In late April, the Federal Department for Industry brought the axe down on its widely touted Start Grants, which provided funds for R&D research undertaken by the private sector in conjunction with research groups. In an attempt to crawl away from responsibility for the cuts, Minister for Industry, Ian Macfarlane said the program would continue to fund projects which were already underway. However, more than sixty had their applications for funding unceremoniously dumped as a result.
By May this year, the Adelaide-based Centre for Telecommunications Information Networking (CTIN) closed the doors it had initially opened in May 1994. Wholly funded by the private sector, the centre fell victim to the slump in the telecommuncations sector as research and development projects were abandoned, and companies such as One Tel went under.
The following month, Melbourne-based Centre for International Research on Communication and Information Technologies (CITIC) also wound up its operations. Operating since 1994, CITIC provided research and development services to corporations from through out the telecommunications sector, focussing on wireless connectivity and telecommunications policy. Like CTIN, CITIC formed a bridge between the corporate and academic sectors, but relied predominantly on funding from telecommunications companies.
For the time being, the research hole left by the closure of such centres is being filled by science and engineering schools within universities, and many of the centres' former staff have found alternative employment. However, professor Reg Coutts, former director of the CTIN says the closure of such centres has lead to the closure of it will take years to rebuild.
-It takes about five to ten years to build up expertise and establish the reputation of a research centre," Coutts said, pointing out that by the time the industry is on the rebound, the research and development infrastructure in Australia would have been relegated to intra-university schools and departments.
-There is a recognition that the research and development industry in Australia is overly-dependent on the private sector," Coutts said. -It will take years to rebuild what we have lost through the closure of these centres."
Telecommunications analyst and commentator Paul Budde recognises that the slump in the telco sector is responsible for a slow down in R&D, however, he points to other factors which will contribute to contribute to the difficulties faced by Australian researchers.
-Research and development is just not in our corporate culture, and the government doesn't recognise it as important within the IT sector," Budde said. -If we were talking about mining or wheat production then the story might be different."
Supporting Coutts' emphasis for the need for continuity in the sector, Budde indicated that a haphazard policy approach to R&D funding by the government would ultimately prove more costly.
-R&D is not the sort of thing you can just switch off, based on policy whims; it needs to be built up gradually and supported by government and the private sector," Budde said.
While Budde agreed the Federal government had been making a lot of noise regarding R&D funding in recent times, he said there remained precious little monetary an policy commitment.
-Every major telco and IT company in Australia, apart from Telstra, is foreign-owned," Budde said. -They might outsource a little bit of their research to us for political reasons, but when things get tough like they are at the moment the first thing they will do is consolidate all that research back home."
In fact Budde suggests the government and private sectors in Australia would be better off if they gave up on funding local projects entirely unless they are prepared to take a cohesive approach to local R&D in the IT and telecommunications sector.
-It is impossible to do it on a year by year basis, these projects run over many many years," Budde says. -Unless they are going to take a more cohesive approach they are better off someone in Canada or the US to do the work."
In the meantime, Coutts warns that the current slump in the IT and telco sectors is leading to a fall in the number of students enrolling in computer science and engineering courses.
-When the industry picks up again we will be left in the same situation we were in a few years ago, where is it impossible to get find the graduates we need to enable the sector to grow quickly," Coutts said. -We need to be planning now for what is around the corner."
