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Review Article

The rise and fall of research and development for the forest industry in Australia

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Pages 142-152 | Published online: 17 Dec 2014
 

Summary

The modern Australian forest industry has been built on the foundations of science and technology provided by decades of research and development. Much of this research and development (R&D) has been undertaken and funded by state and Commonwealth agencies and the universities. It has enabled the development of new industry sectors that have delivered significant socio-economic benefits. The value of R&D has been supported by independent cost/benefit analyses, and the quality of the science has been upheld by international recognition of innovations and awards to Australian scientists. Despite this successful history, in recent years R&D investment by many organisations has declined sharply to levels that are nationally precarious for continuing industry success. Reasons for the reduction in funding for R&D for the industry include the declining relative contribution of the forest industry to the national economy, reduced government involvement in the industry, corporate restructuring, increased international ownership, low industry profitability, cost cutting and inadequate recognition by the industry of the importance of R&D and innovation for business growth and sustainability. We have already lost or are losing core R&D capability and the human talent required for the future. The forest industry in Australia operates in a dynamic environment: production of raw material (wood) is subject to both continuing and unpredictable threats, while processing and products are subject to innovative competition. Forest industry is a long-term business and the sustainability of the industry depends on a sound, adequate and ongoing underpinning of science and technology. For a better future, key requirements include industry’s commitment to greater R&D investment in its own development, strategic partnerships between R&D funders and providers in priority areas, and sustainable and dependable funding from public and private sources.

Acknowledgements

The authors appreciate comments provided by Peter Kanowski, Roger Sands, Michael Battaglia, Ric Sinclair, Philip Evans, Ian Ferguson and two anonymous reviewers.

Notes

The ABS data derive from a stratified random sample of all businesses and the private non-profit institutions that serve them. The Turner and Lambert data represent a near-complete survey of all businesses (profit and not-for-profit) conducting forest industry R&D. The scope of R&D surveyed by Turner and Lambert is consistent with that used in this paper.

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