Executive Summary

The initiatives outlined in this strategy are the latest in a series of measures introduced by the Government to promote research, development and innovation. Their effectiveness will be all the greater because of the more general economic reforms initiated by the Howard Government to foster business growth and entrepreneurial activity.

Recent major steps to boost innovative activity have included -

• The Investing for Growth (December 1997) statement which increased support for business innovation by providing $1.26 billion over the four years from 1998-99, with additional funding for R&D grants, venture capital and technology diffusion.
• The Knowledge and Innovation (December 1999) statement which announced a new policy and funding framework for higher education research and research training.
• The Government's response to The Virtuous Cycle, the report of the Health and Medical Research Strategic Review, injecting a further $614 million into health and medical research over six years from 1999-00, which doubles the National Health and Medical Research Council's annual budget by the year 2005.
• Establishing Biotechnology Australia in 1999, and in July 2000 allocating an additional $30 million over 3 years for targeted biotechnology initiatives.

Such initiatives have seen the Government's current commitment to innovation increase in 2000-01 to $4.5 billion. However, more needs to be done in response to an increasingly competitive world environment and the recognition that success in the 21st century will depend predominantly on the innovative capacity of nations, their industries and their research and educational structures.

To this end Backing Australia's Ability provides a comprehensive and integrated package representing an additional Government investment of $2.9 billion over five years. It will fund major initiatives to stimulate innovation