!

Brian SchmidtANU Public Policy Fellow Distinguished Professor ARC Laureate Professor

The Circle of Prosperity Education, Science, and

Innovation

The Circle of Prosperity in Australia

EducationResearch

Innovation

The Good

PISA Scores - Science

Australian students’ performance in scientific literacy 135

Country Mean score SEConfidence

interval

Difference between

5th and 95th percentiles Distribution of scores

Sign

ifica

ntly

high

erth

an A

ustra

lia

Shanghai–China 580 3.0 574–586 269

200 300 400 500

Mean scientific literacy performance

600 700 800

Hong Kong–China 555 2.6 549–560 276Singapore 551 1.5 548–554 340

Japan 547 3.6 539–553 314Finland 545 2.2 541–549 306Estonia 541 1.9 537–545 263

Korea 538 3.7 530–544 268

Not s

igni

fican

tly d

iffer

ent

from

Aus

tralia

Vietnam 528 4.3 519–536 254Poland 526 3.1 519–531 286

Canada 525 1.9 521–529 300Liechtenstein 525 3.5 517–531 273

Germany 524 3.0 518–529 310Chinese Taipei 523 2.3 518–527 273

Netherlands 522 3.5 515–528 310Ireland 522 2.5 517–526 300

Australia 521 1.8 518–524 329Macao–China 521 0.8 518–522 260New Zealand 516 2.1 511–519 343

Switzerland 515 2.7 509–520 300Slovenia 514 1.3 511–516 297

United Kingdom 514 3.4 507–520 327

Sign

ifica

ntly

low

erth

an A

ustra

lia

Czech Republic 508 3.0 502–514 294Austria 506 2.7 500–511 300

Belgium 505 2.1 501–509 332Latvia 502 2.8 496–507 258

OECD average 501 0.5 500–502 304France 499 2.6 493–504 328

Denmark 498 2.7 493–503 306United States 497 3.8 490–504 308

Spain 496 1.8 492–500 283Lithuania 496 2.6 490–500 283

Norway 495 3.1 488–500 326Hungary 494 2.9 488–500 294

Italy 494 1.9 489–497 305Croatia 491 3.1 485–497 280

Luxembourg 491 1.3 488–493 337Portugal 489 3.7 481–496 293

Russian Federation 486 2.9 480–491 280Sweden 485 3.0 478–490 328Iceland 478 2.1 474–482 325

Slovak Republic 471 3.6 464–478 332Israel 470 5.0 460–479 354

Greece 467 3.1 460–472 292Turkey 463 3.9 455–471 263

United Arab Emirates 448 2.8 442–453 306Bulgaria 446 4.8 437–455 332

Chile 445 2.9 439–450 264Serbia 445 3.4 438–451 287

Thailand 444 2.9 438–449 252Romania 439 3.3 432–445 257

Cyprus 438 1.2 435–439 320Costa Rica 429 2.9 423–435 231

Kazakhstan 425 3.0 418–430 243Malaysia 420 3.0 413–425 258Uruguay 416 2.8 410–421 316Mexico 415 1.3 412–417 232

Note: See Reader’s Guide for interpretation of this graph. This relates to all graphs with similar formatting in this chapter.

Figure 4.6 Mean scores and distribution of students’ performance on the scientific literacy scale, by country

PISA Scores - NumeracyCountry Mean score SE

Confidence interval

Difference between

5th and 95th percentiles Distribution of scores

Sign

ifica

ntly

high

er

than

Aus

tralia

Shanghai–China 613 3.3 606–619 331

Singapore 573 1.3 571–576 344

Hong Kong–China 561 3.2 555–568 318

Chinese Taipei 560 3.3 553–566 375

Korea 554 4.6 545–563 323

Macao–China 538 1.0 536–540 306

Japan 536 3.6 529–543 309

Liechtenstein 535 4.0 527–543 310

Switzerland 531 3.0 525–537 308

Netherlands 523 3.5 516–530 297

Estonia 521 2.0 517–525 268

Finland 519 1.9 515–523 281

Canada 518 1.8 514–522 293

Poland 518 3.6 510–525 296

Belgium 515 2.1 511–519 335

Germany 514 2.9 508–519 314

Not s

igni

fican

tly d

iffer

ent

from

Aus

tralia

Vietnam 511 4.8 502–521 283

Austria 506 2.7 500–511 301

Australia 504 1.6 501–507 315

Ireland 501 2.2 497–506 280

Slovenia 501 1.2 499–504 298

Denmark 500 2.3 496–505 272

New Zealand 500 2.2 495–504 325

Czech Republic 499 2.9 493–505 309

France 495 2.5 490–500 321

OECD average 494 0.5 493–495 301

United Kingdom 494 3.3 487–500 312

-

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40,000

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ARWU%Top%15%+%2011%AND%Go8%Student%+%2010%(Head%Count)%

Graduate & Professional Students 2

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Our University System is Good but not Great• Funding model is through Numbers of

students

• Esteem appears to be through Research

• Research Grants only pay $1: $0.66

• Teaching Cross-subsidizes Research

• Both Teaching and Research miss out in this model

THE

GLOB

AL IN

NOVA

TION

INDE

X 20

13

1: Th

e Gl

obal

Inno

vatio

n In

dex 2

013

12

Country/Economy Score (0–100) Rank Income Rank Region Rank

Singapore 72.27 1 HI 1 SEAO 1 Hong Kong (China) 70.65 2 HI 2 SEAO 2 United States of America 69.19 3 HI 3 NAC 1 United Kingdom 68.20 4 HI 4 EUR 1 Sweden 67.86 5 HI 5 EUR 2 Finland 66.67 6 HI 6 EUR 3 Switzerland 66.52 7 HI 7 EUR 4 Denmark 66.34 8 HI 8 EUR 5 Canada 64.76 9 HI 9 NAC 2 Netherlands 64.18 10 HI 10 EUR 6 Australia 64.15 11 HI 11 SEAO 3 Ireland 64.09 12 HI 12 EUR 7 Norway 63.39 13 HI 13 EUR 8 Japan 62.81 14 HI 14 SEAO 4 New Zealand 62.76 15 HI 15 SEAO 5 Korea, Rep. 62.10 16 HI 16 SEAO 6 Austria 60.56 17 HI 17 EUR 9 Luxembourg 59.95 18 HI 18 EUR 10 Israel 59.82 19 HI 19 NAWA 1 Germany 59.78 20 HI 20 EUR 11 Iceland 59.65 21 HI 21 EUR 12 Belgium 59.49 22 HI 22 EUR 13 France 59.03 23 HI 23 EUR 14 Spain 57.85 24 HI 24 EUR 15 Estonia 55.68 25 HI 25 EUR 16 United Arab Emirates 53.99 26 HI 26 NAWA 2 Czech Republic 53.43 27 HI 27 EUR 17 Italy 53.33 28 HI 28 EUR 18 Slovenia 53.22 29 HI 29 EUR 19 Cyprus 53.07 30 HI 30 NAWA 3 Portugal 52.10 31 HI 31 EUR 20 Malaysia 51.71 32 UM 1 SEAO 7 Latvia 51.10 33 UM 2 EUR 21 Malta 50.16 34 HI 32 EUR 22 Lithuania 48.95 35 UM 3 EUR 23 Hungary 48.48 36 HI 33 EUR 24 Slovakia 48.33 37 HI 34 EUR 25 Qatar 47.84 38 HI 35 NAWA 4 Poland 47.82 39 HI 36 EUR 26 Montenegro 47.65 40 UM 4 EUR 27 Chile 46.73 41 UM 5 LCN 1 Barbados 46.68 42 HI 37 LCN 2 Croatia 46.12 43 HI 38 EUR 28 Saudi Arabia 45.89 44 HI 39 NAWA 5 Greece 45.70 45 HI 40 EUR 29 China 45.19 46 UM 6 SEAO 8 Bahrain 44.53 47 HI 41 NAWA 6 TFYR of Macedonia 44.49 48 UM 7 EUR 30 Mongolia 44.05 49 LM 1 SEAO 9 Bulgaria 43.96 50 UM 8 EUR 31 South Africa 43.93 51 UM 9 SSF 1 Russian Federation 43.77 52 UM 10 EUR 32 Oman 43.28 53 HI 42 NAWA 7 Brunei Darussalam 43.08 54 HI 43 SEAO 10 Romania 42.82 55 UM 11 EUR 33 Lebanon 42.71 56 UM 12 NAWA 8 Thailand 42.67 57 UM 13 SEAO 11 Bosnia and Herzegovina 42.54 58 UM 14 EUR 34 Colombia 42.51 59 UM 15 LCN 3 Mauritius 42.28 60 UM 16 SSF 2 Jordan 42.06 61 UM 17 NAWA 9 Georgia 41.62 62 LM 2 NAWA 10 Serbia 41.55 63 UM 18 EUR 35 Uruguay 41.21 64 UM 19 LCN 4 Botswana 41.18 65 UM 20 SSF 3 Costa Rica 41.08 66 UM 21 LCN 5 Brazil 40.84 67 UM 22 LCN 6 Mexico 40.73 68 UM 23 LCN 7 Kazakhstan 40.72 69 UM 24 CSA 1 Peru 40.53 70 UM 25 LCN 8 Armenia 40.41 71 LM 3 NAWA 11

Table 2: Innovation Input Sub-Index rankings

The Bad

A Circle of Prosperity?

Research Infrastructure

• Feast or Famine -

• Nothing Long Term - (14 months until all National Infrastructure runs out of money)

• Under-utilised facilities, mothballed facilities, loss of facilities, inability to plan for future

• A Full Fledged Infrastructure program that has CAPEX+OPEX needs to return with urgency

THE

GLOB

AL IN

NOVA

TION

INDE

X 20

13

1: Th

e Gl

obal

Inno

vatio

n In

dex 2

013

14

Country/Economy Score (0–100) Rank Income Rank Region Rank

Switzerland 66.65 1 HI 1 EUR 1 Netherlands 58.09 2 HI 2 EUR 2 Sweden 54.86 3 HI 3 EUR 3 United Kingdom 54.30 4 HI 4 EUR 4 Malta 53.42 5 HI 5 EUR 5 Luxembourg 53.20 6 HI 6 EUR 6 Iceland 53.14 7 HI 7 EUR 7 Finland 52.35 8 HI 8 EUR 8 Israel 52.14 9 HI 9 NAWA 1 Germany 51.88 10 HI 10 EUR 9 Ireland 51.73 11 HI 11 EUR 10 United States of America 51.42 12 HI 12 NAC 1 Canada 50.45 13 HI 13 NAC 2 Denmark 50.35 14 HI 14 EUR 11 Hong Kong (China) 48.21 15 HI 15 SEAO 1 Norway 47.88 16 HI 16 EUR 12 France 46.64 17 HI 17 EUR 13 Singapore 46.56 18 HI 18 SEAO 2 New Zealand 46.15 19 HI 19 SEAO 3 Cyprus 45.58 20 HI 20 NAWA 2 Estonia 45.52 21 HI 21 EUR 14 Belgium 45.48 22 HI 22 EUR 15 Hungary 45.37 23 HI 23 EUR 16 Korea, Rep. 44.53 24 HI 24 SEAO 4 China 44.12 25 UM 1 SEAO 5 Czech Republic 43.28 26 HI 25 EUR 17 Austria 43.18 27 HI 26 EUR 18 Moldova, Rep. 42.59 28 LM 1 EUR 19 Italy 42.37 29 HI 27 EUR 20 Malaysia 42.13 30 UM 2 SEAO 6 Costa Rica 42.00 31 UM 3 LCN 1 Australia 41.99 32 HI 28 SEAO 7 Japan 41.64 33 HI 29 SEAO 8 Slovenia 41.41 34 HI 30 EUR 21 Spain 40.97 35 HI 31 EUR 22 Kuwait 40.56 36 HI 32 NAWA 3 Latvia 39.37 37 UM 4 EUR 23 Bulgaria 38.71 38 UM 5 EUR 24 Portugal 38.10 39 HI 33 EUR 25 Romania 37.84 40 UM 6 EUR 26 Croatia 37.77 41 HI 34 EUR 27 India 36.56 42 LM 2 CSA 1 Argentina 36.55 43 UM 7 LCN 2 Saudi Arabia 36.52 44 HI 35 NAWA 4 Slovakia 36.17 45 HI 36 EUR 28 Uruguay 34.95 46 UM 8 LCN 3 Armenia 34.78 47 LM 3 NAWA 5 Chile 34.43 48 UM 9 LCN 4 Barbados 34.28 49 HI 37 LCN 5 Montenegro 34.26 50 UM 10 EUR 29 Serbia 34.20 51 UM 11 EUR 30 Qatar 34.17 52 HI 38 NAWA 6 Turkey 34.07 53 UM 12 NAWA 7 Viet Nam 34.04 54 LM 4 SEAO 9 Guyana 33.87 55 LM 5 LCN 6 Lithuania 33.84 56 UM 13 EUR 31 Mauritius 33.72 57 UM 14 SSF 1 Ukraine 33.65 58 LM 6 EUR 32 Tunisia 33.51 59 UM 15 NAWA 8 Mexico 32.90 60 UM 16 LCN 7 Thailand 32.58 61 UM 17 SEAO 10 Indonesia 32.57 62 LM 7 SEAO 11 Jordan 32.54 63 UM 18 NAWA 9 Poland 32.42 64 HI 39 EUR 33 Colombia 32.26 65 UM 19 LCN 8 TFYR of Macedonia 31.86 66 UM 20 EUR 34 Ecuador 31.83 67 UM 21 LCN 9 Brazil 31.81 68 UM 22 LCN 10 Dominican Republic 31.58 69 UM 23 LCN 11 Peru 31.39 70 UM 24 LCN 12 South Africa 31.26 71 UM 25 SSF 2

Table 3: Innovation Output Sub-Index rankings

The UGLY

THE

GLOB

AL IN

NOVA

TION

INDE

X 20

13

Rank

ings

xx

Country/Economy Score (0–100) Rank Income Rank Region Rank Efficiency Ratio Rank Median: 0.78

Switzerland 66.59 1 HI 1 EUR 1 1.00 12 Sweden 61.36 2 HI 2 EUR 2 0.81 55 United Kingdom 61.25 3 HI 3 EUR 3 0.80 60 Netherlands 61.14 4 HI 4 EUR 4 0.91 26 United States of America 60.31 5 HI 5 NAC 1 0.74 86 Finland 59.51 6 HI 6 EUR 5 0.79 67 Hong Kong (China) 59.43 7 HI 7 SEAO 1 0.68 109 Singapore 59.41 8 HI 8 SEAO 2 0.64 121 Denmark 58.34 9 HI 9 EUR 6 0.76 78 Ireland 57.91 10 HI 10 EUR 7 0.81 57 Canada 57.60 11 HI 11 NAC 2 0.78 68 Luxembourg 56.57 12 HI 12 EUR 8 0.89 33 Iceland 56.40 13 HI 13 EUR 9 0.89 30 Israel 55.98 14 HI 14 NAWA 1 0.87 38 Germany 55.83 15 HI 15 EUR 10 0.87 40 Norway 55.64 16 HI 16 EUR 11 0.76 81 New Zealand 54.46 17 HI 17 SEAO 3 0.74 90 Korea, Rep. 53.31 18 HI 18 SEAO 4 0.72 95 Australia 53.07 19 HI 19 SEAO 5 0.65 116 France 52.83 20 HI 20 EUR 12 0.79 63 Belgium 52.49 21 HI 21 EUR 13 0.76 75 Japan 52.23 22 HI 22 SEAO 6 0.66 112 Austria 51.87 23 HI 23 EUR 14 0.71 98 Malta 51.79 24 HI 24 EUR 15 1.06 4 Estonia 50.60 25 HI 25 EUR 16 0.82 51 Spain 49.41 26 HI 26 EUR 17 0.71 101 Cyprus 49.32 27 HI 27 NAWA 2 0.86 43 Czech Republic 48.36 28 HI 28 EUR 18 0.81 53 Italy 47.85 29 HI 29 EUR 19 0.79 62 Slovenia 47.32 30 HI 30 EUR 20 0.78 70 Hungary 46.93 31 HI 31 EUR 21 0.94 23 Malaysia 46.92 32 UM 1 SEAO 7 0.81 52 Latvia 45.24 33 UM 2 EUR 22 0.77 74 Portugal 45.10 34 HI 32 EUR 23 0.73 92 China 44.66 35 UM 3 SEAO 8 0.98 14 Slovakia 42.25 36 HI 33 EUR 24 0.75 84 Croatia 41.95 37 HI 34 EUR 25 0.82 50 United Arab Emirates 41.87 38 HI 35 NAWA 3 0.55 133 Costa Rica 41.54 39 UM 4 LCN 1 1.02 9 Lithuania 41.39 40 UM 5 EUR 26 0.69 105 Bulgaria 41.33 41 UM 6 EUR 27 0.88 35 Saudi Arabia 41.21 42 HI 36 NAWA 4 0.80 61 Qatar 41.00 43 HI 37 NAWA 5 0.71 97 Montenegro 40.95 44 UM 7 EUR 28 0.72 94 Moldova, Rep. 40.94 45 LM 1 EUR 29 1.08 2 Chile 40.58 46 UM 8 LCN 2 0.74 88 Barbados 40.48 47 HI 38 LCN 3 0.73 91 Romania 40.33 48 UM 9 EUR 30 0.88 34 Poland 40.12 49 HI 39 EUR 31 0.68 110 Kuwait 40.02 50 HI 40 NAWA 6 1.03 8 TFYR of Macedonia 38.18 51 UM 10 EUR 32 0.72 96 Uruguay 38.08 52 UM 11 LCN 4 0.85 45 Mauritius 38.00 53 UM 12 SSF 1 0.80 59 Serbia 37.87 54 UM 13 EUR 33 0.82 49 Greece 37.71 55 HI 41 EUR 34 0.65 118 Argentina 37.66 56 UM 14 LCN 5 0.94 20 Thailand 37.63 57 UM 15 SEAO 9 0.76 76 South Africa 37.60 58 UM 16 SSF 2 0.71 99 Armenia 37.59 59 LM 2 NAWA 7 0.86 42 Colombia 37.38 60 UM 17 LCN 6 0.76 79 Jordan 37.30 61 UM 18 NAWA 8 0.77 73 Russian Federation 37.20 62 UM 19 EUR 35 0.70 104 Mexico 36.82 63 UM 20 LCN 7 0.81 56 Brazil 36.33 64 UM 21 LCN 8 0.78 69 Bosnia and Herzegovina 36.24 65 UM 22 EUR 36 0.70 103 India 36.17 66 LM 3 CSA 1 1.02 11 Bahrain 36.13 67 HI 42 NAWA 9 0.62 123 Turkey 36.03 68 UM 23 NAWA 10 0.90 29 Peru 35.96 69 UM 24 LCN 9 0.77 72 Tunisia 35.82 70 UM 25 NAWA 11 0.88 36 Ukraine 35.78 71 LM 4 EUR 37 0.89 31

Global Innovation Index rankings

Productivity

• Productivity isn’t everything, but in the long run it is almost everything. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker. Paul Krugman

Drivers of Productivity

• Physical Capital -

• Innovation- new ideas

• Skills - Labour Force

• Enterprise - new business opportunities

• Competition - incentive to innovate

Drivers of Productivity

• Physical Capital -

• Innovation- new ideas

• Skills - Labour Force

• Enterprise - new business opportunities

• Competition - incentive to innovate

Very few Large Innovative Companies

Doherty/Zinkernagel Nobel Prize

The Opportunity Knocks for Australia

• Broadly Affluent Society with a Historical Commodity Rich Natural Advantage

• Well Educated Population

• Strong University System

• Strong Governance

Education• Education is the great equaliser -

• Everyone in Australia deserves a great Primary and Secondary Education

• Education is about maximising the Human Capital of the country

• Great Education is not just about Money

• Teachers

• Culture

• Facilities

Research

• Have a Grand Vision for CSIRO

• Take our Good University System and make it great

• Diversity

• More emphasis on better teaching

• More concentration of Research

Innovation

!

• Reward Innovation in our Universities

• Build up a Culture of Innovation between Universities, CSIRO, Research Institutes, Government and Industry

• Programs to get small highly innovative Companies off the ground

Universities are a Primary Resource for

InnovationGraduating Students Finishing Postdoctoral Fellows Research Capacity Specialised Knowledge Research Infrastructure Innovative ideas and products !

But what is the current plan to Use this capacity to enrich the Nation?

Creating an Environment for Innovation

Space and Spatial Industry Innovation at Mt Stromlo

34

35

$150M investment by Industry

Changing The Culture of Innovation

• In the US, Universities get rich by making their alumni rich

• In Australia, Universities get rich by teaching large numbers of students inexpensively

Creating an Economically Sound & Stable Business

R&D Environment

• Programs to support Business R&D need to provide ‘Additionality’

• Targetted and assessed

• stability

Strategic Plan

• Australia does not have, and has not had a comprehensive strategy into R&D.

• This is key to ensuring value for our R&D spend, increasing Government and Business Expenditure in R&D

• And ultimately to raising our long-term productivity so that we remain the affluent nation we have all become accustomed to.