Review of the National Innovation System Fact Sheet 

KEY POINTS

• The Review of the National Innovation System was announced by Senator Carr on 22 January 2008 and was undertaken by an Expert Panel, chaired by Dr Terry Cutler.
• The establishment of the Review reflects the value the Australian Government places on a strong national innovation system and its determination to harness the economic and social benefits of innovation for all Australians.
• The Panel was charged with identifying gaps and weaknesses in the innovation system and developing proposals to address them.
• The Panel consulted nationally and endeavoured to provide a ‘Green Paper’ to the Australian Government by 31 July 2008. Due to the large number of submissions received (over 700), the Panel was granted a month's extension to complete the Review. The Green Paper was released for public comment on 9 September 2008.
• Three Working Groups were charged with specific issues to be fed into the Panel:
• an Inter-governmental Working Group, chaired by Mr David Hanna;
• the Collaboration and CRC Review, chaired by Professor Mary O’Kane; and
• the Tax and R&D Tax Concession Review, chaired by Dr Terry Cutler.
• The Panel of experts conducted stakeholder meetings across Australia in March 2008 with over 1000 participants attending.
• The Panel conducted nine workshops on specific issues throughout May and June 2008 with over 100 invited experts.
• To facilitate discussion and clarify the key issues for comment, the Panel released A Call for Submissions paper with a deadline for submissions of 30 April 2008.
• The Government considers that the future of our national research and innovation system and our higher education sector is closely linked as both are integral components of Australia's economy. The Government has taken a holistic approach in responding to the recommendations of the Review of the National Innovation System and the Bradley Review of Higher Education together in developing a 10 year vision for the sectors.
• A complete response to both reviews was made in the 12 May 2009 Budget and the Government’s innovation agenda Powering Ideas: an innovation agenda for the 21st century.

FACTS AND FIGURES

On 22 January 2008, the Minister for Innovation, Industry, Science and Research, Senator Kim Carr, announced a wide ranging review of Australia's national innovation system to be conducted by an expert panel chaired by Dr Terry Cutler.

The establishment of the review recognised the vital role innovation plays in boosting productivity and international competitiveness, and re-iterates the Government's commitment to fostering innovation across the economy.

The panel released a call for submissions paper that poses some key questions for consideration and comment as part of the submissions process. The deadline for submissions was 30 April 2008. Over 700 submissions were received.

Further information about the Review, and the submission process, can be found on the Review website at www.innovation.gov.au/innovationreview.

Expert Panel

International Advisers

The Panel was supported by a number of international experts on innovation policy. They were:

• Professor Alan Hughes, Director of the Centre for Business Research, University of Cambridge, and Margaret Thatcher Professor of Enterprise Studies at the Judge Business School, University of Cambridge.
• Professor Stan Metcalfe, Stanley Jevons Professor of Political Economy and Cobden Lecturer, School of Economic Studies, University of Manchester, and Executive Director, the ESRC Centre for Research on Innovation and Competition.
• Professor Richard K Lester, Founding Director of the Massachusetts Institute for Technology Industrial Performance Center.
• Professor Keith Smith, Australian Innovation Research Centre.

Terms of Reference

The Government is committed to building a strong national innovation system, in recognition of the vital role innovation plays in productivity and economic growth, and in meeting the challenges Australia faces.

In this context, the Government has appointed an expert panel to review the national innovation system and the coherence and effectiveness of existing Government support for innovation.

The Panel will identify gaps and weaknesses in the innovation system and develop proposals to address them. In particular, it will:

• Identify a set of principles to underpin the role and participation of the public sector in innovation.
• Develop a set of national innovation priorities to complement the national research priorities, ensuring the objectives of research programs and other innovation initiatives are complementary.
• Identify regulatory and other barriers to innovation and recommend ways to minimise these.
• Examine the scope for simplifying and reducing program duplication and ensuring that any support provided is well-targeted and easy to access.
• Consider the appropriateness, effectiveness and efficiency of the Research and Development (R&D) Tax Concession Scheme in promoting innovation and make recommendations to improve innovation outcomes.
• Consider ways to improve the governance of the national innovation system to support higher expectations of government agencies and industry.
• Assess the appropriateness, effectiveness and efficiency of the Cooperative Research Centres (CRC) Program and make recommendations to improve innovation outcomes.

In conducting the review the Panel is to have regard to relevant reports and studies, including the Productivity Commission'sReport on Public Support for Science and Innovation. The Panel is to consult nationally and provide a 'Green Paper' to the Government detailing policy options by 31 July 2008. The Green Paper will be released for public comment and used as the basis for the development of a Government 'White Paper'.