Going boldly into the future: A VET journey into the national innovation system

This project sought out emerging and potential Australian industries to find out what skills their workers require, both now and in the future, and to identify if, how and when the vocational education and training (VET) system can best respond to these skill needs. It was limited to investigating industries emerging from the work of one sub-section of the national innovation system—the Co-operative Research Centres program.

The project consisted of a number of different activities:

• consultations with experts
• a survey and review of the relevant literature
• a survey of the annual reports of the centres
• a telephone survey of the centres
• case studies in selected centres
• case studies of new firms established by two centres.

The study found that among the co-operative research centres new industries are already apparent in photonics and in the environmental areas of renewable energy, waste management and desalinisation ('saltonics'). A future new industry is likely in satellite systems. In addition, a number of the centres are working toward the re-creation of existing industries. These include several that are working towards re-forming existing industries on a sustainable basis, particularly in agriculture and tourism. Further potential for new industries exists also around the products, tools and processes that will be the outcomes of the centresí research and development programs, e.g. agricultural machinery, diagnostic systems.

Whether oriented primarily to a new or to an existing industry, most co-operative research centres are working to create innovations such as new technologies, processes, tools, equipment or products. Some of these innovations will lead to requirements for some new skills, or contextualised skills, as they are applied in industry or enter production. The VET sector could play a part in meeting at least some of these skill needs, particularly where low- to medium-level technical level skills are required.

However, not all innovations will lead to changed or new skill requirements. A new product, for instance, may simply add a line to an existing suite of products. New or updated skills will be required only where there is a significant difference between the innovation and whatever it replaces or complements.

Some innovations are competency-destroying because they replace, rather than amend, whatever already exists. This is the case with some new technologies, and in these cases skill requirements may change substantially. Sometimes a new tool or system will simplify a task that previously could be performed only by experts. These innovations free up experts for more creative work and enable workers with lower-level skills to take on tasks that previously required more expertise.

When assessing whether new or upgraded skills will be needed as a result of the adoption or implementation of an innovation it is important to consider the particular characteristics of the innovation carefully and to compare it with what already exists. In some cases workers may only need to make minor adjustments. In others, more radical initiatives will be required.

Not all skill needs arising from the innovations created by the co-operative research centres require a formal response from education and training systems. In the case of the existing industries that are connected with the centres, as long as the number of workers required to have new skills is small, the centres themselves are often able to meet the demand for training/re-training through the industry seminars and workshops that are part of their education and training programs. However, when many workers with new skills are needed, the centres do not have the capacity to meet demand.

The time required to develop appropriate programs and materials and the capabilities of staff to deliver new courses means that planning to deliver VET should ideally start well in advance of the point where the training is required. This possibly lengthy process would be expedited if the VET sector were familiar with the work being done in the centres and its potential to create new skill requirements and also if the centres recognised the interest of the VET sector in their work and its outcomes and acted to include it in their activities.

Currently, the new knowledge created in the co-operative research centres does not always reach the VET sector. There is no systematic process supporting the flow of information between the two and the links that do exist are often weak or informal. Thus, co-operative research centres are often unaware of VET sector interest in what they are doing and knowledge of the work of the centres may be uneven in different parts of the VET sector—even where this work is likely to lead to innovations that will clearly require a VET response.

Where the links between the VET sector and the co-operative research centres are strongest, benefits flow to both sides. For the centres, connections with the VET sector provide access to new networks and extensive experience in working with industry. As new skill needs arise, they can be dealt with more quickly and effectively. VET links can also bring in specialist expertise and enable access to specialised equipment and other facilities. For VET organisations, benefits from connecting with a co-operative research centre include additional opportunities for staff personal and professional development through participation in research and development, or in the cooperative research centreís education and training program. The organisation will gain access to the new knowledge that it needs to ensure that its teaching remains up to date. It will have information that will enable it to identify new opportunities for fee-for-service provision.

The places where strong links currently exist provide the basis for constructing effective models for VET-co-operative research centre interaction. While no single model is suitable for all occasions, each demonstrates some 'best practice' features that others could usefully emulate. None of these connections is working perfectly. In each case some difficulties have arisen—usually through a lack of knowledge or misunderstanding However, in each case the benefits of the relationship also are clear.

The development of stronger links between the VET sector and the co-operative research centres should be pursued as beneficial to both and to the industries they serve. Ideally, the centres should not merely consider VET as a 'recipient' of their research outcomes, although recognising the VET sectorís interest in their work would be an advance in some cases. This would limit the benefits that could be derived from the connection and would not support timely attention to new training needs. Rather, the VET sector should participate where possible and appropriate in the activities of the co-operative research centres—in the knowledge creation process as well as in the centres' commercialisation and dissemination and education and training programs. Only through the mutual knowledge and understanding that will arise from a close relationship of this sort will the full range of benefits be achievable.

Kadence, a spin-off company of the Photonics Co-operative Research Centre, recognises these benefits, preferring to use TAFE colleges and staff in the development of a high volume, automated packaging and manufacturing technology for the photonics industry.

An objective for the future should be to build and strengthen the links between the VET sector and the co-operative research centres in order to:

1. Improve the timely flow of new knowledge from the co-operative research centres into the VET sector to support planning for the delivery of VET to meet the skill needs arising from the adoption of centre-created innovations in existing industries and the creation of entirely new industries.
2. Enable the centres to make use of the strong VET links with industry (including in the design and delivery of training), the facilities of VET sector organisations and the skills and expertise of VET personnel.
3. Promote teacher currency in VET through professional development opportunities for VET personnel within the co-operative research centres.

A commitment by both the VET sector and the centres will be needed to achieve this objective and will require action by many people and organisations. A leadership role taken in the VET sector by the Australian National Training Authority, state and territory training authorities and some registered training organisations would assist this process. There is also considerable potential for industry training advisory bodies to play a stronger part in improving the flow of knowledge between co-operative research centres and VET planners and providers, particularly in the case of existing industries.