Demand Policy for Innovation The Australian Experience Carol Bellettini Innovation Division Department of Innovation, Industry, Science and Research

Overview Australian Government Innovation Agenda The climate change challenge Pre-commercial procurement of R&D Access to public sector information Policy learnings

Demand Side Innovation Policy Measures that Increase demand for innovation Improve conditions for the uptake of innovation Improve the articulation of demand to spur innovation and support diffusion Broad based approach considering the full scope of the innovation cycle

1. Powering Ideas 10 year agenda to strengthen the innovation system and make Australia more productive and competitive Themes Research Capacity and Skills Business Innovation Collaboration Governance

Innovation Inputs – How do we compare? The figure compares Australia with the top 5 OECD countries for each indicator (normalised to 100)

Innovation Outputs – How do we compare? The figure compares Australia with the top 5 OECD countries for each indicator (normalised to 100)

2. Energy Efficiency Carbon Price Renewable Energy Land Sector

How the carbon price works

The Clean Technology Program Part of the Australian Government’s 2011 Clean Energy Future The A$1.2 billion Clean Technology Program to help manufacturers improve their energy efficiency and transition to clean technology innovation activity Three elements: Clean Technology Investment Program (A$800m over 7 years) Clean Technology Food and Foundries Investment Program (A$200m over 6 years) Clean Technology Innovation Program (A$200m over 5 years)

Clean Technology Innovation Program To support the research, development, proof of concept and early stage commercialisation activities of new products, processes and services Clean technology innovation projects should help industries become more competitive and so transition to a low carbon future

3. Smart SME Market Validation Program $28 million grants program to support SMEs to undertake research and development that meet specified needs of Victorian public sector entities Demand-side policy Seeks to rectify a problem in the public sector Encourages the private sector to find innovative ways to address demand Promotion and marketing to public sector entities and SMEs to generate interest, support and participation

How does it work? Identification of technology problems (TRS) by Vic Govt entities Call for Proposals Assessment & awarding of grants Feasibility Study stage Solutions developed by SME for host agency in a Proof of Concept stage Review & assessment of FS reports of TRS

Health Market Validation Program $15 million competitive grants program to encourage innovation in health care Seeking solutions to healthcare challenges – real customer demand Benefits to Victorian public health sector organisations SMEs Victoria community

4. Public Sector Information – Creative Commons Information underpins innovation activity Barriers to information hinder the innovation process, reduce efficiencies and diminish social outcomes Information released under a Creative Commons license

5. Policy Learnings Hybrid policy design Experiment! Integrate approaches to challenges Evaluation is important

Department of Innovation, Industry, Science and Research Industry House 10 Binara Street Canberra City, ACT 2601, Australia Telephone +61 2 6213 6000