Driving Innovation

drIvING INNovATIoN Enhancing Australiaʼs Global Competitiveness



The Warren Centre: A NATIONAL RESOURCE The Warren Centre looks over the horizon to • International intelligence: uniquely identify new economic opportunities that will informing stakeholders on new international drive prosperity for Australia. We deliver thought technology developments, through deep leadership in engineering, technology, and academic and business links and a sustained innovation. As William J Cameron, Public program of expert global scanning Relations Manager for the Henry Ford Motor • Balance: balancing commercial interests Company stated, “Money never starts an idea; with an understanding of both the threats and it is the idea that starts the money.” opportunities from disruptive innovation The Warren Centre identifies new technology- • Engineering perspective: bringing driven opportunities early and facilitates a concrete, disciplined and systematic collaborative pragmatic analysis to ensure approach to identifying, assessing and Australia remains at the forefront of global fostering discussion of new technology insights and competitiveness. We engage opportunities for Australia seamlessly across industry sectors, associations, government and academia to bring together the • Changing mind-sets: bringing Australians’ best intelligence for the benefit of Australia. internationally-recognised ‘can do’ and ‘tenacious’ characteristics to institutions The Warren Centre’s unique role in helping to • The value of ideas: understanding the drive the prosperity of Australia is embodied in value and importance of intellectual property the enduring themes of: • Innovation: through identifying, framing, and strengthening awareness of new technology opportunities • Collaboration: engaging commercial interest with industry, government and For three decades The Warren academia and leveraging our unique Centre has made an outstanding institutional independence and objectivity contribution at the interface of to identify connections and create links engineering, industry and public across industries policy. Often it has led the debate, • National significance: acutely focusing in a practical, results-oriented way and with a collaborative on priorities for Australia’s international competitiveness and prosperity inter-disciplinary approach. • Longer term view: consistently taking a ~ The Hon Nick Greiner AC, 5 to 20 year perspective NSW Premier (1988 – 1992) The Warren Centre Sustaining Australia’s Global Competitiveness Page 3

THE ECONOMIC VALUE OF INNOVATION Innovation is widely recognised as central to sus- Hotspots of Global Innovation by Antoine van tained economic growth and rising living standards Agtmael and Fred Bakker (2015) contains numerous through strengthened productivity, commencing examples from the USA and Europe of the potency with Joseph Schumpeter’s seminal work on of collaboration, multidisciplinary thinking and modern market-based economies, The Theory the development, testing and application of new of Economic Development: An Inquiry into Profits, technologies in regenerating economic activity at Capital, Credit, Interest, and the Business Cycle, the local level, including: (1934). More recently, Robert Gordon in The Rise • Polymer science in Akron Ohio USA, and Fall of American Growth (2016) identifies innovation stemming from the ‘great inventions’ • Biotechnology in Zurich Switzerland, and of the 18th and 19th century as the central driver • Wireless sensor technologies, flexible of the unprecedented half-century of sustained electronics and other high-tech industries in productivity growth between 1920 and 1970. Eindhoven Netherlands. Innovation is vital to drive productivity growth, a prerequisite for a revival of real wage growth Common to these case studies is the central role and rising living standards. of a ‘connector’ – an individual or organisation with the vision, insights, relationships, influence For the past two decades there has been growing and advocacy skills to bring relevant parties recognition of the potency in stimulating economic together collaboratively – a role that The Warren growth, export opportunities and prosperity by Centre has successfully fulfilled from its inception. combining innovation with collaboration, multi- disciplinary thinking and the rapid testing and The Warren Centre engages multiple partners embrace of new technologies. This recognition throughout the innovation ecosystem, enhancing is based on an expanding body of evidence of awareness of global industry trends and supporting success in reviving economic activity. The Smartest translation of research to build the next generation Places on Earth: Why Rustbelts are the Emerging companies that will fuel the Australian economy. The enterprise that does not innovate inevitably ages and declines. And in a period of rapid change such as the present... the decline will be fast. ~ peter drucker Author, Innovation and Entrepreneurship Page 4 The warren Centre

What this debate needs is engineering and economics. ~ Prime Minister Malcolm Turnbull 21 March 2017 STEM Strategies for Australia Innovation – (2015) R&D Tax Beyond the Idea Credit Program (2003) (2015, 2016) Enterprise Innovation Growing WA through (2000) Innovation (2016) Engineering Instituting Enterprise Growth Industry Networks (1996) INdEpENdENT AdvICE To GovErNmENT (1995 – 2005) Cybersecurity Future of (2017) Energy (1996 – 2016) rAISING puBLIC AwArENESS Quantum High Performance Computing Computing (2016) CATALySING INduSTry INNovATIoN (1983 – 1992) Medical Technology Transportation Innovation Innovation (2016) (1983 – 2012) Creativity & Technology Cities & Urban Reform (2016, 2017) (1995 – 2015) Innovation & Process, Management Commercialisation and Risk Innovation (1996 – 2017) (1983 – 2017) Spark Space Festival Women in STEM Robotics, Innovation (2016, 2017) and Entrepreneurship Automobiles and (2014, 2015) (2017) Automation (2017) Sustaining Australia’s Global Competitiveness Page 5

drIvING INNovATIoN Photography Copyright: Demas Rusli @demasrusli The warren Centre has established a network of Australian innovators, united in their dedication to the nation’s continued prosperity. Supported by a dynamic executive team, an Innovation Advisory Team, and an independent pro bono board of distinguished industry leaders, the warren Centre leverages decades of experience and insights to maintain a future focus. A number of leading industrialists have indicated their support for the warren Centre’s future, in concert with recognition from the Commonwealth, recognising the national importance of the warren Centre’s contribution. The warren Centre is seeking additional and long term funding to ensure Australia navigates the next wave of innovation and remains focused on achieving global competitiveness. Page 6 The warren Centre

2018 – 2020 STRATEGIC PROGRAM The Warren Centre has committed to the following two year indicative program encompassing key areas of national importance and opportunity. The areas leverage the Warren Centre’s strengths, the ability to engage collaboratively across sectors, and current project activities. Each focus area will deliver an insights report underpinned by a comprehensive research program. Launch of the report will be supported by a series of educational and industry engagement programs designed to catalyse action. The following focus areas offer high value innovation opportunities for Australia: AGrICuLTurAL INNovATIoN SkILLS for ThE fuTurE: “STEm pLuS” This program will identify the production and digital transformation The Knowledge Economy of tomorrow requires a creative work opportunities necessary for continued international competitiveness, force with multidisciplinary science, technology, engineering including robotics, precision agriculture, technology services, and mathematics (STEM) skills combined with leadership and large-set data analytics, autonomous systems and regional communications competencies. The future generations will need the connections. The program will leverage the experience and capability to engage with a highly diverse domestic population, insights from the development of successful high tech sectors in a complex global business environment. The Warren Centre such as the mining services sector to exploit knowledge and will advance our long history of STEM advocacy in undertaking hard experience already available in Australia. As the 2016 a major collaborative project with Australian industry to foresee House of Representatives Standing Committee report Smart future skills needs. The project will be undertaken in partnership farming: Inquiry into agricultural innovation cites, productivity with the education sector to identify the critical points of influence increases of many tens of billions of dollars are likely if in our skills supply chain, to ensure Australia maintains an Australia can fully capitalise on this opportunity. adaptive and ‘future ready’ workforce which sustains our global competitiveness. ENGINEErING, SoCIETy ANd ThE BuILT ENvIroNmENT TrANSLATING IdEAS INTo proSpErITy Engineering a better physical, virtual and operational society The Warren Centre has a legacy of providing a bridge requires engagement across a number of engineering sectors. between industry and academia, overcoming existing barriers The Warren Centre will develop program elements to examine: to collaboration. This project will identify key topics creating • Efficient delivery of major infrastructure to save a portion a platform for increased collaboration between industry and of the $30 billion identified in our Infrastructure Productivity academia, and support existing national programs such as IP30 project Industry Growth Centre activities. The program will include • In-built mitigation of critical risk factors to ensure Australia commercialisation training and understanding for academic remains globally competitive. Examples include fire safety participants along with a robust framework to develop engineering and cybersecurity intellectual property value. • Innovation-ready infrastructure that anticipates emerging opportunities and challenges such as autonomous vehicles, performance metrics smart cities and connected systems The Warren Centre will develop metrics and key INNovATIoN ShowCASE performance indicators specific to each program. The Warren Centre will showcase and promote the innovation Metrics, based on international best practice, will capability within Australia through a series of events and identify the direct economic benefits and value at digital media campaigns to illustrate the value of innovation national and regional levels to help catalyse Australia’s to society, facilitating cross-sector connections and cultivating innovation ecosystem. Metrics will include: new ideas. These events will include: • Start up and ecosystem support • An annual Innovation Lecture sharing inspiration from • Jobs and employment impacts a leading Australian • Innovation Forums exploring our rapidly changing • New technology valuation technology environment • Australian intellectual property value • An Innovation Awards program encouraging and • Community and industry engagement metrics in recognising high value innovation post project communications Reflecting The Warren Centre’s core competence, all three The Warren Centre also will identify intangible elements will increase the awareness of Australia’s innovation and qualitative benefits from overcoming innovation capability, create networks to stimulate the innovation ecosystem barriers through networking and community and identify strengths and strategies to ensure Australia retains eco-system support. and increases its globally competitive position. The unique approach of the Warren Centre to major technology issues has produced some extraordinary breakthroughs. ~ Catherine Livingstone AO Chairman of the Commonwealth Bank of Australia Sustaining Australia’s Global Competitiveness Page 7

The Warren Centre: 30 YEAR TRACK RECORD The central roles in economic growth and rising living standards of innovation, collaboration, multidisciplinary thinking and new technologies – foundation stones of The Warren Centre since its creation in 1983 – are now widely recognised as a potent formula to stimulate national prosperity and global competitiveness. INNovATIoN muLTIdISCIpLINAry ThINkING The Warren Centre has consistently examined new In 2005, the Warren Centre recognised the value in a technologies at the cusp of development and showcased multidisciplinary approach to transport planning, developing the practical economic opportunities for innovation by the Sustainable Transport for Sustainable Cities roadmap Australian industry. Examples include local area networks drawing on liveability, societal behaviour, urban planning, (1983), energy efficiency (1990, 1994, 1998, 2007, transport management and infrastructure delivery. The Roadmap 2010), electric vehicles (1991) and Asian technology trends challenged established norms of the time by first developing a favourable for the Australian copper industry (2016). The detailed understanding of society’s transport needs, and only Warren Centre’s Annual Innovation Lecture challenges the then identifying how transport systems could meet these needs perception that Australia is lacking in innovation capability. – that is, taking the now-familiar user-centric point of view. The prescient Smart Card Forum in 1995 and Chris Nicholls’s Innovation Lecture ‘Spitting Chips’ in 2007 demonstrate the NEw TEChNoLoGIES power of public lectures, industry forums and focused projects The Warren Centre has continuously led the way in examining in triggering and accelerating productivity-enhancing innovations the capabilities and value-add opportunities of new technologies. years ahead of their widespread public awareness. An early example of continuous effort includes the efficiency offered by Computer Aided Design starting in 1985. The Centre CoLLABorATIoN promoted CAD/CAM tools in the 1980s and 90s in the earliest The Warren Centre’s Professional Performance program days of those transformative technologies. After 34 years of (2005 to present) bridges the legal, insurance, academic, promoting advanced engineering technologies, the Centre has project management, engineering and government sectors, recently showcased the power of Building Information Modelling working with more than thirty professional and industry technologies (2015), emerging international industry standards bodies to resolve and clarify issues in risk management and (2016) and the latest developments in Virtual Reality (VR) and professional indemnity to enhance the competitiveness of Augmented Reality (AR) tools in engineering and infrastructure Australian engineers. Adopted by the Board of Professional projects (2016). Commercially impartial assessment of technology Engineering Queensland in its 2013 Code of Practice and is paramount in the Warren Centre’s work. Projects and public formally embraced by Engineers Australia this year, the forums on local area networks (LANs) (1983), Smart Cards protocol is an example of broad and sustained collaboration (1995), Low Energy High Rise building (2007) and quantum to deliver practical solutions to complex issues. computing (2016) have identified and championed these transformative enablers. The Warren Centre recognises that, while each of these foundational themes is in itself important as a growth driver, their greatest potency derives from the additive effect of working collaboratively across the private and public sectors. Page 8 The warren Centre

THE WARREN CENTRE: 30 YEAR TRACK RECORD Many Warren Centre projects are so visionary it can take the rest of the community some years to catch up. Let’s ensure the Centre’s benefits to innovative design, engineering practice and business enterprise just keep on coming. We need them. ~ Len Ainsworth Founder Ainsworth Game Technology Ltd 2016 Case Study: Energy Technology The Copper Technology The Warren Centre looks to the future to identify 2007 Roadmap emerging technologies and to help Australians Low Energy Identifies Australian understand business opportunities High Rise 2010 copper growth A world-first project Low Energy High opportunities to supply strong Asian solar, identifies significant Rise Implemention wind and electric 1991 1998 differences in energy Stage 2 develops a vehicle demand. Electric Vehicles 1994 efficiency and empirical toolkit to implement 1990 Envisions standard Coal Seam Gas Industrial Energy data relating operational energy efficiency. Efficiency Energy Holden cars Develops coal bed behaviour to NABERS energy ratings. Management converted to electric methane (CBM) Reinforces energy efficiency to improve Identifies vehicles. Examines extraction techniques competitiveness. strategies for electric motors and demonstrates a process industries exploiting new, thorough trial. to improve energy high-intensity 2017 efficiency magnets. IEA counts 2015 and global global electric vehicle competitiveness. stock at 2 million. 2016 R Roadmap presented at London oadmap presented at London Metals Exchange Week in October. 2016 November LME copper price rises 20%. 2016 Setting the Path for Innovation CBD program expands. Disclosure 2009 The Warren Centre influences Energy Efficiency Council threshold lowered 1000 m². Australian thinking to capture the forms. 2015 economic opportunities that arise 2008 Melbourne’s Brighsun sets e-bus world record for from engineering and technological IEA calls for 10% reductions in distance on a single charge. innovation. COƒ emissions to (2030) 2003 2014 Tesla is founded. Becomes esla is founded. Becomes NSW Chief Scientist reports CSG risks can be managed. T electric vehicle leader. 2000 2011 Clean Tech Investment Program; Queensland Govt. mandates 18% 603 projects; $315 million electricity supplied by gas by 2020. 1996 2010 CSG commercial production begins Commercial Building Disclosure (CBD) Program implemented. in Bowen Basin, QLD. Mandates Building Energy Efficiency Certificate and NABERS rating. The Low Energy High Rise (LEHR) Project shows the combined value of innovation, collaboration, multidisciplinary thinking and new technologies. LEHR identified significant cost saving opportunities in building operations through energy efficiency. By identifying and documenting the innovative behaviour of leading performers, LEHR collaborated with building owners, managers, operators, engineers and service providers to improve environmental and economic outcomes. The project provided a basis for the foundation for the national Building Energy Efficiency Disclosure Act (2010). Sustaining Australia’s Global Competitiveness Page 9

AdvANCING As Australia transitions from an economy AuSTrALIA’S heavily reliant on commodities, the importance of innovation will increase. The activities of the Warren Centre and its achievements in innovation rESEArCh are highly aligned with the National Innovation and Science Agenda. The Warren Centre is the ANd only Australian thought leader with a 30 year track record in identifying, articulating and promoting Australia’s innovation opportunities. INNovATIoN The Warren Centre has helped demonstrate CApABILITy how innovation builds the future by providing ‘ahead of the mainstream’ exposure for business, government and the public to new technologies and their applications. Since 2004, the Centre has assisted in laying the foundations for ongoing innovation through long term leadership in STEM education. Examples include: • Innovation Panels: a series of forums that bring together opinion leaders to develop specific themes around innovation, ranging from transport and energy through to medical technology, fintech and creative industries with outcomes promulgated to industry stakeholders. • The Professional Performance Program (PPIR) is targeted at improving the performance of engineers and engineering teams to raise productivity, the professional skill and com- petitiveness of Australian engineers through a better perspective of the engineer’s role. • The Warren Centre’s Women in STEM and Entrepreneurship (WISE) Program aims to increase participation of girls in STEM education at the critical late primary and early secondary school stages of education; to increase participation of women in other parts of the innovation ecosystem including innovative businesses, start-ups and entrepre- neurial activities and careers; and to stimulate an increase in the number of women in senior leadership and decision making positions in government, research organisations, industry and businesses. • Continually updated website showcasing of Warren Centre innovation collaborations such as the Digital Innovations for Farms Taskforce, break-through innovations from ongoing technology monitoring and many Photography Copyright: other Warren Centre innovation initiatives. Demas Rusli @demasrusli page 10

20 Years and Innovation Hero Awards put an exemplary selection of The Warren Centreʼs annual Innovation Lecture Series of Innovation successful Australian innovators in the public spotlight. 2016: Engineering a Better world Marita Cheng, Founder of Robogals, Young Australian of the Year 2012 2015: robotics, Automation and Intelligent operations Professor Salah Sukkarieh FTSE, Director of Research and Innovation, Australian Centre for Field Robotics 2014: Beyond Earth Enrico Palermo, VP Operations, The Spaceship Company (Virgin Galactic) 2013: Thinking Big & making It happen Dr Alex Zelinsky, Chief Defence Scientist, DSTO 2012: Innovation in motion – Conquering the Global Automotive Industry Ric Tamba, Senior Vice President Car Transmissions Global, AVL 2011: making mApTEk – Innovation in the mining Industry Dr Bob Johnson, Founder & Chairman, MAPTEK 2010: The robots Are Coming! The robotics revolution in Australian Industry Professor Hugh Durrant-Whyte FRS, Research Director, Australian Centre for Field Robotics 2009: from Australia to the world: The Story of Google maps & Google wave Dr Lars Rasmussen, Google 2008: The Art and practice of Engineering in a digital world Tristram Carfrae, Structural Design Engineer & ARUP Fellow, ARUP 2007: Technology magic – Spitting Chips and Global Success Dr Chris Nicol, Chief Technology Offi cer (Embedded Systems), NICTA 2006: Childhood dreams made real Don Fry AO, Owner and Chairman, AIMTEK 2005: where’s waldo?… Tenix’s Global Search for Innovative Solutions Paul Salteri AM, Managing Director, Tenix Pty Limited 2004: our Time (Zone) is Coming Dr Keith Williams AM, CEO, Proteome Systems Ltd 2003: The money or The Box – Lessons from Looksmart Evan Thornley, Chair, Looksmart Ltd 2002: why Is It So difficult to develop Great Ideas and Inventions in Australia: Australians Can make It Dr Jim Fox, Managing Director, Vision Systems Limited 2001: Building an Innovative Global Enterprise from Australia Peter Fogarty, CEO, ERG Group 2000: managing the Innovative Global Enterprise Catherine Livingstone AO, Managing Director, Cochlear Limited 1999: value Creation Through Innovation Denis Hanley AM 1998: Transnational Strategies to drive point of Sale Technology Innovation John Wood, Managing Director, Keycorp 1997: The practical Nature of Innovation in Australian Large Businesses Jerry Ellis, Chairman-elect, BHP Co Ltd 1996: Technology and Innovation in the America’s Cup Challenge and for Australia John Bertrand AM Contact: Ashley Brinson, Executive Director 02 9351 3752 • [email protected] • www.thewarrencentre.org.au

The Australia of the future has to be a nation that is agile, that is innovative, that is creative. We cannot be defensive, we cannot future proof ourselves. We have to recognise that the disruption that we see driven by technology, the volatility and change is our friend, is our friend if we are agile and smart enough to take advantage of it. ~ Prime Minister Malcolm Turnbull 15 September 2015 Established within the faculty of Engineering in 1983 to mark 100 years of engineering education at The university of Sydney Cover & Back Cover Photography by: Demas Rusli @demasrusli