Lack of vision critical: FASTS report

Australia's peak council for science and technology delivered a state-of-the-nation report to Federal Parliament this week that shows Australia slipping further off the pace among industrialised nations in its performance in science, technology and higher education.

Prof Chris Fell, president of the Federation of Australian Scientific and Technological Societies (FASTS) tried to put a positive spin on the situation in the federation's new policy document 'Australian Science: Investing in the Future' by saying a national strategy "hovers tantalisingly just beyond our reach".

FASTS' vision for the 21st century is of an educated population with a high level of scientific and mathematical understanding, that will generate wealth from innovative, sustainable and internationally competitive industries. Australians will also have an efficient national transport network, universal access to high quality telecommunications, and they will live longer, healthier lives.

But on key measures of Australia's commitment to science, technology and education, the FASTS report paints an unflattering picture of the performance of both government and business in investing in that future.

The most worrying, says FASTS, is business expenditure on R&D (BERD). After growing strongly through the 1980s, BERD peaked at 0.86 per cent of GDP in 1995-96, but after the Howard Government came to power in 1996, slumped to 0.65 per cent by 1999-2000.

BERD recovered to 0.72 per cent in 2000-2001, but remains well below that of Australia's international competitors, who in some cases exceed 2 per cent. The FASTS report says the amount of venture capital in Australia is also low by international standards, and cultural change is required to make investors less risk-averse.

Australia's investment in knowledge through R&D, software and higher education totalled 4 per cent of GDP in 1998, ranking it 14th among developed nations, and well below the OECD average. Gross expenditure on R&D (GERD) in 2000-2001 was 1.53 per cent of GDP, lower than the 1.66 per cent achieved in 1996-97.

The FASTS report says expenditure on higher education has not kept pace with inflation or economic growth, and there is increasing reliance on private funding from fee-paying students.

"This sector is continually being required to produce more with less, and the present under-resourcing will harm our future capacity both to educate the next generation of scientists and technologists, and to carry out research," the report said.

"Australia has a proud record of achievement in basic research... but there is growing evidence of a slump... in the funding of science and, hence, in its research output."

Government-funded research agencies have come under increasing pressure in the past decade to increase external earnings, leading to an increase in short-term tactical research, which is more likely to be supported by industry.

FASTS says CSIRO has been particularly affected by its 30 per cent external earnings target.

"FASTS is concerned that the level of external earnings has become a performance indicator. No clear link has been demonstrated between the level of external earnings and effectiveness of an organisaton in delivering innovative solutions for industry, society and the environment, as well as wealth and jobs for Australia," the report said.

It said Australia needs a long-term strategy to bring about cultural change in attitudes towards innovation.

Innovation is being harmed by rapid shifts in company structures, and personnel movements in response to fast-changing circumstances.

The emphasis on short-term profits, increasing globalisation and foreign takeovers that often repatriate R&D capabilities overseas, and stock-market collapses that undermine investor confidence in high-technology industries, are also adversely affecting innovation.

According to Fell, one of the promising signs is that both major political parties have increased their commitment to science and technology.

"The missing ingredient is a commitment to a long-term strategy for Australian science and technology, a vision that would allow it to service its rightful place as a driver of the economy and a solution to our environmental problems," he said.

Fell said Australia had parts of a national strategy, but not the whole -- some industries, some sectors, and some government portfolio areas had a clear sense of direction, but the country as a whole did not.

"The strategy needs to be supported by adequate funding, greater funding than we have ever committed to science," he said. "Australia always trails behind the main bunch in any international comparison of modern economies.

"We come 11th, or 15th, or 23rd; behind the leading countries of Europe, Asia and North America.

"Such a position would be intolerable in sport, but it seems to be accepted in science, a far more important measure to our prosperity and survival."