1. National Innovation Review (NIR) Update 4 December 2008

2. Review of the National Innovation System(NIR) Announced by Minister Kim Carr on 22 January 2008 Carried out by an Expert Panel chaired by Dr Terry Cutler Includes, as part of its broad terms of reference, reviews of the R&D Tax Concession and the CRC programs.

3. NIR Expert Panel Members Dr Terry Cutler (Chair)Principal Cutler & Co Dr Nicholas GruenCEO Lateral Economics Prof Mary O'KaneExecutive Chairman of Mary O’Kane & Assoc Pty Ltd Prof Steve DowrickProfessor, School of Economics, ANU Ms Narelle KennedyChief Executive Australian Business Foundation Prof Glyn Davis (AC)Vice-Chancellor and Principal, University of Melbourne Ms Catherine Livingstone (AO) Director – Future Directions International Dr Megan ClarkVice President Technology, BHP Billiton Professor John FosterSchool of Economics, University of Queensland Dr Jim Peacock (ex-officio) (AC)Chief Scientist Ms Patricia Kelly (ex-officio)Deputy Secretary Department of Innovation, Industry, Science and Research

4. Panel’s Task – the Terms of Reference Identify a set of principles to underpin the role of the public sector in innovation. Develop a set of national innovation priorities, complementing the national research priorities. Identify regulatory and other barriers to innovation. Examine the scope for simplifying the set of innovation programs. Review the R&D Tax Concession Scheme and CRC Program and recommend ways to improve their innovation outcomes. Consider ways to improve the governance of the national innovation system.

5. Working Groups to Support the Expert Panel NIS Review Panel Dr Terry Cutler (Chair) Collaboration & CRC Review WG Prof Mary O'Kane (Chair) Tax & R&D Tax Concession Review WG Dr Terry Cutler (Chair) Inter-Governmental Task Force Mr David Hanna (Chair)

6. Review Schedule Issues Paper Call for Submissions Stakeholder Meetings Submissions Due Expert Workshops Cutler Report (Green Paper) Feb 08 Mar 08 30 Apr 08 Apr / May 08 July 08 out to Sep 08 Late 08 out to Early 09 Government Response (White Paper)

7. Governments should be open as possible to experiments with Web 2.0 to inculcate a culture of innovation in our public sector Establish an advisory committee of Web 2.0 practitioners to propose and help steer governments as they experiment with Web 2.0 Have 5 (partially?) government-funded experiments in 2 years with evaluation within 3 years A Role For Web 2.0

8. The Tax and R&D Tax Concession Working Group Group dedicated to the review of the R&D Tax Concession scheme including the Tax Offset Held its inaugural meeting on 18 March 2008 and conducted a series of consultations in May/June Held broad discussions regarding –R&D Tax Concession's objectives and design features –What is working and what is not working (eg. eligibility of activities) –Innovation in the services industry

9. Who was on the R&D Tax Working Group? What did it decide? Dr Terry Cutler (Chair)Principal Cutler & Co Dr Nicholas GruenCEO Lateral Economics Dr Laurie HammondDirector iQ Capital Management Dr Peter BurnAssociate Director, Australian Industry Group Mr Graeme DavisDepartment of the Treasury Recommended a simpler, more valuable R&D tax credit with rich offerings for “small” companies and “foreign-owned” R&D Inherent biases revealed – biotech/software vs. mining/civil engineering; small vs. large companies

10. For more information Visit – www.innovation.gov.au/innovationreviewwww.innovation.gov.au/innovationreview Email - innovationreview@innovation.gov.auinnovationreview@innovation.gov.au