EACH YEAR the CSIRO, the country鈥檚 largest research organisation, costs the
Australian taxpayer about A$500 million. It is hardly surprising at a
time of recession that what the taxpayer receives in return has become a major
issue. The government has been looking closely at the organisation鈥檚 capacity
to transfer the results of its research to industry. And it has also insisted
that the CSIRO obtain 30 per cent of its funds from non government sources.
Ever since 1988, when the CSIRO underwent a major restructuring into 35
divisions grouped in six institutes, the organisation has been attempting to
improve its links with industry. It makes no bones about where its research
priorities lie these days. The CSIRO鈥檚 submission to the current Industry
Commission inquiry into innovation and R&D states: 鈥淎ll R&D conducted in CSIRO
has a purpose beyond the mere acquisition of new scientific knowledge鈥he
research system today is in reality R,D&C for commercialisation鈥he market
should play a primary role in influencing the research priorities of public
sector research agencies.鈥 CSIRO has reached the point where about two-thirds
of its research is driven by the market, rather than by what scientists might
discover on their own.
According to its recently adopted strategic plan, two of CSIRO鈥檚 main goals
include improving the export performance of Australia鈥檚 primary and
manufacturing industries and reducing the trade deficit of the information and
communications industries.
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The drive towards commercialisation has led the organisation to negotiate
several innovative deals with industry (see Shares keep the CSIRO on its metal,
p 7). But despite these developments, the CSIRO is not without its critics.
Aberrant trend
CRA, Australia鈥檚 largest mining and mineral processing company, told the
commission: 鈥淭he present trend in CSIRO to take equity in commercial ventures
is aberrant. It distracts effort from pre-competitive research, it seduces
with promises of long term gains to CSIRO that confuse its role with that of
industry, and it restricts the flow of information to all but a single
肠辞尘辫补苍测.鈥
Moreover, according to CRA, the government stipulation that CSIRO obtain 30
per cent of its funding from outside sources 鈥渋s resulting in too much short
term work鈥t the expense of developing鈥entres of excellence at the leading
edge of world science and technology鈥.
But John Stocker, chief executive of CSIRO, says such criticisms stem from
ignorance of the 鈥渘ew鈥 CSIRO. Taking out equity in a company is not a trend,
but something that might be done in exceptional circumstances. And a report,
about to be released by the Australian Science and Technology Council, shows
that the requirement to earn 30 per cent of its revenue from non government
sources is doing more good than harm because it means the organisation focuses
much of its effort on 鈥渞eal market opportunities鈥. 鈥淭he report says the target
should not be absolutely rigid across all divisions and we follow that
philosophy already.鈥
The organisation talks these days about 鈥渕anaging a strategically planned
portfolio of research programmes鈥. It maintains that its 鈥渃orporate culture is
different from much of the public sector鈥. Just how different may not have
penetrated the upper echelons of the public service in Canberra. When a senior
government official recently called CSIRO headquarters in Melbourne he was
unaware of the existence of a new department which has the specific aim of
improving how the organisation deals with industry.
The Department of Corporate Business is headed by Peter Bradfield, formerly
managing director of the Elders group of mining companies. It has started its
work by distributing what it calls a commercial practices manual to provide
guidelines for any dealings that divisions may have with industry. It is also
introducing 鈥渢otal quality management procedures鈥 to the organisation. These
procedures, governing standards of operation, are necessary, says Bradfield,
for the organisation to be able to deal more effectively with large companies.
Scientists with `vision鈥
Only a few years ago, the chiefs of CSIRO鈥檚 35 divisions were expected to be
internationally recognised scientists. But that is no longer enough. Added to
that qualification, is a long list of necessary 鈥渃ompetencies鈥 including
鈥渁chievement drive鈥, 鈥渃lient focus鈥, 鈥渧ision鈥, and 鈥渉uman resource management鈥.
The chiefs oversee 7500 staff who work at 160 sites across Australia.
鈥淭he corporate business department will provide a reference point for
businesses wanting to deal with CSIRO,鈥 says Bradfield. 鈥淚n the past people
have not known where to start.鈥 This criticism was reflected last year in the
report by McKinsey & Co on CSIRO鈥檚 dealings with small to medium-sized
enterprises (companies of less than 500 employees and sales of less than
A$100 million). McKinsey found that CSIRO, by and large, dealt well
with large companies but not with the smaller companies, many of which were
becoming significant exporters.
In response to the McKinsey report, CSIRO has made a number of proposals to
government that it hopes will be financed in next month鈥檚 Industry Statement.
These include making secondments to industry part of the career structure of
CSIRO scientists.
Urgent issues
McKinsey & Co also found that small companies do not necessarily want long
term research collaboration with the CSIRO. 鈥淭hey want us to be on the end of
phone or fax, much of the time addressing urgent issues,鈥 said Stocker. The
divisions, he said, will adjust to meet this need. According to Bob Frater,
head of the Institute of Information Science and Engineering, the CSIRO
institutes each have divisions with a range of expertise that can be pulled
together to help businesses. 鈥淚t鈥檚 like a kit of tools and we can assemble
bits and pieces depending on the need.鈥
Another often heard criticism of the CSIRO is that it is too large. John Riedl
from the investment company, Techniche, told the Industry Commission: 鈥淐SIRO
spread itself too thin鈥asting much of its time on overheads.鈥 But a message
often repeated in its own submission was that science these days is a
multidisciplinary endeavour. It said: 鈥淎s a well-managed, large, multi-purpose
research organisation, CSIRO has the size and flexibility to alter structure
and shift resources as the needs of the market change.鈥 There鈥檚 that word
again.