Innovation - making ideas count

The Smart State Strategy acknowledges that science, research and innovation are driving new jobs in knowledge industries, and helping maintain jobs in Queensland's major established industries such as mining, agriculture and construction. The Smart State Strategy is about enabling business and industry to use the latest research and innovative practices to remain productive and competitive in a changing and challenging global environment. Queensland has set out to create a knowledge economy - an economy in which innovation and ideas drive new jobs, new and better ways of doing business, and new or improved products and services that are valued by the community. Our emphasis on innovation is on the generation, diffusion and application of new ideas, including their commercialisation. It is through these means that we are driving Queensland's future growth and prosperity. Innovation occurs both inside and outside government. We are encouraging the development of new ideas and assisting the innovation process through a range of programs and services that foster collaboration between researchers and industry; provide advice and support through the commercialisation process; and provide for an environment in which businesses can grow and flourish. Assistance is provided to business through marketing and advisory services operating under the Driving Export Growth for Queensland 2006-2011 plan. Strong links between industry and public research organisations are considered essential to improving the match between research conducted in the public sector and the needs of industry. Initiatives such as the Innovation Projects Fund, provide funding for collaborative projects and research programs between Queensland research organisations, industry, and national and international research organisations that are strategically important to Queensland. Through the Australian Institute for Commercialisation, and support for its TechFast program, the Queensland Government is helping organisations improve the commercialisation of their new ideas and innovations. The Queensland Government has a range of initiatives that aim to assist the growth of emerging industries through expanding existing businesses and exporting our products and knowledge to the world. Initiatives such as i.lab, ISUS and TeQstart Pty Ltd are designed to assist early-stage technology-based companies to grow through resources, mentoring and financial assistance. A number of initiatives are aimed at assisting small to medium sized businesses, including the Queensland Industry Development Scheme and the Fast Tracking Growth Program. The Driving Export Growth for Queensland 2006-2011 plan will put support for existing and new exporters of smart services and goods into top gear. This will broaden Queensland's export base, delivering technology and employment benefits to the state. Our Smart State achievements Queensland is making outstanding and sustained progress along the path of innovation. Our businesses have been growing and investing in the future. More and more people and businesses are engaged in knowledge-intensive industries, and Queensland's knowledge-intensive export performance leads the way in Australia. One great example is the growth of Queensland's biotechnology industry which has grown four-fold over the past 10 years. In 1999, there were 19 companies employing approximately 300 people and generating $45 million in revenue. Now, Queensland is home to approximately 88 biotechnology companies employing about 1900 people and generating revenue estimated at $292 million. Under the 10-year Biotechnology Strategic Plan, we expect the sector to employ more than 16 000 people and generate $4 billion in revenues by 2025. Our knowledge-intensive exports are growing. Queensland's knowledge-intensive exports (knowledge goods and services) have grown by 82.3 per cent between 1999-00 and 2005-06, considerably outstripping Australian growth.21

Your Smart State, your say Queensland has set out to create a knowledge economy - an economy in which innovation and ideas drive new jobs and drive new and better ways of doing business. Our data shows success in a number of areas. How can we build on our activities so far? To date, the focus of the Smart State Strategy has been to build a strong research and development base to provide a platform for developing our existing and emerging industries. How can the Queensland Government extend the focus of the Smart State Strategy to drive innovation across industry and the community? What else can we do to increase innovation across Queensland's existing and emerging industries? How can we build a stronger culture of entrepreneurship and innovation across the community in Queensland? How can we extend our innovation policies and improve knowledge-intensity across more industry sectors? What other measures can be used to accelerate our level of knowledge-intensive exports? We welcome your feedback.

Growth (%)

Venture capital invested in Queensland-based firms has almost trebled.
In the period 2001-02 to 2005-06, venture capital invested in Queensland-based firms rose from $210 million to $619 million.²²

More spin-off companies for commercialisation of Queensland research.
The University of Queensland had created 38 more startup companies in 2004, more than any other Australian university.²³

Employment in Queensland's knowledge-intensive industries has grown.
Queensland's knowledge-intensive industries, as defined by the OECD, grew by 9 percentage points more than total employment growth for 1996-97 to 2006-07, at 45.8 per cent compared with 36.8 per cent total employment growth.²⁴

Growth (%)

Future challenges

If Queensland is to remain competitive with global knowledge economies, we need to increase our share of high-value jobs and exports to internationally-competitive levels. In Queensland, approximately 30 per cent of added economic value is from knowledge-intensive industries, compared with 40 per cent or more in leading OECD countries.²⁵

Queensland Government programs and initiatives

The $60 million Innovation Projects Fund provides funding for collaborative research and innovation projects that are strategically important to Queensland. Project outcomes are directed at economic, social or environmental benefits, with many projects achieving a combination of these.

Three programs within the Innovation Projects Fund are the National and International Research Alliances Program, Research-Industry Partnerships Program, and Partnerships-Alliances Facilitation Program.

After two funding rounds, more than $36 million has been allocated to some 48 recipients and a further $23.6 million has been allocated for the support of National Collaborative Research Infrastructure Strategy projects. 

The Australian Institute for Commercialisation (AIC) was established by the Queensland Government in May 2002 as a national, not-for-profit company to deliver programs to improve commercialisation of Australia's research investment. The highlights of the AIC activities include matching research and know-how to 20 businesses resulting in 28 technology transfer deals over the past year; providing critical market intelligence throughout Australia to more than 40 businesses developing all manner of products or services, from small start-ups to established technology-based companies; and helping over 500 entrepreneurs, small businesses and inventors obtain the information they need to take their innovations to market.

The AIC's TechFast program has provided innovation and commercialisation advice, skills development and linkages to approximately 120 small to medium enterprises, 40 research organisations and 50 government, economic development and industry development organisations over the last three years.

The ICT Commercialisation Program optimises the benefit to government agencies in the commercialisation of Queensland government-owned ICT intellectual property. The program releases intellectual property to local businesses for the purpose of industry development. More than 29 deals with Queensland firms have been facilitated under this program with another 129 potential projects for the future.

The Queensland Government has supported technology diffusion through service delivery partnerships and grant schemes such as the Queensland Industry Development Scheme. The key strategic delivery partner for the manufacturing sector is the Queensland Manufacturing Institute (QMI) Solutions, which has been engaged by the Queensland Government since 1993 to deliver business development services to manufacturers. The partnership with QMI is at the centre of a sustained effort by the government to engage more local firms with leading-edge techniques and cultures. This helps internationalise attitudes and drive competitiveness, while facilitating the R&D of new products and systems.

The Queensland Government is committed to maintaining a safe world-class mining industry and an energy industry that is reliable, sustainable and competitive. Our $20 million Smart Exploration and $29 million Smart Mining - Future Prosperity initiatives have been implemented to further enhance our geoscience knowledge and promote exploration and development of mining and energy projects in Queensland. These programs enhance the provision of geoscience and resource research data to ensure the sustainability of the exploration and mining industries by assisting in new discoveries.

Other Smart Mining funds will provide financial assistance to explorers in frontier and under-explored areas of Queensland and improve access to land. To promote mining and non-traditional careers among women, $1.6 million has been assigned to the Office of Women for the Women in Hard Hats initiative.

The Innovation Start Up Scheme increases the pool of funds available to assist innovation projects at the early stages of commercialisation. After eight funding rounds we have supported 73 projects with a value of $5.4 million.

TeQstart Pty Ltd provides financial support to technology start-up companies. Since 2000, the Queensland Government has invested $6.2 million in TeQstart Pty Ltd (previously named BioStart Pty Ltd) which has resulted in the creation of 109 full-time positions with salaries 18 per cent higher than the average across all Australian industries. This investment has also generated revenues of $4.36 million and injected $23 million into the Queensland economy.

The i.lab Technology Incubator was established in 2000 as a pilot project to accelerate the growth of high technology start-up businesses. i.lab links the research and technology of its member companies to venture capital financing, export and other business networks to assist with the commercialisation of innovative products and services. Since its inception, more than 70 companies have been resident in i.lab and more than 357 technology jobs have been generated by i.lab member companies. In 2005, i.lab expanded its premises by 50 per cent and today has 26 small businesses on location.

In 2006, a new $1.25 million i.lab bio.incubator facility opened at Brisbane Technology Park. Queensland's first dedicated biotechnology incubator currently houses six life sciences start-up companies giving them a 90 per cent occupancy rate. The i.lab facilities have helped members raise over $35 million in capital and received the Business Innovation and Incubation Australia's 2006 Incubator of the Year award.

The Queensland Nanotechnology Alliance was formed by the government to keep Queensland businesses at the forefront of applications in nanotechnology and increase interaction between researchers, start-up companies and established businesses. The outcomes of this alliance include:

• increased industry awareness of potential applications of nanotechnology in hundreds of products such as sunscreens, fridges, tennis racquets and tooth fillings, emission-reducing fuel additives, and wrinkle-free, stain and water-repellent fabrics
  
  
• increased interaction, collaboration, innovation, co-investment, commercialisation and technology adoption
  
  
• improved focus of nanotechnology R&D to meet market and industry needs.

Our export strategy, Driving Export Growth for Queensland 2006-2011, acts to broaden Queensland's export base, delivering technology and employment benefits to the state. This includes a major international marketing campaign on our export capabilities and services to be delivered across Queensland's State Development Centres.

The Queensland Government Intellectual Property Register has been implemented to allow government agencies to register their intellectual property online. The register is Australia's first single-point access for government IP which is available online to all members of the public. More than 700 records have been added to the IP register, which is available at www.ipregister.qld.gov.au

Animalia Queensland is becoming increasingly renowned for expertise in animation. Queensland animators were part of an international team producing the multi-million dollar 3D animated children's series, Animalia, launched in 2007 at the international television and trade market, MIPTV in Cannes, France. Queensland animators were among hundreds of people trained for this groundbreaking series, which upon completion will have created some 300 jobs and injected more than $20 million into the Queensland economy. Gold Coast visual effects and animation company Photon VFX was the prime animation contractor for the series. Photon was awarded $200 000 in Queensland Government funding to develop the leading edge technology used in the production.

QMI Solutions Since 2003, through its agreement with the Queensland Government, QMI Solutions has provided assistance to more than 1200 firms per year, more than 50 per cent of which are located in regional Queensland. This work has helped create or retain at least 1760 jobs in the manufacturing industry, generate $22.4 million in capital investment or new business opportunities and support $20 million in exports.

Taking Queensland horticultural produce to the world The Asian Markets for Horticulture Initiative (AMHI) involves researchers and business working together to open market opportunities for Queensland horticultural produce. The initiative focuses Queensland expertise in R&D, trade and biosecurity on opening new markets with strong support from commercial partners. AMHI assisted the first Australian shipments of citrus into the China market with an on-farm value of $1 million. The Queensland Government has invested $865 000 and leveraged $724 000 of cash and in-kind industry and business funding, which has ensured the success of this initiative in its second year.

Last reviewed 29 October 2007