UNSW and China partner on $100m innovation precinct

Prime Minister Malcolm Turnbull and Chinese Premier Li Keqiang have announced a $100 million innovation partnership that will see a new science and technology precinct established at the University of New South Wales (UNSW).

The precinct is backed by leading Chinese companies and the Ministry of Science and Technology’s flagship ‘Torch’ high-technology industry development program. Since 1988, the program has been collocating Chinese businesses, universities and research organisations in 150 science and technology precincts to drive innovation.

An initial $30 million investment has been secured by eight Chinese companies to support Australian-based research in advanced materials, biotechnology, energy and environmental engineering. Investment is expected to build to $100 million, enabling the construction of a purpose-built, globally connected UNSW innovation precinct by 2025. It will be the first such precinct outside of China.

According to UNSW President and Vice-Chancellor Professor Ian Jacobs, the partnership is a “global first and has the potential to reset the Australia–China bilateral relationship and boost the nation’s innovation system”.

“This is about futureproofing our national competitiveness by strategically positioning Australia as China becomes the world’s largest investor in R&D and the 21st-century’s science and technology superpower,” Professor Jacobs said.

China’s Torch precincts currently generate some 7% of GDP, 10% of industrial output and 16% of export value. As noted by Laurie Pearcey, UNSW’s international executive director and former chief executive of the Australia China Business Council, torch zones are home to over 50,000 tenant companies and invest RMB 347 billion ($70 billion) in R&D.

Furthermore, independent economic modelling by Deloitte Access Economics estimated the new Torch Innovation Precinct at UNSW will add more than $1 billion to Australia’s GDP in the first 10 years alone. The partnership will therefore help ensure UNSW generates greater economic impact and social progress, said Professor Jacobs.