Foreword: Globalization and information / communication technologies are opening opportunities. Knowledge based industries and intellectual property in many areas allow Queensland's past problems of isolation and low population density to be broken. We can become significant in the world economy. These opportunities exist in all areas from greater ability to develop, acquire and manage knowledge and information (and not only technical knowledge) through innovations. A strong research base and government commitment to an educated workforce are the necessary platform - though all must be involved. Innovation is not a stand alone initiative, but is about attitude, confidence and dedication to pursue new ideas to outcomes. This plan will coordinate the allocation of limited government resources to innovation activities of most benefit to the community. This initiative is part of the Premier's vision for an innovative Queensland, and relates to a State Communications and Information Strategic Plan, and supports it through developing communication and information industries. It also complements Department of State Development's broader role in establishing a positive / pro-active industry development framework for all sectors. Once approved, implementation will be the responsibility of a Parliamentary Secretary - ensuring high level political support. An initial sectoral focus will be on biotechnology, advanced manufacturing, information / communications and environmental management - though this will expand.

Executive Summary: Globalization has increased economic competition. Nations realise they must create and apply knowledge and information to create high value added goods and services. Innovation is a key driver of growth - and involves development and commercialisation of new / improves processes, products and services. While innovation has always been important to competitive advantage, it is now vital, and capturing such opportunities in emerging high technology industries can enhance the foundations for sustaining economic competitiveness. The supply of highly skilled people will be crucial to this. This draft strategy is to foster innovation and technology diffusion across all sectors, and an innovative culture in the community. Queensland's economic competitiveness will be strengthened by becoming a global leader in innovation, and creation of a more diversified and sustainable industry base. Innovation will flourish where it is supported. The initiatives in this strategy involve partnership between the State Government, small business, industry, universities, R&D establishments and the wider community. These are designed to position Queensland at the forefront of the knowledge based economy.

Initiatives:

• Cooperative Research Centres - establish a whole of government CRC program; and support new centres not aligned with specific agencies;
• Knowledge and Technology Diffusion: develop a strategic framework (including data-base on sources); and a technology incubator program which will provide appropriate infrastructure, professional support and advice for start-ups;
• Technology Research Parks and Precincts: establish a best practice model for such parks; strategically review existing parks; identify potential precincts; and enhance value chain amongst tenants;
• Education: an Enterprise Education Advisory Committee will oversee enterprise education initiatives; additional funding will be provided for enterprise education; awards to schools for enterprise education; vocational education and training for science and technology teachers;
• Commercialisation: a pilot pre-seeding grant scheme for commercialising new / innovative technologies (through a pilot program for industries of critical importance to Queensland's international competitiveness); develop a Queensland Entrepreneurship centre to assist commercialisation of intellectual property; network with R&D organisations; technology diffusion centres; industry associations and business angels to promote technology in Queensland; and lobby for reduced capital gains taxes on seed and start up equity capital;
• Leveraging Government Funds: develop a business ready program to make firms investment ready and access government funding; expand accelerated product workshops; and train field staff to assist clients seeking Federal R&D or other funding
• Awareness and Promotion: Facilitate and promote innovation in regions; sponsor local projects through the 15 State Development Centres; and government sponsorship of Australian Technology Showcase and APEC Technomart 99;
• Innovation in the Public Sector: will be promoted through the Department of Premier and Cabinet's strategic framework for innovation in Queensland.
• Queensland Innovation Council: a high level advisory body concerned with development and implementation of science, innovation and technology initiatives (involving component of the present strategy; consultative conduit with community; identification of issues and opportunities; and promoting practical innovation across the community.

Impact on Regional Queensland: The strategy involves a regional focus in developing initiatives (eg for CRC's). Local and regional events will be promoted through the 15 State Development Centres. Regional field officers' skills in assisting local firms in accessing funding and advice will be increased.