3.1 ANNUAL PERFORMANCE STATEMENT

I, as the Accountable Authority of the Australian Research Council, present the 2018–19 Annual Performance Statement of the ARC, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) and the Australian Research Council Act 2001. In my opinion, this Annual Performance Statement is based on properly maintained records, accurately reflects the performance of the entity, and complies with subsection 39(2) of the PGPA Act.

Professor Sue Thomas
Chief Executive Officer

The ARC's purpose is to grow knowledge and innovation for the benefit of the Australian community by funding the highest quality research, assessing the quality, engagement and impact of research and providing advice on research matters (Outcome 1 from the ARC Portfolio Budget Statements (PBS)).

A statement is provided for each of the three key activities that support the ARC's purpose, as follows:

• Key Activity 1: Funding the highest quality research
• Key Activity 2: Assessing the quality, engagement and impact of research
• Key Activity 3: Providing advice on research matters.

The ARC's activities are primarily directed towards the achievement of a purpose that is fundamentally long-term in nature—the growth of knowledge and innovation in Australia. The following statement outlines the ARC's performance within a single financial year, reflecting a cross-sectional snapshot of the effectiveness of the agency in achieving its purpose.

To highlight the benefits being generated by ARC-funded research, and how these will be shaping Australia over coming years, case studies from the ARC's Making a difference—Outcomes from ARC supported research 2018–19 booklet have been included. These case studies demonstrate how ARC-funded research is delivering economic, environmental, social, health and cultural outcomes to Australia.

For each key activity, the Annual Performance Statement includes:

• a description of the key activity
• a description of the key deliverables
• a description of performance against each indicator including a description of why it is important, the result(s), an analysis of the result(s) and additional context if appropriate
• a performance summary or overall analysis of performance against the key activity.

The Annual Performance Statement reports against the full set of performance indicators outlined in the ARC's PBS for 2018–19 and the ARC Corporate Plan 2018–19. The broad level logic model underpinning the ARC's performance framework is outlined in Figure 4. A report on the ARC's performance against the full set of indicators is provided on pages 23–36 for Key Activity 1, pages 36–40 for Key Activity 2 and pages 40–45 for Key Activity 3.

Figure 4: Performance measurement framework (ARC Corporate Plan 2018–19, page 36)

Description

The ARC administers the National Competitive Grants Program (NCGP), which comprises the Discovery Program and the Linkage Program. Each program includes a range of research funding schemes. In 2018–19 the ARC administered the following schemes (see Appendix 1 for description):

• Discovery Program: Australian Laureate Fellowships; Discovery Early Career Researcher Award (DECRA); Discovery Indigenous; Discovery Projects; and Future Fellowships
• Linkage Program: ARC Centres of Excellence (CoE); Industrial Transformation Research Hubs (ITRH); Industrial Transformation Training Centres (ITTC); Linkage Infrastructure, Equipment and Facilities (LIEF); Linkage Learned Academies Special Projects (LASP); Linkage Projects; Special Research Initiatives (SRI); and Supporting Responses to Commonwealth Science Council Priorities.

During the reporting period, the ARC administered the SRI: Per- and Poly-Fluoroalkyl Substances (PFAS) Remediation Research Program for funding commencing in 2018–19. This program funds research to: minimise PFAS in the environment; develop technologies that can be applied to remediate PFAS contaminated soil, waterways, waste, debris and/or large volumes of groundwater; and support the application of these technologies in the field. In 2018–19 the ARC announced funding for the first round of the SRI: PFAS initiative, and commenced the selection process for the second round of funding.

In 2018–19 the ARC sought applications for the SRI: Excellence in Antarctic Science. This program will retain and build upon the significant Australian scientific capability that has been developed through prior investment by the Australian Government. It is designed to foster a coordinated and collaborative approach to Antarctic, Subantarctic and Southern Ocean research that builds on Australia's existing capabilities in these areas.

By supporting excellent internationally competitive research through NCGP funding schemes, the ARC aims to deliver outcomes of national benefit and to build Australia's research capacity.

Deliverables

The key deliverables for the NCGP, as identified in the PBS 2018–19 (pages 122–125), were that the ARC:

• awards research grants through a competitive peer review process
• manages the administration of ARC-funded research grants
• provides strategic policy advice on research, research training and research partnerships.

In 2018–19 the ARC:

• conducted selection processes that considered 5343 applications for NCGP funding and awarded 1155 grants for research projects (Figure 5), involving 2464 researchers (Chief Investigators), worth $576.3 million
• administered 4559 new and ongoing grants under the NCGP, providing $652.3 million to administering organisations (based on planned allocations recorded at the time of grant award)
• undertook a range of NCGP-related policy development activities (page 43).

Figure 5: Applications received and projects funded, 2015–16 to 2018–19

Key indicators of the NCGP's success in meeting ARC Corporate Plan 2018–19 (page 14) objectives relate to:

• the sustainability of Australia's research workforce
• improved engagement between universities, industry and other research sectors
• support received from the university sector
• improved international engagement
• the extent to which research projects address Australian Government research priorities
• providing economic, environmental, social, health and/or cultural benefits to Australia.

Extent to which ARC-funded research supports the sustainability of Australia's research workforce

Why is this important?

Research performance is critically dependent on access to highly qualified and skilled personnel. The ARC's aim is to foster research training and career development opportunities through its funding schemes, including opportunities under its Linkage Program for researchers to spend time in industry organisations.

Analysis of results

In 2018–19 16.4 per cent of Discovery Program funding (new and ongoing) was allocated to the DECRA scheme and 10.4 per cent of Linkage Program funding (new and ongoing) was allocated to the ITTC scheme.

The proportion of DECRA funding allocated under the Discovery Program has gradually increased over the past four reporting periods. The ARC has a range of mechanisms to support early career researchers. The agency's Research Opportunity and Performance Evidence (ROPE) assessment criterion ensures that the research output of funding applicants is assessed within the context of their career stage. In 2018–19 the ARC also released the Early Career Researchers Statement of Support, which outlines the strategies used by the ARC to provide opportunities to early career researchers, both within the DECRA scheme and the NCGP more broadly.

The proportion of ITTC scheme funding allocated under the Linkage Program has also increased over time. The ITTC scheme, funded as part of the Industrial Transformation Research Program (ITRP), fosters opportunities for Higher Degree by Research candidates and postdoctoral fellows to pursue training in industrial priority areas identified by the ARC. These priorities reflect the six high-growth sectors established under the Industry Growth Centres Initiative. The ARC conducted a range of outreach and engagement activities with research and innovation sector stakeholders to support applications for the ITRP in 2018–19.

The more consistent results for the DECRA scheme may reflect the nature of the support provided, as the maximum number of fellowships that may be awarded is set, subject to the quality of applications. Under the ITTC scheme, alternatively, the number of projects funded are dependent on the total funding available, the number of applications received and the quality of those applications.

Additional context

In 2018–19 the ARC:

• provided direct salary support for 320 new awards and fellowships encompassing every research career stage, from early career researchers to senior researchers
• funded 1155 new projects, involving 2464 researchers across the NCGP. This funding support enabled the employment of additional research personnel and contributed significantly to the development of Australia's research capacity.

Extent to which ARC-funded research results in improved engagement between universities, industry and other research sectors

Why is this important?

Research is a collaborative activity with successful researchers and research organisations working together, partnering and networking to generate multiplier effects. The ARC's aim in supporting engagement between universities and other sectors is to maximise opportunities to build the scale and focus of research involving end-users, resulting in direct benefits to Australia.

Analysis of results

Under the Linkage Projects scheme, the combined cash and in-kind contributions pledged by partner organisations are required to match, at least, the funding sought from the ARC. In 2018–19 this requirement was exceeded with every ARC dollar attracting $1.91 from partner organisations. This outcome reflects a slight increase when compared to partner organisation contributions provided in the previous financial year.

A partner organisation's commitment of funding and other resources to a research project indicates an expectation of gain from that investment. Analysis of partner organisation feedback conducted for this Annual Report showed that a majority of partners that provided feedback on final reports (96 per cent) found that the collaborative research project had been either 'very beneficial' or 'beneficial' to their organisation. The feedback also showed that:

• 39 per cent of partner organisations were entering into a new collaborative relationship and 60 per cent were building on a previously established relationship (one per cent selected 'other')
• 93 per cent indicated that they would be willing to conduct a collaborative research project again, depending on the circumstances.

In 2016 the ARC introduced a continuous application process for the Linkage Projects scheme. This was announced as part of the Australian Government's 2015 National Innovation and Science Agenda initiative, aimed to shorten the duration of the assessment process. One hundred per cent of applications received under the relevant selection rounds for the Linkage Projects scheme had recommendations made to the Minister within six months of submission in 2018–19.

Additional context

The Linkage Program comprises a range of schemes aimed at building collaborative research partnerships between researchers in universities and other organisations. These schemes are targeted at different elements of end-user engagement:

• the Linkage Projects scheme aims to support innovation at all levels, involving end-users from government, not-for-profit organisations and both domestic and international industry
• the ITRP aims to support the development of solutions for industry, and train future researchers, through partnerships between universities and industry in identified industrial transformation priority areas
• the ARC CoE scheme aims to build linkages across all sectors including a strong international focus
• the LIEF scheme aims to support collaborative use of infrastructure, primarily between universities, but also involving partner organisations from outside the sector where appropriate.

Extent to which ARC-funded research results in improved international engagement

Why is this important?

Research is a global activity with researchers seeking access to the best partners and facilities worldwide. The ARC's aim in supporting international research collaboration is to maximise Australia's contribution to, and benefits from, international research collaborations, partnerships, developments and policy.

Analysis of results

The proportion of ARC-funded research projects involving international collaboration has increased over the past four years (Figure 6).

The ARC's mechanisms of support for international collaboration have not changed significantly over this period, indicating that the general upward trend of results for the Discovery and Linkage Programs represents a real change in levels of collaboration.

Figure 6: Proportion of projects involving international collaboration by program, 2013–14 to 2018–19

Additional context

In supporting international collaboration, the ARC seeks to build the capacity of Australia's research workforce by facilitating engagement with outstanding researchers overseas, as well as drawing on best practice and research developments internationally. These opportunities strengthen Australia's research capacity, and maintain and expand upon Australia's position as a world leader in research.

NCGP funding schemes use a variety of mechanisms to support international research collaboration, including:

• all NCGP schemes are open to overseas researchers as long as they apply through an Australian eligible organisation. If successful, Chief Investigators, fellows and awardees must reside predominantly in Australia for the duration of the project
• as appropriate, researchers located overseas may participate in ARC-funded projects as Partner Investigators without any residency requirements
• project funding can be requested to support international travel by Chief Investigators, fellows, awardees and Partner Investigators associated with a project, to foster and strengthen collaborations between researchers in Australia and overseas
• organisations based overseas (including higher education, companies, not-for-profit and government) are eligible to participate in projects funded under the NCGP, as a partner, host or 'other' organisation
• international subscriptions are an eligible budget item under the LIEF scheme.

In relation to projects awarded funding commencing in 2018–19:

• 2175 instances of potential international collaboration were identified with more than 85 countries. The five countries most commonly identified were the United States of America, the United Kingdom, Germany, China and Canada
• 721 cases of international participating organisations (comprising 466 unique international organisations) were identified (including host and 'other' organisations under the Discovery Program, and partner and 'other' organisations under the Linkage Program)
• 130 cases of international partner organisations (comprising 126 unique international partner organisations) were identified on projects awarded funding under the Linkage Projects scheme
• the top five fields of international collaboration were: pure mathematics; astronomical and space sciences; materials engineering; atomic, molecular, nuclear, particle and plasma physics; and genetics
• international subscriptions were funded under the LIEF scheme project—Enabling the future of the Australian collider physics program.

Extent to which ARC-funded research addresses areas of Australian Government priority

Why is this important?

Through the identification of priority areas, the Australian Government aims to focus research on areas that address challenges facing Australia. The ARC contributes to this aim by funding research in priority areas under the NCGP.

*Performance against the target cannot be measured in 2018–19 as the National Science and Research Priority areas have not been in place for four years.

Analysis of results

Approximately 60.7 per cent of projects awarded funding commencing in 2018–19 involved research relevant to the Australian Government's Science and Research Priority areas. This figure is consistent with the outcome achieved in 2017–18.

The result recorded for the Discovery Program is lower than the result recorded for the Linkage Program, reflecting the different objectives of the two programs. The Discovery Program is aimed at supporting fundamental research, while the Linkage Program has a greater focus on supporting research partnerships between universities and organisations that will result in the applied use of research.

Additional context

The Australian Government announced the National Science and Research Priority areas in May 2015. The nine cross-disciplinary priorities are food, soil and water, transport, cybersecurity, energy, resources, advanced manufacturing, environmental change and health. These are supported by 30 Practical Research Challenges at the Practical Research Challenge level.

In applying for NCGP funding, researchers are asked to indicate if their project falls within a priority area. While funding is not specifically directed to these areas, most schemes ask assessors to consider whether the research will address or has the potential to address these areas. The ARC engaged with stakeholders to review its implementation of the National Science and Research Priorities within the NCGP throughout 2018–19.

In addition to the National Science and Research Priority areas, in 2018–19 the ARC:

• administered a Special Research Initiatives scheme to support the development of innovative technologies to investigate and remediate PFAS contaminated areas, including soil and other solid contaminated debris, groundwater, waterways and marine systems. Funding from the first round of the PFAS Remediation Research Program was announced, and the selection process for the second round commenced, within this reporting period
• began the selection process for Excellence in Antarctic Science, which is funded under the ARC's SRI scheme. This program was developed as part of the Australian Government's response to the Australian Antarctic Strategy and 20 Year Action Plan. It will fund research examining the strategic, economic, scientific and environmental significance of Antarctica to Australia, as well as fostering collaboration between Australian researchers, industry and international stakeholders
• continued to support Industrial Transformation Priorities under the ITRP. The priorities for funding commencing in 2018 were advanced manufacturing, cyber security, food and agribusiness, medical technologies and pharmaceuticals, mining equipment, technology and services, and oil, gas and energy resources. These priorities are consistent with the six high-growth sectors established under the Australian Government's Industry Growth Centres initiative.

Extent to which ARC-funded research results in outcomes of benefit to Australia

Why is this important?

In a tight fiscal government environment it is important that the positive outcomes of the Australian Government's investment in research can be clearly demonstrated. ARC-funded research provides economic, environmental, social, health and cultural benefits to Australia.

Analysis of results

The ARC delivers a broad and diverse range of benefits to the Australian community through research funded under the NCGP. These include economic benefits through opportunities for commercialisation, the promotion of environmental sustainability and ecological responsibility, improvements to social well-being, support for positive health outcomes, and enhanced cultural and historical awareness. While the full scope of the impacts delivered through ARC-funded research is difficult to quantify, case study methodologies can usefully exemplify the positive outcomes delivered through NCGP funding.

In July 2019 the ARC released the Making a difference—Outcomes of ARC supported research 2018–19 booklet, an annual publication that demonstrates the economic, environmental, social, health and cultural benefits arising from a sample of the research supported under the NCGP. Various case studies from this publication have been used to exemplify some of the benefits stemming from ARC-funded research (see pages 46–51). Making a difference can be accessed via the ARC website, www.arc.gov.au > News > Publications > Making a difference. Case studies from the Making a difference booklet are drawn from the ARC's Research Highlights stories, which are published regularly on the ARC's website and social media, www.arc.gov.au > News > Media > Research Highlights.

Performance summary

There were no changes in the ARC's activities, organisational capability or environment that impacted significantly on its performance in delivering Key Activity 1: Funding the highest quality research.

As indicated on page 23, during the year the ARC:

• announced funding for the first round of the SRI: PFAS initiative, and commenced the selection process for the second round of funding
• sought applications for the SRI: Excellence in Antarctic Science.

The ARC also continued to build upon its program of stakeholder engagement, particularly with the larger scale funding schemes, including the ARC CoE scheme and the ITRP. The focus was on improved grants management by grantees and the promotion of high quality applications for major awards, with applications typically commencing many months before the scheme opens.

Performance criteria: The NCGP contributes to the growth of knowledge and innovation in Australia by funding excellent research and researchers, research training and career development, international collaboration and research in areas of priority. It produces outcomes that improve our fundamental understanding of the world and/or provide economic, environmental, social, health and cultural benefits to Australia.

Description

In 2018–19 the ARC completed the fourth round of Excellence in Research for Australia (ERA), which evaluates research quality by discipline at Australian universities. Evaluating research against international benchmarks, ERA identifies excellence across the full spectrum of research activities. ERA aims to improve Australia's research capabilities and inform government policy.

In 2018–19 the ARC also completed the inaugural Engagement and Impact (EI) assessment. This assessment was the first of its kind in Australia and was undertaken in conjunction with ERA. EI assessed the engagement of researchers with research end-users and showed how Australian universities are translating their research into economic, social, environmental, cultural and other impacts.

Together these frameworks:

• provide a unique, evidence-based resource to inform Australian Government research policy and the strategic direction of Australian universities
• encourage researchers to produce high-quality research with real-world benefits.

Deliverables

The key deliverables for ERA and EI, as identified in the PBS 2018–19 (page 126), were:

• administering an evaluation framework to measure and report on the quality of research conducted at Australia's higher education institutions
• administering a framework to assess engagement and show how universities are translating their research into economic, social, environmental and other impacts
• informing strategic policy on research quality, engagement and impact.

In 2018–19 the ARC:

• completed the fourth round of ERA assessments
• released the State of Australian University Research 2018–19: ERA National Report (ERA National Report), which presents finely-grained, sector-wide and discipline-specific information about the university research sector
• publicly released submission data from ERA 2018 university submissions for the first time
• completed the inaugural EI assessment
• released the Engagement and Impact Assessment 2018–19 National Report (EI National Report), which includes data and results from the assessment of engagement, impact and approach to impact submissions from each university, and qualitative analyses of these submissions
• publicly released EI impact studies that received a 'high' rating, to demonstrate the kinds of impacts that research is having beyond the university sector
• provided policy advice on a wide range of research matters relating to research quality, engagement and impact.

ERA provides assurance of the quality of research in Australia

Why is this important?

The ERA program² informs stakeholders about the performance of each university by discipline and helps promote Australia's research strengths on the world stage. The ERA program provides assurance of the quality, engagement and impact of research through the transparent reporting of performance. This assists universities with their strategic planning and the Australian Government with policy development. The ERA program contributes to the strengthening of Australia's research capabilities.

Analysis of results—ERA informs Australian Government policy

The four rounds of ERA conducted to date have established a dataset documenting the research activity and performance of Australian universities that spans over a decade. The dataset is a unique, finely-grained and valuable resource for a range of stakeholders. The inaugural round of the EI assessment also provides extensive qualitative and quantitative information on research engagement and impact. The ARC has made publicly available more than 200 highly rated impact studies across all disciplines, providing rich information about best practice in delivering research impact that has not been available previously in the Australian context. In addition, the ARC provides information and advice about university research and performance, and information about how to assess research quality, engagement and impact to a range of government agencies to inform policy development.

ERA encourages excellent, internationally competitive research

Why is this important?

Improvements in research quality lead to a better social rate of return on research.³ The ARC's aim is to ensure these outcomes can be realised for Australia through the conduct of a best practice assessment of the quality of research at Australian universities.

Analysis of results—Informs strategic planning activities

ERA 2018

A survey of the websites of the 42 universities that participated in ERA 2018 revealed that 95 per cent specifically referenced ERA 2018 results on their website. The survey also found that approximately 38 per cent of universities used ERA in their strategic planning documents and around 55 per cent mentioned ERA in their annual reports of performance.

Around 60 per cent of universities framed material in their annual reports and strategic plans in a manner consistent with ERA's objectives, by referring to enhancing existing research strengths, identifying emerging research areas and including research excellence as a primary aim.

EI 2018

A survey of the websites of the 40 universities who participated in the inaugural EI 2018 assessment revealed that 65 per cent referred to EI and/or their EI performance on their website. Around 78 per cent of universities identified engagement and impact as a priority for their institution.

In addition, approximately 50 per cent of universities framed material in their strategic plans, annual reports and/or webpages in a manner consistent with the objectives of EI, such as focusing on the translation of research into economic, social, environmental, cultural and other impacts.

Analysis of results—Research performance improves

ERA 2018 results provided evidence that the quality of research produced by participating universities is improving. To date, the ARC has conducted four ERA evaluations—in 2010, 2012, 2015 and 2018.

Improvement in performance can be measured in terms of improvements in ratings of ERA Units of Evaluation (UoEs). A UoE in ERA is the discipline at the university level. Disciplines are defined by the Australian and New Zealand Standard Research Classification (ANZSRC) Fields of Research codes. The ERA 2018 report shows that 26 per cent of UoEs improved their ratings from the previous round in 2015, and 90 per cent of UoEs were rated at world standard or better.

ERA 2018 results also demonstrate growth in Australia's university research activity between the ERA 2015 and ERA 2018 rounds, including increases in:

• the total number of assessed UoEs, up six per cent to 2603
• the number of research outputs submitted, up 17 per cent to 506,294.

As the first round of EI was conducted in 2018, there are no previous data against which to compare university performance.

The EI assessment encourages impactful engagement within and beyond the research sector

Why is this important?

Through EI, the ARC delivers a national mechanism for understanding how universities are translating their research into economic, social, environmental, cultural and other impacts.

Existing systems of research evaluation, such as ERA, show that transparent reporting of university performance drives institutions to modify and improve their behaviour. The EI National Report provides data on university performance, and offers detailed information to government, universities, research end-users and the broader public about how Australian universities and their researchers are collaborating with industry. The EI assessment encourages improved performance in the translation and commercialisation of research, ultimately to deliver increased economic, social, environmental, cultural and other benefits, and maximise the value of Australia's public investment in research.

Analysis of results—Engagement within and beyond the research sector is benchmarked

EI 2018 assessed university research engagement using narrative studies with supporting quantitative information. Engagement ratings were provided at the discipline level where a university was considered to be research active in that discipline. Each Unit of Assessment (UoA) was rated by panels of experts as having either high, medium or low research engagement.

The results provide a benchmark of university performance for research engagement against which the results from future rounds can be compared. Detailed information on ratings is available in the EI 2018 National Report, accessible on the ARC website, www.arc.gov.au > Engagement & Impact > EI 2018 National Report.

Analysis of results—EI demonstrates research impacts beyond the university sector

The 637 impact studies submitted for the EI assessment described research impacts that have occurred beyond the university sector. Of these UoAs, 277 (43 per cent) received a rating of 'high'; indicating research that had a highly significant social, economic, environmental or cultural impact.

Across the highly rated impact studies, key themes included delivering cutting edge technology with partners, community support and safety, improving everyday life, fostering community, and addressing challenges affecting society. In the impact studies, institutions described the contribution their research made, and supplied information about the research associated with the impact.

Altogether, the impact studies demonstrate that the benefits achieved through university research were broad, including improving the management of vital infrastructure for drinking water, improving smartphone technology through research into cutting edge technology, and supporting Australia's systems of law and order.

Performance summary

The ERA National Report 2018 was released on 27 March 2019. It presents comprehensive, finely-grained data documenting the quality of the research produced by Australian universities. The ERA longitudinal dataset is extensive, now covering up to 14 years of research activity. University submission data was published for the first time for ERA 2018, increasing the transparency and accountability of the assessment.

The EI National Report 2018 was released on 29 March 2019. It presents a rich new national dataset examining the ways universities engage with the users of their research and how they translate their research into impacts beyond academia. The report shows that:

• the impact achieved through university research was broad
• universities used a range of successful strategies and mechanisms to support the translation of research into real world impacts
• universities employed a variety of methods underpinning effective engagements with end-users.

Impact studies that received a high rating were published on the ARC website on 29 March 2019. These provide insights into university best practice supporting highly impactful research outcomes across all disciplines.

Description

The ARC's commitment and contribution to policy development plays an essential role in facilitating excellent research outcomes for Australia. The ARC takes an active and collegiate approach to identifying and responding to emerging issues and challenges within Australia's research sector.

Through policy development and advice, the ARC aims to:

• reflect current Australian Government priorities and initiatives in its operations
• contribute to the development of national research and innovation policy
• provide advice on research matters to the Australian Government
• support the effective delivery of ARC programs.

Deliverables

In addition to contributing to broader policy developments, policy advice underpins the ARC's core functions—delivery of the NCGP, ERA and the EI assessment—as identified in the PBS 2018–19 (pages 122–127).

In 2018–19 the ARC:

• reviewed research-related policies and consulted with stakeholders regarding potential changes
• partnered in the development of guides supporting the implementation of the Australian Code for the Responsible Conduct of Research, in conjunction with the National Health and Medical Research Council (NHMRC) and Universities Australia
• continued to look for ways to increase the efficiency, comprehensiveness and timeliness of data gathering and reporting
• continued to monitor emerging issues relevant to the research sector
• monitored, incorporated and contributed to international developments in research and research funding.

ARC policy advice contributes and responds to Australian Government policy development

Why is this important?

Integral to the achievement of the agency's purpose, the ARC develops research policies and policy advice that support the achievement of benefits for Australia.

Analysis of results

During 2018–19 the ARC:

• introduced the Australian Government's National Interest Test to all NCGP Grant Guidelines for grant opportunities opening after October 2018
• supported research addressing key challenges facing Australia through the SRI scheme, and the review of the relationship between the Australian Government's National Science and Research Priorities and the NCGP
• engaged with opportunities to improve the ARC's grants administration processes, through the Australian National Audit Office's (ANAO) performance audit of the NCGP and the Streamlining NCGP Project
• provided a submission to the House of Representatives inquiry into Australian Government Funding Arrangements for non-NHMRC Research.

National Interest Test

On 31 October 2018 the Minister for Education, the Hon Dan Tehan MP (Minister Tehan), announced a National Interest Test to be applied to all future applications submitted for funding under the NCGP. The policy provides further assurance that ARC funding aligns with the national interest by providing economic, environmental, social, health and/or cultural benefits to Australia. All ARC Grant Guidelines for grant opportunities opening after the Minister's announcement have been updated to include the National Interest Test. No research projects subject to the National Interest Test were funded in 2018–19.

Special Research Initiative: Excellence in Antarctic Science

In 2016 the Australian Government called for a coordinated Antarctic science funding model through the Australian Antarctic Strategy and 20 Year Action Plan. This was supported by the Australian Government's Clarke Review, which was commissioned to investigate the governance arrangements supporting the Australian Antarctic Science Program. The Australian Government subsequently announced $56 million over seven years to support Antarctic researchers in Australian universities through the ARC's SRI: Excellence in Antarctic Science. In 2018–19 the ARC prepared and finalised the Grant Guidelines for this scheme, and commenced the selection process for funding. Funding for this scheme will begin in 2020.

Implementation of the National Science and Research Priorities

In 2018–19 Minister Tehan requested that the ARC CEO lead a review of the ARC's implementation of the National Science and Research Priorities as they relate to the NCGP. A panel of experts—the ARC Research Priorities Panel—assisted the CEO with this review. A discussion paper was released in March 2019 seeking stakeholder feedback on the ARC's implementation of the National Science and Research Priorities, with the agency receiving submissions from Australian universities and peak groups from the research and innovation sector. The panel's report was provided to the Minister on 31 July 2019.

ANAO NCGP Performance Audit

In late 2018 the ANAO commenced a performance audit of the ARC's administration of the NCGP. The audit assessed: the effectiveness of the ARC's grants administration; the alignment between NCGP guidelines, the Commonwealth Grants Rules and Guidelines and government research and innovation objectives; the compliance of the ARC's grant assessment processes with NCGP Grant Guidelines; and the ARC's monitoring, assurance, evaluation and reporting arrangements. The ANAO's audit report was tabled in Parliament in August 2019. The ARC will consider the recommendations in 2019–20.

Streamlining NCGP Project

In the second half of 2018 the ARC commenced the Streamlining NCGP Project to identify opportunities to improve the ARC's management of the grant life cycle. The ARC engaged in an internal review of the NCGP's processes, and sought feedback from external stakeholders through workshops and surveys. The project identified a range of recommendations, several of which are already informing ARC practices. The results of some of the streamlining activities will be realised in the 2019–20 financial year. Changes implemented during 2018–19 include revising and reducing the requirements for Grant Agreement variations and reducing reporting where information is available through other sources.

House of Representatives Inquiry—Australian Government Funding Arrangements for non-NHMRC Research

On 11 May 2018 the House of Representatives Standing Committee on Employment, Education and Training (the Committee) announced that it had been commissioned to undertake an inquiry into the efficiency, effectiveness and coherency of Australian Government funding for research. The ARC provided a submission for the Committee's consideration. The Committee tabled its report—Australian Government Funding Arrangements for non-NHMRC Research—on 27 November 2018. The Committee made 15 recommendations, including a number directly relevant to the ARC.

Australian and New Zealand Standard Research Classification

The ARC, along with the Australian Bureau of Statistics, Statistics New Zealand and the New Zealand Ministry of Business, Innovation and Employment, is undertaking a review of the ANZSRC to ensure research classifications reflect current practice and remain responsive to change in the sector. The review is expected to be released in mid-2020. The ANZSRC is used in the measurement and analysis of research and development undertaken in Australia and New Zealand.

ARC policy advice supports best practice research

Why is this important?

Best practice research is critical for the development of the robust evidence base required to drive discoveries that will benefit Australia. It provides the basis for high quality research training and career development, and delivers assurance to those who use outcomes of research for innovation. Best research practice also helps build public confidence in the research process and its outcomes.

Analysis of results

The ARC’s administration of the NCGP is supported by a range of policy documents. During 2018–19 the ARC:

• developed and released the ARC Early Career Researchers Statement of Support
• finalised revisions to the ARC Statement of Support for Assessors within the National Competitive Grants Program
• reviewed and updated the ARC Medical Research Policy
• reviewed and updated the ARC Research Integrity Policy
• released the ARC Intellectual Property Policy
• partnered in the development of guides supporting the implementation of the Australian Code for the Responsible Conduct of Research.

Research workforce

The ARC Research Workforce Statement outlines how the ARC contributes to establishing a sustainable research workforce in Australia. The ARC does this by funding the highest quality research in all disciplines and supporting researchers at all career stages as well as from under-represented groups. The ARC provides funding that supports researchers' flexibility in shaping their careers, and helps attract and retain the highest quality researchers.

The ARC Early Career Researchers Statement of Support contributed to the implementation of the ARC Research Workforce Statement in 2018–19.

ARC policy advice engages researchers, both national and international

Why is this important?

Involving stakeholders in policy development and evaluation processes helps to ensure policies and activities align with their expectations and needs. It increases the diversity of experience and knowledge available to the ARC in identifying relevant issues, analysing policy options and deciding on the appropriate policy instruments. Stakeholder feedback surrounding the implementation of policies gives the ARC exposure to valuable information about policy effects, resulting in more successful policy outcomes.

Analysis of results

During 2018–19 the ARC:

• continued to engage with a broad range of national and international stakeholders on research matters, including research integrity, open research and program evaluation
• continued to provide evidence-based policy advice, including investigating different ways of interrogating data to help reveal trends or issues of concern
• communicated policy changes to stakeholders in Australia and internationally
• maintained an evaluation plan for key program initiatives
• through its implementation activities for ERA and EI, engaged with a wide range of researchers, research leaders and other stakeholders.

National engagement

In 2018–19 the ARC engaged with multiple stakeholders in relation to ERA and EI. Universities, university researchers and experts from industry participated in, and provided feedback about, the ERA evaluation and the EI assessment. In addition, the ARC has engaged with government and other stakeholders in relation to ERA and EI processes and the key findings of the ERA and EI National Reports 2018.

International engagement

During 2018–19 there were 21 international delegations that visited the ARC to explore opportunities available to international researchers and research organisations within the NCGP. In addition, there were 26 instances where the ARC attended or contributed to meetings, interviews or engagements with international stakeholders.

Performance summary

There were no changes in the ARC's activities, organisational capability or environment that impacted its performance in delivering Key Activity 3: Providing advice on research matters.

Throughout the year, the ARC actively contributed to a range of research and higher education policy development activities, supporting work being conducted across the Australian Government. The agency also continued to refine the policy frameworks underpinning the NCGP and the ERA and EI assessments.

Footnotes

¹ Target for this KPI has changed from 2017–18, which was '100 per cent of Linkage Projects scheme announcements are made within six months of submission of application'.

² The ERA Program incorporates both the ERA and EI frameworks, as per Program 1.3 of the PBS 2018–19 (pages 126–127).

³ Benefits Realisation Review of Excellence in Research for Australia, September 2013, ACIL Allen Consulting