11 November 2014
Mr David Miles AM
CRC Programme Review
Department of Industry
GPO Box 9839
Canberra ACT 2601
Mr Bradley Smith
Research Strategy and
Special projects Manager
Division of Research and
Innovation
James Cook University
PO Box 6811, Cairns QLD
4870 AUSTRALIA
P +61 7 4232 1798
M: (0408) 511 261
Email: crc.review@industry.gov.au
Dear Mr Miles
James Cook University (JCU) welcomes the opportunity to provide some brief comments on the Co-operative
Research Centres (CRC) programme.
The University will be making a more detailed submission on the broader issues associated with CRCs and
other policies to support adoption of research that are raised in the consultation paper, Boosting The
Commercial Returns From Research.
The CRC program is an iconic feature of the Australian innovation ecology. Various comprehensive reviews
and analysis of the return on investment of the programme (e.g., Kane 2008, Allen Consulting 2012) have
found CRCs to be effective with net positive economic outcomes.
The Government, as have its predecessors through, for example, Backing Australia’s Ability (2001 & 2004)
and Powering Ideas (2009), wishes to improve the take up of publicly funded research by industry to drive
economic benefits. JCU recognises and endorses the need to effectively leverage publicly funded research to
drive innovations, preparedness and capacity-building to improve firm, sector and national competitiveness.
The University is a strong supporter of the CRC programme. It plays a relatively small but influential role in
the national innovation system through providing structures to enable end-user driven research and
development with partnerships drawn from industry and other research-users with universities, CSIRO and
other publicly funded research agencies.
These collaborations have, over the past 25 years, generated a wide range of direct and indirect economic,
environmental and social benefits.
JCU has hosted three CRCs (Reef, Rainforest and Sustainable Sugar); and is currently an essential participant
(partner) in the Lowitja Institute Aboriginal and Torres Strait Islander Health CRC and the Bushfire and
Natural Hazards CRC; and is a partner in the GrowNORTH R&D proposal for a prospective Northern Australia
CRC currently under consideration in the context of the Government’s Northern Australia White Paper
process. Until recently JCU was a partner in the Advanced Manufacturing CRC and will be a partner in its
Innovative Manufacturing successor.
JCU researchers have also worked on projects in a range of CRCs including the CRCs for Predictive Minerals
Discovery, CRC for Contamination Assessment and Remediation of the Environment (CAST), and the
Aquaculture, Biosecurity, Coastal Zone and Tropical Savannah CRCs.
As has been well documented, there are many stages and challenges in commercialising research and
successive Commonwealth Governments , and indeed Governments around the world, have embraced a
range of programmes and interventions including tax incentives, direct R&D grants, incubators, venture
capital, proof-of-concept funding, knowledge brokers and vehicles for collaborations between public sector
R&D and industry. The Australian Research Council’s Linkage Program most recently includes the Industrial
Transformation Research Hubs and Training Centres schemes, which share broader-scale industry
collaborative elements with the CRC programme.
No one programme can cover off all of these dimensions. Accordingly, consideration of the CRC programme
must be viewed in the context of it being one element in a portfolio of policy measures.
JCU suggests then that the question is less: Is the CRC programme the right vehicle for achieving the
Government’s priorities for applied science and research? (ToR A) But should be more focused on whether
CRCs occupy a distinctive and valuable niche that complements other activities and programmes to support
the Government’s priorities?
In the 2014/5 budget, CRCs comprised 1.6% of the Commonwealth Government’s total outlay on science,
research and innovation; less than half of the investment in the rural R&D corporations programme and, less
than half its own share of 3.4% in 2005/6.
However, they have a visibility and a standing beyond their share of R&D investments. This is not simply a
function of branding over 25 years but in contrast to other programmes which are typically focused on firm
competitiveness or a discrete problem (e.g., R&D Tax concession or granting schemes such as ARC Linkage
Projects and Research Connections), CRCs offer a platform of sufficient scale to substantially contribute to
strategic or transformational change in sectors or parts of sectors.
In functional terms, CRCs are a useful means to bring together researchers, industry and other research end
users to focus on addressing a set of shared problems, challenges and opportunities. The Government
contribution is generative of co-investment for firms and research institutions and finding scales of 5 years
with common options for renewal provide the capacity to move from pre-competitive to
application/commercialisation stages and/or significant public and sector benefits in terms of preparedness,
reducing uncertainties and managing risk in environmental, public health and social spheres.
In seeking to advance its applied science and research priorities, the Government will need to take heed of
the risks of distorting CRCs through an over-emphasis on ‘widgets to market’ at the expense of the more
complex and often less well defined long term economic and social benefits.
One of the key benefits of the CRC programme is its training and knowledge transfer through PhD programs.
There is no national system-level longitudinal data collected on where higher degree research graduates go.
Universities – or more specifically its research centres and departments – typically know at an informal level
where their graduates go and JCU’s experience is that about 80% of PhDs associated with CRCs move directly
into industry and > 50% with partners in the CRC. This is a significantly higher proportion embracing industry
pathways than the non-CRC cohort.
The development of industry ready PhDs with their high level skills and their understanding of industry
drivers and needs is a critical factor in developing a deeper national capacity for knowledge intensive
innovation.
The CRC application process is time consuming and expensive which is a disincentive for firms who may wish
to participate. JCU does not think there is a simple solution to that. If CRCs are to be distinctive platforms
with sufficient scale to make an impact then there is a need for appropriate rigor in selection and fit-forpurpose governance requirements. However flexible models that include core industry partners on major
projects and sector groupings (‘portal organisations’) to facilitate participation for SMEs do mitigate some of
the disincentive.
If we can assist the review, please do not hesitate to contact me on Bradley.smith@jcu.edu.au
Yours sincerely
Bradley Smith
Manager, Research Strategy