AusIndustry's CRC Program

The Australian Cooperative Research Centres (CRC) Program

Australian Cooperative Research Centres, generally known as "CRCs", bring together researchers from universities, CSIRO and other government laboratories, and private industry or public sector agencies, in long-term collaborative arrangements which support scientific research and development and educational activities for knowledge and awareness outcomes of national, economic and social significance.

The program emphasises the importance of developing collaborative arrangements between researchers and between researchers and research users in the private and public sector in order to maximise the capture of the benefits of publicly funded research through an enhanced process of commercialisation or utilisation by the users of that research.

What value does the CRC program add to the traditional research environment?

The structure of the CRC Program provides a powerful mechanism for achieving the objectives of the
program, principally through the contractual arrangements which establish each CRC, and link the CRC to the Commonwealth, and the objectives of the Government. These arrangements establish strong collaborative links between researchers and industry and other research users in order to create a multi-disciplinary, multi-institutional environment.

CRCs provide an enhanced education and training environment through the involvement of people from outside the university system in education programs and by offering degree and non-degree courses and training focused on industry and other user needs.

These collaborative links increase efficiency and cost effectiveness of research and research training and make better use of research resources through sharing of major facilities and equipment.

Where are CRC's located?

Many CRCs operate at several sites, including all capital cities and about 40 locations all around Australia. The CRC for Greenhouse Accounting itself has offices and field sites in WA, SA, Qld, NSW, ACT (head office) and Victoria.

The CRC program represents a major initiative in encouraging cooperation between research groups from geographically and programmatically different centres.

How are CRCs selected?

Selection rounds are held approximately every two years. CRCs are selected on the basis of competitive merit according to selection criteria set out in applicant guidelines.

The CRC for Greenhouse Accounting was established in 1999 for seven years in the first instance with a possibility of one seven year extension.

What fields of research do CRCs cover?

Established CRCs cover many areas of natural science and engineering: manufacturing technology, information and communications technology, mining and energy, agriculture and rural-based manufacturing, environment and medical science and technology.

Details on the many CRCs in Australia may be found on the CRC Program Website.

How big is a CRC?

The average size of a CRC is substantial - an average of thirty full-time researchers and budget of approximately $7 million per year.

How much financial support do the CRCs receive under the CRC Program?

On average, each centre receives about $2.2 million per year from CRC Program funds. The guidelines require that the participants in each CRC contribute at least as much as is provided in program funding. The average level is about 2.9 times the level of program funding.

Is industry involved?

Industry currently contributes more than $1 billion to the existing CRCs or approximately 25 cents of every dollar provided by participants. Over 250 companies are involved in the CRC Program including several leading international companies.

What is the organisational structure of each centre?

There are two basic models:

Incorporated, ie a company operating under the Corporations Law;

Unincorporated Joint Venture - the most common.

The CRC for Greenhouse Accounting is an example of an unincorporated organisation.

Management flexibility

The guidelines allow great flexibility to tailor the management and research program structure to meet the objectives of each CRC. There is no detailed prescription in the guidelines. It is up to each CRC to justify their approach in terms of the outcomes to be achieved.

Each CRC needs to develop clear lines of responsibility and accountability.The CRCs are encouraged to adopt the management structures normally associated with incorporated bodies, ie like a small company. However, the guidelines emphasise the importance of a CRC having a strong, independent board
of management and a Chief Executive who is empowered to manage the resources of the CRC to
achieve its objectives.

Agreements (contracts) with the Commonwealth

Each CRC is established by a joint venture "Centre Agreement" that binds participants and a
"Commonwealth Agreement" between each participant and the Commonwealth.

The Commonwealth Agreement identifies the management structure, key personnel, contributions of each participant, a defined R&D and education program and commercialisation or research application strategy. Agreements, including funding, generally run for seven years.

What are the reporting requirements?

Agreements require CRCs to provide quarterly reporting of expenditure to draw down program funds. Official First Year Visits, generally timed at about six months into the first year of operation, ensure that the management framework agreed in the contracts is actually in place. Performance is then monitored through annual reports and a process of second and fifth year reviews. Second and fifth year reviews are very rigorous, and are carried out by independent expert panels. They assess the performance of the CRC against the evaluation criteria specified in the guidelines. The Executive Summary of the CRC for Greenhouse Accounting's 2001 Second Year Review Panel's Report is available here.

The outcomes of the reviews are in turn reviewed by the CRC Committee, which advises the Minister on whether funding for individual CRCs ought to be continued. The Committee will frequently make recommendations to the CRC itself, aimed addressing management issues identified by the review panels.This independent assessment process distinguishes the CRC Program from general research funding and operational programs.

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