1. Demand Policy for Innovation The Australian Experience
Carol Bellettini
Innovation Division
Department of Innovation, Industry, Science and Research

2. Overview Australian Government Innovation Agenda
The climate change challenge
Pre-commercial procurement of R&D
Access to public sector information
Policy learnings

3. Demand Side Innovation Policy
Measures that
Increase demand for innovation
Improve conditions for the uptake of innovation
Improve the articulation of demand to spur innovation and support diffusion
Broad based approach considering the full scope of the innovation cycle

4. 1. Powering Ideas
10 year agenda to strengthen the innovation system and make Australia more productive and competitive
Themes
Research Capacity and Skills
Business Innovation
Collaboration
Governance

5. Innovation Inputs – How do we compare?
The figure compares Australia with the top 5 OECD countries for each indicator (normalised to 100)

6. Innovation Outputs – How do we compare?
The figure compares Australia with the top 5 OECD countries for each indicator (normalised to 100)

7. 2.
Energy Efficiency
Carbon Price
Renewable Energy
Land Sector

8. How the carbon price works

9. The Clean Technology Program
Part of the Australian Government’s 2011 Clean Energy Future
The A$1.2 billion Clean Technology Program to help manufacturers improve their energy efficiency and transition to clean technology innovation activity
Three elements:
Clean Technology Investment Program (A$800m over 7 years)
Clean Technology Food and Foundries Investment Program (A$200m over 6 years)
Clean Technology Innovation Program (A$200m over 5 years)

10. Clean Technology Innovation Program
To support the research, development, proof of concept and early stage commercialisation activities of new products, processes and services
Clean technology innovation projects should help industries become more competitive and so transition to a low carbon future

11. 3. Smart SME Market Validation Program
$28 million grants program to support SMEs to undertake research and development that meet specified needs of Victorian public sector entities
Demand-side policy
Seeks to rectify a problem in the public sector
Encourages the private sector to find innovative ways to address demand
Promotion and marketing to public sector entities and SMEs to generate interest, support and participation

12. How does it work? Identification of technology problems (TRS) by
Vic Govt entities
Call for
Proposals
Assessment &
awarding of grants
Feasibility Study stage
Solutions developed by SME for host agency in a
Proof of Concept stage
Review & assessment
of FS reports
of TRS

13. Health Market Validation Program
$15 million competitive grants program to encourage innovation in health care
Seeking solutions to healthcare challenges – real customer demand
Benefits to
Victorian public health sector organisations
SMEs
Victoria community

14. 4. Public Sector Information – Creative Commons
Information underpins innovation activity
Barriers to information hinder the innovation process, reduce efficiencies and diminish social outcomes
Information released under a Creative Commons license

15. 5. Policy Learnings Hybrid policy design Experiment!
Integrate approaches to challenges
Evaluation is important

16. Department of Innovation, Industry,
Science and Research
Industry House
10 Binara Street
Canberra City, ACT 2601, Australia
Telephone