COVER STORY NICHE MANUFACTURING: Nanotechnology Thinks Big* Many regard nanotechnology – fabricating materials at a molecular level – as the next step-change in manufacturing. With the creation of the new Niche Manufacturing Flagship, CSIRO is taking an R&D lead. Seven stakeholders discuss the key role of R&D in manufacturing. Full Story Seven Stakeholders on the Key Role of R&D in Manufacturing* Steve Payne – Andrew Brawley – Tony Quick – Bruce Grey Peter Burn – Michael Turner – Fred Bradner. Full Story

Australian know-how is bringing big-time special effects into small-budget films.
Full Story
 

Production of a new class of magnesium components could soon be cost-effective.
Full Story
 

Physics has led to the development of an inexpensive medical diagnostic device.
Full Story
 

Molecular imaging technology is improving the success rate of drug development.
Full Story
 

Chevron is using Australian researchers’ expertise to lift industry performance.
Full Story
 

Blowfly maggots play a starring role in the remarkable story of an environmental clean-up technology.
Full Story
 

ENVIRONMENT: Cool Savings

Shade-cloth covers have cut water storage evaporation by a whopping 90 per cent.
Full Story
 

ENVIRONMENT: Water-Saving Cotton

The success of GM cotton has led the industry to target more ambitious gains.
Full Story
 

ENVIRONMENT: Research in Depth*

Analysis of corals in the Southern Ocean is throwing light on climate change.
Full Story
 

ENVIRONMENT: Monsoon Relation

Is there a common reason why rainfall has decreased in south-west Western Australia and
northern China?
Full Story
 

COMMUNICATIONS: Radio Lifeline

New technology enables two-way communication from deep underground.
Full Story
 

COMMUNICATIONS: Look, No Wires

CSIRO's wireless technologies research keeps pace with demand for greater speed.
Full Story
 

PATHS TO COMMERCIALISATION:
Current Opportunities*

Current investment opportunities from CSIRO’s technology and equity portfolio.
Full Story
 

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*National Research Flagships
The National Research Flagship program – one of the largest scientific initiatives ever mounted in Australia – is specifically designed to integrate and focus our national scientific resources on challenges of the utmost importance to Australia.The Flagships are large (100 or more) multidisciplinary research teams that focus the best of Australia’s scientific resources on the most critical challenges we face as a nation. These teams combine the best talent from CSIRO, universities and other research bodies, business and industry. The Australian Government has made this possible through the investment of an additional $305 million in CSIRO over seven years..

The past quarter-century has seen many decisive changes in the Australian economy, but a generally under-appreciated one is Australian businesses’ increasing emphasis on R&D. As a proportion of GDP, business expenditure on R&D quadrupled between 1981 and 2004–05. But over the same period, GDP more than doubled, so the real level of spending is more than eight times what it was at the start of the 1980s.

Also, business has more than tripled its share of the R&D funding of public-sector research agencies and universities. The manufacturing sector is by far the largest contributor to this expenditure (at more than 40 per cent).

Greater R&D engagement has been an important contributor to Australia’s strong economic performance. The increased emphasis on R&D through the 1980s and 1990s coincided with a resurgent manufacturing sector.

But this R&D spending has not secured competitive positions indefinitely. Fighting stoically in the face of pressures from a high Australian dollar and emerging economies such as China, the industry has increased manufactured export volumes and expanded domestic sales, while investing, outsourcing and partnering abroad to an extent not seen before.

R&D is bound to play a central and growing role as producers look for new opportunities. As is the case with other elements of business, manufacturers are increasingly looking at R&D from a global perspective – teaming with offshore R&D partners and providers. It means exporting R&D to their own offshore operations and to third parties, and investing in R&D undertaken offshore.

These developments present challenges for public and private-sector R&D providers. They will face greater levels of competition from those offshore, pressuring local providers to sharpen their R&D activities and their links with business. For policy makers, the challenge is to accommodate these greater global dimensions.

The Government initiative to allow the 175 per cent concession in respect of R&D undertaken in Australia is a step to meeting this challenge. Governments need to build on this direction, and look to further raise support levels for innovation in general and business R&D in particular.

Heather Ridout
Chief executive
Australian Industry Group

Last Updated: August 10, 2007
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