Thorn, Fran --- "The Australian synchrotron's cluster of benefits" [2007] MonashBusRw 13; (2007) 3(1) Monash Business Review 6

The Australian synchrotron’s cluster of benefits

Fran Thorn

Australia’s first synchrotron facility, due to open in Melbourne this year, is a significant development in Australian scientific history, on a par with the opening of the Parkes Radio Telescope in 1961 and the Australian Animal Health Laboratory in 1985.

The Australian Synchrotron effectively begins the phase-out of an era of ‘suitcase science’ that has forced hundreds of our researchers offshore to beg for access at synchrotrons in the US, Japan or Europe.

But there is more to this than a quest to end dependence on international generosity. The $207 million project, majority-funded by the Victorian Government, is expected to generate significant economic benefits for industry and the community at large.

A synchrotron is a large research instrument that produces intense light beams ranging from X-ray to infrared frequencies. Among its many uses, synchrotron light can probe the structure of materials and biological molecules such as proteins.

Both the 2003 and 2006 Nobel Prizes for Chemistry were awarded for protein-related research using synchrotron light. The 2006 prize was for research on how DNA’s genetic blueprint directs the process of protein manufacture. The 2003 prize was for discoveries that clarified how potassium ions and water were transported into and out of biological cells.

Synchrotrons are increasingly important tools in the development of new polymers and alloys, the production and testing of microdevices and sensors, and research underpinning the creation of new drugs and vaccines. They also offer potential as a medical therapy and diagnostic imaging tool.

Overseas synchrotrons have aided Australian research into the design of the Relenza™ anti-flu drug, the extraction of nickel from low-grade ores, and the development of a new wool fibre, to mention just three of the many examples available.

The Australian Synchrotron is expected to attract users drawn from a range of public research agencies, as well as private users in industries such as mining, advanced manufacturing and agricultural and food technology. A 2002 study by Macquarie Bank highlighted the potential interest of businesses that would use the facility as a high-resolution micro-machining tool in the development of microchips and sensors.

Construction of the Australian Synchrotron is approaching completion on an eight-hectare site close to Monash University’s Clayton campus in Melbourne’s south-east. In July this year, ‘first light’ was achieved, visually confirming that the machine has achieved its full design energy. The facility is on track to begin operating in 2007.

The quantifiable economic benefits that will flow from the project fall into several categories. The four-year construction and 20-year operational periods will each directly stimulate the economy and create employment, mainly in Victoria. The synchrotron is also expected to induce a higher level of investment in public and private R&D nationally. And, finally, the stock of knowledge arising from synchrotron research activities will, through technology transfer and diffusion, improve the ability of local firms to compete internationally and enhance their viability.

This final category is often referred to as a social rate of return on R&D expenditure. It includes the financial returns to the businesses undertaking the R&D and the significant spillover benefits to equipment suppliers, producer services, firms in related fields and consumers.

An economic impact study conducted in 2004 by the Centre for Strategic Economic Studies (CSES) found that the construction and operation of the synchrotron facility would increase average annual national output by $67m and $37m respectively. During 20 years of operation, the facility would on average support 220 full-time jobs a year.

However, the biggest economic benefit of the project is likely to arise from the formation of a technology cluster around the facility and the R&D and commercial activity induced by this clustering.

Technology clusters have an established track record in stimulating the transfer of technology between researchers and industry. One of the world’s most successful clusters, located in Grenoble, France, has a major synchrotron at its heart. The European Synchrotron Radiation Facility employs 600 staff and attracts more than 3,500 visiting scientists each year. Most significantly, the laboratory is a key factor in the decision by technology companies such as Motorola and Philips to establish research facilities within or close to the city.

Monash University already boasts a technology precinct that is home to several leading technology firms, including Vision Systems, Varian, Toshiba, Philips and NEC, as well as research facilities operated by Telstra and CSIRO. In addition, Monash University has established a Science and Technology Research and Innovation Precinct (STRIP) with corporate tenants such as the Australian Stem Cell Centre and the National Printing Laboratory.

It is highly likely the Australian Synchrotron will further lift the appeal of the Clayton area as a technology cluster and induce additional R&D among cluster members. The CSES study investigated the economic impact of an ‘R&D cluster scenario’ associated with the Australian Synchrotron. The study estimated that such clustering would induce research activities that would lift national output by an average of $110m a year over the life of the facility and increase employment by an average of 637 jobs a year.

On top of the induced R&D expenditure, the CSES study estimated the social return on R&D would add another $49m a year to GDP over 20 years and an additional 700 jobs.

In total, the Australian Synchrotron is expected to add an average $106m a year to GDP over the 24 years comprising construction and operation and support an extra 1,370 full-time jobs (weighted annual average) over this period.

It is often said that Australia ‘punches above its weight’ in scientific research in world rankings, but it is noted equally often that we have a relatively poor record in capitalising on the commercial potential of our research. One of the underlying factors is the traditionally low level of business spend on R&D (BERD). While technology-rich nations such as Sweden, Finland, Japan and the US enjoy BERD rates above 2 per cent of GDP, Australia’s languishes well below 1 per cent.

The Australian Synchrotron is undoubtedly an important scientific instrument for our researchers, but it will also shine a beneficial light on business and help to build our capacity for industrial innovation.

Cite this article as

Thorn, Fran. 'The Australian synchrotron’s cluster of benefits'. Monash Business Review. 2007.; Monash University ePress: Victoria, Australia. http://www.epress.monash.edu.au/. : 6–8. DOI:10.2104/mbr07013

About the author

Fran Thorn

Secretary, Department of Innovation, Industry and Regional Development, State Government of Victoria