Collaboration and Review of the crc program Working Group Terms of Reference




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appendix

List of Appendices

Review Terms of Reference

Collaboration and Review of the CRC Program Working Group Terms of Reference

Inter-governmental Working Group Terms of Reference

Tax and Review of the R&D Tax Concession Working Group Terms of Reference

Review process

Expert panel membership

International experts

Additional experts assisting the Panel

Collaboration and CRC Working Group

Inter-Governmental Working Group

Tax and Review of the R&D Tax Concession Working Group

Expert roundtables

Secretariat Staff

Submissions to the Review

Post Budget Submissions to the Review

List of Annexes

Annex 4

Annex 6

Annex 8

Annex 9

Annex 11

Annex 12

Annexes can be found on the website at
www/innovation.gov.au/innovationreview


Review 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's Report 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'.

In addition to the Panel, three Working Groups were set up to examine particular areas of interest. Each Working Group provided input to the Panel for consideration in the final report.

Collaboration and Review of the CRC Program Working Group Terms of Reference


Recognising the work already undertaken by the Productivity Commission in its report on Public Support for Science and Innovation the Working Group shall, within the context of the overall Review of the National Innovation System as a whole, provide input to the Review Panel by:

Considering the current status of collaboration between various actors in the National Innovation System (firms, universities, research agencies (public and private), Government Departments) propose ways to strengthen such collaboration, having regard to:

both domestic and international collaboration

the role of venture capital

the role of intermediaries




Considering options to improve industry access to and use of knowledge generated within universities, public sector research agencies, and organisations with substantial amounts of public funding, such as CRCs, including principles to govern the diffusion of publicly funded research.

Evaluating the scope for public and private research partnerships to support comparative advantage in particular industries.

Noting that the next CRC selection round has been suspended until the Government has considered the outcomes of the Review, assess the appropriateness, effectiveness and efficiency of the CRC Program within the spectrum of program options to support greater collaboration.

In addressing this, the Working Group will take account of the Government's stated intention of restoring public benefit as a key criterion for the establishment and operation of CRCs. In this context, the Working Group will assist the Review Panel by undertaking a comprehensive review that considers all aspects of the CRC Program. It will examine the overall strategic direction of CRCs, looking at the full range of issues, including governance and program design issues, the level and length of funding needed to support the program's objectives, as well as its overall scope and effectiveness.


Inter-governmental Working Group Terms of Reference


In the context of the Review of the National Innovation System, the Working Group will act as a central point of liaison between the Commonwealth, State and Territory Governments, and representatives of local government, and respond to requests from the expert Panel conducting the Review.

The Working Group will also:

Identify and assess the complex mix of current and proposed State, Territory and Commonwealth innovation support and assistance programs against agreed national innovation priorities

Map these programs against the priorities and identify the extent to which these priorities are appropriately covered

Examine the scope for simplifying support for business innovation and reducing duplication, so that it is easier for business to identify and access relevant programs

Provide advice on a framework to ensure ongoing complementarity between State, Territory and Commonwealth programs; and

Identify metrics and means of improving data collection and the ongoing measurement, evaluation and optimisation of outcomes.

Tax and Review of the R&D Tax Concession Working Group Terms of Reference


The Review of the National Innovation System will specifically consider the role of the research and development tax concession scheme in promoting innovation. The Productivity Commission report on Public Support for Science and Innovation provides a solid foundation for the Working Group to evaluate the appropriateness, efficiency and effectiveness of the current scheme and, where appropriate, provide advice on the following design principles:

That the tax concession be designed to encourage sustained growth in R&D activity in Australia and facilitate higher R&D intensity, which may generate greater spillovers.

That the concession encourage international linkages and provide an incentive for multinational companies to undertake R&D in Australia.

That the concession encourage collaboration by the business sector with universities and research agencies.




The Working Group will:

examine the appropriateness of the current definition of research and development used for the tax concession;

review the Tax Offset arrangements for small companies with a view to removing the perverse incentives resulting from the current eligibility threshold for R&D expenditure, while minimising the potential for abuse; and

Examine other aspects of tax impacting on the concession.

The Working Group will also evaluate the efficiency, effectiveness and appropriateness of other tax instruments and measures for supporting innovation, including the Early Stage Venture Capital Limited Partnerships.

The evaluation of options should consider the impact of any changes on the growth of innovative firms, inwards investment and exports.

Review process


The Review commenced 22 January 2008 with the public announcement by the Minister for Innovation, Industry, Science and Research, the Hon Senator Kim Carr. An eleven-member Panel was established headed by Dr Terry Cutler. Four international experts were also nominated.

A Secretariat was set up to support the Panel and included staff from within the Department of Innovation, Industry, Science and Research as well as from outside bodies including the CSIRO, the University of Queensland and Queensland University of Technology.

The review held a series of consultations in each state and territory in the first half of March with over 1300 people attending.

The Expert Panel met 12 times between 5 February and 22 August 2008,
including a two-day Innovation meeting 12-13 June 2008. A website at
www.innovation.gov.au/innovationreview provided regular updates on the activities of the Panel.


Expert panel membership


Dr Terry Cutler (Chair)

Principal of Cutler & Company

Dr Nicholas Gruen

CEO of Lateral Economics

Professor Mary O'Kane

Executive Chairman of Mary O’Kane & Associates Pty Ltd

Professor Steve Dowrick

Professor, School of Economics, the Australian National University

Ms Narelle Kennedy

Chief Executive of the Australian Business Foundation

Professor Glyn Davis AC

Vice-Chancellor and Principal of the University of Melbourne

Ms Catherine Livingstone AO

Director – Future Directions International

- Macquarie Group Ltd

- WorleyParsons Ltd

- Telstra Corporation Ltd

- Macquarie Graduate School of Management Pty Ltd

Dr Megan Clark

Vice President, HSEC & Sustainability, BHP Billiton

Professor John Foster

Head of the School of Economics, University of Queensland

Dr Jim Peacock AC (ex-officio)

Chief Scientist

Ms Patricia Kelly (ex-officio)

Deputy Secretary of the Department of Innovation, Industry, Science and Research


International experts


Professor Alan Hughes

Director of the Centre for Business Research (CBR) and Margaret Thatcher Professor of Enterprise Studies at the Judge Business School, and a Fellow of Sidney Sussex College, University of Cambridge

Professor Richard Lester

Founding director of the MIT Industrial Performance Center and a professor of nuclear science and engineering at MIT

Professor Stan Metcalfe

Professor of Political Economy and Cobden Lecturer, School of Economic Studies; Executive Director, the ESRC Centre for Research on Innovation and Competition; and Director, Policy Research in Engineering, Science and Technology at the University of Manchester

Professor Keith Smith

Chair of Innovation, University of Tasmania School of Management


Additional experts assisting the Panel


Nicholas M Donofrio

Executive Vice President, Innovation and Technology, IBM Corporation

Norman Augustine

Chair of the US National Academies

Professor Mark Dodgson

Director, Technology and Innovation Management Centre, UQ School of Business, University of Queensland


Collaboration and CRC Working Group


Professor Mary O'Kane (Chair)

Mary O'Kane and Associates Pty Ltd

Mr Marty Gauvin

Group Managing Director, Hostworks Ltd

Professor Thomas Healy AO

Particle Fluids Processing Centre Department of Chemical and Biomedical Engineering, University of Melbourne

Professor Warwick Anderson AM

CEO, National Health and Medical Research Council (NHMRC)

Dr Megan Clark

Vice President Technology, BHP Billiton


Inter-Governmental Working Group


Mr David Hanna (Chair)

Deputy Secretary, Strategy and Coordination, Department of Innovation, Industry and Regional Development

Mr Ian Cox (ACT)

Director, Business and Industry Development, Chief Minister's Department

Mr Todd Clewett (NSW)

Director of Innovation Strategies, Department of State and Regional Development

Ms Kerry Doyle (NSW)

Executive Director, Office of Science and Medical Research

Mr Richard Galton (NT)

Chief Executive, Department of Business, Regional and Economic Development

Mr Brian Anker (QLD)

Deputy Director General, Science and Technology

Department of Tourism, Regional Development and Industry

Ms Leigh Roach (QLD)

Executive Director, Science Policy and Commercialisation

Department of Tourism, Regional Development and Industry

Mr Craig Fowler (SA)

Deputy Chief Executive, Planning, Policy and Innovation

Department of Further Education, Employment, Science and Technology

Mr Len Piro (SA)

Executive Director, Manufacturing and Business Services

Mr Steven Jarman (TAS)

Acting Deputy Secretary, Business and Community Development. Department of Economic Development

Mr Colin Slattery (WA)

Acting Assistant Director General, State Development Strategies. Department of Industry and Resources

Mr Roy Chapman (WA)

General Manager, Innovation & Emerging Industries Dept of industry and Resources

Ms Patricia Kelly (Commonwealth)

Deputy Secretary, Department of Innovation, Industry, Science and Research








Tax and Review of the R&D Tax Concession Working Group


Dr Terry Cutler (Chair)

Principal of Cutler and Company

Dr Nicholas Gruen

CEO, Lateral Economics

Dr Laurie Hammond

Director, iQ Capital Management Pty Ltd

Dr Peter Burn

Associate Director, Australian Industry Group

Mr Graeme Davis

Manager, Finance and Strategy Unit, Business Tax Division, Department of the Treasury


Expert roundtables


In May and early June, nine one day expert roundtables were held to flesh out issues not fully understood either through submissions or other consultations. The expert roundtables were on the following topics: Human Capital and Workplace Innovation; Funding Models; Public Sector Innovation; Rural Innovation; Information Policy and Information Markets; Unique Challenges for Innovation in the Tropics; Government Procurement; Measuring Innovation and Setting Targets; and National Facilities and Collections.

The Panel thanks the following people who attended one or more of the expert roundtables.
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