Deakin University

Submission

Victorian Parliament Rural and Regional Committee

Inquiry into the Opportunities for Increasing Exports of Goods and Services from Regional Victoria

17 April 2014

Preamble Deakin University is pleased to contribute to the Victorian Parliament’s Regional and Rural Affairs Committee’s Inquiry into Increasing Exports of Goods and Services from Regional Victoria As Victoria’s largest regional university and one with an international reputation for the quality of its teaching and research, Deakin believes this is a timely and relevant Inquiry. Deakin’s focus on community engagement in the Geelong, Barwon and Western Victorian districts ensures that it is in tune with community sentiment and concerns. While Deakin’s full range of activities extend from engagement in agriculture and regional bio-security, through to regional manufacturing and job security, this submission will focus on the University’s role in creating and developing an international market in higher education based on the University’s regional campuses in Geelong –Waterfront and Waurn Ponds, and Warrnambool as well as a network of medical training facilities throughout Western Victoria. Whilst the growth of the international student market provides the focus for this submission, we believe that the observations contained in this submission reflect upon other aspects of the economic and social resilience of regional Victoria as well.

Deakin University Submission to Inquiry into Increasing Exports of Goods and Services from Regional Victoria | 1

Responses to the Terms of Reference

(a) The identification and volume of Victorian agricultural, resource, manufacturing and service industry exports to overseas markets originating in regional Victoria (i.e. what is exported from Victoria and in what quantities?)

I. The proportion of students choosing to study regionally is growing at Deakin

As Table 1 demonstrates, the percentage of Deakin’s international students choosing to study at a regional campus (i.e. Geelong Waterfront, Waurn Ponds or Warrnambool) has increased steadily from 11% in 2010 to 19% in 2014.1

Table 1: International Enrolments in Deakin’s Regional Campuses as a Percentage of Total

International On & Off Campus Enrolments Course Enrolment 2010 2011 2012 2013 2014 YTD TOTAL REGIONAL CAMPUSES 880 1,024 1,007 1,273 1,145 TOTAL ALL ON & OFF CAMPUS ENROLMENTS 8,190 8,372 7,839 7,784 6,183 Proportion of International On-Campus enrolments in Regional Campuses 11% 12% 13% 16% 19%

II. Deakin’s key markets for regionally-based students are China and India

Table 2 demonstrates that Deakin’s key international markets for regionally-based students are China and India followed by Malaysia, Iran, Sri Lanka and Vietnam. Deakin International is also of the view that significant growth opportunities exist in other countries in our region. Table 2:

Regionally-based International Students: Top 20 Home Countries (based on Total Enrolments in 2014 ytd)

Home Country 2010 2011 2012 2013 2014 Total INDIA 225 167 138 280 342 1,151 CHINA (EXCLUDES SARS AND TAIWAN PROVINCE) 150 230 241 279 211 1,111 MALAYSIA 124 137 137 120 91 609 IRAN 35 46 49 73 64 267 VIETNAM 19 19 26 33 37 133 SRI LANKA 37 40 43 43 32 194 HONG KONG (SAR OF CHINA) 26 34 26 31 28 145 SAUDI ARABIA 2 12 12 24 24 74 PAKISTAN 19 24 24 25 21 113 BRAZIL 1 1 2 2 20 26 UNITED STATES OF AMERICA2 37 59 55 55 20 226 BANGLADESH 4 10 11 19 19 63 UNITED ARAB EMIRATES 9 31 27 22 18 106 INDONESIA 15 15 14 13 15 72 PHILIPPINES 1 7 9 11 15 43 MAURITIUS 9 8 10 10 11 48 CANADA 19 14 12 11 10 66 GERMANY 8 9 8 15 10 50 KOREA, REPUBLIC OF (SOUTH) 3 7 5 24 9 48 CHINESE ASIA (INCLUDES MONGOLIA) 1 3 8 10 8 30

1 NB. 2014 figures provided are YTD representing enrolments as at 15 April 2014 and do not yet reflect T2 and T3 enrolments. 2 These figures, in the main, represent the Study Abroad program.

Deakin University Submission to Inquiry into Increasing Exports of Goods and Services from Regional Victoria | 2

III. Regional international students contribute $50M p.a. and 345 jobs to Geelong

The economic impact of international students is significant for regional economies. The Victorian Government’s International Education Strategy on page 8 sets out:

International education is Victoria's largest single export industry; The industry was valued at $4.365 Billion in 2012; This includes spend on fees and goods and services; Of this, fees account for just under half; and, Deloitte Access Economics estimates that every $145,000 spent by international students in

Australia generates one full-time equivalent job.

Based on Deakin’s Geelong enrolment (see Table 3), applying the Victorian Government’s formula and assuming average fees of $25,000 per annum the estimated economic impact of international students for Geelong is just over $50 million per annum for Geelong and 345 jobs.

Table 3:

International Enrolments - Geelong 2010-2014 Course Enrolment 2010 2011 2012 2013 2014 GEELONG WAURN PONDS CAMPUS

ON CAMPUS

CROSS INSTITUTION 29 16 9 5 4 FACULTY OF ARTS AND EDUCATION 54 40 29 30 24 FACULTY OF BUSINESS AND LAW 56 61 64 FACULTY OF HEALTH 25 28 44 64 59 FACULTY OF SCIENCE, ENGINEERING AND BUILT ENVIRONMENT 365 437

451 692 650

NON-AWARD 1 1 ON CAMPUS 530 581 596 791 738

GEELONG WAURN PONDS CAMPUS 530 581 596 791 738 GEELONG WATERFRONT CAMPUS

ON CAMPUS

CROSS INSTITUTION 3 38 35 49 19 FACULTY OF ARTS AND EDUCATION 2 3 3 FACULTY OF BUSINESS AND LAW 61 48 FACULTY OF HEALTH 101 112 83 74 59 FACULTY OF SCIENCE, ENGINEERING AND BUILT ENVIRONMENT 215 258

269 269 251

NON-AWARD 1 ON CAMPUS 319 408 389 456 381

GEELONG WATERFRONT CAMPUS 319 408 389 456 381 Summary 849 990 986 1,247 1,119

(b) Regional Victoria’s competitive advantages in meeting the demands of world markets

Regional Victoria’s competitive advantage is that the long term investment in infrastructure in regional Victoria, particularly in transport, sub-tertiary education, public health and communications provides a platform from which Victorian higher education providers can locate and deliver both degree and post-graduate programs in regional Victoria. Secondly, Victoria has an internationally recognised network of higher education providers supplemented by a range of both Commonwealth and State research agencies that collectively provide fertile ground for advanced learning and research. Many of these, such as agricultural research facilities, CSIRO’s advanced textile laboratories and the Australian Animal Health

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Laboratories, are located in regional Victoria which serves to emphasise the potential for growing the market for international students outside of Melbourne. Deakin’s unique structure lends it a competitive advantage in this regard. While Australia’s ninth largest university in terms of student enrolments, it is essentially a regional university, headquartered in Geelong as prescribed in its enabling Act in 1974 and interestingly also maintains a significant metropolitan presence primarily through its Burwood campus in Melbourne’s inner-eastern suburbs. As a University with both teaching and research capabilities across four faculties (Science, Engineering and the Built Environment; Business and Law; Arts and Education; and, Health Sciences) this means that Deakin University can, and does, leverage its size and scale as well as its teaching and research strengths to support and promote growth of its regional activities. One example is the University’s program in Marine Science and Aquaculture located at its Warrnambool campus. This expanding program involving both undergraduate teaching and postgraduate and postdoctoral research, attracts an increasing percentage of its students from overseas. The recent appointment of a second Chair in Marine Science in Warrnambool, by an eminent biologist recruited from Swansea University in the UK, confirmed the global reach of this program. The quality of the program relies not only on the facilities and staff at Warrnambool but upon Deakin’s capacity to draw on a range of skills in Burwood and Geelong to teach into the Warrnambool course. This strategic application of both metropolitan and regional capabilities to develop regional teaching and research programs is a core Deakin asset.

(c) Innovative approaches to exporting and lessons to be shared from successful exporters (i.e. what are the success stories from regional exporters?)

While Deakin has grown the number of international students enrolled in its regional campuses an equally important aspect of its program has been its focus on recruitment in strategic economic disciplines. An example of this has been the recent growth in engineering students from India at the University’s Geelong Waurn Ponds campus (see Table 4). This is as a result of Deakin’s India Office deploying an institutional marketing strategy to leverage value from the University’s extensive research and industry partners throughout India and Sri Lanka.

Table 4: India Enrolments in Engineering: Waurn Ponds

HOME COUNTRY = INDIA 2010 2011 2012 2013 2014 YTD

S367 BACHELOR OF ENGINEERING 21 15 9 13 7 S460 BACHELOR OF CIVIL ENGINEERING (HONOURS) 3 S462 BACHELOR OF MECHANICAL ENGINEERING (HONOURS) 4 S463 BACHELOR OF MECHATRONICS ENGINEERING (HONOURS) 1 S650 GRADUATE DIPLOMA OF ENGINEERING 1 1 S750 MASTER OF ENGINEERING 9 7 4 1 3 S751 MASTER OF ENGINEERING (PROFESSIONAL) 49 27 24 106 185

TOTAL 80 50 37 120 203 Deakin was the first foreign University to open an office in India in 1996. Success in student recruitment since that time reflects the success of Deakin’s long term belief in the importance of growing the international student market and using its reputation for teaching and research excellence as a primary point of difference.

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As the presentation at Attachment 1 demonstrates, Deakin has made significant investments to create the world class Innovation Precinct on its Waurn Ponds campus with particular focus on engineering, advanced materials science, information technology and health sciences including medicine. This is an outstanding example of the value to a region of developing above world standard research reputation and marketing undergraduate programs in those fields. Consequently, Deakin also offers a seamless transition for international students from undergraduate to postgraduate qualifications, all based in regional Victoria. Facilities such as Carbon Nexus, the world’s leading carbon fibre research facility, also reflect the long-term value of coordinated Commonwealth, State and University investment in regionally-based research assets. Such continued investment from both Victorian and Commonwealth Governments in this area is essential. A current snapshot of Carbon Nexus reveals postgraduate students and postdoctoral researchers from Iran, China, India, France, Germany and Portugal comprising 23 out of 37 personnel (62%).

(d) Impediments and barriers creating difficulties for regional exporters (i.e. what are the difficulties faced by potential and existing regional exporters?)

AND

(e) The current and future roles of government in supporting regional businesses in their export endeavours (i.e. what can government do to support regional exporters?)

Terms of Reference (d) and (e) are considered jointly in the context of the Department of State Development, Business and Innovation’s (DSDBI) International Education Strategy for Victoria 2013-2018 (the Strategy) which is available at http://dsdbi.vic.gov.au/our-department/strategies-and-initiatives/international-education-strategy-for-victoria.

The Strategy emphasises that international education is Victoria’s leading single export industry and articulates the Victorian Government’s plan for strengthening its position in the international education market. Deakin University applauds the government’s initiative and was pleased to contribute to the broad consultations that underpinned the development of the Strategy.

It could be argued that Regional Victoria is adequately covered in the Strategy as much of the document refers to 'Victoria'. However, the reality is that in the implementation of the plan 'Victoria' is at risk of automatic default to 'Melbourne', particularly in light of the development and support of the ‘Study Melbourne’ brand.

Deakin University understands the importance of leveraging value from the ‘Melbourne’ brand in a very competitive international market. Notwithstanding our support for ‘Study Melbourne’, Deakin University believes that the addition of specific regional focus to the Strategy and in the operations of the facilitating international office at DSDBI and throughout its offshore network would be the most effective way to support regional educational providers to increase recruitment and thus, export revenue.

Considerations for regional Victoria that Deakin proposes can be set against some of the Strategy’s key initiatives, as follows:

Initiative 1. Establish a Victoria international education advisory body.

Appoint specific representation with delegation for the oversight of regional issues.

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Initiative 2. Extend the support provided by Victoria’s Network of Education Services Managers in key markets.

These offices need to have a strategy, action plans and Key Performance Indicators (KPIs) specific to regional Victoria that are set in partnership with the regional institutions. DSDBI should conduct an audit of the higher education offering available to international audiences in regional Victoria.

This information could be used to inform plans at Post and populate marketing material that promotes regional offerings as a supplement to the Study Melbourne initiative.

Initiative 4. Continue to support collaborative models for Victorian providers … to leverage commercial opportunities in new markets.

To ensure that it gets the attention and resources necessary for impact, regional Victoria requires separate consideration in this process.

Initiative 9. Showcase Victoria's quality international education through events such as the Victorian Government International Education Awards.

Regional Victoria should be considered as a separate category in any events conducted. Appropriate award categories could include 'outstanding achievement by an international student in regional Victoria’ or 'Delivery of excellent international student support at a regional campus.'

Initiative 10. Establish the Study Melbourne Student Centre.

The Centre should promote its services to international student at regional campuses and ensure that it is taking into consideration the needs specific to regionally located students in the delivery of its services in both online and face-to-face modes as regional students will often pass in and out of Southern Cross as they visit Melbourne. The University strongly supports DSBDI’s intention for the Centre to develop an outreach program which takes staff to regional campuses.

Initiative 12. Expand work experience opportunities for international students including the establishment of a Study Melbourne Internship Program, offering up to 150 international student internships per annum.

Work integrated learning opportunities are a very important component in attracting students to study in Australia and this program must make provision for students in regional Victoria. Ideally that would include not just promoting the Study in Melbourne Internship Program to regional students but would extend to sourcing internships in the regions. Where regional students do take up internships in Melbourne the program should make provision for their transport and accommodation costs.

Initiative 13. Establish the Study Melbourne Experience Program.

Whilst this program aims to welcome international students into the Melbourne community, regional local governments work at welcoming international students and have the advantage of working on a more intimate scale. Consideration needs to be given to this program allocating budget to local governments to support their international student support programs.

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Initiative 14. Improve channels for communication with, and feedback from, international students on their experience in Victoria.

Ensure that the unique experience of regionally located students are taken in to consideration in the communications plan and that outcomes for regional students are reported separately so that experience is being monitored as distinct from the majority of students in Melbourne.

Initiative 15. Broaden the reach of the Study Melbourne brand to integrate all Victoria's international education activities under one brand.

The brand presents a dilemma for Victoria’s regions because on the one hand Brand Melbourne has international resonance, and the city is one of the world's leading higher education hubs with a very high proportion of international students, on the other, the brand ignores regional Victoria. Consideration needs to be given to how regional Victoria is supported through the prime brand and how to extend it to support a 'Study Beyond Melbourne' sub-brand.

Initiative 16. Ensure that the Study Melbourne website is a top global international student website … including social media.

Regional Victoria must not be ignored or treated as an after-thought in this project. A compelling case needs to be branded and presented in conjunction with Study Melbourne.

Initiative 17. Develop a Business-to-Business marketing strategy to promote Victoria's education and training capacity/providers overseas.

As for Initiatives 2 and 4 above.

Initiative 18. Increase awareness of Victoria's strengths in international education and training, including awareness of the Study Melbourne brand, through stronger marketing efforts.

As for initiatives 15 and 16 above.

Initiative 19. Strengthen engagement with Victoria's international student alumni.

Ensure that regional students are adequately considered in this program.

Conclusion and recommendations

Deakin believes that its successes over the past decade amply demonstrate the importance of the international student market to the economic and social resilience of regional Victoria. Deakin will continue its efforts to grow both this market and its market share. There are, however, a number of improvements that will materially assist Deakin University in this endeavour and by so doing, effectively support economic growth beyond metropolitan Melbourne.

Deakin University recommends that the Victorian Government:

1. Appoints regional representatives on the Study Melbourne Advisory Board. 2. Establishes and supports a regional sub-brand under Study Melbourne. 3. Conducts a comprehensive audit on Victoria’s regional education offerings to enable these

to be systematically incorporated in DSDBIs marketing efforts within a framework of established and monitored Key Performance Indicators.

Deakin University Submission to Inquiry into Increasing Exports of Goods and Services from Regional Victoria | 7

Deakin University CRICOS Provider Code: 00113B

GEELONG INNOVATION PRECINCT

Geelong Innovation Precinct – Delivered: the foundations for innovation at Waurn Ponds

AFFRICIFMCISR

School of Medicine REACH

Regional Community Health Hub

Carbon Nexus

School of ITSchool of Engineering

CSIRO Fibre Processing

Deakin University CRICOS Provider Code: 00113B

Geelong Innovation PrecinctDelivered: Deakin has laid the foundations for innovation at Waurn Ponds

• Australian Future Fibres Research and Innovation Centre (AFFRIC) – collaborative research into innovative fibre and textile products in partnership with CSIRO and VCAMM

• CarbonNexus – the world’s leading carbon fibre research facility• The Institute of Frontier Materials (IFM) – addressing major challenges through high 

tech materials, design and performance• The Centre for Intelligent Systems Research (CISR) – major robotics, sensor and haptics

facility partnering with a wide range of industries including defence• School of Information Technology – includes major corporate and big data capability• School of Engineering – civil, electronic, mechatronics and renewable energy 

engineering• Regional Community Health Hub (REACH) – state of the art facilities for medical

and allied health training in rural and regional Victoria • School of Medicine – Victoria’s first rural and regional medical school

CADET

Carbon Revolution Phase 1

Epworth Hospital

Geelong Innovation Precinct – Underway: supporting Geelong’s transition

Geelong Innovation PrecinctUnderway: Deakin is already supporting Geelong’s transition

• Centre for Advanced Design in Engineering Training (CADET) – $55M engineering training facility under construction – in partnership with The Gordon TAFE

• Carbon Revolution phase 1 – Carbon fibre wheel manufacturing facility: a model for sustainable, high tech manufacturing for Australia’s future.

• Epworth Hospital – A major new private hospital integrating research and training with Deakin’s medical school.

CADET

Geelong Innovation Precinct – Next steps: creating high tech jobs of the future

Carbon Revolution Phase 2

Composites Future Centre

ManuFutureGeelong

Carbon Revolution Phase 1

CADET

Carbon Nexus

CSIRO Fibre Processing

IFMCISR

School of Engineering

AFFRIC

Geelong Innovation PrecinctNext Steps: Deakin is focused on creating high tech jobs of the future

• ManuFuture Geelong – Deakin propose to invest $10m toward a $30M advanced manufacturing innovation hub

• Composite Futures Centre – an advanced business development incubator building scale in composite manufacturing

• Carbon Revolution phase 2 – Deakin and Carbon Revolution are planning to allow for future expansion of workforce and production levels.

ManuFuture Geelong