Addressing Australia's lack of innovation. (research and development tax policy)(includes related article)

Backlash from the Australian prime minister's launch of the A$465M 'Innovate Australia' initiative last December is surfacing from unexpected quarters (C&I 1995, 997). Political realities may force the government to accommodate the objections of the banks and industry, altering some of the expected financial benefits.

The opposition coalition was not impressed either. Disgruntled opposition leader John Howard charged the government with stealing his policies, shouting: 'Imitation, not innovation.' He adds: 'This was supposed to be Mr Keating's [the prime minister's] big bang, but when you exclude the coalition's ideas all that's left is a squeak,' he said. Keating called these remarks sour grapes.

Meanwhile, the minister for industry, science and technology, Peter Cook, claimed that the Innovation Statement would generate 190,000 new jobs and A$20bn in additional exports by the year 2000. At the same time, the government estimated that direct investment by banks in small and medium enterprises (SMEs) would generate $1.6bn equity capital. According to the Bureau of Industry Economics, this would lead …