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The Chance to Change,

a discussion paper by the Chief Scientist, Dr Robin Batterham

Australian Geoscience Council Response 

Summary

Highest priorities: The Australian Geoscience Council welcomes The Chance to Change discussion paper, agrees that there is an urgent need to revitalise the science capability of Australia, and strongly supports the main recommendations. In particular, we attach high priority to:

bulletExpanding the CRC program to encourage greater access to small and medium enterprise;
bulletSignificantly increasing the funding for the Australian Research Council’s competitive grants and related infrastructure activities;

·        Increasing the number of Australian Postdoctoral Fellows, particularly those linked to industry;

bulletCreating new major research-facilities in conjunction with state/territory, university and commercial interests; and
bulletIncluding geoscience among the 200 HECS scholarships for students undertaking combined science/education qualifications and the 300 scholarships for students of a straight science-degree.

Main concerns Apart from the specific recommendations we would like to highlight three major issues that urgently require attention. The first is the need for a cultural change in Australian attitudes towards science, engineering and technology, their standing in society, and towards research generally. This is particularly important for the geosciences where the need for a better-informed community is central to this cultural change. In spite of the fact that the geosciences are identified with the ‘old resource economy’ they make essential contributions to our exports. In 1999/2000, for example, mineral export earnings rose by $5 billion to nearly $44 billion. The overall health and effectiveness of this industry is in no small measure due to the application of advanced high technologies during the exploration, extraction and processing stages for most commodities.

The resource industries have been the backbone of the Australian economy for over a hundred years and should continue to make a substantial contribution. We will still need a geoscience sector that is strong across many sectors of science achievement to maintain our place in the global economy.

Our second key issue is the need for a major overhaul in Earth Science education and teacher training. We believe that a sound Earth Science education is essential in Australian schools, not only to provide the feedstock for future geoscientists, to maintain our resource industries, but also to improve people’s ability to have informed opinions on a range of scientific, environmental and social issues.

Our third main concern is that, although the paper emphasises the university sector of Australian science, in this country, geoscience capability is spread across universities, industry, CSIRO, and the State and National Geological Surveys. We assume that the emphasis on the universities in the report is due to the fact that they are probably more in need of attention than other parts of the SET environment in Australia. However, we feel that a more balanced approach could have been achieved by increasing the emphasis on industry and government research institutions in the report.

Introduction

About the AGC. The Australian Geoscience Council (AGC) represents approximately 10 000 geoscientists, embracing professionals who work in a diverse range of fields, such as earth resource exploration and use, environmental monitoring and repair, geohazards, geotechnical investigation, groundwater monitoring and geohydrology, secondary and tertiary teaching, public-sector research and academia. Our eight member societies have a common goal of supporting geoscience in Australia.

Key beliefs. Investment in science and technology is the key to Australia’s success on the global scene and to a sustained high quality of life for Australians. If sound strategies are not put in place now, the long-term wealth of the nation will be jeopardised. It is time to act and The Chance to Change offers an excellent blueprint for action.

Role of Geoscience. Geoscience has made major contributions to the national wealth in the last fifty years, particularly through the resource industry. Industries in mineral products and energy commodities rely on pure and applied research in geoscience. Collectively, these industries provide over 50% of Australia’s commodity export-earnings. These resource industries have performed well lately, due to technical advances made in exploration, extraction and processing of mineral and petroleum resources.

It is vital that these advances continue so that Australia does not lose its competitive edge. A strong geoscience sector within Australian science is essential to maintain and enhance our nation’s position in the global economy.

A second-tier contribution to exports comes from agriculture. The sustainability of land and water resources has emerged as a national concern. In this sector the geosciences have the capacity to contribute to dryland salinity control and the discovery of new water resources. It is vital that our agricultural industries are sustained.

In this context we would like to comment on the specific recommendations in the discussion paper.

Comments on Recommendations

Culture

Recommendation: Provide 200 HECS scholarships for students undertaking combined science/education qualifications and 300 for students of the enabling sciences – maths/physics/chemistry.

Comment: The AGC identifies this recommendation as a high priority. Science and technology are ubiquitous in everyday life, especially geoscience, mathematics, physics and chemistry. Australia needs to ensure it has a well-educated, well-skilled workforce that appreciates the technological issues facing society.

The AGC recommends that geoscience be included in the HECS scholarships, within a ‘physical sciences’ classification rather than the ‘enabling sciences’ umbrella.

Similarly, a sound geoscience education is essential at school levels, not only to provide future geoscientists, to address salinity problems, future water needs and resource discovery, but also to assist all citizens, and especially community leaders, in developing informed opinions on a range of scientific, environmental and social issues. The importance of geoscience is recognised in New South Wales, where a new Earth and Environmental Science syllabus started in 2000.

The AGC recommends the nation-wide introduction of similar secondary school Earth Science syllabi.

Recommendation: Increase the number of Australian Postdoctoral Fellows – doubling would be appropriate

Comment: Better support is needed for the best newly trained researchers, particularly in applied research, which addresses the needs of society. Postdoctoral fellows are arguably at the most productive stage in their careers as far as research outputs are concerned. Consequently it is very important that sufficient avenues are available for high quality Australian Fellows.

The AGC recommends that an appropriate Postdoctoral fellowship scheme should provide for international experience, be competitively based over the whole S & T research sector, and closely linked with industry.

The link with industry is crucial because it ensures that the research is responsive to market pull. This point reinforces the recommendation under the Commercialisation heading of the discussion paper.

Recommendation: Redesign and expand R&D Start Graduate Scheme.

Comment: This recommendation would strengthen the links between universities and industry. The AGC agrees that partnerships between industry and the university research-community are essential to ensure efficient and appropriate investment of scarce research funds.

AGC recommends that the Scheme should be structured so that smaller, cutting-edge companies are encouraged to participate.

Ideas

Recommendation: Over five years, significantly increase funding for the Australian Research Council’s competitive grants and related infrastructure activities, consistent with the commitments already made for increased funding of health and medical research.

Comment: The ARC and the NHMRC are the main bodies in Australia for funding basic research. The government recently announced a doubling of the NHMRC budget over the next five years. We believe there are grounds for increasing funds to the ARC in a similar manner. If Australia wants to take part in cutting-edge research we must have equal footing with other nations, by offering attractive research facilities and salaries at the very least. Other countries have recognised this, and they have announced significant increases in the level of their public investment in research. Australia cannot hope to compete in the international arena, given that funding to the ARC has remained approximately constant in recent years, and the percentage of successful grants and the value of each grant has declined. The ARC is the key to a strong applied-research sector and it is essential to nurture the funding of basic research. There may be scope for redirect current funding, but the provision of new funding should remain a primary aim.

AGC identifies this as high priority recommendation for implementation.

Recommendation: Expand the funding for university research infrastructure (Research Infrastructure Block Grants)

Comment: AGC supports this recommendation, because research cannot be conducted effectively without adequate infrastructure. Cutbacks in recent years mean that current funding does not address basics such as standard depreciation of equipment, let alone finance new paths of research. A cursory inspection of our tertiary institutions reveals that buildings, equipment, libraries and databases, computing and communications systems, and administrative support are in urgent need of new investment.

AGC supports this recommendation and proposes that other research institutions such as AGSO, CSIRO, AIMS and the State/Territory Geological Surveys should be reviewed under the infrastructure umbrella.

Recommendation: Commonwealth fund 50% of the cost of creating new major research facilities on a competitive basis in conjunction with the States/territories, universities and commercial interests

Comment: The AGC regards this as a high priority. There is a real need for a national scheme to fund new major research-facilities. These facilities should not be restricted to single pieces of equipment or specialised laboratories.

AGC recommends that funding should also include collections and less-tangible facilities, such as information systems and databases, with the information available to researchers at universities and other research institutions for free or at a minimal charge. In geoscience there is an urgent need to develop a national online-facility for geoscience information. It would be possible to develop this as a major national facility by using the data sets and databases that are currently housed in AGSO, CSIRO, and the State and Territory Geological Surveys. These data sets are used to encourage mineral and petroleum exploration, improve land-management strategies and address land-degradation issues. We comment that some proposals for basic research will not be able to achieve 50% funding to match the proposed 50% from the Commonwealth; therefore, AGC recommends that the level of Commonwealth support should be up to 75 percent, which allows flexibility in the funding arrangements.

Recommendation: Libraries – develop a pilot scheme to test a national site licence concept between higher education institutions and publishers in an attempt to keep the price of journals down.

Comment: It is important that the cost of data and information be kept as low as possible so that it is readily available to anyone undertaking research. The price of journals and some important data sets (e.g., AGSO’s geophysical data sets) is prohibitive to all but the major research institutions and companies. Thus, this proposal to make information and research results more accessible is strongly supported.

 Commercialisation

 Recommendation: Expand the CRC program to encourage greater SME access and to facilitate stronger networks between the SET base and industry, nationally and internationally.

Comment: The connectivity between industry and public-sector research must be strong to maximise the benefits of national research efforts and to ensure that the research programs are market driven. The Commonwealth Government has a central role in nurturing partnerships between industry, universities and other public sector research organisations. The Cooperative Research Centre Program has been successful in contributing to this process.

CRCs provide an avenue for nationally-relevant strategic research between partners who may not work together normally. Furthermore, postgraduate students trained within the CRCs are often highly employable in the collaborative industries. Under the present guidelines only large well-resourced companies can afford the up-front costs to prepare bids and make lengthy financial commitments for the seven-year period of a CRC. Consequently, only those companies with strong, steady cash flows have the opportunity to tap into the significant government funding associated with a CRC. Small innovative companies are not usually in a position to make any bids let alone commit funds for the full seven years. Small and medium enterprises, particularly those in geoscience, are generally excluded from participating in a CRC.

According to CSIRO’s response to The Chance to Change ‘In Australia 64% of business enterprise R&D is performed in firms of less then 500 employees, with only 24% performed in firms with greater than 1000 employees. Thus, for the majority of Australian firms, longer term research is very difficult to carry out within the firm unless it expends considerably more than the industry average on R&D. In contrast, in the United States 54% of industrial R&D is carried out in firms with greater then 10 000 employees, with only 18% in firms of less than 500 employees. Thus, in the USA there is a large number of firms with the scale that enables them to carry out longer term research in-house.’

Australia is missing out on new applications from cutting-edge research because of this situation.

The AGC recommends that the guidelines for CRC applications be changed to reflect, not so much the total contribution from industry participants, but a percentage contribution that relates to size of the contributor’s business turnover.

Recommendation: Establish a small number of Innovation Centres to provide universities and government funded agencies with support in commercialising research.

Comment: Clearly, there is a need to demystify the process of commercialisation. The roles and functions of the Innovation Centres outlined in the discussion paper are to be commended. However, it is unclear how the centres will be managed and how they will be funded. The CSIRO and several universities have established marketing or business organisations, but these bodies have not been successful generally and some are in financial difficulty. A devil’s advocate would state that there is no need for another layer of bureaucracy. Thus, the AGC supports the principle behind the proposed Innovation Centres, but until a feasible model is developed we cannot assess this recommendation fully.

Recommendation: Establish a pre-seed capital fund for universities, Innovation Centres and government funded research agencies, such as CSIRO, RDC’s (Rural Research Development Corporations) and CRCs.

Comment: The AGC welcomes the proposal for a pre-seed capital fund and supports this recommendation. If this link in the R&D chain is successfully managed, the flow-on benefits should be enormous. By definition, ‘pre-seed’ funding occurs very early in commercialisation and is a high-risk area. The success of this recommendation relies heavily on creating an environment that is acceptable to the innovator.

We see the success of this recommendation relying heavily on the flow of high quality ideas and an environment where the innovator does not feel threatened by a range of lawyers, accountants and the like, which he/she may perceive to be taking over the ideas and inhibiting innovation.

Innovators must be free from feeling overwhelmed by a barrage of lawyers and accountants, and free from concerns that people with a low appreciation of scientific and technical issues are externally controlling their research.

AGC considers that pre-seed funding must be coupled with access to expertise in marketing, management, and company creation. Perhaps the Innovation Centres could supply this expertise.

Recommendation: Universities and government research agencies review opportunities for researchers to better share in the benefits of commercialisation with particular encouragement for the formation of start-up and spin-off companies.

Comment: Institutions generally own the intellectual property created by their employees. This practice should change so that innovators share in the financial rewards. Recognition for innovation should be given where it is deserved and financial reward is a part of this process. If Australia is to maximise the fruitfulness of scientific innovation, we need every appropriate driver in place. Financial reward, although not the only motivator, is a significant component. However, we must be careful how the rewards are to be distributed. Most scientific advances are made through teamwork and unless the distribution process is done properly it could lead to divisiveness within the organisation.

AGC Recommends that patents and other rights to innovation should be shared between the creative scientists and technicians, and the funding employer.

 

The Australian Geoscience Council Inc. © 1999 - 2003