Labor promises $28 million in graduate subsidies and education

Labor has announced a $22 million four-year Smart Partnerships program under which 800 graduates would receive subsidised industry placements, and $6 million would be earmarked for educational programs aimed at supporting business ideas with commercial potential.

Labor Shadow Minister for Industry, Innovation, Science & Research Senator Kim Carr unveiled the program, under which the commonwealth will subsidise 250 graduates each year, with companies receiving approximately $27,000 for a year-long placement. The program will be geared toward SMEs.

Labor would also provide $6 million in seed funding, aimed at bridging the cultural gap between business and academia, and promoting better understanding of export opportunities.

Bridging the Gap programs will be delivered in conjunction with industry associations and will focus on boosting negotiating skills, intellectual property protection and the formation of strategic alliances.

Senator Carr said a lack of cooperation between public and private research groups was the greatest block to innovation in Australia.

"This barrier to collaboration must be overcome if Australia is to achieve Labor's target of average OECD levels of R&D (research and development) expenditure by 2015," he said.

"At the moment, we are near the bottom of the OECD table."

"We must increase exports, especially elaborately transformed manufactures, to create future jobs," said Senator Carr.

The Federation of Australian Scientific and Technical Societies (FASTS) welcomed the program, saying it was a positive step toward changing the culture of R&D in Australia.

"Compared to the OECD average, Australia only has 40 percent as many researchers employed in industry - 1.7 researchers per 10,000 workers compared to the OECD average of 4.1," said FASTS President, Professor Snow Barlow.

"Increasing the number of SET researchers in industry will help build stronger business investment in R&D".

"Over time, "Smart Partnerships", could make a real impact on the culture and productivity of hundreds of Australian firms".

"This new investment could have a very positive influence on future business investment in R&D through changing the culture within these businesses".

"Australia's low level of business expenditure in R&D (BERD) is frequently explained away as merely a function of the structure of the Australian economy".

"That is, compared to OECD countries, Australia has a high percentage of SMEs, a small advanced manufacturing sector, large service sector and few major global brands doing R&D".

"This structural argument ignores the equally important cultural factors that contribute to low business R&D spend including HR profiles, R&D-averse risk management and short-time horizons".

"An additional benefit of the policy is that it points to exciting career pathways in industry for PhD graduates".