IP AUSTRALIA’s latest report on patent activity has revealed Australia’s high global ranking in advanced manufacturing patent applications, commenting that it showed “healthy levels of innovation within the sector”.

The IP Australia report assessed patent activity to provide an insight into innovation in the advanced manufacturing sector, and benchmarked Australia against other nations. 

The majority of advanced manufacturing patents filed in Australia are in the ‘electrical technology’ category, a key driver for advanced manufacturing innovation.

The report found a 15 percent increase in advanced manufacturing patent applications between 2000 and 2013. This was largely driven by increases in patents for medical devices, up 46 percent, along with strong growth in chemical and mechanical engineering patents (33 percent and 29 percent respectively).

“Australia’s global position in advanced manufacturing patent applications is positive at 14th, outranking high performing countries such as Israel, Denmark, Austria and India,” Industry, Innovation and Science Minister Arthur Sinodinos said.

“This is significant given Australia is ranked 53rd in population.”

IP Australia also found that Australia ranked 10th out of 36 countries for specialisation in medical device patents and is middle-ranked globally for chemical engineering patents.

Australia also demonstrated innovative expertise in transport, mechanical engineering and pharmaceuticals, areas of significant growth and global opportunity.

IP Australia pointed out that ‘advanced manufacturing’ was more challenging to define than conventional manufacturing, “as it involves not only new ways to manufacture existing products and the manufacture of new products from emerging advanced technologies, but also it denotes the process by which knowledge-intensive value is added in both the pre- and post‑production phase including R&D and distribution”.

The report showed research organisations such as CSIRO, universities and medical research institutes were the major applicants overall, accounting for 10 of the top 15.

“They were also prominent in six of the eight technology sectors, having less of a focus on mechanical engineering and transport,” the report said. “Major corporate applicants included medical technology companies Cochlear and ResMed, along with BlueScope Steel and Rio Tinto. They accounted for 10 of the top 15 Australian advanced manufacturing applicants and were prominent in six technology sectors. Research institutions had the highest application numbers.”

Senator Sinodinos said, “Notably, Australia has a higher number of applications spread across the other technology categories than other countries, demonstrating the diversity of our advanced manufacturing sector compared to many other nations. 

“The Australian Government is supporting capability growth and fostering industry and research collaboration through initiatives like the Advanced Manufacturing Growth Centre (AMGC) and the Innovative Manufacturing Cooperative Research Centre.”

AMGC has established innovation hubs to develop and drive the development and uptake of new technologies, including in the key technological breakthrough areas of 3D printing, carbon fibre and what it calls Industry 4.0.

“With Australia adding over 10,000 additional manufacturing jobs in the last 12 months to February 2017 — along with the Ai Group’s Australian Performance of Manufacturing Index indicating solid expansion at 57.5 points in March 2017, the sixth consecutive month of expansion — there is cause for optimism on our manufacturing future,” Senator Sinodinos said.

“The Australian Government, through its National Innovation Science Agenda and other measures, remains committed to ensuring that our manufacturing industry is internationally competitive, with high levels of innovation to keep us ahead of the pack globally.”

The research also examined collaboration in Australia’s advanced manufacturing sector and highlighted the disturbing trend of low engagement with small-and-medium enterprises (SMEs). The study used multiple applicants for patents as a proxy for collaboration.

“The proportion of applications involving collaborations varies with applicant type,” the report said.

“Across the advanced manufacturing technologies overall, 20 percent of applications from Australian research institutions are collaborative efforts, followed by large Australian firms at 15 percent and international entities at 13 percent.

“This proportion drops to less than five percent when SMEs are involved. The results for individual technology sectors were similar; where research institutions collaborated most in seven of the eight technology sectors, while SMEs collaborated least across all sectors.”

The report is available at: www.industry.gov.au/A-patent-analytics-study-on-the-Australian-advanced-manufacturing-industry.pdf

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MADE in Queensland grants are accelerating the development of manufacturers state-wide at many multiples of the dollar value spent – and that’s due to a program which helps guide the process, instigated by QMI Solutions.

QMI Solutions is working with the Department of State Development and applying its CoreValue business development toolset to assist applicants for Made in Queensland grants. The sophisticated combination is already generating powerful results within the $20 million grant program.

The CoreValue system has been introduced to Australia by QMI Solutions – originally known as the Queensland Manufacturing Institute, but now a national organisation – as a benchmarking tool which would also offer companies new pathways to growth, productivity and profitability. 

Initiated by the Department of State Development, the Made in Queensland grants range from $50,000 up to $2.5 million and are designed to help “show you the money,” according to QMI Solutions Managing Director and CEO Gary Christian.

“CoreValue can help to show you where the money really is in your business, and how you can translate that into real value for your business,” Mr Christian said. “We are working side by side with State Development to identify companies for the grants, but as part of the process we are dedicated to helping them find the real wealth in their businesses and assisting them in bringing that core value to the fore.” 

State Development also utilises a benchmarking tool called Probe for Manufacturing which can be applied to businesses requiring a ‘deep dive’ into productivity and manufacturing systems. CoreValue is a broader ‘whole-of-business’ analysis, measuring 18 value drivers across thousands of organisations worldwide.

“As the Australia/New Zealand licensee, we get to see the data that is highlighting problems and gaps where the most value can be created for Australian SMEs,” Mr Christian said.

The Made in Queensland initiative uses CoreValue to not only benchmark a company but also give them a report on what steps to take forward – and how much money may be required for that transition.

QMI senior consultant for innovation, Rob Geddes said any Queensland manufacturer can have the benchmarking done, simply by applying through the State Development website.

There are some pre-qualifiers for the grants, though, as they are part of the Queensland Government’s $1 billion plan to boost jobs in regional Queensland and this aligns with the $7.8 million Advance Queensland Advanced Manufacturing 10-Year Roadmap and Action Plan. This plan aims to help businesses transition from traditional to advanced manufacturing.

“The applicant has to be a genuine Queensland manufacturer – not just a brand owner who manufactures offshore,” Mr Geddes said.

“Effectively, the Queensland Government is investing in your company,” he said. “CoreValue highlights where you need to invest in the company.”

While many manufacturers were looking directly at process and line improvements, for which the Probe for Manufacturing tool is ideal, others benefitted from the wider business approach of CoreValue. 

Core Value, Mr Geddes said, was a broader benchmarking and reporting system that worked at the higher levels of business development rather than manufacturing productivity.

“So if you have capability, but not enough sales, then CoreValue is the tool to use,” Mr Geddes said.

“The reason we picked up CoreValue is that we find companies here that are world class in performance and practices – but some were going out of business because they did not have their marketing sorted.

“Most of these companies are set up by people who are very good technically but their mind-set is focused on the engineering, design, and producing high quality products.

“These were generally business owners and leaders who were less market minded,” Mr Geddes said.

He said these kinds of businesses tended to fall down in areas like human resource (HR) processes, for example, which detracted from their longer term success.

“The grant will support improvement for companies in other areas, such as marketing, branding, accessing new markets and developing new products,” Mr Geddes said.

CoreValue can help such companies to more effectively shape their grant applications. It can be used to provide graphs and statistics on the company, which comes in handy for seeking grants.

Mr Geddes said using CoreValue to develop a report, for both the Queensland Government and the company, provided valuable recommendations on how much money may be required and where such investment would be best placed.

 “Clear insight comes out of the report and confirms, often, what the company knows but could not articulate,” Mr Geddes said.

“In CoreValue’s case, it gives the company a dashboard and a back end to work on the business.”

Astute company owners and leaders use CoreValue to develop scenarios.

“It’s also useful in the area of ‘what-if’ scenarios,” Mr Geddes said.  “For example, what if we improved market share? What if we improved our margins? You can see how the different numbers should play out.

“It’s like flying with radar instead of without it.”

So far, more than 200 Queensland companies have applied for the grants, which State Development Minister Anthony Lynham said would run for two years or until the $20 million fund is expended.

www.statedevelopment.qld.gov.au/made-in-queensland 

www.qmisolutions.com.au

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CSIRO has created a ‘blueprint’ for how Australian manufacturers can survive and prosper, despite many industries facing an uncertain national and international future.

The Advanced Manufacturing Roadmap, which was written by CSIRO in collaboration with industry, government and researchers, identifies major growth opportunities and what manufacturers need to do to achieve them. 

“The Advanced Manufacturing Roadmap is the compass that guides our excellent science to deliver the breakthrough innovation needed to re-imagine Australian advanced manufacturing,” CSIRO chief executive Larry Marshall said.

“Australian science can turn disruptors and increased globalisation into opportunities for value creation right here at home,” Dr Marshall said.

“Whether it's 3D printed sternums to save lives, or 3D paper weaving to help Australian SMEs break into global value chains – or as the great (World War One Prime Minister) Billy Hughes said ‘science will guide the manufacturer into greener pastures’.”

The Advanced Manufacturing Roadmap spells out how manufacturing is becoming increasingly global, Dr Marshall said, with integration into international value chains vital.

He said over the next 20 years, Australia’s manufacturing industry “must evolve into a highly integrated, collaborative and export-focused environment that provides high-value solutions”.

The sector should focus on pre-production activities such as design, research and development; as well as value-adding services, sustainable manufacturing and low volume/high margin customised products.

CSIRO manufacturing director Keith McLean said this would require significant technological innovation by public and private research communities.

“The industrial landscape is changing fast. We need to start evolving with it,” Dr McLean said. 

“Australian manufacturing has a strong, high-tech future.

“The research sector needs to focus on areas like sensors, data analytics, advanced materials, robotics, automation, 3D printing and augmented – or virtual – reality.

“Australian manufacturers must transform their businesses by investing in new knowledge, skills and practices.”

The Advanced Manufacturing Roadmap calls on Australia’s research and manufacturing sectors to increase their collaboration and alignment with each other.

“Industry needs to lead this transformation. CSIRO has the expertise, experience and business network to help guide them,” Dr McLean said.

The Advanced Manufacturing Roadmap is the first in a series of Roadmaps being produced by CSIRO, each aligned to the Federal Government’s Industry Growth Centres. 

The Advanced Manufacturing Roadmap can be downloaded from the CSIRO website.

www.csiro.au

ROADMAP GUIDE

CSIRO’s Advanced Manufacturing Roadmap urges manufacturers to:

• Place a greater focus on participation in global value chains.
• Improve their ability to attract and retain staff with skills in digital literacy, leadership, customer interface and STEM capabilities.
• Increase the gender, age and ethnic diversity of their workforce.
• Improve business-to-business collaboration.

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