New approach to innovation too soon?

THE FEDERAL Government’s National Innovation and Science Agenda announcements have been largely welcomed by business, but are some of the program elements premature? Will it need to change in 2016 to adapt to the results of the government’s own Re:think Tax White Paper process?

BDO Research and Development partner Nicola Purser is concerned the government has gone too early on the announcement on December 7.

“The Australian Government is putting academic research ahead of critical industry insights by delivering its innovation statement prior to finalising its current survey of R&D Tax Incentive registrants,” Ms Purser said. 

She said the innovation statement came two weeks following the release of the ACOLA report Translating research for economic and social benefit - Country comparison, an  industry survey which forms as part of the broader Re:think Tax White Paper process.

Ms Purser said it was “disconcerting” that the Australian Government would move on any “revamp of the R&D Tax Incentive” prior to finalising the survey and gathering the insights from business.

The ACOLA report highlighted the need for greater collaboration between researchers, government and the business community.

“With innovation such a critical component of Australia’s economic future, jumping the gun on innovation policy without incorporating commercial insights is incredibly inept,” Ms Purser said.

“In terms of specific measures, I would urge the Australian Government to consider more carefully the critical factors of expediency and promptness in commercial R&D, factors often misunderstood by academia and the public sector. 

“For example, in my experience of working with Australian businesses from a wide variety of sectors, I fail to see how a move to grants and loans, which can be cumbersome, untimely and inflexible, could be seen as progressive,” Ms Purser said.

“Likewise, in response to Australia’s Chief Scientist Ian Chubb’s recent comments suggesting the public sector takes a role in picking winners, I would counter that not only have governments proven notoriously bad at picking winners, this is counterproductive to the spirit of innovation and exposing new ideas to the open market to determine which are successful.” 

A detailed business analysis of the Federal Government’s National Innovation and Science Agenda features in the latest Business Acumen magazine, issue #83.

www.bdo.com.au

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