of technology is less than 10 years old
80 of people acquired their education more than
10 years ago Ms Marie Donnelly, European Union

• Some thoughts and observations on Australias
  positioning as an innovation driven knowledge
  economy

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Its all about Engaging Industry in the
Translation of IP and RD into Products
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Current Trends for IP Commercialisation in
Australia

• Licensing of protected IP to existing companies
  is the most common form of research
  commercialisation and generates by far the most
  revenue.
• Success depends crucially on a strong absorptive
  capacity in industry.
• Australian industry, with its fragmentation,
  small size and low RD investment in general has
  a relatively poor capacity to absorb
  university-generated technology. For this reason,
  many linkages have to be established with
  overseas firms.

DEST Report Best Practice Processes for
University Research Commercialisation, 2002
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Science - Industry Linkages are Inseparable

• The nation that fosters an infrastructure of
  linkages among and between firms, universities
  and government gains competitive advantage
  through quicker information diffusion and product
  deployment
• ..The performance of an innovation system now
  depends on the intensity and effectiveness of
  the interactions between the main actors involved
  in the generation and diffusion of knowledge

DEST Report Best Practice Processes for
University Research Commercialisation, 2002
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Feeding the Pipeline Commercialisation Activity
for Universities (per US billion research
expenditure)
DEST National Survey of research
Commercialisation years 2001 and 2002. October
2004
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Australian University Commercialisation
Performance

• Do reasonably well in licensing and start-up
  activity.
• Poor record of novel patent performance - fewer
  United States patents issued.
• Question
• Is our ability to produce novel innovative
  discoveries a reflection of lower investment in
  RD and poor industry RD activity?

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Technology SMEs

• Innovations though RD recognised as vital to
  existence of a typical SME, but focused around
  design and development i.e. incremental
  improvements
• Expenditure on high risk speculative RD rare,
  unless considerable revenues to support.
• A strong patent portfolio not relevant to most
  technology SMEs (but c.f. biotech where IP
  vital).
• Dependence on federal and state grants to support
  RD activities.

Source SMEs in Australias High-Technology
Sector Challenges and Opportunities. Temperley
et al. CSIRO/AEEMA, 2004
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Increasing Technology Diffusion and Industry
Absorptive Capacity is the Key

• Facts
• Absorptive capacity identified as a key source of
  productivity growth.
• Firms found to be more frequently involved in
  external RD cooperation the more they spend on
  internal RD.
• What are we doing?
• Industry Action Agendas a step towards driving
  industry engagement.
• New AusIndustry Industry Cooperative Research
  Program about product realisation may enhance
  this further but is 23M enough?
• University-Industry Linkage Grants A mechanism
  but are they working?
• University academics attitude to industry
  engagement still a barrier

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European Countries The State of the Innovation
Play
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Why are some countries more successful than
others?

• Have ability to efficiently translate research
  into high tech. manufactured products/services
• Strong GDP underpins innovation.
• Ability to effectively facilitate technology
  diffusion.

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What does it all mean?

• Future economic drivers will be around technology
  sector convergence (life sciences and ICT).
• Globally this is where focus is RD, Investment,
  product realisation and markets.
• Australia weak electronics/ICT sector, emerging
  but small life science sector.
• Australia low generator of novel and leading
  edge IP.
• Australia short-termism driven by government
  policies of the day university-industry
  engagement weak Industry innovation policy
  fragmented low industry absorptive capacity
  poor translational ability for IP.
• EU studies show that successful countries have
• High GDP and high RD spend
• High level of BERD.
• Effective technology diffusion channels
• Excellence in manufacturing and services delivery

This is what Australia Requires