Innovation Australia aims to promote the development, and improve the efficiency and international competitiveness of Australian industry by encouraging




НазваниеInnovation Australia aims to promote the development, and improve the efficiency and international competitiveness of Australian industry by encouraging
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ESTABLISHMENT

The ACIS Stage 2 Motor Vehicle Producer R&D Scheme (MVP R&D Scheme) was introduced on 24 June 2004 by the Australian Government to encourage Australian motor vehicle producers to invest in high-end R&D technologies. The MVP R&D Scheme was established under the legislative framework contained in the ACIS Administration Act 1999.


The MVP R&D Scheme is a part of the post-2005 assistance package for the Australian automotive industry and will provide funding for R&D from 2006 to 2010.


OBJECTIVES

Through the MVP R&D Scheme, the Australian Government aims to increase the level of R&D undertaken by motor vehicle producers in the Australian automotive industry.


SUPPORT PROVIDED TO CUSTOMERS

The MVP R&D Scheme is competitively based and offers up to $150 million in R&D assistance from 2006 to 2010. The MVP R&D Scheme is accessible to Australian motor vehicle producers and successful projects will receive 45 cents, in the form of duty credits, for each dollar spent on eligible R&D. Projects funded under the MVP R&D Scheme are expected to involve a diverse range of new and emerging technologies resulting in benefits such as vehicle weight reduction, fuel economy, emissions improvements, and improved vehicle safety.


OUTCOMES

Two application rounds were undertaken in 2005 and 2006 resulting in three Australian Motor Vehicle Producers (MVPs) being awarded funding for a total of 12 R&D projects. The total project value for the two rounds was $289 million, with committed Scheme funding of $141.7 million.


Assistance worth $55.5 million has been paid to 30 June 2010.


PROGRAM PERFORMANCE

During 2009-10, AusIndustry identified a significant underspend in the Scheme. Difficult economic conditions affected the expected outcomes of several projects. Approximately $50 million of approved funding will not be spent by the end of the Scheme on 31 December 2010.


The Minister signed the ACIS Stage 2 Motor Vehicle Producer Research and Development Scheme Variation 2009 (No. 1) on 11 December 2009 to bring $50 million back to the general ACIS funding pool for the MVPs, reducing the Scheme to $92.8 million.


On 4 November 2009, the Green Car Innovation Committee met to consider a project variation for Ford Motor Company of Australia Ltd’s Round 1 ‘State of the Art Engine Initiatives for the Ford Falcon and the Ford Territory Model Ranges’ project. The variation was recommended by the Green Car Innovation Committee and it was approved by the program delegate. The variation amended the agreed activities and increased the funding commitment for the project by 11.83 million duty credits back to the maximum approved funding of 27,977,797 duty credits.


GOVERNANCE

The MVP R&D Scheme is administered by AusIndustry. Innovation Australia through the Green Car Innovation Committee (GCIC) oversees residual projects of the MVP R&D Scheme. From time to time the GCIC acts as an independent expert panel to undertake technical assessments and rank R&D projects and provides recommendations to the Minister’s delegate, the Secretary of the Department of Innovation, Industry, Science and Research.


The policies and procedures to be followed by Innovation Australia are set out in Ministerial Directions issued under the Industry Research and Development Act 1986 in 2004.


The role of the GCIC is outlined in Section 3 – Corporate Governance.


COMMERCIAL READY PROGRAM


ESTABLISHMENT

The Commercial Ready program was announced on 6 May 2004 as part of the previous Australian Government's $5.3 billion Backing Australia’s Ability – Building Our Future through Science and Innovation package. The program combined elements of the previous R&D Start, Biotechnology Innovation Fund and the Innovation Access (Industry) programs. Commercial Ready was launched on 1 October 2004 as a competitive grants program aimed at providing small and medium sized businesses with funding to undertake research and development,

proof-of-concept and early-stage commercialisation activities.


The program was initially funded to provide approximately $200 million per year in grant funding until 2011. On 1 May 2007, the former Australian Government announced an additional $90.3 million to fund Commercial Ready Plus, a funding stream specifically intended to provide small grants, between $50,000 and $250,000, to Australian companies.


The program was closed to new applications as a result of the Australian Government's 2008 Federal Budget announcement. Existing contracts under the program continue to be monitored.


OBJECTIVES

The objectives of the Commercial Ready program were to:


  • support the international competitiveness of Australian industry by encouraging innovation through increasing the level of research and development (R&D), proof-of-concept and early stage commercialisation activities undertaken by Australian companies

  • generate national benefit for the Australian economy and wider community, including for example, through increasing productivity, supporting collaboration and developing Australia’s skills base.


Table 2.20 Australian Government budget and expenditure at 30 June 2010




2009-10

($m)

2010-11

($m)

2011-12

($m)

Budgeta

41.33

11.70

2.00

Commitments

0.00

8.88

0.20

Payments madea

28.28

0.00

0.00


a All commitments and payments for Commercial Ready, REDI, R&D Start are made against this allocation.


PROGRAM PERFORMANCE

Although the program is not open to new applications, all existing contracts continue to be honoured.


As at 30 June 2010, 47 customers continue to be managed under the Commercial Ready program.


OUTCOMES

Commercial Ready has provided financial assistance to support 524 projects across a wide range of industry sectors, worth a total of $495.36 million, since its commencement in 2004. Of these, 466 projects have been completed to date with 380 considered to be technically successful with results to be commercialised. One hundred and twenty seven projects were completed in the 2009-10 financial year. Seventy eight per cent of these projects were found to be technically successful and progressing towards commercialisation.


Fifty eight per cent of the 47 active projects as at 30 June 2010 are either on schedule or ahead of schedule in meeting contractual milestones. A further 36 per cent of projects are slightly behind schedule in meeting contractual milestones. Six per cent of projects are not meeting contractual milestones.


SUPPORT PROVIDED TO CUSTOMERS

Commercial Ready provided Australian companies with grant funding from $50,000, up to a maximum of $5 million to undertake research and development, proof-of-concept and commercialisation activities. Grant recipients were provided with up to 50 cents for each dollar they spent on eligible project activities.


Commercial Ready projects were funded for a maximum period of 3.5 years, while projects funded under Commercial Ready Plus could be funded for up to two years. Grant instalments were paid quarterly in advance after the receipt of satisfactory project progress reports, and on a six-monthly basis for Commercial Ready Plus projects.


GOVERNANCE

Ministerial Directions issued by the Minister under the Industry Research and Development Act 1986 provide the policy and procedures for administering the Commercial Ready program.




The Innovation Grants Committee has responsibility for monitoring and assessing requests for variations and other matters as required under grant agreements for the Commercial Ready program.


The role of the Innovation Grants Committee is outlined in Section 3 - Corporate Governance.


RENEWABLE ENERGY DEVELOPMENT INITIATIVE


ESTABLISHMENT

The Renewable Energy Development Initiative (REDI) was announced on 15 June 2004 as part of the previous Australian Government's white paper, Securing Australia’s Energy Future, in which it outlined its comprehensive approach to addressing the greenhouse gas challenges associated with the production and use of energy.


The $100 million program was established as a competitive merit based grants program to support the development of renewable energy technology products, processes or services that had strong early stage commercialisation and emission reduction potential.


The REDI program closed to new applications in May 2008. Existing contracts under the program will continue to be managed for the duration of their project contract. There are currently five active customers in the program.


OBJECTIVES

The objectives of the REDI program were to:


  • support the development of new renewable energy technology products, processes and services that have strong early stage commercialisation and emission reduction potential

  • support the international competitiveness of Australian industry by encouraging innovation through increasing the level of research and development (R&D) activities, proof-of-concept and/or early-stage commercialisation activities undertaken by Australian companies

  • generate national benefits for the Australian economy and wider community, including for example, through increasing productivity, supporting collaboration and developing Australia’s skills base.


In supporting such projects, the intention of the program was to reduce the environmental impact of energy demand, contribute to the international competitiveness of Australian businesses and generate national benefits for the Australian economy.


Table 2.21 Australian Government budget and expenditure at 30 June 2010

 

2009-10

($m)

2010–11

($m)

2011–12

($m)

Budgeta

0.00

0.00

0.00

Commitments

0.00

1.23

0.00

Payments made

4.61

0.00

0.00



a All commitments and payments for REDI are funded from within the Commercial Ready allocation.


OUTCOMES

Since the program’s commencement in 2004, REDI has provided financial assistance to 29 projects, worth a total of $65.83 million, to support the development of renewable energy technologies. To date, 19 of these projects have been completed with 63 per cent considered to have had successful outcomes.


AusIndustry continues to manage five customers in the REDI program.


SUPPORT PROVIDED TO CUSTOMERS

REDI provided competitive grants to eligible Australian companies to undertake new renewable energy projects involving R&D, proof-of-concept and early stage commercialisation activities. Financial grants ranging from $50,000 to $5 million were available to companies on a competitive basis, providing up to 50 cents for each dollar they spent on eligible project activities.


GOVERNANCE

Ministerial Directions issued by the Minister under the Industry Research and Development Act 1986 provide the policy and procedures for administering the REDI program. Innovation Australia's former Renewable Energy Committee provided technical assessments and advice to Innovation Australia in relation to REDI applications.


The Climate Ready Committee is responsible for monitoring ongoing project activity under the former REDI program.


The role of the Climate Ready Committee is outlined in Section 3 – Corporate Governance.

INDUSTRY COOPERATIVE INNOVATION PROGRAM


ESTABLISHMENT

The Industry Cooperative Innovation Program (ICIP) was announced on 8 October 2004 as a $25 million program (through to 2010-11) to support cooperative innovation projects.

OBJECTIVES

The ICIP program objectives are to:


  • encourage business to business cooperation on innovation projects within a sector that enhances productivity, growth and international competitiveness of Australian industries - the program will support projects aimed at meeting strategic industry needs, with a focus on those identified through an action agenda

  • generate national benefit for the Australian economy.


Table 2.22 Australian Government budget and expenditure at 30 June 2010

 

2009-10

($m)

2010-11

($m)

2011-12

($m)

Budget

4.21

1.50

0.00

Commitments

0.00

1.48

0.00

Payments made

3.76

0.00

0.00


PROGRAM PERFORMANCE

Over three rounds a total of 105 applications were considered, of which 44 were approved for funding of $22.34 million. Three applicants subsequently did not take up the offer.


There are currently 12 active customers remaining from Rounds 2 and 3. All Round 1 customers have completed their projects. During this financial year, two projects were managed to completion with the remaining 10 projects due to be completed by 30 June 2011.


The program assists industry to build its competitiveness by identifying, developing and adapting new technologies.


The program closes on 30 June 2011.

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