The Grains Research & Development Corporation

Smart specialisation Australian Case Study May 2012

Carol Bellettini

Manager

Business Innovation Policy

Department of Industry, Innovation, Science, Research

and Tertiary Education

Overview

1. Introduction

2. Funding

3. Prioritising Investments – Aligning Priorities

4. Innovative Outputs

5. Challenges and Structural Change

6. Future Priority Setting and Specialisation

7. Policy Learnings for Smart Specialisation

1. Introduction

• The current Rural Research and Development Corporation (RDC) model was established in 1990.

• RDCs aim to bring industry and researchers together to establish research and development strategic directions and to fund projects that provide industry with the innovation and productivity tools to compete in global markets.

• Jointly funded by industry and government.

• In the past 25 years Australian agriculture has doubled its productivity.

1. Introduction

• The Grains Research and Development Corporation was established to plan and invest in R&D for the Australian grains industry.

• Its primary objective is to support effective competition by Australian grain growers in global grain markets, through enhanced profitability and sustainability.

1. Introduction

Crop Production

(‘000 kt)

Export Volume (‘000 kt)

Export Value

(A$B)

Wheat 26 21 5.6

Barley 8.1 6 1.7

Canola 2.4 1.9 1.1

Sorghum 2.1 0.6 0.1

Oats 1.1 0.1 0.04

1. Introduction

2. Funding

• GRDC collects a levy that equates to 0.99% of grain sales in represented industries.

• The levy amount is matched by the Australian Government up to 0.5% of the gross value of production.

• In 2010-11, over 91% of GRDC funding was spent on R&D.

3. Prioritising Investments – aligning priorities

3. Prioritising Investments – aligning priorities

4. Innovative Outputs

• Across the grain value chain – seed breeding, on farm practices and post production processing:

– Driving adoption of best practice farming techniques (e.g. no-till farming and controlled traffic farming);

– Development of hundreds of new crop varieties and the testing of hundreds more; and

– Developing new tools for weeds/pests/disease.

4. Innovative Outputs

5. Challenges and Structural Change

• Grain grower characteristics.

• Environmental issues – climate change.

• R&D and delivery.

• Customer expectations.

• Social issues.

6. Future Priority Setting and Specialisation

• 2013-18 strategic R&D plan themes:

• Meeting market requirements;• Building skills and capacity;• Improving crop yield;• Protecting crops;• Advancing profitable farming systems; and• Improving the farm resource base.

7. Policy Learnings for smart specialisation

• “Bottom-up” priority setting ensures relevance and adoption.

• End-user buy in ensures active participation.

• Local and international networks are important in informing R&D in any group.

• Open innovation maximises flexibility.

DEPARTMENT OF INDUSTRY, INNOVATION, SCIENCE, RESEARCH AND TERTIARY EDUCATION

Industry House10 Binara StreetCanberra City, ACT 2601, AustraliaTelephone +61 2 6213 6000