Commercialisation programs worth $240m says AIC

Gordon Peters
Wednesday, 24 November 2010 21:52

IT Industry - Development

Innovation services provided to business by the Australian Institute for Commercialisation (AIC) could be worth up to $240 million per year to the economy in additional turnover, exports, and hundreds of new jobs, according to an independent report commissioned by the AIC.

AIC CEO, Dr Rowan Gilmore, says the report quantifies the value that the AIC's activities add to the Australian economy, and proves that the country could 'reap many more rewards from its R&D activity' if Australia addresses the culture of innovation and treats the commercial side more seriously.

In key findings, the independent researchers noted that 'creation of a knowledge-based economy relies upon the innovation and then application of technologies in a commercial sense, to produce economic benefits and high value adding jobs.'

And, in further comment relevant to the IT sector, the report states that while Australia is well known for its innovative efforts relative to the size of its economy, ranking twelfth in the world for research and development expenditure as a percentage of GDP,  high-technology exports from Australia, however, are 'significantly lower than most developed countries in the world (as a proportion of R&D expenditure). According to the report, this highlights that although Australia is not underperforming in innovation, its slow rate of commercialisation is a 'key weakness in the development of a knowledge-based economy.'

According to Dr Gilmore, the report also proves the importance of having an 'efficient and affordable resource with deep knowledge of the innovation system that R&D-based businesses can consult when they simply do not know how to take the next step.'

'It's a truism but people and businesses don't know what they don't know.

'The difference is the smart ones recognise this and seek out organisations such as the AIC, when they don't have the internal expertise to solve a problem, they need a certain kind of technology, or they are not sure which markets they could target with a new product. We have the knowledge, networks and resources to help them, whether that's introducing them to another business with which they could partner, connecting them with university research, or gathering 50 specialists together for a two-day workshop,' he added.

The independent report specifically examined three flagship AIC programs: Ideas2Market, TechFast and TechClinic, which work with individual entrepreneurs, firms and industry sectors respectively.

Dr Gilmore said the independent economic researchers interviewed participants about results they had already achieved, or expected to see in the future, and concluded that many businesses engaged in these programs would not have commercialised ideas or diversified product lines without the AIC's assistance, while others indicated that engagement with the AIC accelerated the entire innovative process by one or two years, just by connecting them with the right people and providing the mechanism to establish their innovation.

In the findings, the importance of innovation and commercialisation to the Australian economy is highlighted, and concluding that 'achieving an innovative and a knowledge-based economy is one of the core pillars of economic development.'