Queensland the Smart State. Investing in Science: Research, Education and Innovation

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1 Queensland the Smart State Investing in Science: Research, Education and Innovation

2 A quiet revolution is taking place in Queensland. My Government is working with Queenslanders to make our State a place where ideas and innovation flourish, education is of the highest quality, the economy thrives and jobs are rewarding. It s the Smart State vision and as Queensland forges an international reputation in education, training, research, development, commercialisation and new and exciting industries, the vision is becoming a reality. The Honourable Peter Beattie MP, Premier and Minister for Trade > 2

3 Table of Contents Queensland the Smart State 5 Foreword 7 Executive summary The Smart State vision: Using knowledge to drive economic growth 13 Knowledge the key driver 13 Queensland s growing research capacity 14 Leading the way in information and communication technology (ICT) 20 Driving innovation in Queensland s traditional industries 20 Using knowledge to ensure environmentally sustainable outcomes 21 Providing social returns 22 The Smart State vision backing the knowledge industries 22 Building Queensland s scientific and research facilities 31 Bioindustries Strategy 31 Smart State Research Facilities Fund 31 Cooperative Research Centres 32 Further research initiatives 32 Supercomputing 33 Future directions 34 Queensland Chief Scientist 35 Queensland R&D Priorities 35 Smart State Research Facilities Fund round two 36 Additional funding for Smart State Research Facilities Fund 37 Queensland Linked ARC Centres of Excellence Program 37 Boggo Road Knowledge Precinct 37 Institute for ICT Innovation (e-health and e-security) 38 Interactive Games Development Program 38 High performance computing 39 Centre of Excellence for Applied Sport Science Research 39 State Government agencies as drivers of research and innovation 45 State Government research 45 Promoting smart practice within Government 46 Future directions 47 Capitalising on the intellectual property of Government agencies 47 Harnessing smart science for the Environment 51 Future directions 52 Clean Energy 52 CRC for Sugar Industry Innovation through Biotechnology 53 Biodiscovery Policy sustainable use of Queensland s natural capital 53 Skilling the Smart State 57 Primary and secondary education 58 ICT skills in schools 58 Science education 59 Career choices 59 Vocational education and training 60 Higher education research and training 61 Community awareness 61 3 >

4 Future directions 62 Science on Saturday 62 International Biology Olympiad 62 International Young Physicists Tournament 62 Vocational education and training 63 Awards and prizes A vision for Queensland science education The 2002 Queensland Science Summit 65 Future directions 67 Six step action plan for science education 67 Spotlight on science 78 Commercialising Queensland discoveries and innovations 83 Australian Institute for Commercialisation 83 Commercial incubators 83 Financing start-ups 84 Entrepreneurial skills 86 Market promotion 86 A bright future 87 Future directions 88 State-wide Technology Incubation Strategy 88 teqstart 88 Commercialisation skills for Queensland innovators 89 Specialist advice for growing technology business 89 Promoting ICT adoption by existing industries 89 Regional ICT industry development 89 Managing the wider knowledge and information economy 95 Telecommunications 95 Community skilling in ICT 96 Regulation of new technologies 98 Future directions 99 Technology Survival Skills Program 99 Strategic partnerships 105 Future directions 106 Tropical science cooperative framework with WA and NT 106 Australian Biotechnology Alliance 106 Queensland NZ partnership in biotechnology 106 National cooperation on electronic games 106 Case Studies Australia s largest biotechnology research centre 16 Building a worldwide reputation for medical research 18 Treating disease with Queensland s unique biodiversity 24 Developing the building materials of the future 28 Supporting Queensland s ICT industry strengths 40 Developing leading-edge agricultural research 48 Pursuing lower emissions electricity 54 Skilling students for jobs of the future 80 Translating research into commercially viable products and services 90 Providing world-class communications infrastructure 100 Using new fields of research to create medical breakthroughs 108 Investing in collaborative innovation 110 > 4

5 Queensland the Smart State The Smart State is about using knowledge, creativity and innovation to maintain prosperity and quality of life for all Queenslanders. It is about positioning Queensland at the forefront of the knowledge economy to become a regional leader in smart industries. It is about Queensland having a strong, skilled and diversified economy, known for its ability to discover, develop and apply knowledge to > ensure that established industries like agriculture, mining and tourism remain internationally competitive and a viable source of employment > develop new, leading-edge industries and services such as ICT, biotechnology and new media > increase productivity in all areas of government, commerce and industry > develop sustainable solutions to the pressing environmental challenges facing Queensland and the world community > ensure that regional Queensland, remote communities and disadvantaged groups participate in, and fully benefit from, the knowledge economy. This includes equitable access to jobs created by knowledge industries, communications infrastructure such as the internet, and computing skills > improve the range, quality and responsiveness of community services such as health, education, policing and transport 5 >

6 Queensland is now identified as the Smart State a state that is investing in knowledge, education and smart industries like biotechnology and information and communication technology to create new and better jobs. > 6

7 Foreword May 21, 2003 marked a turning point in Queensland. This was the day the Queensland and Commonwealth Governments opened the Queensland Bioscience Precinct at the University of Queensland. This $105 million complex is one of the world s most advanced biotechnology facilities. It represents Queensland s coming of age as a leading force in science and technology in the Asia-Pacific region. Indeed, all parts of the Queensland economy are benefiting from investment in research, technology uptake and innovation. The benefits do not just stop with jobs. Queenslanders are using science and technology to improve many areas of life in education, medicine, transport, conservation, arts and entertainment, and in shopping, banking and communications. The Precinct is a central part of the Government s Smart State vision, established in 1998 as a major focus of the Queensland Labor Government. Queensland is now identified throughout the Asia-Pacific region as the Smart State a state that is investing in knowledge, education and smart industries like biotechnology and information and communication technology to create new and better jobs. In the past twelve months, the Queensland Government has initiated a bold new package of Smart State education and training reforms, to give Queenslanders the schooling and skills needed to compete in the 21st Century. The latest component of these reforms is a new vision for science education one which is exciting and enjoyable, valued by all for its relevance to the life needs of our society, and responsive to our changing world. Some people have said to us that the Smart State is about providing jobs only for clever people, for white-coated scientists or high tech engineers. The Smart State is far wider than this and the benefits much broader. Not only are science, research and innovation driving new jobs in the knowledge sectors, they are also helping to maintain jobs and the community benefits that go with them in established industries such as mining, agriculture and construction. The Smart State is as relevant to the farmer in Mackay or the miner in Cloncurry as it is to the biotechnologist in Brisbane or the computer programmer on the Gold Coast. Queensland the Smart State Investing in Science: Research, Education and Innovation outlines what the State has achieved since 1998 and how we intend to invest further in the knowledge industries and science education to generate real jobs, future opportunities and a better quality of life for all Queenslanders. The Government s new investments outlined in this document will make a total of over $2 billion allocated by the Government to science, research and innovation since the Smart State process commenced in The Honourable Peter Beattie MP Premier and Minister for Trade The Honourable Anna Bligh MP Minister for Education The Honourable Paul Lucas MP Minister for Innovation and Information Economy 7 >

8 Executive summary Real jobs through innovation In modern economies, new jobs and growth in incomes are increasingly linked with information, knowledge and innovation. Studies show that strategic investment in research and development (R&D) and associated skills (human capital) has brought high returns to countries, business and investors. They also show that productivity improvements in government, business and industries are directly related to the diffusion and uptake of new technologies such as e-commerce. Traditionally, Queensland s strong economic performance came from the State s commodity-based industries such as mining and agriculture and the State s rapidly growing population. However, the major source of Queensland s economic growth in recent years has been the increased productive capacity of Queensland s workers, reflecting smarter use of the State s resources and knowledge base. Little more than a generation ago, Queensland was a modest player in research and scientific innovation, relying heavily on commodities and population growth to drive the economy. Modern Queensland has embraced science and innovation across many fields to become a major force in scientific innovation in the Asia-Pacific region. Today, some of the world s leading science and technology organisations are collaborating, investing and establishing operations in Queensland to take advantage of the State s highly-skilled workforce, low business costs, competitive tax regime and growing research and education infrastructure. Emerging industries such as information and communication technology (ICT), biotechnology, nanotechnology and new media are generating new and higher paid jobs, while traditional industries such as tourism, mining and agriculture are embracing new ideas to help them retain their competitive edge. Government agencies are also in the innovation business, applying new technologies to public services such as law enforcement, health and transport and helping Queensland s workforce to maintain the skills needed to compete in the information age. There are now 56,000 Queenslanders employed in the ICT sector and the equivalent of 13,000 full-time employees in the Queensland research and development sector. > 8

9 The Smart State vision In 1998 Queensland was developing an extensive, knowledge infrastructure centred across nine universities, research agencies such as the Queensland Institute of Medical Research, the State s extensive education system, and emerging companies active in ICT and other new technologies. Queensland had the potential to further develop a range of key research strengths that included > ICT and creative industries > medical and biomedical research > environment and natural resource management > aquaculture and marine science > agriculture and animal health > mining, minerals processing and energy > engineering and manufacturing > transportation The Queensland Government recognised that greater levels of investment were needed to boost Queensland s knowledge infrastructure and take advantage of the State s potential. In particular the State needed to > enhance the skills (human capital) and the research infrastructure (buildings, equipment and supercomputers) required to drive research and development and innovation > ensure that Queensland had access to state-of-the-art telecommunications systems to enable researchers and entrepreneurs to access global information systems such as the internet > address gaps in financial systems to ensure that Queensland researchers (particularly early stage knowledge companies) could access capital to commercialise their discoveries > assist government agencies, firms and the broader community to access new technologies that are an important driver of productivity The Government is pursuing and realising its long-term goals under the Smart State strategy. In 1998, Queensland also had emerging capabilities in niche areas such as nanotechnologies, neuroscience, forensics, sports science and eco-tourism. However, many of the developments were uncoordinated and there was insufficient recognition of these sectors potential to generate wealth. Importantly, local levels of investment were failing to keep pace with investments in countries such as the United States, Singapore, Ireland, the United Kingdom and Canada where significant investment was going into new, emerging technologies such as biotechnology and nanotechnology. The Queensland Government has led the country in identifying science, research and innovation as key drivers of public policy and economic development. 9 >

10 Smart State successes Over the past five years, the Queensland Government has committed more than $1.5 billion in research and development infrastructure and research projects alone, to secure Queensland s position as a major player in knowledge industries (see Appendix). They include Furthermore, Queensland has led the country in ensuring that research carried out in the State is safe and ethical. The State Government has played a leading role in identifying and responding to the ethical issues posed by biotechnology and was the first government in the world to issue a comprehensive Code of Ethical Practice for Biotechnology. > new world-class research institutes in biotechnology, medical research, cancer research, fibre composites, nanotechnology and other emerging areas of critical importance to the State s economic future > establishing 32 new Cooperative Research Centres (CRCs) with links to Queensland that are driving innovation in agriculture, fisheries, forestry, mining, satellite communications, environmental management and medicine > education and training programs to equip young people for the knowledge economy, including new computers and internet access in schools, and eight Technology, Maths and Science Centres of Excellence > new programs to support Queensland firms seeking to commercialise their ideas and inventions, including the Australian Institute for Commercialisation, high technology incubators and venture capital schemes such as the Innovation Start-Up Scheme, BioStart and the BioCapital Fund While south-east Queensland has the largest concentration of scientific and innovation activity in the State, regional Queensland is also emerging as a major force in innovation. Townsville has the largest number of tropical marine scientists in the world and is a global leader in oceans research. Cairns is developing as a world leader in tropical rainforest research. Gladstone and Rockhampton are establishing a world-class reputation in engineering and light metals science. Almost all regional centres have CRCs that are conducting world-class research in fields as diverse as forestry, fishing, estuary management, weed control and reef protection. A smart future This document charts the State Government s investments in science,education, research and innovation over the past five years and evaluates the Government s performance in achieving the Smart State vision. It reaffirms the Government s commitment to this important vision, charts future directions and announces important new initiatives. Future directions include > a re-commitment to developing centres of excellence in areas of science and technology where Queensland has growing or potential advantage > a renewed focus on the contribution of innovation to Queensland s established industries like mining and agriculture as well as new industries like biotechnology, nanotechnology and information and communication technology > a renewed focus on the contribution that State Government science agencies, as well as universities and private sector research bodies, make to Queensland s scientific excellence and economic growth > a new focus on the contribution that science and research makes to the Government s agenda for sustainable management of our natural resources and environment > a new vision for science education to ensure that Queensland will have adequate numbers of trained scientists and knowledge workers to drive the State s knowledge economy > 10

11 > a new focus on growing Queensland s relatively small high technology companies (particularly biotechnology and information and communication technology firms) into larger enterprises with higher export potential, product diversity and market resilience Further key initiatives include > a six step action plan for improving science education in Queensland and enhancing community understanding of the role science plays in everyday life > a commitment, where beneficial, to build strategic partnerships with other States and countries to promote and develop each other s scientific and innovation capacity New initiatives include > a new position of Queensland Chief Scientist to coordinate science policy in Queensland > development of the former Boggo Road Gaol site in Brisbane as a landmark precinct for knowledge industries and community living > $32.5 million from the Smart State Research Facilities Fund for six new R&D infrastructure projects in the areas of medical research, cancer research, biodiscovery, microtechnology and tropical marine science > $100 million in new funding to > increase the Smart State Research Facilities Fund to $150 million > establishment of a Centre of Excellence for Applied Sport Science Research at the Queensland Academy of Sport > strategic partnerships with the Northern Territory, Western Australian, Victorian, New South Wales and New Zealand Governments, to develop and promote Queensland s world-class expertise in tropical science and biotechnology > advance new research centres of excellence in energy (cleaner emissions from power generation) and ICT (with a focus on e-health and e-security) These initiatives will generate smart, sustainable jobs and investment opportunities, and ensure Queensland remains at the forefront of science and technology innovation. > expand Queensland s supercomputing capacity to support cutting-edge research and industry development > assist Queensland research institutions to compete for national research funding provided by the Australian Research Council Queensland the Smart State Science: Research, Education and Innovation complements and, where appropriate, draws on other key strategies released by the Queensland Government as part of its Smart State vision including > Education and Training Reforms for the Future > promote and expand Queensland s world-class capabilities in the tropical sciences (initially through the holding of a global symposium on tropical health and innovation) > support early stage knowledge companies through improved incubation facilities, skills training and growth strategies > Smart State: Health 2020 Directions Statement > Making Queensland s Future A Manufacturing Development Plan > Export Solutions Queensland Government Trade Strategy > help established knowledge industries to develop and grow their businesses in Queensland and external markets 11 >

12 > 12

13 1. The Smart State vision: Using knowledge to drive economic growth Knowledge the key driver In modern economies such as the United States, the United Kingdom, Singapore and Australia, new jobs and growth in incomes are often linked with information, knowledge and innovation which is simply about applying ideas, research, inventions and new technologies to industry and the wider economy. Studies have shown that strategic investment in research and development (R&D) and associated skills (human capital) has brought high returns to countries, business and investors. They also show that productivity improvements in government, firms and whole industries are directly related to the diffusion and uptake of new technologies such as e-commerce. The Australian economy has performed well over the past five years, relative to the rest of the developed world, and the Queensland economy has outperformed the Australian economy. Traditionally the State s strong economic performance was attributable to its commodity-based industries such as mining and agriculture and to the State s rapidly growing population. However, the major source of economic growth in Queensland in recent years has been the increased productive capacity of Queensland s workers, reflecting smarter use of the State s resources and its knowledge base. Annual average percentage change Queensland generated average economic growth of 5.5 per cent over this period, well above the 3.6 per cent growth recorded in the rest of Australia. Two-thirds of the economic growth differential resulted from greater productivity, with Queensland averaging annual productivity growth of 3.4 per cent, compared with 2.1 per cent for the rest of Australia. Figure 1: Drivers of Economic Growth to % Employed Labour Queensland Labour Productivity Source: Queensland State Accounts, ABS unpublished data Real Output Rest of Australia Figure 1 demonstrates the relative contribution of employment growth and labour productivity to economic growth in Queensland and the rest of Australia between and >

14 Productivity is driving new jobs for Queenslanders and improving living standards. The additional income derived from productivity produces Queensland s growing research capacity > higher wages for Queensland employees > lower prices for consumers > higher returns to employers and shareholders > larger revenue sources to fund improved government services such as education, health and aged care A major factor in State productivity has been the notable growth in knowledge generation and technology diffusion within Queensland. Queensland has seen major growth in its information and knowledge industries and is forging a reputation as a leading centre in Australia for world-class research and innovation with some remarkable centres of excellence and industry clusters. These knowledge industries are stimulating productivity improvements throughout the economy, creating new and better paid jobs in many parts of the State. A generation ago, Queensland s research effort focused mainly on primary industries and Queensland was regarded as something of an outpost when it came to major scientific activity. The Australian Bureau of Statistics shows that by 2000/01 this had changed dramatically with the equivalent of around 13,000 full time R&D jobs across higher education, government and industry. A distinctive feature has been the rapid growth in jobs in Queensland s biotechnology industries. A survey by consultants Ernst and Young shows that between 1999 and 2001, the number of Queenslanders in biotechnology jobs grew from 1225 to 2040 (an increase of 67 per cent). The same survey revealed a major increase in biotechnology R&D spending, from $47.9 million in 1999 to $199.8 million in 2001 (a growth rate of 317 per cent) and equally impressive growth in commercial investment, from $72.2 million in 1999 to $250.8 million in 2001 (a growth rate of 248 per cent). Queensland researchers today are making discoveries and developing applications in many areas from scram jets to gene silencing technology, from drought resistant sorghum to cleaner energy productions, from new cancer cures to satellite communication systems. > 14

15 Growth in Queensland s R&D sector is illustrated by the fact that Queensland now has > the largest biotechnology research facility in Australia (the Institute for Molecular Bioscience and the Bioscience Precinct at the University of Queensland) > the largest medical research centre in Australia (the Queensland Institute of Medical Research at the Royal Brisbane Hospital) > one of the largest mining and minerals research programs in the world (based in Brisbane, Mt Isa, Gladstone and Townsville) > one of the largest concentrations of tropical marine scientists in the world (centred in Townsville, Cairns and Brisbane) > the largest R&D effort in agriculture, food and fibre science in the southern hemisphere (centred in the Department of Primary Industries) > one of the largest electronic games industry clusters in Australia > the second largest e-security cluster in the world, after North America (comprising companies and academics working on electronic security systems) 15 >

16 Bioscience Precinct, University of Queensland Case study: Australia s largest biotechnology research centre You will build the future by investing in it. The past two centuries have shown that the major driver of economic growth and prosperity is the development and application of new knowledge and technologies. Professor John Mattick, AO, Director of the Institute for Molecular Bioscience > 16

17 The new $105 million Queensland Bioscience Precinct, located at the University of Queensland s St Lucia Campus, possesses a unique combination of bioscience research facilities and expertise not found anywhere else in Australia. The Queensland Bioscience Precinct houses the Institute for Molecular Bioscience (IMB), several research divisions of the Commonwealth Scientific and Industrial Research Organisation (CSIRO), and the Department of Primary Industries Queensland Agricultural Biotechnology Centre. The collaborative research environment is designed to promote world-class research to better understand human and animal biology. In the Queensland Bioscience Precinct, 700 top-level scientists are working on unlocking the secrets encoded in the genes and proteins of plants, animals and humans. IMB researchers are addressing complex problems such as different types of cancer, cystic fibrosis, kidney disease, diabetes and Alzheimer s disease. The IMB is the only research institute in Australia to incorporate the full spectrum of molecular biosciences, from genomic discovery through to development of new pharmaceuticals and disease therapies, while retaining close physical ties with a university. Providing strong State Government support The Queensland Government has supported the University of Queensland and the CSIRO in establishing the Queensland Bioscience Precinct. It has provided $15 million towards construction costs and will provide a further $77.5 million in operational funding over 10 years. As the largest facility of its kind in Australia, the Queensland Bioscience Precinct is contributing to world knowledge in areas of human and animal biology, health and medicine. The Queensland Bioscience Precinct reflects the State Government s commitment to building a strong and ethical biotechnology industry that will drive economic development in the Smart State. The Precinct s practical application and commercialisation of world-class research will act as a stimulator for Queensland s biotechnology industry, leading to increases in employment, investment, exports and Gross Domestic Product (GDP) and, ultimately, improved standards of living. The IMB has established a commercialisation company, IMBcom, to ensure any new discoveries reap long-term financial returns for Queensland. IMBcom will drive research by developing and brokering licensing agreements, patent applications, strategic partnerships and alliances and spin-off biotechnology companies. The Queensland Bioscience Precinct is attracting scientists from all over the world. The combination of Government backing and internationally competitive spin-off companies based on local world-class research means Queensland will be at the cutting edge of biotechnology discoveries. 17 >

18 Case study: Building a worldwide reputation for medical research Queensland Institute of Medical Research The Queensland Institute of Medical Research (QIMR) is the largest medical research institute in the southern hemisphere and has attracted a worldwide reputation for its research into cancer, infectious diseases, mosquito-borne viruses and indigenous health issues. > 18

19 QIMR researchers are working on a range of groundbreaking projects including vaccine trials for melanoma, malaria, glandular fever and rheumatic fever. Developing research partnerships They are also working towards developing a vaccine for Group A Streptococcus, which can lead to rheumatic heart disease and has a high incidence rate among indigenous communities. The State Government believes Queensland has the potential to become a major player in the biotechnology revolution over the next decade and is providing substantial funding to the QIMR to help achieve this Smart State vision. With 500 scientists specialising in biomedical research and development, the QIMR is enhancing Queensland s reputation as the Smart State, as well as promoting it as an ideal location for international companies and their researchers to do business. The QIMR has developed several patents and entered into agreement with several biotechnology companies. It has established a joint venture with Q-Pharm and strong partnerships with Peplin Biotech and Vaccine Solutions. The State Government provided an $8 million site and $20 million towards establishing the $60 million Clive Berghofer Cancer Research Centre at QIMR. The Molecular Vaccinology Laboratory is working closely with Peplin Biotech on a new anti-cancer agent that shows promise in the treatment of skin cancers. This new Centre includes state-of-the-art laboratories, clinical trial suites and patient facilities which allow multidisciplinary scientific and clinical teams to work together in one location. The QIMR has recently been fully licensed by the Australian Therapeutic Goods Administration to produce and supply therapeutics for use in Phase I, II and III clinical trials. This will enable the full process of research, discovery and commercialisation of technology and treatments for infectious diseases and cancer to remain in Queensland (including taking drug development from the lab to the hospital bedside). The Queensland Institute of Medical Research is fast becoming the national and global partner of choice in large-scale research trials. Institute researchers have identified gene mutations that increase the risk of breast cancer by age 70, discovered links between smoking and ovarian cancer, and pinpointed a gene complex which may lead to a predisposition to alcoholism. The quality and excellence of work being done by the QIMR is also reflected in a decision by a major American biotechnology company, Sequenom, to locate its Australian headquarters at the Institute >

20 Leading the way in information and communication technology (ICT) Queensland hosts a dynamic and vibrant information and communication technology (ICT) industry that employs more than 56,000 people in more than 3700 firms. These firms and their employees are engaged in a wide range of jobs and activities such as making electronic equipment, designing software, generating multimedia products including animated movies and electronic games, laying fibre-optic cable, running supercomputers for university researchers and providing consultancy services to government and industry. The ICT Industry Survey reveals revenue from this industry exceeded $14.6 billion including overseas exports of $850 million. Notwithstanding market adjustments created by the fall of the NASDAQ in 2000, the Queensland ICT industry is a major force in the Queensland economy. It has a strong research base, astute firms and skilled employees and is a pivotal driver of productivity and economic growth. Queensland has an increasing number of older, more mature firms, pointing to a more robust and stable industry as it assimilates the enormous growth of the past decade. A large proportion of R&D in Queensland directly supports mining, agriculture and construction and is helping to ensure Queensland-based companies and farming operations remain ahead in price and quality, despite fluctuations in world commodity prices. A 2002 study published by the Department of Natural Resources and Mines found the Queensland mining sector employs about 19,000 people and indirectly supports another 67,000 jobs. Innovation has made crucial contributions to growth and productivity in the mining sector > The Centre for International Economics has calculated that six of CSIRO s research projects in the coal sector alone (in robotic mining and smart machine guidance) will realise a net benefit of $4.5 billion for Australia over the period 1994 to 2024, representing a return on investment of $150 for every dollar invested, and estimates that half of this benefit will return to Queensland > 60 per cent of all computer software used in world mining comes from Australia > Queensland is home to the world s largest mining software company, Mincom > in 1999/2000, exports of Australian mining intellectual property totalled over $1 billion according to a 2002 study published by the Department of Natural Resources and Mines Driving innovation in Queensland s traditional industries The benefits of knowledge and innovation go beyond the creation of jobs in biotechnology, ICT and other knowledge sectors. > MIM Holdings Ltd (now Xstrata) advises that R&D is a major factor affecting productivity growth in its operations and in maintaining company jobs Innovation will continue to play an important role in the mining sector in the future. For instance, Ludowici Minerals Processing Equipment, the overall winner of the inaugural Premier of Queensland s SMART Awards, has developed a revolutionary minerals processing screen which is quieter and lighter than normal screens and fully transportable. Science, research and innovation are central to the global competitiveness of Queensland s established industries such as mining and agriculture. Research and innovation support these industries by helping them improve business systems and productivity, and by providing new and/or better products for manufacture and export. > 20

21 The screen is already being exported to South Africa and other countries are expressing a strong interest in the product. Our primary industries, which employ 100,000 Queenslanders, are also vitally dependent on research and innovation. A recent national report published by the Department of Agriculture, Fisheries and Forestry (Innovating Rural Australia Research and Development Corporation Outcomes 2001) identifies returns for investment in rural R&D as averaging higher than 7:1. This same report shows innovation has driven rural productivity throughout Australia, with growth rates in the industry averaging 2.2 per cent in the decade to 1999, despite extremely difficult trading conditions. Queensland s tourism industry, which employs 150,000 Queenslanders, is also benefiting from local research and innovation. The Gold Coast, one of Australia s premier tourist destinations, is developing a sustainable direction plan for tourism in the region, utilising a three-year study by the Cooperative Research Centre for Sustainable Tourism based at Griffith University s Gold Coast Campus. The North Queensland tourism industry is sponsoring research into the environmental sustainability of the Great Barrier Reef to ensure the region s long-term viability as a tourist destination. Queensland s knowledge sector is also contributing to productivity in the State s construction industry, a sector that employs 140,000 Queenslanders. An example is the new Cooperative Research Centre for Construction Innovation based at the Queensland University of Technology, which is undertaking 16 research projects across the construction life cycle. Using knowledge to ensure environmentally sustainable outcomes Queensland scientists and technicians are playing an important role in the search for environmentally sustainable solutions to the State s population growth, resource usage and productivity growth against the backdrop of growing concerns about climate change, land clearing, salinity, water use and quality, soil degradation, waste management and other pressing challenges. For example, the Queensland Centre for Climate Applications (QCCA) a joint initiative between the Department of Primary Industries and the Department of Natural Resources and Mines is conducting world-class climate research that is helping to predict weather patterns such as drought up to six months in advance, for use by primary producers and land managers. QCCA is also assisting other countries in south-east Asia, South Africa and the Indian sub-continent to better understand and forecast seasonal climate changes to increase their food security and manage their natural resources more sustainably. The State-wide Landcover and Tree Study, managed by the Department of Natural Resources and Mines, is using information technology and remote sensing from satellites to monitor the State s vegetation cover. This powerful system is providing crucial data for identifying land clearing, biodiversity conservation and greenhouse gas emissions. Researchers from the Department of Primary Industries are leading the world in developing and applying biopesticides, and their work is resulting in a dramatic decrease in chemicals being used in agricultural industries such as cotton. The commercial production and use of biopesticides is also creating a new industry for Queensland that is estimated to be worth $15 million annually. At least one new biopesticide manufacturing company has been established in south-west Queensland. Another example of how knowledge industries are interacting with traditional sectors is the rapidly growing area of creative industries. This diverse field involves the rich combination of the arts, media, entertainment and ICT industries, to produce a whole new range of industries such as multimedia, electronic games and other interactive environments. Queensland is a leader in this field. 21 >

22 This smart public sector research is being complemented by equally smart research in the private sector. For example, several Queensland companies are leading the way in the field of renewable energy by developing new energy supplies from sources such as sugar (bagasse and ethanol), wind and macadamia nuts. Modern communications and information systems are becoming an integral part of daily life and are helping to overcome the tyranny of distance between city and country areas, and between Australia and the rest of the world. A Department of Innovation and Information Economy survey published in May 2002 shows 55.6 per cent of Queensland adults now have internet access at home. Providing social returns Knowledge and information are providing social benefits in urban and regional centres by contributing to the productivity of community services and the capacity of these services to achieve better outcomes. Queensland Health has developed the largest telehealth network in the world, which enables regional, rural and remote doctors to consult city-based specialists in real-time diagnosis and receive visual instruction on medical procedures via the internet. Griffith University and the Princess Alexandra (PA) Hospital are undertaking leading research into spinal nerve regeneration, offering hope to those who have suffered a recent spinal injury. Griffith University, the University of Queensland, the PA Hospital, the Queensland Institute of Medical Research and other Queensland research bodies, are also conducting research into cancer, cardiovascular conditions, immune and blood clot disorders, viral and vector borne diseases, rheumatoid arthritis, chronic pain, visual defects and other painful and debilitating conditions that affect Queenslanders. Australia's most comprehensive public health science laboratory, Queensland Health's Pathology and Scientific Services group, is developing new standards in food safety, assessing risk from contaminated sites, safeguarding water quality, and delivering world-class forensics and pathology services. In the area of information and communication technology, computers, telephones, television, the internet, electronic commerce, multimedia and many other forms of electronic exchange are now influencing almost all forms of social as well as business life in the state. The Smart State vision backing the knowledge industries In 1998, the Queensland Government identified the information or knowledge economy as a major factor for the future of the State. The Government was determined that information and knowledge would reinforce and complement Queensland s traditional economic strengths in a way that would help broaden the economy, create new wealth, increase productivity, provide a greater range of jobs and improve living standards for all Queenslanders in urban and regional areas. Over the past five years, the growth of Queensland s knowledge industries, and the innovations taking place throughout the Queensland economy, have been due to the skills, imagination and hard work of local scientists, technologists and entrepreneurs. However, the State Government has provided key policy and program support for much of their work, and in many areas has actively worked with knowledge industries to identify strategic opportunities and drive investments. This has been a central thrust of the Government s Smart State vision. Little more than a generation ago, Queensland was a relatively small player in the knowledge economy and in R&D, innovation and commercialisation. By 1998 this was changing. Queensland was developing an extensive, knowledge infrastructure centred across nine universities, research agencies such as the Queensland Institute of Medical Research, an extensive education system, and emerging companies that were active in ICT and other new technologies. Queensland had the potential to further develop a range of key research strengths that included > ICT and creative Industries > medical and biomedical research > environment and natural resource management > 22

23 > aquaculture and marine science > agriculture and animal health > mining, minerals processing and energy > engineering and manufacturing > transportation The State also had emerging capabilities in niche areas such as nanotechnologies, neuroscience, forensics, sports science and eco-tourism. However, many of the developments were uncoordinated and there was insufficient recognition within government, industry and the community of the potential of these sectors to generate wealth. Importantly, local levels of investment were failing to keep pace with investments in countries such as the United States, Singapore, Ireland, the United Kingdom and Canada where significant investment was going into emerging technologies such as biotechnology and nanotechnology. In 1998, the Government recognised that greater levels of investment were needed to boost Queensland s knowledge infrastructure and take advantage of the State s potential. We needed to > enhance the skills (human capital) and the research infrastructure (buildings, equipment and supercomputers) required to drive R&D and innovation > ensure that Queensland had access to state-of-the-art telecommunications systems to enable researchers and entrepreneurs to access global information systems such as the internet The Queensland Government has a long history of investing in infrastructure to support and lead the economic and social development of the State. Only 10 or 20 years ago, water, electricity, gas, rail and road infrastructure were the major candidates for support by governments with an interest in catalysing economic development. Today, the candidates are just as likely to be laboratories, supercomputers, high-powered analytical instruments, clinical trials facilities, commercial incubators, scholarships and broadband infrastructure. Since 1998, the Queensland Government has made major investments in knowledge infrastructure to support and lead the State in its transition to a broadly based, information rich economy. Over the past five years, the Government has committed more than $1.5 billion to R&D infrastructure and research projects (See Appendix). However, impressive as these investments have been, they are only the beginning. The Queensland Government has embraced a vision to reshape the State s economy that will take many years to fully achieve. Continuing investment will be needed by the State Government and other stakeholders over many years if the current momentum is to be maintained in Queensland and the results of existing investments fully realised. The Government s Smart State vision has been underway for five years. The Government has taken stock of these investments, considered what has been achieved and where the challenges remain. The result is outlined in this document, which charts the State s investments in science, education, research and innovation over the past five years and evaluates Queensland s performance in achieving the Smart State vision. It reaffirms the Government s commitment to this vision and announces important new directions and initiatives. > address gaps in financial systems to ensure that Queensland researchers (particularly early stage knowledge companies) could access capital in order to successfully commercialise their discoveries > assist Government agencies, firms and the broader community to access new technologies that are an important driver of productivity The Queensland Government has pursued these long-term goals under the banner of the Smart State. 23 >

24 Photo: Chris Stacey, The University of Queensland Case study: Treating disease with Queensland s unique biodiversity From helping sufferers of chronic pain with toxins extracted from a cone shell snail through to developing sunscreens from coral reefs, Queensland researchers are helping to market the State s unique biodiversity to the rest of the world. > 24

25 Queensland is the most biodiverse State in Australia and home to 19 of Australia s 80 terrestrial bioregions and 17 of Australia s 60 marine bioregions. The State also has five World Heritage listed sites covering some 40 million hectares. Using this rich biodiversity, Queensland scientists have established a worldwide reputation for creating bio-products including pharmaceuticals to treat human diseases and new agrochemicals and bioremediation products to enhance Queensland s clean and green industries. Our scientists are internationally recognised for their expertise in tropical and sub tropical marine and terrestrial ecosystems. In particular, Townsville has the highest concentration of tropical marine scientists and managers in the world. The region is home to organisations such as the Australian Institute of Marine Science, the Great Barrier Reef Marine Park Authority, James Cook University, CSIRO centres, Queensland Government Departments and the Cooperative Research Centre for the Great Barrier Reef World Heritage Area (CRC Reef). North Queensland is also a leading centre for rainforest research and management. Research agencies include the Cooperative Research Centre for Tropical Rainforest Ecology and Management and the Wet Tropics Management Authority in Cairns, CSIRO s Tropical Forest Research Centre at Atherton, and James Cook University (Smithfield Campus). In addition the Queensland Government is providing up to $7.8 million from its Smart State Research Facilities Fund to support the establishment of a $33 million Australian Tropical Forest Institute in Cairns and $5 million for a Tropical Marine Science Centre of Excellence which is expected to have bases both in Brisbane and in the northern tropics >

26 Research in action: The Australian Institute of Marine Science The Australian Institute of Marine Science (AIMS) has a long-term presence in Queensland, forming strategic links with industry collaborators to facilitate biodiscovery R&D on marine biodiversity. In the first agreement of its kind in Australia, AIMS signed a benefit sharing agreement with the Queensland Government in July Under the agreement, both parties will share income from any scientific and commercial discoveries derived from Queensland's marine biological resources. The centrepiece of the Institute s biodiscovery R&D program is the Marine Biodiversity Collection, which includes more than 10,000 macro organisms and a further 7500 micro-organisms. The Institute currently has a range of products which are at various stages of commercialisation, including a natural herbicide which kills weeds but is harmless to crops, a sunscreen developed from coral, a portable toxin-check device for seafood and drinking water and a novel Vitamin E compound with industry applications. AIMS recently signed a five-year Memorandum of Understanding with the US National Cancer Institute in Washington DC and handed over its first consignment of 400 samples of Queensland marine organisms. The organisms (such as sponges and starfish) will be examined for anti-tumour activity which could help fight human cancers. Under the agreement, Queensland s interest as the source of the biological material is acknowledged and protected, while opportunities for R&D and new industry are maximised for Queensland. The collection at the Australian Institute of Marine Science in Townsville represents the world s most comprehensive and biodiverse collection of Australasian marine biota. > 26

27 Xenome AstraZeneca/Griffith University Xenome is a biotechnology spin-off company from the University of Queensland that is developing pharmaceuticals from snake venom and the toxins of Australian animals, including cone shell snails from the Great Barrier Reef. Since 1993 AstraZeneca, in collaboration with Griffith University, has invested more than $100 million to establish a state-of-the-art Centre for Natural Products Research in Queensland. Researchers are applying their expertise in genomics, peptide chemistry and pharmacology to develop drugs to treat a range of neurological problems such as pain, stroke and Alzheimer s disease. One group of toxins from the cone shell snail has shown exciting results in the treatment of pain experienced by many terminally ill cancer patients. The toxins demonstrated an ability to alleviate severe pain in situations where morphine is ineffective. International analysts have estimated that the market potential for this type of drug could be US$1 billion. Xenome recently received $6 million in venture capital from the Queensland Government s BioCapital Fund to advance its drug development program into human clinical trials. We are very excited about our research into toxins which could one day help to alleviate the suffering of chronically ill patients around the world. Professor Paul Alewood, University of Queensland In sourcing biological materials for pharmaceuticals from Queensland s reefs and rainforests, AstraZeneca and the Queensland Museum and Queensland Herbarium have discovered more than 2000 new species of marine sponges and 60 new species of plant. Not only do natural sources offer a wealth of chemical compounds, they have also evolved to recognise many human disease-causing protein domains. Natural products have been a consistent source of therapeutic drugs and our new focused approach gives Natural Product Discovery an even greater chance of success. Professor Ronald J Quinn, Director, Natural Product Discovery, Griffith University (a collaborative project with major pharmaceutical company AstraZeneca) >

28 Case study: Developing the building materials of the future The University of Southern Queensland is an acknowledged international leader in fibre composites and through the Centre of Excellence will continue to lead, thanks to the vision and support of the Queensland Government. Professor Peter Swannell, Vice-Chancellor, University of Southern Queensland > 28

29 A new engineering material that looks set to revolutionise the construction industry both here and overseas is literally taking shape in the Darling Downs city of Toowoomba. Fibre composites are stronger and lighter than concrete or steel and have the added advantages of being noncorrosive, non-magnetic and non-toxic. Toowoomba already boasts Australia s first fibre composite bridge, which could be used as the smart solution to replacing 20,000 ageing road bridges around the nation. The material may also be used for telephone and electricity poles, wharves and other infrastructure traditionally made from timber. Funding excellence in innovation The Queensland Government s assistance package will include $7.5 million from its Smart State Research Facilities Fund (SSRFF). The $100 million SSRFF (recently boosted to $150 million) is designed to develop the science and technology infrastructure Queensland needs for high quality research programs. It is also helping to generate new products and services as well as jobs for Queenslanders. The University of Southern Queensland, in partnership with the Toowoomba-based company, Wagners Composite Fibre Technologies, will receive up to $10 million in State Government funding to build a Centre of Excellence in Engineered Fibre Composites. So far researchers have developed a number of new products including including semi trailers, railway sleepers, structural beams and marine structures such as jetties and wharves. The new Centre of Excellence plans to market these existing products and develop new ones for national and international markets, which will bring valuable export dollars to Queensland. It is estimated that the new Centre of Excellence in Toowoomba will create more than 1000 new jobs over 10 years >

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