Q&A with Kim Carr

ALS: When do you expect to have the innovation white paper ready?

KC: The Australian Government has articulated ten ambitions in response to the Review of the National Innovation System. These ambitions were announced in March. The government’s detailed response to the review is being developed as part of the budget process, and the innovation white paper will be delivered later this year.

Why has it been delayed?

Partly because we wanted to coordinate our response to the innovation review with our response to the Review of Australian Higher Education. Partly because this is a big review and our response will set the innovation agenda for a decade or more – we are determined to get it right. But mainly because responding to the global economic crisis – which erupted weeks after Dr Cutler and their colleagues submitted their report – has necessarily taken priority.

The biotechnology industry has consistently called for the resumption of the Commercial Ready scheme. Is that at all likely?

There will be no resumption of Commercial Ready. Many companies and organisations have made representations to me about the program, and I appreciate their concerns. However, our focus must now be on the future. Commercial Ready was replaced in part by other programs – such as Climate Ready, which has been a huge success. The government has responded to the global recession with new initiatives for industry, including a $3.8 billion business tax break and the $83 million Innovation Investment Follow-on Fund. These initiatives will directly benefit the biotechnology sector.

Is there any likelihood of an emergency assistance package for the industry as venture capital has dried up?

The Innovation Investment Follow-on Fund will provide urgent support to capital-starved start-up companies. We also expect it to boost confidence and shake lose additional private sector capital. The budget will be tight and our capacity to make new spending commitments will be limited. Our priority right now is to restore private credit flows. This will require global action to deal with toxic assets and strengthen financial regulation. Australia is pursuing these objectives through the G20 and other forums.

Do you have confidence that the biotech industry in Australia will weather the financial crisis?

Absolutely. There is no question that the global slowdown is weighing heavily on the sector. It is placing tremendous pressure on individual firms. Nevertheless, Australia has fundamental advantages in biotechnology that I believe will enable the sector to get through these dark times and grow strongly in future. When the recovery comes – as it must – biotechnology will be instrumental in driving the creation of new industries and opening up new pathways to prosperity.

Will you be attending the BIO International Convention in Atlanta in May?

My visit to BIO 2008 in San Diego last year was extremely rewarding, and it’s a shame that this year’s convention occurs around budget time, making it impossible for me to attend. The Australian Government will be represented at BIO 2009 by officials from my department and Austrade, who will attend in support of the Australian delegation. The government will make an announcement about ministerial representation closer to the event.