What is the Science Industry Action Agenda?

Science Industry Australia
By Kristin Dewey
Saturday, 08 October, 2005


The Australian science industry has grown in the last few years. It has become an increasingly larger contributor to the commercial science world. While the progress being made by Australian industries is impressive, there are still many ways in which to improve efficiency and marketability on a global market.

The Science Industry Action Agenda is an Australian government program to facilitate industry sector growth which is led and owned by the Australian science industry. An Action Agenda allows for a 12 to 18 month development phase followed by a three year implementation. It is a whole government approach to overcome impediments to growth. Furthermore, it is designed to unite and promote the industry.

The Australian science industry comprises researchers/manufacturers of scientific and laboratory-related goods, importer/distributors of scientific and laboratory-related goods, and companies offering a range of laboratory and technical services that involve measurement, analysis and diagnosis.

Australia in the global market

The global market is a big place. The United States is the largest producer and consumer of scientific equipment. It comprises about 50% of the market. The European Union and Japan are also major contributors, together comprising 30% of global production and consumption. Germany is the largest export market in Europe and Japan is the largest market in Asia.

Comparatively, Australia is a small contributor. But small contributor or otherwise, the Australian science industry exports around AU$670 million worth of science-related goods.

In 2003, Science Industry Australia Inc (SIA) made an application to the Australian government for an action agenda. SIA recognised the need for national growth in the science industry. The government responded in 2004 by announcing the development of a Science Industry Action Agenda in partnership with industry. The Department of Industry, Tourism and Resources together with the Department of Education, Science and Training have helped to realise the action agenda.

Visions and aims

Like every plan, the Science Industry Action Agenda needs a vision. The vision is a simple three-part vision. It is to be cohesive; to be export oriented; and to be recognised worldwide for quality, innovation and commercialisation of leading-edge technologies.

In order to fulfil this vision the industry must accomplish five main aims. First it must commercialise a much greater proportion of Australia's research. With greater commercialisation of publicly funded research, the science industry will contribute to improving Australia's innovation and investment outcomes.

Secondly it needs to export more than AU$3 billion per year. In 2002/03, the global market for science-related goods was approximately AU$95 billion. In order to be a significant contributor to this global market, Australia needs to export more.

Thirdly it must generate revenues of more than $5 billion per year.

Fourthly it must grow by an annual average of greater than 10%. The global market is expected to grow and to improve Australia's status in the scientific global market, the Australian science industry must continue to grow at or above the global market's expected development.

Lastly it must attract and retain world-class scientists, engineers and commercialisers of laboratory technology and services. By doing so, the science industry will help ensure a continued significant place in the global markets.

Nine recommendations for action

Science Industry Australia, The Department of Industry, Tourism, and Resources and the Department of Education, Science and Training performed a series of surveys in conjunction with research of the science industry to bring nine recommendations of action to be taken.

The first recommendation is to increase significantly the science industry's commercialisation of intellectual property, particularly from publicly funded research. The science industry relies heavily on intellectual property. In the next 10 years more funding will be available to small to medium-sized enterprises for further research. With more incentives from government and private funding for this research, the industry can afford intellectual property.

The second recommendation is to increase the science industry's volume of exports and the number of exporters. The science industry has already had notable breakthroughs, including spectrometry, spectrophotometry, geometrics, proteomics and nanotechnologies. The Australian science industry is hoping to take advantage of the opportunities these innovations provide by looking for areas of unmet demand. Already the Australian science industry exports 80% of its goods to the United States, the European Union and North Asia. In 2002 and 2003, Australian science exports were close to $1 billion. By tapping into unmet demands by the global science market, SIA hopes to improve their international exports to AU$3 billion by 2015.

The third recommendation is to improve the quality of science industry products, processes and services. The science industry will do this by raising awareness of quality though a variety of measures, and improving the knowledge and skills of the industry's workforce in relation to delivering quality commercially. Australia's local standards do not always meet the global markets' standards for quality. The report showed that Australia did not cultivate a culture of quality in the industry. Australian industry is encouraging the inclusion of a new culture of quality in the workplace, in undergraduate studies as well as in vocational training.

Recommendation four states that the science industry progresses the harmonisation of regulations and standards relevant to the science industry across Australian, state and territory governments, and aligns them with relevant international standards. With domestic market standards different from international market standards, extra costs are carried by the community.

The fifth recommendation asks for assurance that the science industry can access the necessary skilled workforce it requires for continued growth. Currently there are shortages of skilled labour, particularly in the areas of laboratory technicians, chemists, engineers (mechanical and software), and sales and management. To increase the supply of skilled staff the industry will work with the Australian government initiatives such as the National Skills Shortage Strategy and the Audit of Science, Engineering and Technology skills. With continued monitoring of the skilled shortages by the industry, the government will be advised accordingly. Furthermore, the industry will pursue initiatives to raise the profile of the industry as a potential employer in the feeder groups to its workforce, and improve the content of course curricula to meet the industry's needs.

Recommendation six is to sustain flexibility in the science industry workplace. Currently the science industry is sufficiently flexible. To ensure that existing flexibilities are preserved, and any impediments to competitiveness are removed, the implementation group will work with its industry colleagues and government to raise employer awareness of the high performance workplace employment model and encourage its adoption of the science industry.

Recommendation seven is to increase the science industry's use of the assistance measures available from government and industry. While funding is currently available to the industry, more work is needed to raise the wider science industry's awareness of the financial assistance currently available from the government. Mentoring programs are being developed to grow the existing informal network in order to tap into the current expertise and talent already within the industry. Also, the government will continue to be advised by the industry on the appropriateness of its policy settings and delivery mechanisms.

Recommendation eight is to maintain a set of key economic statistics on the science industry. During the research for the Action Agenda, many industry surveys were conducted to establish baseline data. This work will continue in order to maintain an ever current set of statistics and information on the industry.

Recommendation nine is to implement the Science Industry Action Agenda and improve the industry's internal and external linkages. Communications between sectors is not always an easy task. Thus, a body is being created to oversee the implementation of the recommendations of the action agenda. They will be responsible for strengthening the industry's internal and external linkages. The body will be led by Science Industry Australia Inc, the industry that has sponsored the action agenda.

Australia's science industry is already globally recognised for its innovative scientific instruments, clinical diagnostics and laboratory technical services. The Science Industry Action Agenda is placing Australia's science industry in a position of continued growth in global exports. As can be seen, this positional will ensure our continued presence in an international market.

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