GE chooses Australia to invest in strategic R&D alliance
May 2011
GE, one of the world’s most well-recognised companies, has partnered with Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) to form a strategic research and development (R&D) alliance.
Local challenges – global impact
GE and CSIRO will co-invest a total of A$20 million to look into areas of global challenge such as healthcare solutions for an ageing population, water conservation and cleaner technologies for the aviation and energy industries. Joint projects will progress over the next five years under these themes and it is envisaged that this initial work will lead to further investment as the alliance matures, indicating the high level of confidence in Australian capability.
A$20 million alliance for speeding innovation to market
More specifically, GE and CSIRO will jointly invest in the areas of:
- Aviation – development of advanced aviation materials to reduce the energy required to produce and operate aircraft
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CSIRO’s Renewable Energy Integration
Facility in Newcastle, Australia where some
of the joint research will take place.
Image courtesy of CSIRO
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- Healthcare – research with a focus on developing molecular imaging technologies, exploring new biomarkers and analysing diseases such as neuro-degenerative disease
- Cleaner coal and gasification technology – research supporting the Wandoan Power carbon capture and storage project in Queensland
- Smart grid – including research into distributed energy and the integration of renewable energy into the electricity grid
- Water conservation – developing processing technology for industrial waste water
“This alliance will help GE further localise its operations in Australia through collaboration with CSIRO on technology and the sharing of skills and knowledge. As we broaden our reach we want the best ideas from collaborating with the smartest people in the world…this investment highlights the role Australian science can play in enabling cleaner technologies and affordable healthcare,” said Steve Sargent, CEO, GE Australia and New Zealand.
How a shared focus led to cutting edge results
The cooperative relationship grew out of a collaboration around CSIRO’s materials technology. GE’s aviation business sought to bring together CSIRO and GE’s expertise to develop new materials which allow aircraft to burn less fuel, reducing environmental impact and costs. CSIRO’s Group Director of Business Development, Mr Damien Thomas, said GE’s decision to partner with CSIRO reinforces Australia’s position as a world-class R&D location. “CSIRO was able to offer GE a multidisciplinary skills base and industry-focused research,” he added.
GE’s Commercial Director, Mr Ben Waters agreed that for GE, CSIRO’s industry links were a significant and useful element of the strategic alliance.
The capability of CSIRO also complements the diversity of GE’s portfolio. Mr Waters noted that CSIRO’s 10 Flagship programs fit very well with GE’s goals. “There aren’t many national research labs in the world with CSIRO’s reputation for broad scientific expertise – that also share a wing-to-wing focus with GE. CSIRO’s focus on energy, water, health, light metals and minerals aligns well with our strategic growth initiatives. Through this strategic alliance GE and CSIRO will be able to achieve global impact from Australian science.”
CSIRO’s Flagship programs are large-scale multidisciplinary research partnerships that harness world-class expertise to tackle some of the world’s biggest challenges and opportunities. Industry partnerships provide powerful pathways for Flagship research to be directed towards delivering practical economic, environmental and social benefits. In addition, CSIRO has a long history of successful collaboration with partners around the world, with an international portfolio including over 850 current or recently completed collaborative research projects in 50 countries.
Australia currently ranks 10th highest in the world for the quality of its scientific research institutions (IMD World Competitiveness Yearbook 2010) and its business environment is the world’s 7th most attractive for highly skilled workers (World Economic Forum (WEF) 2009-10 Global Competitiveness Report).
Australia – a strategic choice for innovation
Building on Australia’s talent pool and national innovation infrastructure, the Australian Government has adopted a long-term innovation strategy, announcing A$9.4 billion for science, research and innovation in the 2011-12 Budget. Australia ranked 10th in the world for other “efficiency enhancers” such as higher education, goods and labour market efficiency and technological readiness, making it a great place to do business (WEF Competitiveness Index 2010-11). University-industry collaboration in R&D in Australia (another WEF innovation indicator) is also currently ranked at a competitive 13th in the world. Australia therefore offers international companies across a broad range of fields the opportunity to work with some of the best minds in the business – to be at the forefront of their industry.
The Federal Government has announced a new tax credit for investment in R&D which supports business R&D and is available to companies around the globe, irrespective of nationality. In its 2011 ‘Doing Business’ report the World Bank has ranked Australia 2nd in the world for ease of starting up a business. This policy background means innovative international enterprises can enjoy a welcoming business environment and stand to gain a competitive advantage by investing in research in Australia. Mr Ben Waters, GE’s Commercial Director said “Australia is an easy place to do business and it provides an excellent source of highly-skilled technologists.”
Australian innovation for global outcomes
Mr Thomas said “we see tremendous potential in this partnership with GE – a globally relevant partner with an impressive history of innovation”. GE expects to make several breakthroughs as part of the strategic alliance. The research will generate benefits in two areas of importance to the company: R&D into clean energy technology under its ‘ecomagination’ initiative; and cost, access and quality of healthcare in its ‘healthymagination’ initiative. GE’s US$5 billion investment into clean technology R&D globally since 2005 has resulted in successful new products being launched and multi-million dollar savings in energy, water and waste.
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