Queensland the Smart State - United...

Investing in Science:Research, Education and Innovation

Queensland the Smart State

‘A quiet revolution is taking place in Queensland. My Government is

working with Queenslanders to make our State a place where ideas

and innovation flourish, education is of the highest quality, the

economy thrives and jobs are rewarding. It’s the Smart State vision

and as Queensland forges an international reputation in education,

training, research, development, commercialisation and new and

exciting industries, the vision is becoming a reality.’

The Honourable Peter Beattie MP, Premier and Minister for Trade

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Table of ContentsQueensland – the Smart State 5

Foreword 7

Executive summary 8

1 The Smart State vision: Using knowledge to drive economic growth 13

Knowledge – the key driver 13

Queensland’s growing research capacity 14

Leading the way in information and communication technology (ICT) 20

Driving innovation in Queensland’s traditional industries 20

Using knowledge to ensure environmentally sustainable outcomes 21

Providing social returns 22

The Smart State vision – backing the knowledge industries 22

2 Building Queensland’s scientific and research facilities 31

Bioindustries Strategy 31

Smart State Research Facilities Fund 31

Cooperative Research Centres 32

Further research initiatives 32

Supercomputing 33

Future directions 34

Queensland Chief Scientist 35

Queensland R&D Priorities 35

Smart State Research Facilities Fund – round two 36

Additional funding for Smart State Research Facilities Fund 37

Queensland Linked ARC Centres of Excellence Program 37

Boggo Road Knowledge Precinct 37

Institute for ICT Innovation (e-health and e-security) 38

Interactive Games Development Program 38

High performance computing 39

Centre of Excellence for Applied Sport Science Research 39

3 State Government agencies as drivers of research and innovation 45

State Government research 45

Promoting smart practice within Government 46


Capitalising on the intellectual property of Government agencies 47

4 Harnessing smart science for the Environment 51


Clean Energy 52

CRC for Sugar Industry Innovation through Biotechnology 53

Biodiscovery Policy – sustainable use of Queensland’s natural capital 53

5 Skilling the Smart State 57

Primary and secondary education 58

ICT skills in schools 58

Science education 59

Career choices 59

Vocational education and training 60

Higher education – research and training 61

Community awareness 61

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Science on Saturday 62

International Biology Olympiad 62

International Young Physicists’ Tournament 62

Vocational education and training 63

Awards and prizes 63

6 A vision for Queensland science education 2003–2006 65

The 2002 Queensland Science Summit 65


Six step action plan for science education 67

Spotlight on science 78

7 Commercialising Queensland discoveries and innovations 83

Australian Institute for Commercialisation 83

Commercial incubators 83

Financing start-ups 84

Entrepreneurial skills 86

Market promotion 86

A bright future 87


State-wide Technology Incubation Strategy 88

teQstart 88

Commercialisation skills for Queensland innovators 89

Specialist advice for growing technology business 89

Promoting ICT adoption by existing industries 89

Regional ICT industry development 89

8 Managing the wider knowledge and information economy 95

Telecommunications 95

Community skilling in ICT 96

Regulation of new technologies 98


Technology Survival Skills Program 99

9 Strategic partnerships 105


Tropical science cooperative framework with WA and NT 106

Australian Biotechnology Alliance 106

Queensland – NZ partnership in biotechnology 106

National cooperation on electronic games 106

Case Studies

Australia’s largest biotechnology research centre 16

Building a worldwide reputation for medical research 18

Treating disease with Queensland’s unique biodiversity 24

Developing the building materials of the future 28

Supporting Queensland’s ICT industry strengths 40

Developing leading-edge agricultural research 48

Pursuing lower emissions electricity 54

Skilling students for jobs of the future 80

Translating research into commercially viable products and services 90

Providing world-class communications infrastructure 100

Using new fields of research to create medical breakthroughs 108

Investing in collaborative innovation 110

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It is about positioning Queensland at the forefront of the

‘knowledge economy’ to become a regional leader in

‘smart’ industries.

It is about Queensland having a strong, skilled and

diversified economy, known for its ability to discover,

develop and apply knowledge to –

> ensure that established industries like agriculture,

mining and tourism remain internationally competitive

and a viable source of employment

> develop new, ‘leading-edge’ industries and services

such as ICT, biotechnology and new media

> improve the range, quality and responsiveness of

community services such as health, education, policing

and transport

> increase productivity in all areas of government,

commerce and industry

> develop sustainable solutions to the pressing

environmental challenges facing Queensland and the

world community

> ensure that regional Queensland, remote communities

and disadvantaged groups participate in, and fully

benefit from, the ‘knowledge economy’. This includes

equitable access to jobs created by knowledge

industries, communications infrastructure such as the

internet, and computing skills

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Queensland – the Smart State

The Smart State is about using knowledge, creativity and innovation to

maintain prosperity and quality of life for all Queenslanders.

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Queensland is now identified as the Smart State – a state that is investing in knowledge, education and

smart industries like biotechnology and information and communication technology to create new and

better jobs.

May 21, 2003 marked a turning point in Queensland.

This was the day the Queensland and Commonwealth

Governments opened the Queensland Bioscience Precinct

at the University of Queensland.

This $105 million complex is one of the world’s most

advanced biotechnology facilities. It represents

Queensland’s ‘coming of age’ as a leading force in science

and technology in the Asia-Pacific region.

The Precinct is a central part of the Government’s Smart

State vision, established in 1998 as a major focus of the

Queensland Labor Government.

Queensland is now identified throughout the Asia-Pacific

region as the Smart State – a state that is investing in

knowledge, education and smart industries like

biotechnology and information and communication

technology to create new and better jobs.

Some people have said to us that the Smart State is about

providing jobs only for ‘clever’ people, for white-coated

scientists or high tech engineers. The Smart State is far

wider than this and the benefits much broader.

Not only are science, research and innovation driving new

jobs in the ‘knowledge’ sectors, they are also helping to

maintain jobs – and the community benefits that go with

them – in established industries such as mining, agriculture

and construction.

The Smart State is as relevant to the farmer in Mackay or

the miner in Cloncurry as it is to the biotechnologist in

Brisbane or the computer programmer on the Gold Coast.

Indeed, all parts of the Queensland economy are benefiting

from investment in research, technology uptake and

innovation.

The benefits do not just stop with jobs. Queenslanders are

using science and technology to improve many areas of life

– in education, medicine, transport, conservation, arts and

entertainment, and in shopping, banking and

communications.

In the past twelve months, the Queensland Government

has initiated a bold new package of Smart State education

and training reforms, to give Queenslanders the schooling

and skills needed to compete in the 21st Century.

The latest component of these reforms is a new vision for

science education – one which is exciting and enjoyable,

valued by all for its relevance to the life needs of our

society, and responsive to our changing world.

Queensland the Smart State – Investing in Science:

Research, Education and Innovation outlines what the

State has achieved since 1998 and how we intend to invest

further in the knowledge industries and science education

to generate real jobs, future opportunities and a better

quality of life for all Queenslanders.

The Government’s new investments outlined in this

document will make a total of over $2 billion allocated by

the Government to science, research and innovation since

the Smart State process commenced in 1998.

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Foreword

The Honourable Peter Beattie MP

Premier and Minister for Trade

The Honourable Paul Lucas MP

Minister for Innovation and Information Economy

The Honourable Anna Bligh MP

Minister for Education

Real jobs through innovation

In modern economies, new jobs and growth in incomes are

increasingly linked with information, knowledge and

innovation. Studies show that strategic investment in

research and development (R&D) and associated skills

(human capital) has brought high returns to countries,

business and investors. They also show that productivity

improvements in government, business and industries are

directly related to the diffusion and uptake of new

technologies such as e-commerce.

Traditionally, Queensland’s strong economic performance

came from the State’s commodity-based industries such as

mining and agriculture and the State’s rapidly growing

population. However, the major source of Queensland’s

economic growth in recent years has been the increased

productive capacity of Queensland’s workers, reflecting

smarter use of the State’s resources and knowledge base.

Little more than a generation ago, Queensland was a

modest player in research and scientific innovation, relying

heavily on commodities and population growth to drive the

economy.

Modern Queensland has embraced science and innovation

across many fields to become a major force in scientific

innovation in the Asia-Pacific region. Today, some of the

world’s leading science and technology organisations are

collaborating, investing and establishing operations in

Queensland to take advantage of the State’s highly-skilled

workforce, low business costs, competitive tax regime and

growing research and education infrastructure.

Emerging industries such as information and

communication technology (ICT), biotechnology,

nanotechnology and new media are generating new and

higher paid jobs, while traditional industries such as

tourism, mining and agriculture are embracing new ideas to

help them retain their competitive edge.

Government agencies are also in the ‘innovation business’,

applying new technologies to public services such as law

enforcement, health and transport and helping

Queensland’s workforce to maintain the skills needed to

compete in the information age.

There are now 56,000 Queenslanders employed in the ICT

sector and the equivalent of 13,000 full-time employees in

the Queensland research and development sector.

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Executive summary

The Smart State vision

In 1998 Queensland was developing an extensive,

knowledge infrastructure centred across nine universities,

research agencies such as the Queensland Institute of

Medical Research, the State’s extensive education system,

and emerging companies active in ICT and other new

technologies. Queensland had the potential to further

develop a range of key research strengths that included –

> ICT and creative industries

> medical and biomedical research

> environment and natural resource management

> aquaculture and marine science

> agriculture and animal health

> mining, minerals processing and energy

> engineering and manufacturing

> transportation

In 1998, Queensland also had emerging capabilities in

niche areas such as nanotechnologies, neuroscience,

forensics, sports science and eco-tourism.

However, many of the developments were uncoordinated

and there was insufficient recognition of these sectors’

potential to generate wealth. Importantly, local levels of

investment were failing to keep pace with investments in

countries such as the United States, Singapore, Ireland, the

United Kingdom and Canada – where significant investment

was going into new, ‘emerging’ technologies such as

biotechnology and nanotechnology.

The Queensland Government recognised that greater levels

of investment were needed to boost Queensland’s

knowledge infrastructure and take advantage of the State’s

potential. In particular the State needed to –

> enhance the skills (human capital) and the research

infrastructure (buildings, equipment and

supercomputers) required to drive research and

development and innovation

> ensure that Queensland had access to state-of-the-art

telecommunications systems to enable researchers and

entrepreneurs to access global information systems

such as the internet

> address gaps in financial systems to ensure that

Queensland researchers (particularly early stage

knowledge companies) could access capital to

commercialise their discoveries

> assist government agencies, firms and the broader

community to access new technologies that are an

important driver of productivity

The Government is pursuing and realising its long-term

goals under the Smart State strategy.

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The Queensland Government has led the country in identifying

science, research and innovation as key drivers of public policy and

economic development.

Smart State successes

Over the past five years, the Queensland Government has

committed more than $1.5 billion in research and

development infrastructure and research projects alone, to

secure Queensland’s position as a major player in

knowledge industries (see Appendix). They include –

> new world-class research institutes in biotechnology,

medical research, cancer research, fibre composites,

nanotechnology and other emerging areas of critical

importance to the State’s economic future

> establishing 32 new Cooperative Research Centres

(CRCs) with links to Queensland that are driving

innovation in agriculture, fisheries, forestry, mining,

satellite communications, environmental management

and medicine

> education and training programs to equip young people

for the knowledge economy, including new computers

and internet access in schools, and eight Technology,

Maths and Science Centres of Excellence

> new programs to support Queensland firms seeking to

commercialise their ideas and inventions, including the

Australian Institute for Commercialisation, high

technology incubators and venture capital schemes

such as the Innovation Start-Up Scheme, BioStart and

the BioCapital Fund

While south-east Queensland has the largest concentration

of scientific and innovation activity in the State, regional

Queensland is also emerging as a major force in

innovation. Townsville has the largest number of tropical

marine scientists in the world and is a global leader in

oceans research.

Cairns is developing as a world leader in tropical rainforest

research. Gladstone and Rockhampton are establishing a

world-class reputation in engineering and light metals

science. Almost all regional centres have CRCs that are

conducting world-class research in fields as diverse as

forestry, fishing, estuary management, weed control and

reef protection.

Furthermore, Queensland has led the country in ensuring

that research carried out in the State is safe and ethical.

The State Government has played a leading role in

identifying and responding to the ethical issues posed by

biotechnology and was the first government in the world to

issue a comprehensive Code of Ethical Practice for

Biotechnology.

A smart future

This document charts the State Government’s investments

in science,education, research and innovation over the past

five years and evaluates the Government’s performance in

achieving the Smart State vision. It reaffirms the

Government’s commitment to this important vision, charts

future directions and announces important new initiatives.

Future directions include –

> a re-commitment to developing centres of excellence in

areas of science and technology where Queensland has

growing or potential advantage

> a renewed focus on the contribution of innovation to

Queensland’s established industries like mining and

agriculture as well as new industries like biotechnology,

nanotechnology and information and communication

technology

> a renewed focus on the contribution that State

Government science agencies, as well as universities

and private sector research bodies, make to

Queensland’s scientific excellence and economic

growth

> a new focus on the contribution that science and

research makes to the Government’s agenda for

sustainable management of our natural resources and

environment

> a new vision for science education to ensure that

Queensland will have adequate numbers of trained

scientists and knowledge workers to drive the State’s

knowledge economy

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> a new focus on growing Queensland’s relatively small

high technology companies (particularly biotechnology

and information and communication technology firms)

into larger enterprises with higher export potential,

product diversity and market resilience

> a commitment, where beneficial, to build strategic

partnerships with other States and countries to

promote and develop each other’s scientific and

innovation capacity

New initiatives include –

> $32.5 million from the Smart State Research Facilities

Fund for six new R&D infrastructure projects in the areas

of medical research, cancer research, biodiscovery,

microtechnology and tropical marine science

> $100 million in new funding to –

> increase the Smart State Research Facilities Fund to

$150 million

> advance new research centres of excellence in

energy (cleaner emissions from power generation)

and ICT (with a focus on e-health and e-security)

> expand Queensland’s supercomputing capacity to

support cutting-edge research and industry

development

> assist Queensland research institutions to compete

for national research funding provided by the

Australian Research Council

> promote and expand Queensland’s world-class

capabilities in the tropical sciences (initially through

the holding of a global symposium on tropical

health and innovation)

> support early stage knowledge companies through

improved incubation facilities, skills training and

growth strategies

> help established knowledge industries to develop

and grow their businesses in Queensland and

external markets

Further key initiatives include –

> a six step action plan for improving science education

in Queensland and enhancing community

understanding of the role science plays in everyday life

> a new position of Queensland Chief Scientist to

coordinate science policy in Queensland

> development of the former Boggo Road Gaol site

in Brisbane as a landmark precinct for knowledge

industries and community living

> establishment of a Centre of Excellence for Applied

Sport Science Research at the Queensland Academy

of Sport

> strategic partnerships with the Northern Territory,

Western Australian, Victorian, New South Wales and

New Zealand Governments, to develop and promote

Queensland’s world-class expertise in tropical science

and biotechnology

These initiatives will generate smart, sustainable jobs and

investment opportunities, and ensure Queensland remains

at the forefront of science and technology innovation.

Queensland the Smart State – Science: Research, Education

and Innovation complements and, where appropriate,

draws on other key strategies released by the Queensland

Government as part of its Smart State vision including –

> Education and Training Reforms for the Future –

www.education.qld.gov.au

> Smart State: Health 2020 Directions Statement –

www.health.qld.gov.au

> Making Queensland’s Future – A Manufacturing

Development Plan – www.sd.qld.gov.au

> Export Solutions – Queensland Government Trade

Strategy – www.sd.qld.gov.au

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Knowledge – the key driver

In modern economies such as the United States, the United

Kingdom, Singapore and Australia, new jobs and growth in

incomes are often linked with information, knowledge and

innovation – which is simply about applying ideas,

research, inventions and new technologies to industry and

the wider economy.

Studies have shown that strategic investment in research

and development (R&D) and associated skills (human

capital) has brought high returns to countries, business

and investors. They also show that productivity

improvements in government, firms and whole industries

are directly related to the diffusion and uptake of new

technologies such as e-commerce.

The Australian economy has performed well over the past

five years, relative to the rest of the developed world,

and the Queensland economy has outperformed the

Australian economy.

Traditionally the State’s strong economic performance was

attributable to its commodity-based industries such as

mining and agriculture and to the State’s rapidly growing

population. However, the major source of economic growth

in Queensland in recent years has been the increased

productive capacity of Queensland’s workers, reflecting

smarter use of the State’s resources and its knowledge base.

Figure 1 demonstrates the relative contribution of

employment growth and labour productivity to economic

growth in Queensland and the rest of Australia between

1997-98 and 2001-02.

Queensland generated average economic growth of

5.5 per cent over this period, well above the 3.6 per cent

growth recorded in the rest of Australia. Two-thirds of the

economic growth differential resulted from greater

productivity, with Queensland averaging annual

productivity growth of 3.4 per cent, compared with

2.1 per cent for the rest of Australia.

■ Figure 1: Drivers of Economic Growth –

1997-98 to 2001-02

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1. The Smart State vision: Using

knowledge to drive economic growth

%Employed

Labour

■ Queensland ■ Rest of Australia

LabourProductivity

Real Output

1

2

3

4

5

6

Source: Queensland State Accounts, ABS

6202.0 unpublished data

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Productivity is driving new jobs for Queenslanders and

improving living standards. The additional income derived

from productivity produces –

> higher wages for Queensland employees

> lower prices for consumers

> higher returns to employers and shareholders

> larger revenue sources to fund improved government

services such as education, health and aged care

A major factor in State productivity has been the notable

growth in knowledge generation and technology diffusion

within Queensland. Queensland has seen major growth in

its information and knowledge industries and is forging a

reputation as a leading centre in Australia for world-class

research and innovation with some remarkable centres of

excellence and industry clusters.

These knowledge industries are stimulating productivity

improvements throughout the economy, creating new and

better paid jobs in many parts of the State.

Queensland’s growing research capacity

A generation ago, Queensland’s research effort focused

mainly on primary industries and Queensland was regarded

as something of an outpost when it came to major

scientific activity. The Australian Bureau of Statistics shows

that by 2000/01 this had changed dramatically with the

equivalent of around 13,000 full time R&D jobs across

higher education, government and industry.

A distinctive feature has been the rapid growth in jobs in

Queensland’s biotechnology industries. A survey by

consultants Ernst and Young shows that between 1999 and

2001, the number of Queenslanders in biotechnology jobs

grew from 1225 to 2040 (an increase of 67 per cent).

The same survey revealed a major increase in

biotechnology R&D spending, from $47.9 million in 1999 to

$199.8 million in 2001 (a growth rate of 317 per cent) and

equally impressive growth in commercial investment, from

$72.2 million in 1999 to $250.8 million in 2001 (a growth

rate of 248 per cent).

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Queensland researchers today are making discoveries and developing applications in many areas –

from scram jets to gene silencing technology, from drought resistant sorghum to cleaner energy

productions, from new cancer cures to satellite communication systems.

Growth in Queensland’s R&D sector is illustrated by the

fact that Queensland now has –

> the largest biotechnology research facility in Australia

(the Institute for Molecular Bioscience and the

Bioscience Precinct at the University of Queensland)

> the largest medical research centre in Australia (the

Queensland Institute of Medical Research at the

Royal Brisbane Hospital)

> the largest R&D effort in agriculture, food and fibre

science in the southern hemisphere (centred in the

Department of Primary Industries)

> one of the largest electronic games industry clusters

in Australia

> the second largest e-security cluster in the world, after

North America (comprising companies and academics

working on electronic security systems)

> one of the largest mining and minerals research

programs in the world (based in Brisbane, Mt Isa,

Gladstone and Townsville)

> one of the largest concentrations of tropical marine

scientists in the world (centred in Townsville, Cairns

and Brisbane)

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Case study:

Australia’s largest biotechnology

research centre

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‘You will build the future by investing in it. The past two

centuries have shown that the major driver of economic

growth and prosperity is the development and application

of new knowledge and technologies.’

Professor John Mattick, AO, Director of the Institute for Molecular Bioscience

Bioscience Precinct, University of Queensland

The new $105 million Queensland Bioscience Precinct,

located at the University of Queensland’s St Lucia Campus,

possesses a unique combination of bioscience research

facilities and expertise not found anywhere else in Australia.

The Queensland Bioscience Precinct houses the Institute

for Molecular Bioscience (IMB), several research divisions

of the Commonwealth Scientific and Industrial Research

Organisation (CSIRO), and the Department of Primary

Industries’ Queensland Agricultural Biotechnology Centre.

The collaborative research environment is designed to

promote world-class research to better understand human

and animal biology.

In the Queensland Bioscience Precinct, 700 top-level

scientists are working on unlocking the secrets encoded in

the genes and proteins of plants, animals and humans.

IMB researchers are addressing complex problems such as

different types of cancer, cystic fibrosis, kidney disease,

diabetes and Alzheimer’s disease.

The IMB is the only research institute in Australia to

incorporate the full spectrum of molecular biosciences,

from genomic discovery through to development of new

pharmaceuticals and disease therapies, while retaining

close physical ties with a university.

www.imb.uq.edu.au

Providing strong StateGovernment support

The Queensland Government has supported the University

of Queensland and the CSIRO in establishing the

Queensland Bioscience Precinct.

It has provided $15 million towards construction costs and

will provide a further $77.5 million in operational funding

over 10 years.

As the largest facility of its kind in Australia, the Queensland

Bioscience Precinct is contributing to world knowledge in

areas of human and animal biology, health and medicine.

The Queensland Bioscience Precinct reflects the State

Government’s commitment to building a strong and ethical

biotechnology industry that will drive economic

development in the Smart State.

The Precinct’s practical application and commercialisation of

world-class research will act as a stimulator for

Queensland’s biotechnology industry, leading to increases

in employment, investment, exports and Gross Domestic

Product (GDP) and, ultimately, improved standards of living.

The IMB has established a commercialisation company,

IMBcom, to ensure any new discoveries reap long-term

financial returns for Queensland. IMBcom will drive

research by developing and brokering licensing

agreements, patent applications, strategic partnerships

and alliances and spin-off biotechnology companies.

The Queensland Bioscience Precinct is attracting scientists

from all over the world. The combination of Government

backing and internationally competitive spin-off companies

based on local world-class research means Queensland will

be at the cutting edge of biotechnology discoveries.

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Case study:

Building a worldwide

reputation for medical research

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The Queensland Institute of Medical Research (QIMR) is the largest

medical research institute in the southern hemisphere and has

attracted a worldwide reputation for its research into cancer, infectious

diseases, mosquito-borne viruses and indigenous health issues.

Queensland Institute of Medical Research

QIMR researchers are working on a range of

groundbreaking projects including vaccine trials for

melanoma, malaria, glandular fever and rheumatic fever.

They are also working towards developing a vaccine for

Group A Streptococcus, which can lead to rheumatic heart

disease and has a high incidence rate among indigenous

communities.

The State Government believes Queensland has the

potential to become a major player in the biotechnology

revolution over the next decade and is providing

substantial funding to the QIMR to help achieve this Smart

State vision.

The State Government provided an $8 million site and

$20 million towards establishing the $60 million Clive

Berghofer Cancer Research Centre at QIMR.

This new Centre includes state-of-the-art laboratories,

clinical trial suites and patient facilities which allow

multidisciplinary scientific and clinical teams to work

together in one location.

The QIMR has recently been fully licensed by the Australian

Therapeutic Goods Administration to produce and supply

therapeutics for use in Phase I, II and III clinical trials.

This will enable the full process of research, discovery and

commercialisation of technology and treatments for

infectious diseases and cancer to remain in Queensland

(including taking drug development from the lab to the

hospital bedside).

www.qimr.edu.au

Developing researchpartnerships

With 500 scientists specialising in biomedical research and

development, the QIMR is enhancing Queensland’s

reputation as the Smart State, as well as promoting it as an

ideal location for international companies and their

researchers to do business.

The QIMR has developed several patents and entered into

agreement with several biotechnology companies. It has

established a joint venture with Q-Pharm and strong

partnerships with Peplin Biotech and Vaccine Solutions.

The Molecular Vaccinology Laboratory is working closely

with Peplin Biotech on a new anti-cancer agent that shows

promise in the treatment of skin cancers.

The Queensland Institute of Medical Research is

fast becoming the national and global partner of

choice in large-scale research trials.

Institute researchers have identified gene mutations that

increase the risk of breast cancer by age 70, discovered links

between smoking and ovarian cancer, and pinpointed a gene

complex which may lead to a predisposition to alcoholism.

The quality and excellence of work being done by the

QIMR is also reflected in a decision by a major American

biotechnology company, Sequenom, to locate its Australian

headquarters at the Institute.

www.qpharm.com.au

www.peplin.com

www.vaccine-solutions.com.au

www.sequenom.com

19 >

Leading the way in informationand communication technology(ICT)

Queensland hosts a dynamic and vibrant information and

communication technology (ICT) industry that employs

more than 56,000 people in more than 3700 firms. These

firms and their employees are engaged in a wide range of

jobs and activities such as making electronic equipment,

designing software, generating multimedia products

including animated movies and electronic games, laying

fibre-optic cable, running supercomputers for university

researchers and providing consultancy services to

government and industry.

The 2001-2002 ICT Industry Survey reveals revenue from

this industry exceeded $14.6 billion including overseas

exports of $850 million.

Notwithstanding market adjustments created by the fall of

the NASDAQ in 2000, the Queensland ICT industry is a

major force in the Queensland economy. It has a strong

research base, astute firms and skilled employees and is a

pivotal driver of productivity and economic growth.

Queensland has an increasing number of ‘older’, more

mature firms, pointing to a more robust and stable industry

as it assimilates the enormous growth of the past decade.

Driving innovation inQueensland’s traditionalindustries

The benefits of knowledge and innovation go beyond the

creation of jobs in biotechnology, ICT and other knowledge

sectors.

A large proportion of R&D in Queensland directly supports

mining, agriculture and construction and is helping to

ensure Queensland-based companies and farming

operations remain ahead in price and quality, despite

fluctuations in world commodity prices.

A 2002 study published by the Department of Natural

Resources and Mines found the Queensland mining sector

employs about 19,000 people and indirectly supports

another 67,000 jobs. Innovation has made crucial

contributions to growth and productivity in the mining sector –

> The Centre for International Economics has calculated

that six of CSIRO’s research projects in the coal sector

alone (in robotic mining and smart machine guidance) will

realise a net benefit of $4.5 billion for Australia over the

period 1994 to 2024, representing a return on investment

of $150 for every dollar invested, and estimates that half

of this benefit will return to Queensland

> 60 per cent of all computer software used in world

mining comes from Australia

> Queensland is home to the world’s largest mining

software company, Mincom

> in 1999/2000, exports of Australian mining intellectual

property totalled over $1 billion according to a 2002

study published by the Department of Natural

Resources and Mines

> MIM Holdings Ltd (now Xstrata) advises that R&D is a

major factor affecting productivity growth in its

operations and in maintaining company jobs

Innovation will continue to play an important role in the

mining sector in the future. For instance, Ludowici Minerals

Processing Equipment, the overall winner of the inaugural

Premier of Queensland’s SMART Awards, has developed a

revolutionary minerals processing screen which is quieter

and lighter than normal screens and fully transportable.

> 20

Science, research and innovation are central to the global competitiveness of Queensland’s established

industries such as mining and agriculture. Research and innovation support these industries by helping

them improve business systems and productivity, and by providing new and/or better products for

manufacture and export.

The screen is already being exported to South Africa and

other countries are expressing a strong interest in the

product.

Our primary industries, which employ 100,000

Queenslanders, are also vitally dependent on research and

innovation. A recent national report published by the

Department of Agriculture, Fisheries and Forestry

(Innovating Rural Australia – Research and Development

Corporation Outcomes 2001) identifies returns for

investment in rural R&D as averaging higher than 7:1. This

same report shows innovation has driven rural productivity

throughout Australia, with growth rates in the industry

averaging 2.2 per cent in the decade to 1999, despite

extremely difficult trading conditions.

Queensland’s tourism industry, which employs 150,000

Queenslanders, is also benefiting from local research and

innovation.

The Gold Coast, one of Australia’s premier tourist

destinations, is developing a sustainable direction plan for

tourism in the region, utilising a three-year study by the

Cooperative Research Centre for Sustainable Tourism

based at Griffith University’s Gold Coast Campus. The

North Queensland tourism industry is sponsoring research

into the environmental sustainability of the Great Barrier

Reef to ensure the region’s long-term viability as a

tourist destination.

Queensland’s knowledge sector is also contributing to

productivity in the State’s construction industry, a sector

that employs 140,000 Queenslanders. An example is the

new Cooperative Research Centre for Construction

Innovation based at the Queensland University of

Technology, which is undertaking 16 research projects

across the construction life cycle.

Using knowledge to ensureenvironmentally sustainableoutcomes

Queensland scientists and technicians are playing an

important role in the search for environmentally

sustainable solutions to the State’s population growth,

resource usage and productivity growth against the

backdrop of growing concerns about climate change, land

clearing, salinity, water use and quality, soil degradation,

waste management and other pressing challenges.

For example, the Queensland Centre for Climate Applications

(QCCA) – a joint initiative between the Department of

Primary Industries and the Department of Natural Resources

and Mines – is conducting world-class climate research that

is helping to predict weather patterns such as drought up to

six months in advance, for use by primary producers and

land managers. QCCA is also assisting other countries in

south-east Asia, South Africa and the Indian sub-continent to

better understand and forecast seasonal climate changes to

increase their food security and manage their natural

resources more sustainably.

The State-wide Landcover and Tree Study, managed by the

Department of Natural Resources and Mines, is using

information technology and remote sensing from satellites to

monitor the State’s vegetation cover. This powerful system is

providing crucial data for identifying land clearing,

biodiversity conservation and greenhouse gas emissions.

Researchers from the Department of Primary Industries are

leading the world in developing and applying biopesticides,

and their work is resulting in a dramatic decrease in

chemicals being used in agricultural industries such as

cotton. The commercial production and use of

biopesticides is also creating a new industry for

Queensland that is estimated to be worth $15 million

annually. At least one new biopesticide manufacturing

company has been established in south-west Queensland.

21 >

Another example of how knowledge industries are interacting with traditional sectors is the rapidly

growing area of creative industries. This diverse field involves the rich combination of the arts, media,

entertainment and ICT industries, to produce a whole new range of industries such as multimedia,

electronic games and other interactive environments. Queensland is a leader in this field.

This smart public sector research is being complemented by

equally smart research in the private sector. For example,

several Queensland companies are leading the way in the

field of renewable energy by developing new energy

supplies from sources such as sugar (bagasse and ethanol),

wind and macadamia nuts.

Providing social returns

Knowledge and information are providing social

benefits in urban and regional centres by

contributing to the productivity of community

services and the capacity of these services to

achieve better outcomes.

Queensland Health has developed the largest telehealth

network in the world, which enables regional, rural and

remote doctors to consult city-based specialists in

real-time diagnosis and receive visual instruction on

medical procedures via the internet.

Griffith University and the Princess Alexandra (PA) Hospital are

undertaking leading research into spinal nerve regeneration,

offering hope to those who have suffered a recent spinal injury.

Griffith University, the University of Queensland, the PA

Hospital, the Queensland Institute of Medical Research and

other Queensland research bodies, are also conducting

research into cancer, cardiovascular conditions, immune and

blood clot disorders, viral and vector borne diseases,

rheumatoid arthritis, chronic pain, visual defects and other

painful and debilitating conditions that affect Queenslanders.

Australia's most comprehensive public health science

laboratory, Queensland Health's Pathology and Scientific

Services group, is developing new standards in food safety,

assessing risk from contaminated sites, safeguarding

water quality, and delivering world-class forensics and

pathology services.

In the area of information and communication technology,

computers, telephones, television, the internet, electronic

commerce, multimedia and many other forms of electronic

exchange are now influencing almost all forms of social as

well as business life in the state.

Modern communications and information systems are

becoming an integral part of daily life and are helping to

overcome the ‘tyranny of distance’ between city and country

areas, and between Australia and the rest of the world. A

Department of Innovation and Information Economy survey

published in May 2002 shows 55.6 per cent of Queensland

adults now have internet access at home.

The Smart State vision – backingthe knowledge industries

In 1998, the Queensland Government identified the

‘information’ or ‘knowledge’ economy as a major factor for

the future of the State.

The Government was determined that information and

knowledge would reinforce and complement Queensland’s

traditional economic strengths in a way that would help

broaden the economy, create new wealth, increase

productivity, provide a greater range of jobs and improve living

standards for all Queenslanders in urban and regional areas.

Over the past five years, the growth of Queensland’s

knowledge industries, and the innovations taking place

throughout the Queensland economy, have been due to the

skills, imagination and hard work of local scientists,

technologists and entrepreneurs. However, the State

Government has provided key policy and program support

for much of their work, and in many areas has actively

worked with knowledge industries to identify strategic

opportunities and drive investments. This has been a

central thrust of the Government’s Smart State vision.

Little more than a generation ago, Queensland was a

relatively small player in the knowledge economy and in

R&D, innovation and commercialisation. By 1998 this was

changing. Queensland was developing an extensive,

knowledge infrastructure centred across nine universities,

research agencies such as the Queensland Institute of

Medical Research, an extensive education system, and

emerging companies that were active in ICT and other new

technologies. Queensland had the potential to further

develop a range of key research strengths that included –

> ICT and creative Industries

> medical and biomedical research

> environment and natural resource management

> 22

> aquaculture and marine science

> agriculture and animal health

> mining, minerals processing and energy

> engineering and manufacturing

> transportation

The State also had emerging capabilities in niche areas

such as nanotechnologies, neuroscience, forensics, sports

science and eco-tourism.

However, many of the developments were uncoordinated

and there was insufficient recognition within government,

industry and the community of the potential of these

sectors to generate wealth. Importantly, local levels of

investment were failing to keep pace with investments in

countries such as the United States, Singapore, Ireland, the

United Kingdom and Canada – where significant investment

was going into emerging technologies such as

biotechnology and nanotechnology.

In 1998, the Government recognised that greater

levels of investment were needed to boost

Queensland’s knowledge infrastructure and take

advantage of the State’s potential.

We needed to –

> enhance the skills (human capital) and the research

infrastructure (buildings, equipment and

supercomputers) required to drive R&D and innovation

> ensure that Queensland had access to state-of-the-art

telecommunications systems to enable researchers and

entrepreneurs to access global information systems

such as the internet

> address gaps in financial systems to ensure that

Queensland researchers (particularly early stage

knowledge companies) could access capital in order to

successfully commercialise their discoveries

> assist Government agencies, firms and the broader

community to access new technologies that are an

important driver of productivity

The Queensland Government has pursued these long-term

goals under the banner of the Smart State.

The Queensland Government has a long history of investing

in infrastructure to support and lead the economic and

social development of the State. Only 10 or 20 years ago,

water, electricity, gas, rail and road infrastructure were the

major candidates for support by governments with an

interest in catalysing economic development. Today, the

candidates are just as likely to be laboratories,

supercomputers, high-powered analytical instruments,

clinical trials facilities, commercial incubators, scholarships

and broadband infrastructure.

Since 1998, the Queensland Government has made major

investments in knowledge infrastructure to support and

lead the State in its transition to a broadly based,

information rich economy. Over the past five years, the

Government has committed more than $1.5 billion to R&D

infrastructure and research projects (See Appendix).

However, impressive as these investments have been, they

are only the beginning. The Queensland Government has

embraced a vision to reshape the State’s economy that will

take many years to fully achieve. Continuing investment

will be needed by the State Government and other

stakeholders over many years if the current momentum is

to be maintained in Queensland and the results of existing

investments fully realised.

The Government’s Smart State vision has been underway

for five years. The Government has taken stock of these

investments, considered what has been achieved and

where the challenges remain. The result is outlined in this

document, which charts the State’s investments in science,

education, research and innovation over the past five years

and evaluates Queensland’s performance in achieving the

Smart State vision. It reaffirms the Government’s

commitment to this vision and announces important

new directions and initiatives.

23 >

Case study:

Treating disease with Queensland’s

unique biodiversity

> 24

From helping sufferers of chronic pain with toxins extracted from a

cone shell snail through to developing sunscreens from coral reefs,

Queensland researchers are helping to market the State’s unique

biodiversity to the rest of the world.

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Queensland is the most biodiverse State in Australia and

home to 19 of Australia’s 80 terrestrial bioregions and 17 of

Australia’s 60 marine bioregions.

The State also has five World Heritage listed

sites covering some 40 million hectares.

Using this rich biodiversity, Queensland scientists have

established a worldwide reputation for creating bio-products

including pharmaceuticals to treat human diseases and new

agrochemicals and bioremediation products to enhance

Queensland’s clean and green industries.

Our scientists are internationally recognised for

their expertise in tropical and sub tropical

marine and terrestrial ecosystems.

In particular, Townsville has the highest concentration of

tropical marine scientists and managers in the world. The

region is home to organisations such as the Australian

Institute of Marine Science, the Great Barrier Reef Marine

Park Authority, James Cook University, CSIRO centres,

Queensland Government Departments and the Cooperative

Research Centre for the Great Barrier Reef World

Heritage Area (CRC Reef ).

North Queensland is also a leading centre for rainforest

research and management. Research agencies include the

Cooperative Research Centre for Tropical Rainforest Ecology

and Management and the Wet Tropics Management

Authority in Cairns, CSIRO’s Tropical Forest Research Centre

at Atherton, and James Cook University (Smithfield Campus).

In addition the Queensland Government is providing up to

$7.8 million from its Smart State Research Facilities Fund to

support the establishment of a $33 million Australian

Tropical Forest Institute in Cairns and $5 million for a

Tropical Marine Science Centre of Excellence which is

expected to have bases both in Brisbane and in the

northern tropics.

www.gbrmpa.gov.au

www.jcu.edu.au

www.reef.crc.org.au

www.rainforest-crc.jcu.edu.au

www.wettropics.gov.au

www.tfrc.csiro.au

25 >

Research in action:

The Australian Institute of MarineScience

The Australian Institute of Marine Science (AIMS) has a

long-term presence in Queensland, forming strategic links

with industry collaborators to facilitate biodiscovery R&D

on marine biodiversity.

In the first agreement of its kind in Australia, AIMS signed a

benefit sharing agreement with the Queensland Government

in July 2000. Under the agreement, both parties will share

income from any scientific and commercial discoveries

derived from Queensland's marine biological resources.

The centrepiece of the Institute’s biodiscovery R&D

program is the Marine Biodiversity Collection, which

includes more than 10,000 macro organisms and a further

7500 micro-organisms.

The Institute currently has a range of products which are at

various stages of commercialisation, including a natural

herbicide which kills weeds but is harmless to crops, a

sunscreen developed from coral, a portable toxin-check

device for seafood and drinking water and a novel

Vitamin E compound with industry applications.

AIMS recently signed a five-year Memorandum of

Understanding with the US National Cancer Institute in

Washington DC and handed over its first consignment of

400 samples of Queensland marine organisms. The

organisms (such as sponges and starfish) will be examined

for anti-tumour activity which could help fight human

cancers. Under the agreement, Queensland’s interest as

the source of the biological material is acknowledged and

protected, while opportunities for R&D and new industry

are maximised for Queensland.

www.aims.gov.au

> 26

The collection at the Australian Institute of Marine Science in Townsville represents the world’s most

comprehensive and biodiverse collection of Australasian marine biota.

Xenome

Xenome is a biotechnology spin-off company from the

University of Queensland that is developing pharmaceuticals

from snake venom and the toxins of Australian animals,

including cone shell snails from the Great Barrier Reef.

Researchers are applying their expertise in genomics,

peptide chemistry and pharmacology to develop drugs to

treat a range of neurological problems such as pain, stroke

and Alzheimer’s disease.

One group of toxins from the cone shell snail has shown

exciting results in the treatment of pain experienced by

many terminally ill cancer patients. The toxins

demonstrated an ability to alleviate severe pain in

situations where morphine is ineffective. International

analysts have estimated that the market potential for this

type of drug could be US$1 billion.

Xenome recently received $6 million in venture capital from

the Queensland Government’s BioCapital Fund to advance

its drug development program into human clinical trials.

‘We are very excited about our research into toxins

which could one day help to alleviate the suffering

of chronically ill patients around the world.’

Professor Paul Alewood, University of Queensland

www.xenome.com

AstraZeneca/Griffith University

Since 1993 AstraZeneca, in collaboration with Griffith

University, has invested more than $100 million to establish

a state-of-the-art Centre for Natural Products Research in

Queensland.

In sourcing biological materials for pharmaceuticals from

Queensland’s reefs and rainforests, AstraZeneca and the

Queensland Museum and Queensland Herbarium have

discovered more than 2000 new species of marine sponges

and 60 new species of plant.

‘Not only do natural sources offer a wealth of

chemical compounds, they have also evolved to

recognise many human disease-causing protein

domains. Natural products have been a

consistent source of therapeutic drugs and our

new focused approach gives Natural Product

Discovery an even greater chance of success.’

Professor Ronald J Quinn, Director, Natural Product Discovery,

Griffith University (a collaborative project with major

pharmaceutical company AstraZeneca)

www.astrazeneca.com.au

27 >

Case study:

Developing the building materials

of the future

> 28

‘The University of Southern Queensland is an acknowledged

international leader in fibre composites and through the Centre of

Excellence will continue to lead, thanks to the vision and support of

the Queensland Government.’

Professor Peter Swannell, Vice-Chancellor, University of Southern Queensland

A new engineering material that looks set to revolutionise

the construction industry both here and overseas is literally

taking shape in the Darling Downs city of Toowoomba.

Fibre composites are stronger and lighter than concrete or

steel and have the added advantages of being non-

corrosive, non-magnetic and non-toxic.

Toowoomba already boasts Australia’s first fibre composite

bridge, which could be used as the smart solution to

replacing 20,000 ageing road bridges around the nation.

The material may also be used for telephone and electricity

poles, wharves and other infrastructure traditionally made

from timber.

The University of Southern Queensland, in partnership with

the Toowoomba-based company, Wagners Composite Fibre

Technologies, will receive up to $10 million in State

Government funding to build a Centre of Excellence in

Engineered Fibre Composites.

So far researchers have developed a number of new

products including including semi trailers, railway sleepers,

structural beams and marine structures such as jetties and

wharves.

The new Centre of Excellence plans to market these

existing products and develop new ones for national and

international markets, which will bring valuable export

dollars to Queensland. It is estimated that the new Centre

of Excellence in Toowoomba will create more than 1000

new jobs over 10 years.

www.usq.edu.au

www.wagner.com.au

Funding excellence in innovation

The Queensland Government’s assistance package will

include $7.5 million from its Smart State Research Facilities

Fund (SSRFF).

The $100 million SSRFF (recently boosted to $150 million)

is designed to develop the science and technology

infrastructure Queensland needs for high quality research

programs.

It is also helping to generate new products and services as

well as jobs for Queenslanders.

www.iie.qld.gov.au

29 >

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