THE UPSHOT OUTCOMES WITH IMPACT 2012
ISSUE
PA RT N E R I N G F O R S U C C E S S . C O N N E CT, C O L L A B O R AT E , C R E AT E .
ADELAIDE RESEARCH & INNOVATION PTY LTD T: +61 8 8313 5020 Level 14, 115 Grenfell Street Adelaide, SA 5000 Australia F: +61 8 8313 4355 www.adelaideresearch.com.au E: aripl@adelaide.edu.au
Welcome to the second edition of Adelaide Research & Innovation’s (ARI) The Upshot, our new series of stories highlighting the great work that our researchers are doing in conjunction with their partners in industry and government. In this edition, we have three more stories of positive engagement involving University of Adelaide researchers translating their knowledge into benefits for the community; the benefits of which many of us feel every day and don’t even realise. This publication is more than about sharing past stories though: it’s about creating future stories. With ‘open source’ on the tip of many forward thinking businesses tongues, now really is the time to be considering what some have deemed ‘evolved collaboration’ to help your business stay one step ahead. As you will see from this quick snapshot of collaborations, the University of Adelaide is a growing and trusted source of innovation, widely known for working with its counterparts for developing and sharing ideas and best practices.
Hundreds of companies across a wide variety of sectors have gained significant economic and social advantages by working with the University of Adelaide to cultivate new ideas and innovations. Collaborative research projects between industry and universities offer significant scope for the development of new knowledge and practices, new patents, solutions to technical problems and in some cases, the development of new products—all of which can translate into a sharper competitive edge. Engaging with our researchers has never been easier: if your company has a problem that needs addressing, or you are simply interested in incorporating novel and applied research thinking into your organisation’s innovation ecosystem, please contact Adelaide Research & Innovation to learn how the University of Adelaide may be able to assist you. We are keen to learn about the challenges facing your business or industry sector, and will endeavour to put you in touch with the right experts to help find a solution.
BUILDING THE FUTURE TOGETHER
JUST PART OF THE SERVICE OFFERING: Ideas generation & research Expert opinion Business solutions Testing & advisory services Applied development Shaping public policy
Alternatively, engage with us via our new forum Building the Future. Building the Future is an experimental forum designed to enable free flow discussion around topics that are relevant to business savvy individuals. The main aim of this forum is to afford members the option to: • Connect & network with likeminded people and develop new contacts. • Listen & learn from others across a wide spread of sectors, as they share their experiences in tackling innovation, best practice & sustainability. • Share & discuss ideas or areas of concern to gain an outsiders perspective or knowledgeable input. • Cluster—align business with others to create opportunity and sustainability. • Resolve—provide a solution for someone else. Whether you want to share and converse openly online, or just connect and take your conversation offline, Building the Future can be the starting point for people from different backgrounds to come together to connect, collaborate and create.
CONTENTS
1 2
CRASH TESTING OUR VEHICLES FOR SAFER AUSTRALIAN ROADS
PAGES 06–07
OUT WITH OPINION AND IN WITH SCIENCE
PAGES 08–09
3 4 5
BRANDS MATTER WHEN QUALITY ASSURANCE IS A MUST
PAGES 10–11
TAX INCENTIVE ON OFFER FOR INNOVATIVE BUSINESSES
PAGES 12–13
WILL CO-OPERATION BLUNT MY COMPETITIVE EDGE?
PAGES 14–15
RESEARCH PARTNER The Centre for Automotive Safety Research, The University of Adelaide
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CORPORATE PARTNER Australasian New Car Assessment Program
‘Symbiotic’ is how you might describe the relationship between The Australasian New Car Assessment Program (ANCAP) and The Centre for Automotive Safety Research (CASR) at the University of Adelaide. Since 2000, the two have been working together to improve the pedestrian safety of new vehicles entering the Australasia market, and reduce the number of car-related fatalities occurring on our roads each year. Car design, it can be said, is like fashion—it’s always changing. Over the last 100 years, there have been many events and technological advances which have helped shape major design trend changes in the automobile industry. When categorised by era, we can see a difference in the design and the influence of the horse-drawn era versus planned obsolescence, and again between the aerodynamics, the art deco and the post war eras. In modern times, as recent as the last 10 years, ANCAP testing, new legislation, as well as the drive in demand from consumers has meant a more recurrent influence is having an impact on design; that is vehicle safety. ANCAP is an independent nonregulatory body which compiles reports which provide transparent advice and information about the level of protection provided by vehicles in serious front and side crashes. Cars are put through a variety of frontal, side, whiplash, pedestrian impact tests, and an assessment of safety assist technology, and then rated on a one to five star basis, five stars being the best result. This information is then published and made available to consumers for consumption when making purchasing decisions about new vehicles.
An important component of the ANCAP testing program is pedestrian sub-system testing, which looks at the influence of vehicle design on pedestrian injury in a collision. In the early days of pedestrian safety testing, ANCAP faced an absence of dedicated facilities within the Australian market equipped to conduct such assessments and analysis. The Centre for Automotive Safety Research (CASR) at the University of Adelaide, a research facility with the capability to help out with some of its earlier testing, was at the time (and still is), the only facility in Australia with such capabilities. As such, ANCAP engaged the expertise of CASR to undertake services to help meet their needs. Being a reputable research institution meant that ANCAP could be assured of the quality of testing to be undertaken, but more importantly, the team at CASR had the skills and expertise to help them grow their own capabilities, and guide the direction of their new field of pedestrian safety testing and research. And that they have. This relationship has proven to be beneficial from both sides: its synergistic nature can be likened to an information sharing testing and research fraternity. The two sides now attend many of the same conferences, and the technical teams from both sides frequently bounce ideas off each other and share information.
CRASH TESTING OUR VEHICLES FOR SAFER AUSTRALIAN ROADS
THE UPSHOT: ADELAIDE RESEARCH & INNOVATION
There have been financial benefits to this relationship as well. CASR have helped ANCAP manage the financial side of the crash testing (which can get very expensive), and ANCAP returned the favour by playing an instrumental role in helping CASR move into their new purpose built, pedestrian sub-system testing laboratory. The Impact Laboratory is a central part of CASR’s pedestrian safety research (which considers both accident prevention and injury mitigation through vehicle design), and has enabled the Centre to expand their services. ANCAP has benefited from this move too; a new facility means that CASR can cater for ANCAP’s demand for service, and the two can continue to work on the pedestrian safety schedule, now a critical part of ANCAP’s test program. Mr Nicholas Clarke, CEO of ANCAP ‘can’t speak highly enough’ of the team at CASR and the impact on ANCAP as a result of their longstanding relationship. ‘The team are very professional and very clever at what they do; they are all round great people, and a great team to work with. We are always looking for new ways to make better use of the expert skill set that we have at our fingertips; whether that be for expert views on technical matters, or for inspiration and guidance on new fields of research. It’s a real perk of working with a research group at a University.’ In the five years between 2006 and 2010, nearly one in every eight road deaths in South Australia was a pedestrian. In addition to fatalities, there are on average 106 pedestrians seriously injured and 311 who received minor injuries on South Australian roads each year. This is an unnecessarily high number. Thankfully, we have the guys at ANCAP and CASR at the University of Adelaide working towards making our vehicles safer to lower these numbers, and make our roads safer for all users.
PAGES 06–07
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RESEARCH PARTNER Adelaide Health Technology Assessment, The University of Adelaide
CORPORATE PARTNER The Pharmaceutical Benefits Advisory Committee, Department of Health & Ageing
Members of the Australian public have multiple reasons to feel the need to be assured that our healthcare system is effective and efficient, and fiscally sustainable in the longer term. As patients, we want timely access to safe, affordable quality treatment. As family, friends and carers, we want the best technologies to be available for treating loved ones. As tax payers and members of the broader community, we want to be confident that government funds are spent appropriately and on technologies that do not pose a health or environmental risk. Thankfully, since the mid-1990s, the Australian Government has ensured its decisions surrounding health care funding and subsidies are backed up by scientific fact. The government considers advice from three independent health advisory committees; one for pharmaceuticals, one for medical services involving new procedures, and another for prostheses to be funded through private health insurance arrangements under the Prostheses List. These committees inform decisions about which health technologies and services should be subsidised for Australians to provide them with safe, effective and quality health care, and which provide the best value for money for the Australian taxpayer.
Assessing the evidence that informs two of these expert advisory committees (the Medical Services Advisory Committee (MSAC) and the Pharmaceutical Benefits Advisory Committee (PBAC)), is the team from Adelaide Health Technology Assessment (AHTA) at the University of Adelaide. AHTA has several contracts with the Australian Government Department of Health and Ageing to perform health technology assessments on behalf of both MSAC and PBAC. In this role, they collate, appraise and synthesise existing clinical evidence (research) on medical technologies and health interventions, develop economic models, and provide an evaluation of their safety, clinical and cost effectiveness compared with other treatments, as well as their likely impact on the health system. This independent evaluation enables MSAC to provide an evidence-based recommendation to the Australia Health Minister, on whether a new medical technology or service should receive public funding via the Medicare Benefits Schedule, and whether established medical services should retain Medicare funding. Similarly, AHTA’s critiques of industry submissions to the PBAC helps PBAC decide whether a medicine should be publicly funded through the Pharmaceutical Benefits Scheme (PBS), the government program which provides our population with affordable access to a wide range of necessary and cost-effective prescription medicines.
As taxpaying individuals, we should appreciate the rigour of this system as around 80 per cent of prescriptions dispensed in Australia are subsidised under the PBS. In the 2010–11 financial year, the PBS processed 188.1 million benefit prescriptions, representing a cost to the Australian Government of $8.8 billion. (Meanwhile Medicare Australia processed 319.1 million Medicare services in 2010–11, quenching more than $16.3 billion from the public purse.) Although the Government manages the price of each medicine on the PBS, the total cost of the PBS remains uncapped and therefore the overall cost of the Scheme increases as new drugs are added and as need increases. Logically not every new drug that enters the market can make it onto the list: listing every medicine on the PBS clearly would quickly make the scheme unsustainable. As such, ensuring funds go into the most cost effective and beneficial health care technologies are critical to ensure the long term sustainability of these schemes. AHTA are playing a vital part to make this happen. Their work is helping our policy makers to make informed, evidencebased decisions about where this funding should be allocated, thereby putting the emphasis on science rather than the historic and misguided influence, directly or indirectly, of political lobbying.
OUT WITH OPINION AND IN WITH SCIENCE
THE UPSHOT: ADELAIDE RESEARCH & INNOVATION
PAGES 08–09
RESEARCH PARTNER MechTest, The University of Adelaide
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CORPORATE PARTNER Jeffries Group
Brands matter in business-to-business (B2B) markets, and play an important role in helping B2B customers make purchasing decisions. The University of Adelaide brand is synonymous with research prestige and integrity, and is a brand that can be trusted to deliver a high quality service in a timely manner. The value of this brand to B2B customers contracting testing services is therefore assurance in the accuracy and reliability of the data gathered and reported on. Jeffries is an innovative ‘green sector’ South Australian (SA) company who produce a softfall product for children’s playgrounds called Jeffries PlayScape™. In 1996 a new Australia and New Zealand Standard addressing the impact attenuation of playground surfacing was released, which meant that going forward, all surfaces used underneath and around playground equipment had to meet strict testing requirements. The AS4422-1996 playground Surfacing standard is a voluntary standard though, and interestingly not many suppliers in the market have sought their products fully certified to it.
For the companies like Jeffries that are keen to abide by these standards, the most important element of the new standard is the requirement to address a detailed testing and reporting criteria to determine and certify products in relation to their impact attenuation capabilities (ability to absorb impact and minimise the risk of injury from any falls). Those requiring impact performance testing are provided with a list of recognised service providers from across the nation to choose from to have their softfall products tested to ensure they meet the standard. For Jeffries, it was the research reputation of the University of Adelaide and its close geographical location that led them to choose MechTest, a nationally recognised testing facility at the University within the School of Mechanical Engineering, from the list. Jeffries have their own brand and reputation to consider when making decisions about who to contract, so going with a trusted brand was a strategy to help reduce any associated risk.
To date, Jeffries has had a great working relationship with the team at MechTest. They have been happy with the level of service they have received, and have felt it has gone above and beyond the scope of the original testing services engaged. Working with MechTest has meant that Jeffries has enjoyed the value added benefit of being able to harness their broad spectrum knowledge of the University’s researchers, and gain additional insights into factors that could enhance product performance. So now, not only do they have their product tested with an industry-wide recognised brand, but they also have ready access to extensive local expertise to assist their endeavours in exploring other factors not yet considered. Researchers themselves want to make this world a better place, and will often go above and beyond the scope of a project or service if they feel they can add value. In this case, advising on methods and materials that will help make the product more robust and last longer not only benefits Jeffries, but also the end user of the product; that is the children of our community.
BRANDS MATTER WHEN QUALITY ASSURANCE IS A MUST
THE UPSHOT: ADELAIDE RESEARCH & INNOVATION
PAGES 10–11
4 R&D TAX INCENTIVE www.ausindustry.gov.au
RESEARCH SERVICE PROVIDER www.adelaideresearch.com.au
Research Service Providers (RSPs) registered under the Australian Government’s R&D Tax Incentive can help link South Australia’s world-class researchers to innovative businesses. The R&D Tax Incentive provides generous support to encourage more firms do more R&D, but not all businesses have the capabilities to do the R&D they want or need to do—this is where RSPs come in. Collaboration between researchers and innovative businesses can turn the ideas of today into the products, processes and services that will drive the businesses of tomorrow. An RSP is an organisation that is registered by Innovation Australia and has appropriate scientific or technical expertise and resources to perform research and development on behalf of other companies. RSPs help small to medium-sized companies identify and gain access to expert R&D resources in particular fields.
Collaborating with RSPs enables companies to conduct R&D activities without having to invest in the specialist staff or infrastructure needed to support such activities. Companies can contract R&D activities to RSPs with confidence since all RSPs must meet a set of criterion to qualify for registration. If a company engages a RSP to perform R&D activities, they can claim a R&D tax offset for eligible expenditure on registered R&D activities, even where their total claim is less than the usual threshold of $20,000 in an income year. Adelaide Research & Innovation is one such RSP in South Australia. Further information about RSPs can be obtained via the AusIndustry website by accessing the following: • R&D Tax Incentive Customer Information Guide • Why Conduct R&D with a RSP— Information Sheet • Application for Registration as a Research Service Provider • Opportunities for Researchers— Information Sheet • Public Register of Research Service Providers.
TAX INCENTIVE ON OFFER FOR INNOVATIVE BUSINESSES
THE UPSHOT: ADELAIDE RESEARCH & INNOVATION
PAGES 12–13
OPEN SOURCE: Is it right for your business?
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Open vs closed approaches to competition There has been a push in recent times for people to be more receptive to co-operation, clustering and open innovation approaches to business development and innovation. Many of these boil down to the unsurprising proposition that you need to engage with other people and their perspectives to develop better products or services. Successful people have been doing this since time immemorial. ‘Open’ models are often cast in opposition to closed or proprietary models, which are founded on protecting and exploiting intellectual property. But perhaps this apparent opposition is an illusion. Many of the open models are actually built on intellectual property rights—it is the way in which those rights are used that differs from proprietary models. Consider ‘copyleft’, which uses copyright to force others who make derivative works of underlying enabling software to also make their modifications or additions freely available to the benefit of all (and to enable the creation of yet further derivative works).
Crowdsourcing Crowdsourcing of ideas and funding is all the rage: from philanthropic purposes, to start-ups facilitated by the likes of Kickstarter, to multinational companies, which now routinely use crowdsourcing to gather innovation they can’t generate internally. The rise of crowdsourcing raises a number of understandable concerns. There’s potential for scandal: where a crowdsourced project takes money, fails or doesn’t even use it for the project; or exploitation: where those who contribute ideas to a site seeking competitive generation of ideas for a project have their ideas appropriated with no reward. Still, the signals are clear: this style of engagement is growing. Kickstarter is a good example—US$350 million has been pledged for more than 30,000 projects since April 2009, with a rapid escalation this year. A plethora of other crowdsourcing platforms have emerged with a variety of business models, some for-profit and others not—the educational not-for-profit Khan Academy is a case in point. Intellectual Property and Business Models Skilfully used, intellectual property can be a great asset to a business. There are many different classes of intellectual property—from copyright, through trade secrets, patents, design rights, trademarks and special forms of protection for computer chips and plant varieties. They service different needs, confer different rights, and are subject to a range of exceptions that are often poorly understood, even by large companies and sophisticated investors.
More important than simply securing intellectual property rights is understanding what they can do for you and designing an effective business model around them. Sometimes you can achieve better results by adopting more free and open approaches to other people’s use of your ideas. It depends what you are really after, and that might be a unique blend of awareness, influence, positioning, reputation and money. Business model design, innovation and implementation (including getting first to market!) is key—and many successful business models involve combinations of proprietary approaches and open engagement. An open conclusion and an invitation Being open through social networks, in research or business, is the trend and has much to commend it. But there will always be room for quixotic personal contributions that shake and form the new trends. A blend of different approaches gives us a healthy innovation ecosystem. It is important for the different players in that innovation ecosystem to recognise what they can (and can’t) effectively contribute to the development process: and also to be realistic about important issues around the ownership and use of intellectual property. At ARI we pride ourselves on a flexible approach to these issues. We recognise that our partners are often the ones best placed to own innovations and drive them to market. So whether you wish to purse an open, closed or blended approach to innovation, we look forward to working with you to develop and implement an effective engagement model.
WILL CO-OPERATION BLUNT MY COMPETITIVE EDGE?
THE UPSHOT: ADELAIDE RESEARCH & INNOVATION
PAGES 14–15
ADELAIDE RESEARCH & INNOVATION PTY LTD Level 14, 115 Grenfell Street T: +61 8 8313 5020 Adelaide, SA 5000 Australia F: +61 8 8313 4355 www.adelaideresearch.com.au E: aripl@adelaide.edu.au