1. Australian Approaches to Industry Partnerships in Forest Industries Research TH Gunnersen AM Chair Forest and Wood Products Research and Development Corporation

2. Australian forest industries R and D system Competitive (and cooperative) Pluralistic (Federal, State, Universities, private) Entities of different size, capabilities and specialisation Approximately 2/3 forestry and 1/3 forest products

3. Globalisation (+economic rationalism) and R and D External sources of research, technology and information more accessible Increased pressure for international competitiveness and more competition Declining core investment in public R and D organisations – hollowing out of capacity and capability Less emphasis on long term patient investment, more on contestable and project funding and applied R and D More commercial and market oriented approach

4. Commercialisation and R and D Investors seek greater return Stronger focus on protectable intellectual property (that may be sold, licensed or spun off) One pathway to adoption Source of income to offset declining investment from other sources

5. Australian forest industries R and D Total investment 2001/2002 $70m ($50m/$20m) Decline in real terms from 1981/1982 27% (20% /40%) - Even though harvest volumes and value continues to increase

6. Responding to the challenge Research providers ensis – trans Tasman unincorporated joint venture between CSIRO (formerly CSIRO Forestry and Forest Products) and Scion (formerly Forest Research) School of Forest and Ecosystem Science (University of Melbourne) merger of University forest industry research and State Government forest R and D Queensland, NSW – former separate forest research institutes or Divisions merged into larger science institutes or divisions (All accompanied by downsizing and loss of capability in at least one of the merger partners)

7. Responding to the challenge Research and Development Corporations Statutory authorities established since 1989 for primary industries that choose to fund R and D (typically based on a levy on a unit of production) that are matched by the Australian Government up to 0.5% GVP Now 14 RDCs as statutory authorities or industry owned companies (levy payers as shareholders combining R and D with marketing and promotion)

8. Responding to the challenge Forest and Wood Products Research and Development Corporation Purchases R and D on behalf of the forest industry Commenced 1 January 1994 Financed by levy on logs at mill door plus Government matching Annual income $7.0-$7.5m Industry involvement -Industry selected Board -Four industry advisory groups

9. Responding to the challenge Cooperative Research Centres Long term (7 year) contractual arrangements between research providers and users in the public and private sector Industry and research providers develop an agreed R and D program supported by partner contributions and Australian Government CRC Wood Innovations (2001), CRC Sustainable Forest Landscapes (2005) Competitive funding round every two years Government support typically $2.5-5.0 million per annum

10. Responding to the challenge Research Consortia (New Zealand) Industry led, collaborative (incorporated) ventures established to fund and manage R and D Minimum 50% participant funding (balance NZ Government) May involve research providers as shareholders but consortia have flexibility to purchase R and D services as appropriate FWPRDC an investor in WQI Inc. (NZ) on behalf of the Australian softwood industry WQI approx $3 million per annum program

11. Conclusions Issues for forest industry R and D organizations similar around the world Emphasis on user pays and ROI More contestability for funding not less? Australia (and NZ) have evolved some effective models of R and D – industry partnerships