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Brisbane home to mining innovation partnership
Campaign Media Release
Prime Minister Kevin Rudd
Minister for Innovation, Industry, Science and Research Kim Carr
Minister for Resources and Energy Gary Gray
Candidate for Flynn Chris Trevor
BRISBANE HOME TO MINING INNOVATION PARTNERSHIP
Brisbane will be the headquarters for the Rudd Labor Government’s Mining Equipment, Technology and Services (METS) Innovation Partnership, which will ensure a strong future for Australia’s world leading METS sector.
Australian Innovation Partnerships are Federal Labor’s new way of supporting Australian industry - placing industry in the driver’s seat to grow Australian exports and jobs, and diversify our national economy.
With the China mining investment boom winding down, Australia needs to build a modern and diverse economy that forges new industries and new jobs.
The METS sector contributes 2.7 per cent to the Australian economy and is one of Australia’s largest export and fastest growing sectors.
The vast majority of METS companies are Australian owned. It is a home-grown sector that has become a global success story.
This is a great example of what can be done by building on our natural resource strengths by investing in skills and technologies.
Last year revenue from METS topped $90 billion and the sector employed 386,000 people and had a total R&D spend of $1.64 billion. The average revenue growth over the last 12 months was 32 per cent.
But this is just the beginning.
To capitalise on the global opportunities for the METS sector, the industry must support emerging firms to diversify and tap into international markets.
This is what the METS Innovation Partnership will achieve, working with industry leading firms, world class researchers and innovative Australian SMEs.
The METS Innovation Partnership will be headquartered in Brisbane, with corresponding centres in Perth and Tonsley Park in Adelaide.
It brings together core partners Austmine Ltd, the Queensland University of Technology, the Brisbane Marketing Economic Development Board, the CSIRO, the Centre for Mining Technology and Equipment Development Ltd, Queensland University, Curtin University, the Australian Industry Group and others.
It will promote the internationalisation of Australian services and products, giving Australian firms better opportunities to win new work in global value chains and markets.
The Partnership will receive funding of up to $16 million to 2016-17, to be matched by industry and research partners.
All Australian Innovation Partnerships will have access to a competitive, merit-based Industry Collaboration Fund to support large-scale collaborative projects and activities with large knowledge spill-overs.
The amount of funding available for individual projects will range from between $100,000 to $10 million per year.
Funding for this announcement is already included in the budget.
BRISBANE 2 SEPTEMBER 2013
MINING EQUIPMENT, TECHNOLOGY AND SERVICES INNOVATION PARTNERSHIP
What are Australian Innovation Partnerships?
Australian Innovation Partnerships are Federal Labor’s new way of supporting Australian industry - placing industry in the driver’s seat to coordinate Australian effort, grow Australian exports and jobs, and diversify our national economy.
Beyond the China resources investment boom, we need to be building a modern and diverse economy that forges new industries and new jobs.
In the past, Australia has put too many eggs in the one basket.
With Australian Innovation Partnerships, we will build on our strengths, seize our opportunities and diversify our national economy. Innovation Partnerships provide a positive plan to kick-start innovation, expand exports and create well-paid, high-skilled jobs for Australians.
The Partnerships are in areas of established strength and those of emerging opportunity - so that we are building on today’s strengths while building up tomorrow’s.
Australian Innovation Partnerships are a key part of the $1 billion Plan for Australian Jobs package. Federal Labor is investing over $500 million to establish 12 Partnerships.
Australian Innovation Partnerships will build industry networks, forge industry strategy, tackle shared industry challenges and leverage research capability.
In a first for Australian industry policy, they will be industry-led, backed by significant research partners and have the support of government - though only if the Rudd Labor Government is re-elected.
Core partners that have already come on board include some of the biggest names in industry and research. Firms like Kraft, Boeing, Woodside, Cochlear and CSL. Research institutions like the CSIRO, University of Technology Sydney, Monash University and University of QLD, to name a few.
Election 13 Kevin Rudd and Labor
Ten Australian Innovation Partnerships have already been announced:
ï· Manufacturing Excellence, based in Melbourne. We’re still a nation that makes things and we’re backing our continued manufacturing excellence. Almost 200 organisations have already signed up, including BAE systems, BlueScope Steel, Boeing and Futuris. Today, almost one million Australians work in manufacturing and this Partnership will help advance our national manufacturing capabilities for generations to come.
ï· Food Innovation, based in Melbourne. The food industry is a vital part of our economy, generating sales of over $80 billion in 2009-10 and spending almost $450 million in R&D. Major household names Kraft, Pepsico and Kelloggs (to name a few) are already on board, helping Australia’s food industry meet Asia’s increasing food demand.
ï· Medical Technologies, based in Sydney. We have a history of incredible success in medical technologies, like Cochlear, and we’re backing the next breakthroughs in Australian innovation. The global medical technology market is valued at more than US$300 billion a year and is expected to approach US$350 billion by 2016. The industry in Australia has all the prerequisites needed to expand to become a leading source of growth, exports and jobs.
ï· Oil & Gas, based in Perth. Positioned to seize the next wave of investment in our resources sector. Over 250 organisations have expressed an interest and major industry players are already signed up, including Woodside, Shell, Santos, Origin Energy and GE Oil & Gas. This sector is currently spending $200 billion in new Australian projects; an investment that generated more than 100,000 Australian jobs last year alone. This Partnership will help unlock multi-billion dollar investments and generate thousands of new jobs.
ï· Sports Technology, based in Geelong. The new Partnership could grow Australia’s sports industry exports by at least 75 per cent from $A286 million to $A500 million per annum. This growth alone would create up to 1,500 jobs for the sports technology sector in Australia. The Partnership with the AFL, Tennis Australia and the Australian Institute of Sport, will capitalise on our world class sporting reputation, create new jobs, and position regions like Geelong as leaders in the industries of the future.
Election 13 Kevin Rudd and Labor
ï· Biopharmaceuticals, based in Melbourne. The biopharmaceutical sector is one of Australia’s most important high-value, high technology industries, with exports of around $4 billion per year. The wider sector employs over 40,000 Australians, invests over $1 billion a year in R&D and is one of the largest employers of science graduates in Australia. The Biopharmaceutical Partnership will support growth and collaboration in this important sector, boosting Australian exports and delivering health benefits to people all around the world.
ï· Transport & Logistics, based in Sydney. The sector is vital for Australia’s GDP, national productivity and export businesses and provides critical services to three of our most valuable industries - mining, construction and manufacturing. Firms that have already signed up include Linfox, Patrick Containing Ports, Bombardier Transportation and Downer Rail. The Partnership will improve the productivity, efficiency, safety and commercial returns of the industry, growing Australian jobs and generating substantial benefits for industries that rely on transport and logistics services.
ï· Financial Services, based in Sydney. Covering banking, markets, insurance, superannuation and funds management, this sector directly employs close to 400,000 people. The Partnership will help to position Australia as a global leader in 21st century financial services, creating high-value jobs and export growth. The Partnership aims to unlock an additional $1.2 billion in financial services exports and create up to 30,000 new jobs.
ï· Creative Digital, based in Sydney. Australia’s creative digital industries are key to our burgeoning digital economy. The sector is plays a crucial role in the innovation of other industries, providing creative digital services and technologies, creative content, common design, and improved communication. The Partnership aims to create a globally recognised Australian digital hub, rivalling a London Tech City or New York’s “Silicon Alley”.
ï· Space and Spatial Technologies, based in Mt Stromlo, Canberra. Space and spatial industries are critical for essential services such as telecommunications, emergency management, weather forecasting, banking, transport, environmental management and national security. Worth up to $570 billion globally, the Partnership aims to generate up to $12.5 billion annually by 2023 and create 10,000 jobs by taking a larger slice of the global market.
The final Innovation Partnership will be announced in coming days.
Election 13 Kevin Rudd and Labor
Why the Mining Equipment, Technology and Services (METS) sector?
The Mining Equipment, Technology and Services (METS) sector is comprised of a diverse range of companies which produce technologically advanced and globally competitive products and services for mining companies worldwide.
Last year revenue from METS topped $90 billion, employed 386,000 people and had a total R&D spend of $1.64 billion. The average revenue growth over the last 12 months was 32 per cent. In 2012, METS companies represented around 9 per cent of Australian business R&D expenditure (source: Austmine Survey 2013).
It is a sector that operates in every State of Australia, with capital cities, regional areas and remote locations benefiting from its revenue, jobs growth and exports.
The METS sector contributes 2.7 per cent to the Australian economy and is one of Australia’s largest export and fastest growing sectors. 84 per cent of METS companies are Australian owned. I t is a home-grown sector that has become a global success story.
Companies include high technology firms in robotics, automation, systems control, sensing, new materials, niche manufacturing and ICT. From manufacturing firms to engineering and professional services companies, it is a highly diverse sector in both size and scope, but linked by a core competency in mining and minerals.
METS companies are very diverse and range from high-tech start-ups to well-known multi-nationals. While companies such as Orica, Leightons and Worley Parsons are well known, the majority of METS companies are highly innovative, entrepreneurial SMEs that are often world-leaders in their particular niche. 60 per cent of the sector is made up of firms with annual turnover of less than $30 million, demonstrating the growth potential for the industry.
What is the METS Innovation Partnership?
To capitalise on the global opportunities for the METS sector, the industry must promote and support emerging firms to become international growth firms that are diversified across international markets to ensure their sustainability.
The METS Innovation Partnership brings together core partners Austmine Ltd, the Queensland University of Technology, the Brisbane Marketing Economic Development Board, the CSIRO, the Centre for Mining Technology and Equipment Development Ltd, Queensland University, the Australian Industry Group and others.
The Partnership will receive funding of up to $16 million to 2016-17, to be matched cash or in-kind by industry and research partners. The Partnership will also have access to a competitive, merit-based Industry Collaboration Fund to support large-scale projects. The amount of funding available for individual projects will range from between $100,000 to $10 million per year.
Election 13 Kevin Rudd and Labor
The METS Innovation Partnership will bring together a critical mass of firms integrated into a coordinated and collaborative partnership with strong business-to-business links and between firms and universities, research organisations and government. In doing so, it will:
ï· Increase the uptake of Australian innovations into global mining value chains from 15 years to 5 years.
ï· Build a strong network of businesses and researchers to foster innovation, productivity improvements and international opportunities.
ï· Create opportunities and pathways for the internationalisation of Australian businesses, services and products.
This coordination also offers opportunities for confronting the key challenges faced by the sector. The wind-down in the mining investment boom has been identified by 80 per cent of firms in the sector as the major challenge that needs to be addressed. This partnership will provide the sector with an ability to cooperatively meet this challenge through investment in new technologies, products and services and a focus on international opportunities - keeping critical jobs, manufacturing and engineering capabilities in Australia.
The METS Innovation Partnership will have a national reach, with headquarters in Brisbane and corresponding centres in Perth and Tonsley Park in Adelaide.
How do Australian Innovation Partnerships work?
Australian Innovation Partnerships bring firms and researchers together to develop new products and processes, encourage new investment, take advantage of new technology and improve skills and capabilities.
They are being established in sectors and locations where there is great potential to leverage existing strengths and deepen the concentration of innovation and expertise.
Labor’s Innovation Partnerships create new strategic networks, significantly enhancing collaboration in Australia among business, researchers and government.
This collaboration will give Australian businesses the competitive edge in a tough global market. This collaboration will help Australian businesses to realise new opportunities - diversifying the national economy beyond the mining boom.
Australia is not the first country to collaborate to enhance innovation. For example, the United Kingdom has Catapult Centres and Germany has the Fraunhofer Institute.
However, Australian Innovation Partnerships are different because they have been developed by and will be operated by industry itself, giving industry the lead in determining its own priorities and future.
Election 13 Kevin Rudd and Labor
How are Australian Innovation Partnerships being implemented?
Applications to establish Innovation Partnerships, led by industry and backed by research partners, were assessed by an independent Board.
The response from industry was overwhelming: over 50 applications were received involving around 450 business, industry associations, government departments, universities and research institutes, covering an incredibly diverse range of sectors.
In June, the Board provided the Federal Government with a shortlist of sectors where Australia enjoys competitive advantage and global opportunity. The Rudd Labor Government will support Australian Innovation Partnerships in all these sectors.
Once established, partners will work together to establish a governance model, legal structure and performance indicators. They will establish a Board and Executive team that will be responsible for ongoing strategic direction, governance, operations and management of the Partnership and ensuring it achieves its objectives as agreed with the Federal Government.
All Australian Innovation Partnerships will have access to a competitive, merit-based Industry Collaboration Fund to support large-scale collaborative projects and activities with large knowledge spill overs. The amount of funding available for individual projects will range from between $100,000 to $10 million per year.
Australian Innovation Partnerships will forge links across industries and share knowledge and ideas through the online Australian Innovation Network. This Network will enable all partners to leverage the full potential of the NBN.