The review of Australia’s innovation system, led by CSIRO director Dr Terry Cutler, has been released about a month later than originally planned.

Releasing the report, ‘venturousaustralia – building strength in innovation’, Innovation Minister Kim Carr said the architecture of the current innovation system was a generation old and it was time for “a root-and-branch rethink”.

“The review provides an honest appraisal of Australia’s innovation effort and concludes that while our global competitors have been increasing their innovation efforts, our performance has been falling.

“If we are serious about unlocking Australia’s innovating potential, we have to lift our games,” Senator Carr said.

Building on a total of 740 submissions, the report made 72 recommendations to boost the performance of business, universities, public sector research organisations and government.

The green paper was originally due on July 31, but the expert panel requested a one-month extension to process and analyse the wide range of materials.
 
Dr Cutler said the review addressed the urgent need to restructure Australia’s innovation system, which has long been stalling.

"Our understanding of innovation has changed and our approach to innovation and our innovation policies must change accordingly.

"Today, innovation is more than just research and development and technology…Having a competitive economy depends upon the capacity of businesses to embrace innovation and use it to capitalise on new markets and to satisfy changing customer demands," he said.

The Business Council of Australia (BCA) supported the report, saying increasing the competitiveness of Australian businesses in global markets was the key to achieve future economic and social growth.

“Policies should be aimed at encouraging innovation by business and also the public sector that is highly responsive to consumer demand and to national priorities. We support the recognition given to this objective in the framing of the report,” BCA chief executive Katie Lahey said.

Ms Lahey also welcomed the recommendations for the establishment of the National Innovation Council and lifting the level of research and development (R&D) via domestic and international collaboration.

“About 98 per cent of new knowledge is developed overseas. As a result, we need a strong and effective innovation system that is international in its focus.

“We would, however, like to see a greater emphasis placed on promoting collaborative structures and partnerships as the most effective way to realise economic and social benefits from research,” she said.

Key recommendations of the report include introducing a new Knowledge Connection Program, replacing the R&D tax concession with a tax credit of up to 50 per cent for firms with a turnover under $50 million, increasing funding for university research activities and recognising the important role for government to facilitate innovation through its procurement practices.

Dr Cutler said: "The challenge for Australia is to take stock and seize the opportunity to rejuvenate and reinvigorate our innovation system – if we do not, we risk a decline in our national prosperity.

"Now is the time to embrace innovation and to create a national innovation system that is able to meet the challenges of the next decade.”

The white paper is scheduled to be released by the end of this year.