Media Statement - 13th August 2007
Federal Labor will invest $100 million over four years in a
Manufacturing Network to foster innovation in small and medium
Australian manufacturing businesses.
Up to 3,000 manufacturing businesses will benefit from the program each
year – becoming more productive, better able to compete in global
markets, and able to take advantage of new business opportunities
arising from the challenge of climate change.
It will help businesses succeed and create great jobs for our kids.
Five new Centres will be established in Sydney, Melbourne, Adelaide,
Perth and Tasmania and Queensland’s QMI Solutions will be linked in
with the network. A wide range of expert services will be offered to
businesses, including:
- Benchmarking of business and manufacturing processes against best practice;
- Helping to find and adapt the latest research, technology and organisational knowledge to improve products and efficiency;
- Prototyping and testing facilities to turn ideas into products; and
- Helping to cut through red tape to access other government programs, including export development grants and market intelligence from Austrade.
It is expected that about 1,000 small and medium manufacturing
enterprises a year will receive hands-on support from the Network. A
further 2,000 firms will receive advice, attend workshops and
participate in innovation networking activities. The Network’s
benchmarking services will be provided free to small and medium sized
manufacturing businesses.
The Network’s intensive technical assistance programs will be provided
on a co-investment basis with the business. The QMI Solutions model,
for example, provides a 2:1 government/business investment.
All categories of manufacturing business will be eligible for
assistance including food and beverage; textile, clothing and footwear;
wood and paper products; motor vehicle parts; and electronics.
Australia is an innovative country – but there are many areas and ways
in which we can improve:
- According to the ABS, only one-third of businesses had undertaken innovation – such as new products, services, operational processes or organisational processes – in the past two years.
- Australia invests only 1.8 per cent of GDP in research and development – well below the OECD average of 2.3 per cent.
- And our venture capital expenditure is less than half the OECD average, while crucial early-stage venture capital spending sits at less than a quarter of the OECD average level.
Australia simply must be more innovative if we are to compete in
global markets. The new network will be established by a new
Commonwealth department bringing together responsibility for
innovation, industry, science and research, but the Network will be at
arms length from government, including a combination of expert staff
and outsourced consultants.
And the Network will not operate as a stand-alone disconnected entity.
It will be a truly national network and work with existing
organisations that promote innovation in business, including
state-based organisations, Cooperative Research Centres, CSIRO
facilities and intermediary services, such as InnovationXchange.
If Labor is elected to government, it will ensure that any Commonwealth
investment in the recently established Productivity Centres is not
wasted, but instead incorporated into Labor’s more focused network.
The Manufacturing Network investment represents half of Labor’s
commitment in April to invest $200 million in ten Enterprise Connect
centres across all industries. Federal Labor will make further
announcements about the industry focus of other centres in coming
months.
By providing practical assistance to businesses, the Manufacturing
Network will help Australian businesses turn their new ideas into
innovative process and innovative products.
It will turn ideas into success, dollars and jobs for the future.
NOTE: The case studies of Labor's Manufacturing Network are available as a PDF under 'downloads' on this page.