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SCIENCEINDUSTRY ACflON AGENDA — In Confidence Measure by Measure

Case study — Thermo Electron Clinical Chemistry

ThermoElectronClinical ChemistryCTECC),aMelbouinebasedproducerof.in vitro diagnosticreagentsandmediafor cellandtissueculture,wasbornglobalasTraceScientfficLtd. in1985.

Bytheearly1990swassuccessfullysupplyingits coretechnologyproductstolaboratoriesin NorthandSouthAmerica,EuropeandAsia.To supportthesemarkets,thecompanyhadestablishedadistributionnetworkthatincludedafullyownedsubsidiaryin theUSA andjoint equityventuresinChinaandEasternEurope.

In 1998thecompanywaspurchasedby ThermoElectron,oneof theworlds leadingscientificinstrumentcompanies.It is anintegralpartof theClinical DiagnosticDivisionof ThermoElectron’sLife andLaboratorySciencessector.

In 2004its turnoverwasover$30million. TECCemploysaround100staffinAustralia,USA andEurope,60 percentof whomaretertiaryqualified.It conductsR&D andsupportsavarietyof externalR&D projectswith leadingAustralianuniversitiesandresearcherswhichhaveahighsuccessrate.

To sustainitswell establishedreputationin themarket,TECC’s manufacturingoperationmeetsthedemandingqualitystandardsof theUSFoodandDrugAdministrationandtheEU In vitro Diagnosticdirective.

TECC haspositioneditself asaleadingsupplierof InfinityTM diagnosticreagentsthroughthedesignanddevelopmentof uniquedifferentiatedproductsthathaveacleartechnologyadvantageoverthecompetition.Its reagentsareusedfor diverseapplicationssuchasthetreatmentof dipolardepression,thediagnosisof liver.disease,andtheidentificationof lymphnodedisease.

TECCdesigns,developsandmanufacturesarangeof sterilemediafor usein cellandtissueculturethatareusedin thelaboratory,or in thelargescaleproductionofproteinsfor usein thetherapeutic,foodorbeverageindustry.BecauseAustraliaisfreeof ‘madcowdisease’,TECChasdevelopedastrongnichemarketfor its FoetalBovineSerumculturemedia.

Onthebackof its successinmanufacturingdiagnosticreagents,andtheemergingtrendfor laboratoriesto demand‘easeof useproducts’,TECCembarkedon astrategicR&D programto developandpatentastate-of-the-artprocessformanufacturingliquid reagentsthatremainstable.Theaimof theR&D programwastofurtherdevelopTECC’ssustainablecompetitiveadvantageandfuel its nextgrowthphase.

TECC strengthenedits marketpositionin theburgeoningbiotechnologyindustrybyleveragingits marketassetsof awell developeddistributionnetwork,emerginglicensingopportunities,collaborativerelationshipswith public/privateresearchinstitutes,experiencein theincreasinglycomplexregulatoryenvironmentandworld-classreputationfor qualityproducts.

TECC’sOEM customersincludeindustrygiantsin thein vitro diagnosticmarketsuchasBayer,BeckmanCoulter,andOlympus.

Issues, recommendations and strategies 42

SCIENCE INDUSTRY ACTION AGENDA — In Confidence Measure by Measure

Thescienceindustry’sexportstrategyis aimedatincreasingthevolumeof exportsandthenumberof newexportersfor Australia’sscienceindustry.It will achievethisby growingexistingexportersandencouragingnewSMEexporters.To reachtheexportgoalin the industry’svisionby 2015.theindustryproposesto increasethenumberof scienceindustrySMEexportersfrom theindustryby anet10 perannum.Further,theindustryaimsto increasethevolumeof exportsof establishedexportersby 10 percentonaverageperannumfor thenext10 years.Theindustrywill targettheUS, EU, Japanandtheemergingmarketsof China,otherAsiancountries,IndiaandSouthAmerica.

Scienceindustrycompanieswill be ableto respondeffectivelyto emergingmarketopportunitiesby usingthemarketintelligenceandotherresourcesalreadyavailablefrom industryandgovernment.Thereis aneedto ensurethatthe industry,andparticularlyrelevantfor SMEsandaspiringexporters,continuesto takefulladvantageof theresourcesthatareavailable.

Commonwealth,StateandTerritoryGovernmentsoffer supportfor exporting.D1TR, DEST,AustradeandtheVictorianGovernmenthaveassistedthescienceindustryto showcaseits capabilityatinternationalexhibitionssuchasPittcon2005in US. Austradehasarangeof programsto developnewexporters,includingpartneringservicesto assistwith in-marketopportunitieswhereAustraderesourcesarecurrentlyfocused.Thescienceindustryhasalreadyusedsomeof Austrade’sprogramassistanceandhassuggestedimprovementsto theExportMarketDevelopmentGrantsSchemethroughthe2004reviewof thescheme.ThetradeagreementsthatGovernmenthasandis currentlynegotiatingenhancethebusinessenvironmentfor exportactivity andpresentnewopportunities.For example,theAustralia-USFreeTradeAgreementopensthegovernmentprocurementmarketofbothcountriesatfederalandstatelevels.

Theindustrypossessesanumberof peoplewhohaveachievedexportsuccessandwhoarewilling to helpaspiringexportersby playing theroleof mentor.As partoftheimplementationof theactionagenda,theindustrywill developamentoringprogramthatincludesexporting.

Theimplementationgroupwill developandpublishafive-yearexportpromotionplanthatincludesdomesticandinternationalexhibitionsandotheractivitiestoshowcaseAustralianscienceindustrycapability.

Break-throughinnovationssuchasspectrometry,spectrophotometry,genomics,proteomicsandnanotechnologiesleadto stepchangesin technologyandcreatenewcommercialopportunities.To maximisetheseopportunities,thescienceindustryneedsto prospectthescientificequipmentandthelaboratoryandtechnicalservicesmarketsfor unmetdemand,matchthesedemandswith technologiesemergingfrompublicly fundedresearchorganisations,anddevelopproductsandservicesusingexistingsupportmeasuresavailablefrom governmentandindustry.Theindustryhasworld-classclustersinMelbourneandSydneythatcould enablecompanies,universitiesandpublicly fundedresearchorganisationsto leverageoff oneanother’sexpertiseto bringnewproductsandservicesto market.



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QUALITY IMPROVEMENT FOR PRODUCTS AND SERVICES

Profit in business comes from repeat customers, customers that boast aboutyour project or service, and that bring friends with them.

W. Edwards Deming

Quality, alongwith price,supportservices,innovationandspeedto market,is akeydeterminantof strategiccompetitiveadvantage.However,marketneedsareinconstantflux andremainingattheleadingedgerequirescompaniesandtheirsuppliersto continuouslyimprovethequality of theirproducts,servicesandprocesses,includingafter-salesservice.

Thecustomerdeterminesthequality of aproductorserviceto meettheirneeds.Thecompanythatprovidestheproductor servicethatnot only meetsbutexceedscustomerexpectationswill succeedin globalmarkets.

Australia’sscientificproductssuppliedby thelargersciencecompaniesarealreadyglobally competitive.Theyachievedthisby understandingandapplyingthekeydeterminantsof productquality,namelyperformance,features,flexibility,durability,conformance,serviceability,aesthetics,andperceivedquality.

Australia’slaboratoryandtechnicalservicescompaniesareincreasinglyenteringexportmarkets,particularlyin Asia.Theyareachievingthis by understandingandapplyingthekey determinantsof servicequality,namelytimeliness,courtesy,consistency,convenience,completeness,andaccuracy.

Thepressureon Australia’sscientific productmanufacturersto conformto globallycompetitivequalitystandardsis forcedon themby theglobal marketsinto whichtheysell.This hasaflow-oneffectto their subsidiarycomponentsuppliers.

It is not enough to do your best; you must know what to do, and then do yourbest.

W. Edwards Deming

Managingquality in anoutsourcingenvironmentis particularlychallengingfor theoriginal equipmentmanufacturer(OEM) andthecomponentsupplieralike.

In the courseof raisingtheir company’squalitystandardsto meetglobalstandards,Australia’sscientificproductmanufacturersfoundthatqualityandhowto achieveit in manufacturingoperationsis notwell understoodby industrypractitioners.Thiswasattributedto thelackof aqualityculturein Australianindustryandto alackof its inclusioninundergraduateandvocationaltraining.



Theindustryconsidersthataqualitymindsetshouldbe anenduringaspectofindustryculture.Thisstartswith theeducationandtraining of the industry’sworkforceandis reinforcedin theworkplace.

Case study - A&D Mercury Pty Ltd

A&D MercuryPtyLtd isaJapaneseownedSMEmanufacturerof industrialweighingequipmentestablishedin1946.Thecompanyhasaproductionfacility inAdelaideandisadominantsupplierto theAustralianmarket,andit exportstoJapan,US, SouthEastAsiaandEurope.

Prior toJuly 2003,A&D Mercurywasunprofitable,strugglingto satisfythe qualityrequirementsof its parentcompanyandwasin dangerof losingits manufacturingrights inAustralia.To recoverthesituation,companymanagementhadto changeitsattitudetoqualityandhowto achieveit its manufactureof scalesandbalances.Sinceimplementingitsquality improvementandmanagementprogramnoneof itsproductshavebeenrejectedby customers.

A&D Mercury’squalityimprovementandmanagementprogramhasthefollowingelements:

• Improvedcommunicationbetweentheparentcompany,localmanagementandemployees.Thisincludeshaving:

o Clearly definedqualitygoals;o A companyvisiontoaspireto; ando Improveduseof informationtechnologyfor communicationwith

theirparentcompanywhichusesdigital imagetransmissionof

products,processesandteleconferencing.

• Quality trainingby theparentcompanyto improve:

o A&D Mercury’sunderstandingof Japanesemarketrequirements;ando A&D Mercury’sunderstandingof headoffice’s expectations.

• StableemploymenttoretainexpertiseandthequalityculturedevelopedinA&D Mercury.

• Implementationof theJapanese5’S programto improveshopfloorlayout,productionlineflow andmaintainacleanandtidy productionarea.

• Semi-automatedproductionlinefor testingandcalibratingscales.

• 1S09001:2000accreditationwith regularauditsby BVQI.

Tobecomeapreferredsupplierto anOEM in aglobalsupplychain,companiesmustadhereto anumberof standardssuchasISO9000,relevantnationalandinternationalstandardsaccreditationandpackagingrequirements.Gainingaccreditationto thesestandardsis oftenexpensiveandtimeconsuming.However,

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Issues, recommendations and strategies


the costof nothavingahighqualityproductthatcomplieswith therelevantstandardsis alsohigh.This costarisesfrom productrecalls,returns,poorreputationandlossof customers.

Gainingqualityaccreditationshouldbeseenas aninvestmentdecision.In suchaframeworkthecompanycanweighup thecostsandbenefitsof certainqualityaccreditationsanddecidewhichaccreditationsprovideanetbenefit.

Strategiesformanagingquality in theoutsourcedenvironmentof asupplychainrequiretheOEM to havestrongandeffectivebusinesspartnershipswith itssuppliers,bestpracticequalitymanagementthatis diffusedthroughoutthesupplychainandinto theoperationsof thepartners.This shouldenablefasterandmoreaccurateinformationflows andimprovedcoordinationbetweenthesupplychainpartners.

Quality improvementis acommercialdecisionfor individualcompanies.Theimplementationgrouphasarole to increasetheindustry’s awarenessof qualityandwaysthatcompaniescanimprovetheirproductsandservices.This will enablesciencecompaniesto improvetheircompliancewith globalstandards.

Workingwith educationandtrainingprovidersto ensurethatstudentsreceivesufficienttrainingin qualitymanagementwill be apriority of the implementationgroup.

Theindustryhasdevelopedandcommenceddeliveringaqualityawarenessprogramaimedatprovidingspecificinformationon quality issues,andhowcompaniescandeveloptheirqualitymanagementsystems.It is usingvariousmeansof delivery thatincludeawebsite,newsletter,industryperiodicmagazines,seminarsandcompetitions.SIA conductedits ‘Better Lab Design2005 Conference’thatincorporatedthe‘Laboratoryof theYear’ competitionincollaborationwithanindustryperiodicalmagazine.Theimplementationgroupwrninvestigateleverageon thequalityprogramsof otherindustrybodiessuchastheAustralianOrganisationof Quality.

The successof thescienceindustrycompaniesis testimonyto thewealthofexperiencein theindustryfor improvingproductandservicequality.Many of thepeoplewhohavesucceededin improvingtheir company’squalityarewilling tohelpcompanieswith thisneedbybeingamentor.As partof theimplementationoftheactionagenda,theimplementationgroupwill developamentoringprogramthatincludesquality improvement.

Networkinghasbeensuccessfulin Victoria asameansof sharingexperienceandtheimplementationgroupwill encouragequalitymanagementto bepartof awidernetworkingprogram.



GElTING THE REGULATION FRAMEWORK RIGHT

“The nicest thing about standards is that there are so many ofthem tochoose from.”

Ken Olsen - founder of Digital Equipment Corporation

Thescienceindustryreliesheavilyon internationaltrade.It recognisesthatastrongregulatoryframeworkthatcanoperateseamlesslywith therelevantinternationalregulationsandstandardsis essentialto preservingpublictrustandfor tradein theindustry’sproductsandservices.However,Australiansciencecompaniesoperateinacompetitivebusinessenvironment.Australia’sregulatoryframework,asit iscurrentlyconfigured,isasignificantimpedimentto theefficientoperationof themarket,reducingtheindustry’s competitivenessby imposingcostson theindustrythatareultimatelyborneby thecommunity.

The2004surveyof thescienceindustryby theDepartmentof Industry,TourismandResourcesfoundthatof all theissuesimpactingon industry,theefficiencyofAustralia’sregulatoryandcertificationprocessesandinternationalregulatoryissueswereof mostconcernto theindustry.Theacceptabilityof Australianstandardsinworld marketswasseenasasmalladvantage.

Australiahasacomplexregulatoryregimewith ninejurisdictions(eightstatesandterritoriesandtheCommonwealth),eachwith its ownregulationsandstandardsthatareadministeredby manydifferentregulatorybodies.TheCommonwealthalonehasaround60 Governmentdepartmentsandagencies,and40 nationalstandard-settingbodiesandMinisterialCouncilsthathavepowersto prepareoradministerregulations.Anotherlayerof complexityis addedby internationalmarketshavingregulationsandstandardsdifferentfrom domesticones.Thesecompliancecostsareexacerbatedby companieshavingto remaincurrentwith thecontinuouslychangingregulatoryenvironment

Muchis alreadyunderwaywithin Australiaandinternationallyto addressthisimpedimentto theindustry’sgrowth.Governmentreviewsregulationandassessesits impactbeforechangesareintroduced.Onesuchmeasureis theRegulationImpactStatement(RIS)process.TheProductivityCommissionreportsannuallyonthecomplianceof AustralianGovernmentbodieswith RIS requirements.Work hascommencedinternationallyundertheauspicesof theGloballyHarmonisedSystemfor theClassificationandLabellingof Chemicals.



Case study — impact of Australia’s regulations onEppendorf South Pacific and Merck Pty Limited

EppendorfSouthPacfficandMerckPtyLimitedbelongto two highly reputablemultinationalscienceindustrycompaniesandsupplymarketsinAustraliaandOceania.

Eppendorfis animporteranddistributorof laboratoryequipmentandconsumables.It mustcomply with theregulationsandstandardscoveringelectricalequipment,refrigerantsandbiological reagents.

SomeuniversitiesinQueenslandimposespecificationsinadditionto thoserequiredby theQueenslandGovernmentregulations.TheseadditionalspecificationsimposeaburdenonsupplierssuchasEppendorfwhoconsiderit to bemoreappropriateiftherewasconsistencyof all electricalequipmentregulationsacrosstheCommonwealth,andall StatesandTerritories.Byhavingconsistency,supplierswouldbeableto distributetheirproductsmorereadilywithoutincurring thecostofmakingalterationsfor eachclient.

Merckis animporter,manufactureranddistributorof life scienceproducts,analyticalreagents,pigmentsfor paints,plasticsandcosmetics,andelectronicchemicalsusedfor semiconductormanufacture.Its productrangeis in excessof 10000lines.Of these,it stocksmorethan2500in its purposebuilt, state-of-the-artfacility in Melbourne.

ThecompanymustcomplywithAustralia’srequirementfor dangerousgoodstransportaswell as thestorageandhandlingregulations.Occupationalhealthandsafetyregulationsincludeplant,certificationof plantusers,confinedspaces,hazardoussubstances,incidentnotification,manualhandling,first-aidandthelatest,preventionof fallsregulation.

Theirregulationcompliancestaffmustremainconversantwith theregulationscoveringeachof theseareasnot only inVictoria,butalsoin Australia’sotherstatesandterritoriesandthecountriesinOceania.In someinstances,Australia’sStatesandTerritorieshaveadoptedtheCommonwealth’sregulationsandstandardsandthenmodified themfortheirownpurposes.Merckmustremaincurrentwith thefrequentchangesto theregulationsandstandardsandhaveto dealwith amultitudeofdifferentgovernmentagenciesadministeringthem.This isacostlyexercise.

EppendorfandMerckbelievethatastrongnationalregulatorysystemis essentialtoensuringhighqualityproductsandservicesandto maintainingpublicconfidenceinthecompaniesandtheirproductsandservices.A rigorouslyenforcednationalregulatorysystemprovidesthecompanieswith adegreeof certaintyin theirbusinessenvironmentandensuresthattheyoperateon alevelplayingfield inAustralia.

Theyalsodesireanationallyharmonizedsystemof regulationsandstandardsaffectingthescientificproductsthatEppendorfandMercksell in Australiaasthiswouldsignificantlyreducethecostof compliance,enhancetheircompetitivenessandimprovethevalueof theirgoodsandservicesto Australiancustomers.



Thescienceindustryis seekingimprovementsin the coordinationof regulationdevelopmentandadministrationfrom Government.It isalsoseekingthealignmentof Australianregulationsandstandardswith relevantinternationalonessuchasCEMark,UL certification2,USFoodandDrugAdministration(USFDA) andthequalitystandardsISOandAmericanStandardTestMethod.Ofparticularinteresttotheindustryis theintroductionof aharmonisednationalcodeof practicethatCommonwealth,StateandTerritoryGovernmentsusefor packagingandlabellingof hazardoussubstances- poisons,drugprecursorsandtherapeuticsubstances.

To improvethe regulatoryenvironmentin Australiafor theindustry,theimplementationgroupwill workwith government,otherindustrybodiesandinternationalregulatoryreforminitiatives. It will addtheindustry’s weightto theshapingof regulatoryreformproposalsaimedatimprovingthecoordinationofregulationdevelopmentandadministrationandalignmentwith internationalstandards.

Thescienceindustry’sparticularconcernsaboutdomesticregulationsandstandardsare:

• Variationsin therestrictionsandthewaycertainregulationsareadministeredby Commonwealth,StateandTerritoryjurisdictions.Theareasof primaryinterestto thescienceindustryarescheduledpoisonsonschedules4 and7, drugandexplosivesprecursors,in vitrodiagnostics,weightsandmeasuresuniformtradelegislation,andelectricalsafety.

• Lackof aconsistentprocessfor formulatingandimplementingregulationsandnationalcodesof practice.

Theindustry isasignificantexporter.To accessexportmarketsmanufacturersmustcomplywith productcertificationregulationsandstandards.Quality standardsareembodiedin these.Internationally,thesignificantstandardsarethoseof theEuropeanCE Mark andUL certificationandtheUS FDA. Thereareindicationsthatthe EuropeanCE standardis beingadoptedasaglobalstandard.TheindustryconsideredthatAustralia’sregulationsandstandardsshouldbealignedwith thoseof Australia’smajorexportmarkets.ThissuggeststhatCE shouldbeconsideredtobeAustralia’sstandard.

Bettercoordinationbetweenjurisdictionsandtheharmonisationof regulationsandstandardswith relevantinternationaloneswould improvetheefficiencyofregulation.Thiswould improvetheinternationalcompetitivenessof theindustrybyreducingbusinessinputcostsandimprovingmarketaccess.

Theindustryis concernedthatits interestsarenotbeingcanvassedin theformulationof regulationsandcodesof practiceby thevariousregulatorybodiesinthedifferentjurisdictionsin Australia.Theprocessis differentfor differentsubstancesin eachjurisdiction andthisimposescostson industry.Thescienceindustryis seekingacommonandmoreinclusiveprocessfor the developmentof

2 CE meansConsultantsEurope,Europe’strustedsourceofproductcomplianceinformation.

UL meansUnderwritersLaboratoriesInc., atrustedglobal sourceofproductcomplianceinformation.



thereportingandmonitoringrequirementsof governmentson hazardoussubstances.Havingacommonprocesswould reducethecostto industry.

Case study — Regulation reform and other action agendas

Regulatoryreformwasoneof thekeyissuesof ChemicalsandPlasticsActionAgendawhichconcludedin2004.

TheChemicalsandPlasticsLeadershipGroup(CPLG)wasformedattheinvitationof MinisterMacfarlaneto implementtheActionAgenda’srecommendations.Itcomprised11 individualsfrom abroadrangeof segmentsandfirms acrosstheindustry.

Thechemicalsandplasticsindustryis Australia’sfourthlargestmanufacturingsectorwithanannualturnoverof over$27billion. CompliancewithCommonwealth.StateandTerritorychemicalsregulationsimposessignificantbusinessinputcostson the industry,andassuchis animpedimenttotheindustry’sgrowthandinternationalcompetitiveness.

To ensurethatthechemicalsandplasticsindustrycancontinueto contributeto thesocialandeconomicwell beingof Australians,theCPLGidentifiedtheneedfor arevisedandstreamlinedregulatorysystemthatis moretimely,accountableandcost-effective.Theregulatorysystemalsoneedsto beconsistentwithnationalandinternationalbestpractice,particularlyin ensuringtherapiduseof overseastechnologyto facilitategrowthof chemicalsandplasticsmanufacturingopportuzilties.

To progressthereformof regulationsaffectingtheplasticsandchemicalsindustry,thethenParliamentarySecretaryto theMinister forHealthandAgein~theHonTrishWorth Ml’, coordinatedtheAustralianGovernment’swork with industryacrossall relevantregulatorybodies.

A substantiallyimprovedregulatoryregimewasintroducedby theIndustrialChemicals(NotificationandAssessment)Amendment(LowRegulatoryConcernChemicals)Act2004.This initiativefor chemicalsof low regulatoryconcernisfocussedonachievingregulatoryefficiencyandpositiveincentivesto driveimprovementsin thesafeandsustainableuseof chemicalsin Australia.Theyreflectabalancebetweendevelopingactionsto reducetheregulatoryburdenwith actionsto strengthencompliance,transparencyandaccessto chemicalsafetyinformation.

Thesereforminitiativesdemonstratethatsignificantprogresshasbeenmadeagainstthemilestonessetby theChemicalsandPlasticsActionAgendaandtheprocessoftheir development,consultationandcommitmentareapossiblemodelfor otheractionagendas.



Regardingtheindustry’s involvementin regulationformulationandreviewprocesses,theindustryrecognisesthatit hasarole to expressitsviewstogovernments.Essentialto engaginggovernmentsin this taskis to haveastrongcase.Thescienceindustrywill identify andprioritise theregulationsandstandardsof mostconcern.Itwill alsoidentify whereAustralia’sregulationsandstandardscouldbealignedwith relevantglobally acceptedstandardssuchastheETYsCE MarkandUL certification,USFoodandDrugAdministration,andpharmaceuticalstandards.

TheChemicalsandPlasticsAction Agendahassomeelementsincommonwith theScienceIndustryActionAgenda.However,themaindifferenceis thatthescienceindustrydealswithmuchsmallerquantitiesof chemicalsfor its laboratory-relatedactivitiesasopposedto theindustrialandagriculturalapplicationsof thechemicalsandplasticsindustry.However,while thepacksizesaresmall,theindustrysellsalargernumberof packs.Thescienceindustryis developingastrategicalliancewithChemicalandPlasticsLeadershipGroupwhichhasresponsibilityfor implementingthatactionagenda.

TheMedicalIndustryAssociationof Australia(MIAA) hasbeeninvolvedin thescienceindustry’s considerationsof regulationandstandardsissues,andit hasrecentlycommencedits actionagendaon medicaldevices.MIAA iskeentocollaboratewithSIA on regulationreformandotherissuesof commoninterest.

Thescienceindustryis investigatingwaysto collaboratewith otherindustrybodiesthathavesimilarintereststo developjoint regulationreformproposalsforintergovernmentalendorsement.

While thelargercompaniesareawareof thestandardstheirmarketsrequire,smallercompaniesarelessaware.Theindustryconsideredthataccessto accuratedomesticandinternationalinformationon productcertificationregulationsandstandardsis essentialto overcomingthis informationimpedimentto theindustry’sgrowth. SIAwill investigatethefeasibility of establishinglinks on its websitethatprovidecurrentinformationon technicalstandardsandcompliancerequirements.



ADDRESSING SKILLS SHORTFALLS

Thescienceindustryis aknowledge-intensiveindustrythatis heavilyrelianton itshumancapitalfor its competitiveadvantagesin developinganddeliveringhighvalue-addedworld-classproductsandservices.

Anecdotalevidenceandsurveysof thescienceindustryindicatethatit isexperiencingskills shortfallsin two areas.It hasashortageof trainedandqualifiedpeople,particularlylaboratorytechnicians,technicaltrades,chemists,mechanicalandsoftwareengineers,salesandmanagementstaff.The industryemphasisedthatits salesandmanagementstaffshouldhaveahighlevelof knowledgeandunderstandingof scienceandtheequipmentthatthescienceindustryandits clientsuse.It alsohasashortageof staffwithan adequateknowledgeandunderstandingof howto managequality,particularlyin manufacturingoperations.

Theseshortageshavethepotentialto adverselyaffecttheindustry’scompetitiveadvantagesandability to respondto emergingopportunities.

Factors contributing to the skills shortages

Contributingto theskills shortagesarethegrowthindemandfor skilledstaff, therelatively low profile of theindustryasacareer,andthelimited numberof industryspecifictrainingcoursesfor prospectivestaff.

Theindustryexpectedthatthedemandfor skilledstaff ingeneralwould growinline witheconomicgrowthoverthenextthreeyears.It expectedevenstrongergrowth in demandoverthenextthreeyearsformechanicalengineers,softwareengineersandtechnicaltrades.Driving thisdemandis thestronggrowthindomesticandexportsaleswhichtheindustryexpectsto exceed10 percentperannumovertheperiod.

The industryconsideredthatit hadalow profile asapotentialemployerandthatgraduatesconsideredothercareersinpreferenceto thescienceindustry.Thiscouldbeinfluencedby thosefactorsaffectingthelaboursupplyin manufacturingindustrygenerally,namely,thetrendfor employeesto moveawayfrommanufacturingto serviceindustries.Exacerbatingthissituationis theageingworkforceandconsequentlossof skilled staff.

Morebroadly,themanufacturersof scientificinstrumentsfound thattradesandmanagementstaffdo nothaveawell developedunderstandingof qualityandhowto achieveit in manufacturingoperations.Thiswasattributedto thelackof a‘quality culture’ in Australianindustry.It wasalsoattributedto undergraduateandvocationaltrainingcoursesnot placingsufficientemphasison quality managementin their curricula.

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Increasing the supply of skills

During thecourseof its development,theactionagendaadvisedtheGovernment’sNationalSkills ShortageStrategy(NSSS)steeringcommittee,theboardof theformerNationalIndustrySkills InitiativeandtheAudit of Science,EngineeringandTechnologySkills of theindustry’s specificskills shortagesissues.Theactionagenda’simplementationgroupwill continueto monitortheskills shortfallsituationandadviseGovernmentaccordingly.

Improving the industry’s low profile as potential employer

Theindustry’s lowprofile as apotentialemployercontributesto thelack of skilledentrantsto theindustry.Thereareanumberof aspectsto this issue.Theindustryhasaperceptionthatstudentsconsidersalaryandconditionsaheadof otherfactorsin choosingacareerandthatthescienceindustryis not competitivewith othercareers.Theindustryalsoconsideredthatstudentsandgraduateslack anawarenessof thescienceindustryandtheopportunitiesthatit offers.

To addressthisimpedimentto graduatesjoining theindustry,theimplementationgroupwill investigateoptionsto raisetheprofile of thescienceindustryasacareer.Optionsincludeparticipatingin initiatives suchas theNSSSsciencecareersproject,Questacon,CareersNetwork,Local CommunityPartnershipsanduniversity careerandopendays.

Building strongerlinkagesbetweeneducationalinstitutionsandtheindustrywouldenablethe industryto promoteitself better.The implementationgroupwillinvestigateoptionsandinitiatethoseconsideredappropriate.Optionscould includeofferingstudentsplacementswith companiesduringtheir trainingpossiblywith ascienceindustry-relatedproject;theindustryco-supervisingpost-graduatestudents;encouragingsuccessfulindustryleadersto visit their formeruniversity facultiesandschoolsto promotesciencecareers;industrypractitionersfamiliarisingscienceteacherswith theiroperationsto raiseteacherawarenessandconfidenceinadvocatingthescienceindustry;encouragingexchangesbetweenstaffinuniversities,researchorganisationsandindustry;andsponsoringscience-relateddesigncompetitions.

Improving the content of course curricula

The scienceindustry,particularlyits manufacturersof scientificgoods,considersthatits workforcewould benefitfrom agreaterunderstandingof qualitymanagementandhowto achieveit in manufacturingoperations.This wasattributedto thelack of aqualitycultureinAustralianindustryandto its lackofemphasisin undergraduateandvocationaltraining.

Progresshasbeenachievedin incorporatingquality managementinto thecurriculaof vocationaleducationandtraininginstitutions.Forexample,thenewlyendorsedlaboratoryoperatorstrainingpackageincorporatesquality issues.Thescience

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industryis keento havethisspreadmorewidely includingincorporationintoformalengineeringcourses.

Commonwealth,StateandTerritorygovernmentsplayakeyrole in thedevelopmentandimprovementof nationaltraining.Thesystemhaschangedrecentlyandnowcomprisestrainingboardsandskills councils.Bodiessuchas theNSSSSteeringCommitteeandtheManufacturingIndustrySkills Councilsupportthedevelopment,implementationandcontinuousimprovementof nationallyrecognisedtrainingproductsandservicesof interestto thescienceindustry.

To enabletheindustryto haveits specificcurriculacontentneedsaddressed,theimplementationgroupwill establisheffectivelinkageswith thenew nationaltrainingsystemandrelevantacademicbodiesandlearnedsocietiessuchas theAustralianCouncilof Deansof Science,theAustralianCouncilof EngineeringDeansandtheAustralianAcademyof TechnologicalSciencesandEngineering.

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SUSTAINING WORKPLACE FLEXIBILITY IN THE SCIENCE INDUSTRY

ThescienceindustrycomprisesmainlySMEsandrelatively fewerlargeenterprises.Its workforceis highiy educated,skilled andmobile. It receivesabove-awardwages.In manycircumstances,theworkingconditionsof scienceindustrycompaniesaresuperiorto thoseof manyinmanufacturingindustry.Employmentsecurityis alsogood.Theknowledge-basedindustryvaluesits staffandrecognisesthattheyareintegralto theindustry’s longtermcompetitiveness.Theindustryhashighlevelsofinvestmentin trainingandskill development,spendingon averagefive percentofits saleson staff training.Manufacturersandproductmaintenanceandservicecompanieshadthehighestexpenditureon stafftraining ateightpercentof sales.

Thescienceindustryis globally competitiveandrecognisesemergingdomesticandinternationalchallenges.

Manyemployersin theindustryconsiderthattheexistingworkplacearrangementsprovidethemwithsufficient flexibility to managetheir companieseffectivelyandharmoniously.Theyarekeenfor thissituationto continue.Theyalsorecognisethatasenterprisesgrowthissituationcould change.

A diversity of workplace practices

The scienceindustryhasdiverseworkplacearrangementsfrom award-basedemploymentandinformalcommonlaw contractarrangements,to workplaceswherewagesandconditionsaredeterminedby federalcollectiveagreements.

Thisvariability in arrangementssuggestedthatemployersin thescienceindustry,especiallynewentrantsto theindustry,could benefitfrom aspecificfocusonworkplacerelationsto bothfree up anyexistingimpedimentsto productivityandcompetitivenessandto protectexistingflexibilities.

Creating and preserving high performance workplaces

Researchandexperiencesuggeststhattheadoptionof ahighperformanceworkplaceemploymentmodelcancontributesignificantlyto companiesestablishingandmaintainingworkplacearrangementsthatenhancetheir futurecompetitiveness.

Thehighperformanceworkplaceemploymentmodelis productivity-centred,andcanbeusedfor collaborativeandparticipativework systems.It favoursalong-termview of businessstrategyandis basedon thestrategicintegrationof enterpriseobjectivesandemployeecommitmentandparticipation.it is notprescriptiveintermsof aworkplacerelationsinstrument,andissuitedto thescienceindustryworkplace.Theadoptionof thisapproachcomplementsthestrategicapproachto



improvingandmaintainingthequalityof enterpriseproductsandservicesproposedby the actionagenda.

Case study — Al Scientific

Ai Scientificoffersspecialisedlaboratoryautomationproductsfor samplepreparation,deliveryandsampletrackingthroughthelaboratoryprocess.Thecompany’sinternationalheadoffice, designandmanufacturingfacility is locatedatClontarfin Brisbane.Ai ScientificalsohasofficesinSydney,Melbourne,Auckland,Pittsburgh(USA) anddistributorsthroughoutNorthAmerica,EuropeandAsia.Since1985,Ai Scientifichasgeneratedover$30 million in exportsalesandgrownits revenuesatacompoundrateof 24 percentperannumon average.

Ad Scientific’s internationalsuccessisbasedonthefollowing well-establishedbusinesspracticesto secureandmaintainstrategiccompetitiveadvantage:

1. Customerfocus.Ad Scientific’spriority isto provideits customerswithinnovative,cost-effectivesolutionsthatimprovelaboratoryefficiencyin theprocessingof increasingnumbersof samples.It complementsthiswithcompleteandongoingafter-salessupport

2. Focusresearchanddevelopmenteffortson nichemarkets.Ai Scientificis oneofsixglobalmanufacturersof auto-samplersfor inorganicanalysis,andoneof 14companiesthatprovidepathologysamplemanagementsystems.

3. Mobilise theexperience,skills andcreativityof its staff.Ad Scientificusesmulti-disciplinaryworkplaceteamsof stafffrom sales,andresearchanddevelopmentto shareideasonhowto improveproductandservicedelivery.

4. Think globallyandactlocally.Ai Scientific’s stronginternationalmarketfocusis built on accuratemarketintelligenceandtheidentificationof emergingtrends.Thecompanyencouragesits businessunitmanagerstotraveloverseassix to eighttimesperyearto attendinternationaltradeshows,developrelationshipswith EuropeanandUSA companies,andto promoteinternationalmarketawarenessof theAd Scientificbrand.

5. Dedicationto reducingcostswhile continuallyimprovingproductandservicequality.Ad Scientificusesstrategicpurchasingpoliciesandkeysupplieragreementsto ensurethehighestqualityfrom its suppliers.

Simplestrategiescanbe introducedto align aworkplacewith thisworkplaceemploymentmodelandenhancethevalueof theemployee’scontributionto thebusiness.Theseinclude:

• Managementwithclearworkplaceimprovementobjectives;

• Alignmentof employerandemployeeobjectives;

Issues, recommendations and strategies

IzII

Ip

57


• A comprehensiveworkplacerelationscommunicationstrategy;and

• Empowermentof employees.

Resources available to the science industry

Resourcesareavailablethroughindustrybodiesandemployerorganisationstoassistemployersto choosetheworkplacerelationsarrangementmostappropriatetotheir stageof developmentandsituation.Organisationslike AustralianIndustryGroupprovidededicatedindustrialrelationsserviceswithqualified professionals.SIA hasarole to monitorworkplacerelationsdevelopmentsof mostsignificanceforscienceindustryemployers,toinform its constituentsandto assistthemin avoidingpitfalls.

TheDepartmentof EmploymentandWorkplaceRelations’Office of WorkplaceServicesin all statesandterritoriesprovidesfree,personalisedassistancetoemployeesandemployersaboutopportunitiesandchoicesin thefederalworkplacerelationssystem.Furtherinformationis availableon theDepartment’swebsite.

Stategovernmentsalsooffer arangeof programssupportingexcellencein theworkplace.TheVictorianGovernmentfor exampleoffersarangeof programsincludingthePartnersatWork programandtheWorkplaceExcellenceAwards.

Successfulcompanyexecutivesarealsoavaluableresourcefrom whichotherscandraw.

Theimplementationgroup,in collaborationwith theDepartmentof EmploymentandWorkplaceRelations,othergovernmentagenciesandindustrygroups,willfacilitatethepromulgationof thehighperformanceworkplaceemploymentmodelacrossthescienceindustryto ensurethatflexible workplacepracticescontinuetoenhancetheindustry’scompetitiveness.In doingso,theimplementationgroupwillencouragethescienceindustryto adopttheworkplacemodel.

I Recom~iendatIon 6 ISustain flexibility in science industry workplaces.



INFORMATION AND EDUCATION

Commonwealth,StateandTerritorygovernmentsandindustrybodiesoffer awidevarietyof policy andprogrammeasuresaimedatimprovingthebusinessenvironmentandbuildingthecapacityof companiesto competeeffectivelyin themarketplace.However,theindustry’slackof awarenessof theseis anissue.

Theactionagendaprocessidentifiedthatanumberof theimpedimentsto theindustry’s growthcouldbe reducedby encouragingcompaniesto makebetteruseof the informationandotherassistancemeasuresthatarealreadyavailablefromgovernmentsandindustry.

During thedevelopmentof theactionagendathescienceindustrywasmadeawareof thesuiteof relevantGovernmentprogramsto assisttheindustryto improveitsperformance.SIAinitiated actiononanumberof informationandeducationmeasuresby drawingon theseresources.Forexample,with Austrade’sassistance,SIAfacilitatedtheparticipationof its membersattwo exportdevelopmentworkshops.SIA developedanddeliveredaconferenceserieson technologydiffusionandthetransferintellectualpropertyfrom researchorganisationstoindustry,andshowcasingof AustralianscienceindustrycapabilityataseriesofAustralianconferenceexhibitionsandattheinternationalexhibitionPittcon2005inUS. SIA routinelyusesits newsletterandits websiteto promoteeventsandresourcesof assistanceto theindustry.

Theimplementationgroupwill expandon SIA’s informationandeducationprogramby leveragingoff existinginformationandeducationresourcesfromindustrybodiesandgovernment.It will alsoencouragecompaniesin thescienceindustry to makegreateruseof governmentprograms.

ThecasestudyonNIR TechnologyAustraliabelowdemonstrateshowanSMEinthescienceindustryusedgovernmentprogramsto successfullybuild its business.

•1Theindustryhasmemberswithahighlysuccessfultrackrecordandwhohaveastrongdesireto sharetheirexperiencewith othersasamentor.Mentoringis averyeffectivemeansof transferringexpertisefrom thosewhohaveit to thosewhowouldbenefitfrom it. It canprovideone-on-onesupportalignedwith theneedsofindividualcompanyexecutives.Mentoringcomplementspackagedcoursesandinformationalreadyavailable.Governmentsupportis availablefor mentoringthrough,for example,theCommercialisingEmergingTechnologiesprogram.Somelargerindustryassociationscanassistsmallerindustryassociationswith activitieslike mentoring.

Networkingis analternativeto mentoring.It providescompanieswithopportunitiesto sharebest-practice,marketintelligenceandotherusefulinformation.It canalsoinvolve linking companieswith researchorganisations.Informalnetworkingis alreadyoccurringin Victoriaamongstsomesciencecompanies.

Theimplementationgroupwill developamentoringandnetworkingprogram.



Case study — NIR Technology Australia

NIRTechnologyAustralia(NIRTech) is awholly Australianownedcompanythatspecialisesin the designandmanufactureof nearinfrared(NW)spectrophotometersandspectroanalysersusedto measurecertainpropertiesofagriculturalproducts,foods,drinksandmedicines.The instrumentsdo this byanalysingtheNW light reflectedfrom thespecimento determineitscharacteristics.

In thelate1980s,theAustralianWheatBoard(AWB) identifiedaneedforabetterway to determinetheproteinandmoisturecontentof thewheatit wasbuyingfromgrowersaroundAustralia.AWB neededthisinformationto determinethepricethatit offeredgrowersandthestoragerequirementsfor thegrain.It wasproposedbyAWB thatit makeaninitial purchaseof 400suchspectro-analysers.

At thetime,Phillip Clancyhadjustretuwedfromfouryearsexperienceworkingwith theUS companyPacific Scientific,andwaswellplacedto developananalyserin Australiato meetAWIYs requirements.

In 1996Phillip partneredwith CooperativeBulk Handling(CBH) inWesternAustraliato developtheanalyser.The AustralianGovernment’sIndustrialResearchandDevelopmentBoardassistedtheprojectwith agrant

A prototypeinstrument,theCeres2000G.wastrialled in1998 andsalescommencedin 1999.TheCeres20000broughtnewinnovationsto existinginstrumentsavailablefrom othermanufacturers.Theprototypehadvirtually nomovingparts.It waslight weight,portable,andsimpleto manufactureatamuchlower cost.

In 2000,NiRTechwasformedto continuethedevelopmentof thetechnology.LaterthatyeartheCropscan20000analyserwaslaunched.Like theCeres20000,theCropscan20000wasdesignedfor Australianconditions.NIRTechhascontinuedtodevelop,manufactureandmarketNW analysers.It nowhassevenmodelsdesignedfor usein thefield; onthelaboratorybench;inbulkhandlingequipmentusedto movegrainsuchaspipes,augersandconveyors;andon harvestors.Theinstrumentcanbecoupledwith aOPSsystemtoproduceyield mapsof paddocks.

TheCropscan20000isnowNIRTech’sprinciplerevenueearner.NIRTechsellsitsinstrumentsdirectlyto usersinAustraliaandthroughdistributorsin NorthAmerica,Italy, France,UK, EasternEurope,Asia andIndia.Thecompanyhassoldover380instruments,half of whichAustralianfarmershavepurchased,andtheremainderhavebeenexported.



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SCIENCEINDUSTRY ACTION AGENDA — In Confidence Measure by Measure

INDUSTRY STATISTICS

Comprehensive,reliableandcurrentstatisticsandinformationon theindustry’sstructureandeconomicperformanceareessentialto progresstheactionagendaandmonitorits progress.

ResearchshowedthatAustralianBureauof Statisticsrecordedstatisticson theindustryin its AustralianandNewZealandStandardIndustryClassification(ANZSIC) system.Thiswascomplementedby statisticsandinformationavailablethroughIBISWorld. IBISWorld usesABS statisticscomplementedby otherinformationsources.

Thefive principalANZSIC classesthatrecordtheactivitiesof sciencecompaniesare:

• C2839Professionalandscientificequipmentmanufacturingn.e.c.;

• F4612Professionalequipmentwholesaling;

• L7829Technicalservicesn.e.c.;

• 08631Pathologyservices;and

• L7810Scientific research.

While theactivitiesof someenterprisesdo not fit the definitionof thescienceindustry,it waspossibleto identify thelargestof theseandremovethemfrom theaggregatefigure.Forexample,AustralianBureauof Meteorologyin theclassL7829Technicalservicesn.e.c.wasnot consideredto bein thescienceindustry.

Theaggregatestatisticsandinformationprovidedby IBISWorld wascheckedagainsttheknowledgeof industryleaders.

TheStrategicIndustryLeadersGrouprequiredmoredetailedinformationontheindustry’sstructure,sales,exports,imports,productsandservices,markets,customers,businessconfidence,businessenvironmentissues,workforce,andresearchanddevelopmentthatwasnotavailablefrom publicly availablestatisticsandinformationon theindustry.To obtainthisinformation,theDepartmentofIndustry,TourismandResourcesconductedasurveyinJuly/August2004 with thenecessaryapprovalof theGovernment’sStatisticalClearingHouse.Theresultsofthesurveyaresummarisedin thisreportanddescribedinmoredetailin aseparatereport.Thiswork formsthebasisforfuture surveysof theindustry.

Theimplementationgroupwill continuethiswork to maintainacurrentsetofstatisticsandinformationon theindustry.

4II



IMPLEMENTING THE ACTION AGENDA AND IMPROVING INDUSTRY

LINKAGES

“Things don’t change; we change.”

Henry David Thoreau

TheScienceIndustryActionAgendarequirestheformationof abodythatwill beresponsiblefor implementingtherecommendationsin this reportandachievingtheindustry’s10yearvision.Strengtheningtheindustry’sinternalandexternallinkageswill beessentialto this. Theimplementationgroupwill be ledby ScienceIndustryAustraliaInc. (SIA), theindustryassociationsponsoringthis actionagenda.SIA will drawon theindustry’sstakeholders,suchasthosethathavebeeninvolvedin thedevelopmentof theactionagenda.Thesestakeholderscould formthenewindustrypeakbody.SLA will alsoprovidethesecretariatservicesto theimplementationgroup.

Theimplementationgrouprequiressupportfrom anumberof committeesandanindustry-ledsecretariat.Thecommitteestructurecould reflecttheactionagenda’spriorities,namelyR&D commercialisation;regulatoryreform;exportmarketdevelopment;andimprovingtheindustry’sworkforce,thoughthiswill needto besettledby theimplementationgroup.Thesecretariatwill needto beadequatelyresourcedfor its task.

Thescienceindustry,asdefinedby theactionagenda,comprisesmanufacturersofscientificequipment,importer/distributorsof scientificequipment,laboratoryandtechnicalservicecompaniesandresearchers.Scientificequipmentandlaboratory-relatedgoodsarethecommonelementthatlinks thesegroupings.

Thereareover5000companiesandotherenterprisesin theindustry.Theseincludemanufacturers,importer/distributors,laboratoryandtechnicalservicesprovidersandresearchersinvolvedwith laboratorytechnologies.Aroundtwo hundredofthesearemanufacturingcompaniesand250 areimporter!distributors.Therearemorethan3000laboratoryandtechnicalservicescompanies.Researchersaremainly thoseinvolvedinpublic sectorresearchandeducation.Theindustryhasmanysmallandmedium-sizedenterprises(SMEs) andfewer largerenterprises.Thesmallenterprisesemploylessthan10 employeesandhaveaturnoverof lessthan$50million. Thelargerenterprisesareeithermultinationalcompanies(MNCs) orsubsidiariesof MNCs.

Individually, thesefour industrysegmentsareperformingverywell, thoughtheyhaveoperatedessentiallyindependentlyof oneanother.Thisfragmentationplaceslimits on thecoordinationof activitiesin thescienceindustrysupplyandvaluechainsandit is animpedimentto theindustry’sgrowth.For theindustry to throwoff thisconstraintandgrowasanentity it shoulddevelopits ownidentity andaunity of purpose.A moreunitedindustrywill bebetterableto representtheinterestsof its members,coordinateits activities,influenceits businessenvironment,developthecapacityof its members,seizeopportunitiesandcreateits ownfuture.



In sodoing,theindustrywill bebetterableto satisfyconsumerdemandalongitssupplychainin atimely, flexibleandcomprehensiveway.

While themanufacturersandimporter/distributorsarewell representedby SIA,thereis noindustryrepresentativebodyfor laboratoryandtechnicalservicescompanies.SIA’s constitutionembraceslaboratoryandtechnicalservicescompanies.Theactionagendais aimingto increasethenumberof laboratoryandtechnicalservicesprovidersandresearchersthatidentify themselveswith theindustryandincreasetheirparticipationin theSIA.

Representingthescienceindustry’sintereststo government,industryandotherrelevantpartiesareessentialto progressthe actionagenda.As well asthemoreroutinerepresentationactivities,thescienceindustrycould seekto haverepresentationon relevantCommonwealth,StateandTerritorygovernmentboardsandcommitteese.g.theR&D BoardandrelevantMajorNationalResearchFacilitiescommittees.

A critical activity of the actionagendawill be to collaboratewith like-mindedindustrybodiesandothergroupsto coordinatethoseactivitiesthatsharecommonoutcomessuchasimprovingthecommercialisationof Australianpublicresearchandregulatoryreform.

Theactionagendahasalreadybuilt anumberof strategicalliancesandpartnershipsduringits development.AiGroup,MedicalIndustryAssociationof Australia,Royal

Case study - SGS Australia Holdings Pty Ltd

SOSAustraliaHoldingsPtyLtd is asignificantplayerin thelaboratoryandtechnicalservicesindustryin Australia. It is asubsidiaryof theSwiss-basedSOSGroup,foundedin1878.SOSGroupprovidesindependentinspection,verification,testingandcertificationservicesfor internationaltradein agriculture,minerals,andpetroleumandconsumerproducts.SOSAustralia’scommitmentinexcellenceinprovidingits servicesisbackedby ISO9002qualitycertification.

TheSOSGroupoperatesaround1000laboratorieswith over39000employeesinover140countriesin Africa/MiddleEast,America,Asia/PacificandEurope.ItsAustralasianoperationswereestablishedin 1950 andnowhaveover1 000employeesin44 establishmentsinAustralia,NewZealand,PapuaNewGuineaandFiji. LakefieldResearchLtd, referredtoin anothercasestudy,is alsoamemberoftheSOSGroup.It is aCA$40million perannumCanada-basedcompany.Lakefieldhasfacilitiesin Canada,Australia,SouthAfrica, Brazil andChile.

Tobuild itsbrand,networkandmarketpresence,theSOSGroupacquiredthepublicly-listedScientificServicesLtd (SSL) in 2001.SSL’snetworkof laboratoriesspecialisesin thetestingof soil,mineralores,water,agriculturalcommoditiesandfoodbasedproducts.SSLhasbecomeamajorearnerfor SOSAustraliawith revenueof AU$58 million in theyearendingDecember2003.



AustralianChemicalInstitute,NationalMeasurementInstituteandtheVictorianGovernmentwererepresentedon theactionagenda’sleadershipandworkinggroups.

SIA is collaboratingwith KnowledgeCommercialisationAustralasiaon scienceindustrycommercialisationinitiatives.SIA hasalsoopeneddialogwith theAustralianInstituteof Commercialisation,thePlasticsandChemicalsInstituteofAustralia,andtheNewSouthWalesandQueenslandGovernmentswith aview todevelopingstrategicalliancesto progresstheimplementationof theactionagenda.

TheotherindustryassociationsandbodieswithcommoninterestsincludeAusBiotech,AustralasianInstituteforMining andMetallurgy,AustralianElectricalandElectronicsManufacturersAssociation,TherapeuticGoodsAdministration(tobecomeTrans-TasmanTherapeuticProductsAgency),MedicinesAustralia,NationalAssociationof TestingAuthorities,JointAccreditationAustraliaandNewZealand,StandardsAustralia,AustralianInstituteof Export,AustralianVentureCapitalAssociation,environmentalprotectionauthorities.

Anannualscienceindustryconferencewouldprovideaforum forbringing togethertheindustry’sstakeholdersandotherrelevantgroups.It would enabletheindustryto network,reaffirm its values,build cohesion,andidentify emergingissuesandstrategiesfor addressingthem.Recognisingsignificantachievementswould be animportantpartof this event.



Achievements during action agenda development

Industryandgovernmenthavebeenproactivein addressingissuesastheyhavearisenduringtheactionagenda’sdevelopment.

To addresstheshortageof currenteconomicstatisticsandinformationonAustralia’sscienceindustry, theSTLG askedtheDepartmentof Industry,TourismandResources(DlTR) to conductanindustrysurveyinJuly!August2004.TheEducation,TrainingandWork PracticesWorking Groupalsoconductedasmallsurveyto scopetheworkforceissues.

AustradeandtheVictorianGovernmentarerepresentedontheMarketDevelopmentWorkingGroup.ScienceindustrycompaniesattendedAustrade’sTradeStartworkshopsin June2004.Victoria providesfunding to thescienceindustryforSIA’s marketdevelopmentmanager.SIA hasopeneddialogwithallstateandterritory governmentsandtheindicationsby thesegovernmentsarethattheyaresupportiveof theindustry.

TheSIAA hasadvisedGovernmentof theappropriatenessof its newpolicyproposalsandpolicy settings.It putsubmissionsto Parliamentaryinquiriesoninnovationandtheharmonisationof legalsystemsontradeandcommerce.It putsubmissionsto DITRon theCommercialReadyProgram,theIndustryCooperativeInnovationProgram,theJointChina-AustraliaFreeTradeAgreementFeasibilityStudy,andtheexperimentaluseof patentedinventions.It put asubmissionto theNationalHealthandMedicalResearchCouncilon thenewcodefor conductingresearch.It putsubmissionsto DESTon theInternationalScienceLinkagesProgram;andto Austrade’sreviewof theExportMarketDevelopmentGrantsScheme.

Theinvolvementof CSIROin theactionagendaenhancedcommunicationbetweenindustryandtheresearcher,whichassistedwith promulgatingCSIRO’snewstreamlinedcontractingprocesses.Thiswill improveSMEaccessto CSIROandreducedtheadministrativecostsof doingbusinesswith CSIRO.

TheSIAA advisedtheNationalIndustrySkills Initiative Boardin May 2004,theNationalSkills ShortagesSteeringCommitteeandtheAudit of Science,EngineeringandTechnologySkills in November2004on skills andtrainingissues.Skillshortfallsarein laboratorytechnicians,technicaltrades,chemists,mechanicalandsoftwareengineers,salesandmanagement.

To addresspotentialinformationgapsin industry’s knowledgeof governmentassistance,particularlytheassistancefor R&D andits commercialisationandforexporting,theactionagendaprovidedtheindustrywith asummaryof all relevantCommonwealth,StateandTerritorygovernmentindustryprograms.Theleadersgroupandtheworkinggroupsacclaimedtheusefulnessof this resource.

SIA, underits ‘LaboratoryWeek2005’ branding,promotedafive eventseriesinMelbournein April 2005.Theeventswere‘Science2005 Exhibition andSeminar



Series’,‘BetterLabDesign2005Conference’,‘FutureMaterialsfor Life Sciences2005Conference’,‘AcceleratingBiomedicalDiscoveryMini Symposium’,and‘LabTechnologyDiffusion andCommercialisationSymposium’.Thelattereventwasthefirst of six similarsymposiabeingheldin sixcapitalcitiesaroundAustraliaconcludingin Perthin earlyOctober2005.SIA and“What’sNew” magazine’s‘Laboratoryof theYear’ competitionwasconcludedduringLaboratoryWeek2005.

SIA alsofacilitatedthemarketingof theindustry’sproductsatAustralianconferencesandexhibitionsin 2004-05andattheinternationalconference/exhibitionPittcon2005 in US. SIA managedtheAustralianexhibitandenabled22 Australiansciencecompaniesandresearchorganisationsto exhibitproducts,technologiesandprocesses.

DITR, DEST, AustradeandtheVictorianGovernmentsupporteddifferentaspectsoftheseactivitiesthroughtheirprograms.

As it is intended,theactionagendaprocessprovidedtheplayersin the industryandgovernmentwithanexcellentvehicleto collaboratewith oneanotherto identify andagreeon theinitiativesthatwouldovercometheimpedimentsto theindustry’sfuture growth.Thishascreatedafirm foundationon whichto unitetheindustryandstrengthenits internalandexternallinkages.Insodoingit enablestheindustryto bemoreeffectivein realisingits futuregrowthpotential.



Evaluating the action agenda’s progress

Theimplementationof therecommendations,strategiesandactionsagreedbetweentheindustryandtheGovernmentis thecritical phaseof theactionagenda.Typically, theimplementationphasewill takethreeyearsfrom thetimeof the actionagenda’slaunch.However,this canvarydependingon theindustryandthenatureof therecommendationsproposed.

To ensurethatimplementationproceedsto planandtheactionagendahasthegreatestopportunityof success,theGovernmentrequirestheimplementationgroupto providetheMinisterwith anannualreportThisofferstheindustryanopportunityto meetwith theMinisterto discussachievements,outcomesandimpediments.It alsoprovidesthe Minister theopportunityto announcemajorachievementsof theactionagenda.Furthermore,theGovernmentevaluateseachactionagendaasit approachestheconclusionof its implementation.

To assessprogressagainstall theactionagenda’svisionstatement,recommendations,strategiesandactionsasetof performanceindicatorsis required.Performanceindicatorsshouldberelevantto theactionagenda;indicativeof thewholevaluechain;easilycollected;accurate;timely; andeasyto assessandinterpret.

Threekeyissuesto beconsideredin measuringtheperformanceof theactionagendaareappropriateness,effectivenessandefficiency.

Appropriatenessrefersto aneedidentifiedby theStrategicIndustryLeadershipGroupto achievetheactionagenda’sdesiredoutcomes,andfor whichthereis astrongcausallink betweentherecommendations,strategiesandactionsandtheoutcomes.

Effectivenessis theextentto whichtheactionagenda’soutputsmakepositivecontributionsto achievingparticularoutcomes.

Efficiency is theextentto whichinputsareminimisedfor agivenlevelof outputs,oroutputsaremaximisedfor thegivenlevelof inputs.

Actionagendasareindustry-ledandthe Governmentis primarilyconcernedwiththe outcomesachievedby theactionagendain developingtheindustryandovercomingimpedimentsto its growth.Consequently,performanceindicatorsforappropriatenessandeffectivenessaremorerelevantto evaluatingtheactionagendathanefficiency.

Performanceindicatorscanbe quantitativeor qualitative.Quantitativeperformanceindicatorsbeingnumericalaregenerallyeasierto measure.Qualitativeperformanceindicatorsbeingdescriptivein naturearegenerallymoredifficult tomeasure.However,theyarevaluablein assessingthe‘ambience’of theindustry.

Theimplementationgroupwill developa setof performanceindicatorsto assistitto managetheimplementationprocessandwith thepreparationof theannualreportfor theMinister.

Evaluating the action agenda’s progress 68


Appendix 1: Members of the working groups

R&D commercialisation working group

Mr PeterDawes(Chair)ManagingDirectorSGEInternationalPtyLtd

ProfessorMarkBaker (Vice-Chair)ChiefExecutiveOfficerAustralianProteomeAnalysisFacility

Mr PaulFieldDirector, BiobusinessATP InnovationsPtyLtd(February2004 - September2004)

Mr Phillip ClancyManagingDirectorNIRTechnologyAustralia

Ms Vicki TutungiDeputyChiefCommercialCSIROManufacturing& InfrastructureTechnology

Mr SimonCalderSeniorEconomistAustralianIndustryGroup

ProfessorMary O’KaneDirectorSiennaCapitalLimited

Mr RobCookChiefTechnicalOfficerDSTCPtyLtd

Mr TonyBigumChiefExecutiveOfficerThermoElectronCorporation

Mr SteveIrwinGeneralManagerScience&TechnologyPolicyDepartmentof Education,ScienceandTraining

Mr JohnPulsfordR&D DirectorVarianAustraliaPtyLtd

69


Market development working group

Mr GregDavis (Chair)FormerlyManagingDirectorVarianAustraliaPtyLtd

Mr TonyBigum (Vice Chair)ChiefExecutiveOfficerThermoElectronCorporation

Mr Max ArbrewManagingDirectorLaboratorySystemsGroup

Ms PamelaDanbyMarketDevelopmentManagerScienceIndustryAustraliaInc. (Victoria)

Mr Clive DavenportChiefExecutiveOfficerCooperativeResearchCentreforMicrotechnology

Mr StephenPronkManagingDirectorAi Scientific PtyLtd

Mr RogerJamesManager— ScientificOffice of ManufacturingDepartmentof Innovation,IndustryandRegionalDevelopment

Dr LaurieBesleyDirectorNationalAnalyticalReferenceLaboratoryNationalMeasurementInstitute

Mr Lino StrangisManager,InternationalMarketLiaisonGovernment,IndustryandPolicy GroupAustrade

Mr LeighWilmottSeniorBusinessDevelopmentManagerBiotechnology/HealthAustrade

Dr FredDavisManager- InstrumentDesignandDevelopmentInvetechOperationsPtyLtd

70

SCIENCE INDUSTRY ACrION AGENDA — In Confidence Measure by Measure

Distribution and serviCes working group

Mr TonyvanStaveren(Chair)ManagingDirectorEppendorfSouthPacific

Mr AlanLawrenson(Vice Chair)ExecutiveDirectorScienceIndustryAustraliaInc.

Mr SamBastounasGeneralManagerNuplexSpecialtyProductsNuplexIndustries(Aust) PtyLtd

Mr RayDoyleGroupGeneralManagerAmdel Limited(February2004 — June2004)

DrJimGonisManagingDirectorPerkinElmerLife andAnalyticalSciences

DrPeterHarmanManagingDirectorAustralianLaboratoryServicesPtyLtd

Mr JohnHewetsonGeneralManagerShimadzuScientific Instruments(Oceania)PtyLtd

Mr RodMinettNationalSalesManagerAgilent TechnologiesAustraliaPtyLtd

Mr Mark ImpeySupportDeliveryManagerAgilentTechnologiesAustraliaPtyLtd

Mr PeterSommersManagingDirectorMerckPty.Limited(August2004- December2004)

Ms RoswithaGail-EllerDivisionManagerMerckPtyLimited(April 2004 - July2004)

DrTerrySpencerAustralianGovernmentAnalystNationalMeasurementInstitute

Dr M NeilGalbraithFormerBoardChairRoyalAustralianChemicalInstitute

Mr RobMcKeonGeneralManagerDepartmentof Industry,TourismandResources

Mr TonyTaitManagingDirectorCrownScientificPtyLtd

71


Education, training and work practices working group

Mr MichaelOhanessian(Chair)ManagingDirectorVision BioSystemsLimited

MsVondaFenwick(Vice-Chair)ManagerManufacturingOperationsGBCScientific EquipmentPtyLtd(February2004- November2004)

Mr TomArmstrongManagingDirectorA&D MercuryPtyLtd

Mr ChrisThomsonPrincipalHWL Consulting

Mr GrahamThurstonManagerBusinessDevelopmentScienceFacultyMonashUniversity

Mr PeterSommersManagingDirectorMerckPty.Limited

Ms PamelaDanbyMarketDevelopmentManagerScienceIndustryAustraliaInc. (Victoria)

MsMaryJohnstonGeneralManagerIndustryTrainingDepartmentof Education,ScienceandTraining

Mr RogerJamesManager- ScientificOffice of ManufacturingDepartmentof Innovation,IndustryandRegionalDevelopment

MsKarenWhittinghamDirectorBusinessDevelopmentNorthSydneyInstituteTAFE NSW

Ms DianeMerryfullGeneralManagerIndustriesDepartmentof EmploymentandWorkplaceRelations

Mr StuartWestonManagerIndustriesDepartmentof EmploymentandWorkplaceRelations

Ms Gillie KirkManagerVocationalEducation& TrainingGroupDepartmentof Education,ScienceandTraining

Ms KarenCavanaghManagerTrainingandDevelopmentVision BioSystems

72


Appendix 2: Glossary

Bio-informatics The applicationof computertechnologytothe managementof biologicalinformation.Specifically,it is thescienceof developingcomputerdatabasesandalgorithmstofacilitateandexpeditebiological research,particularlyin genomics.

BiomedicalresearchThestudyinto thebranchof medicalsciencethatappliesbiologicalandphysiologicalprinciplesto clinical practice

BiosensorsSpecialglassesor braceletscontainingelectrodesthatmonitoramuscle’selectricalactivity.

BiotechnologyA setof biological techniquesdevelopedthroughbasicresearchandnowappliedto researchandproductdevelopment.In particular,biotechnologyrefersto theusebyindustryof recombinantDNA, cell fusion,andnewbioprocessingtechniques.

CentrifugeA devicethatspinsasamplearoundacentralaxisatahighrateof speedthatcreatesacentrifugalforce.It is usedto separatemixturesof suspendedmaterial.

ChromatographAn apparatusfor analysingmixturesof compoundsby separatingthemintoindividualcomponentswhichcanbe identifiedby colouror othermeans.

GenomicsThestudyof thesequence,structure,andfunctionof the genome.

IncubatorAn incubatoris adevicewhichmaintainscontrolledenvironmentalconditions,especiallyusedfor providingwarmthanddryness.Someincubatorsarespecificallydesignedfor cultivatingcell culturesandbacteriainPetridishes.

InformaticsThe studyof theapplicationof computerandstatisticaltechniquesto themanagementof information.In genomeprojects,informaticsincludesthedevelopmentofmethodsto searchdatabasesquickly, to analyseDNA sequenceinformation,andto predictproteinsequenceandstructurefrom DNA sequencedata.

Micro-fluidics Studyof motionof fluids atamicro-scale. Micro-fluidic systemscanbeusedfor avarietyof applicationsincludingdrugdispensing,ink-jetprintingandgeneraltransportofliquid, gasesandtheirmixtures.

NanotechnologyThe applicationof scienceto developingnewmaterialsandprocessesbymanipulatingmolecularandatomicparticles.

PathologyThestudyof diseaseprocesseswith theaimof understandingtheirnatureandcauses.This is achievedby observingsamplesof blood,urine,faeces,anddiseasedtissueobtainedfrom theliving patientor from anautopsy,by theuseof X-raysandby manyothertechniques.

ProteomicsThe studyof thestructureandfunctionof proteins.

ReagentsThe chemicalagents,dyes,indicatorsor titrantsusedin testingvariousaspectsofwaterquality.

Spectrometertheinstrumentconnectedto atelescopethatseparatesthelight signalsintodifferentwavelengths,producingaspectrum.

SpectrophotometerAn instrumentusedto measurethe amountof light reflectedfrom aspecimenwhenilluminatedby acontrolledlight source.Thismeasurementgeneratesaspectralcurve(fingerprint) of aproduct,which canbeusedin thenumericalidentificationandthecalculationof colourdifferencebetweensamples.

73


Appendix 3: Acronyms

AIC AustralianInstituteof Commercialisation

AVCAL AustralianVentureCapitalAssociationLimited

COMET CommercialisingEmergingTechnologies

CRC CooperativeResearchCentre

CSIROCommonwealthScientificandIndustrialResearchOrganisation

DEST Departmentof Education,ScienceandTraining

DITR Departmentof Industry,TourismandResources

FDA FoodandDrugAdministration

GDPGrossdomesticproduct

IF Intellectualproperty

KCA KnowledgeCommercialisationAustralasia

MNCsMultinationalcompanies

PACIA PlasticandChemicalsIndustryAssociation

R&D Researchanddevelopment

RIS Regulationimpactstatement

SIA ScienceIndustryAustraliaInc.

SILG StrategicIndustryLeadersGroup

SMEsSmallandmedium-sizedenterprises

SWOTAnalysis Strengths,weakness,opportunitiesandthreatsanalysis

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case study thermo electron clinical chemistry€¦ · — thermo electron clinical chemistry...

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