The Importance of Science and Innovation for NSW

Over the past decade, both the NSW and Australian economies have grown substantially. Due to the impacts of globalisation, the internet revolution, breakthroughs in technology and changes in population demographics, NSW, and indeed the whole of Australia will face a number of challenges during the 21st century. The recent 2004 OECD Science, Technology and Industry Outlook report made clear the future context of science and innovation in NSW when it stated:

The continued transition to more knowledge-based economies, coupled with growing competition from non-OECD countries, has increased the reliance of OECD countries [including Australia] on the creation, diffusion and exploitation of scientific and technological knowledge, as well as other intellectual assets, as a means of enhancing growth and productivity.¹

It is internationally acknowledged that NSW and Australia are well positioned to address these challenges: With a highly educated workforce, mature political institutions and rich history of growth and adaptability, Australia has great promise to establish itself as a source of global innovation.²

New South Wales has the largest and most diverse economy in Australia. It is supported by a skilled workforce with a high rate of tertiary education, extensive links to international markets, and strong corporate, financial, intellectual property and therapeutic goods frameworks. NSW commands, and has significant potential to increase, regional competitiveness in a knowledge economy underpinned by a strong science, technology, research and innovation sector.

NSW - A Leader in Research and Development

New South Wales has a strong history of innovation and the State's institutions conduct leading-edge research in virtually all fields of scientific endeavour, with activity in biotechnology, health and medical research, agricultural and mining technologies, energy technology, information and communications technologies, space science and astronomy, earth and environmental sciences, engineering, and advanced materials and manufacturing.

New South Wales is the leading state in Australia in terms of its overall research, development and innovation activity. Figures produced by the Australian Bureau of Statistics in September 2004 show that gross expenditure on research and development in NSW for 2002-03 was $3,745 million or 30.6% of the nation's total R&D investment.

Increasingly, as the boundaries between scientific disciplines overlap and new areas of science and its technological application emerge, research networks and collaborations are forming to link researchers across different disciplines and institutions. Networks are being established that strategically link universities, Centres of Excellence, CRCs, hospitals, industry and Government agencies. It is recognised that effective collaboration, across the wide array of publicly funded research bodies and disciplines cited in this directory, and interaction with industry and financial sectors, is necessary to maintain and develop the continued relevance, quality and success of our science and technology research.

1. (Source: OECD (2004), Science, Technology and Industry Outlook, Paris, OECD publications)
2. (Source: Michael Porter, Bishop William Lawrence University Professor, Harvard University in Assessing Australia's Innovative Capacity in the 21st
Century, 2003, by J.Gans and S. Stern, www.mbs.edu/jgans)