There is an ever increasing need in Australia for more innovative activity to maintain and ensure a strong Australian economy and society (PWC, 2013). Innovation can be defined as doing something differently to create value, whether that be economic, social or environmental (Innovation and Science Australia, 2017). The Australian Vocational and Education Training (VET) sector also plays a crucial role in supporting a healthy Australian economy. Australian registered training organisations (RTOs) in the VET Sector, however, operate in a very volatile marketplace which requires them to adopt lean and edu-preneurial strategies to maintain and sustain their businesses. The Australian Government’s National Innovation and Science Agenda (NISA) (Australian Government, 2015) recognises that a robust, resilient and efficiently functioning innovation, science and research system (ISR system) is needed to grow the Australian economy. This ISR system requires actors, enablers and innovation activity to support productive outputs and outcomes (Innovation and Science Australia, 2017). However, there is limited insight into to where these exist and who these are for Australian RTOs. This research will use the Australian ISR System performance framework (Innovation and Science Australia, 2017) to analysis leading registered training organisation (RTOs) to determine where the enablers exist and what actors are needed to support innovative activity in Australian RTOs. Recommendations on how the Australian VET ISR System could be improved and further supported to enable more RTOs to capitalise on their innovative activity will also be provided.

1. digitalcapabilitycom.au
RTO innovation: where are the
enablers and who
are the actors?
2017 No Frills Conference
7 July 2017
Allison Miller
Director & Lead eBusiness / eLearning
Consultant

2. Access documents:
bit.ly/DC-NF-070717

3. Background

4. What is innovation?
Innovation and Science Australian. (2017),
Performance review of the Australian Innovation, Science and Research System 2016,
https://industry.gov.au/Innovation-and-Science-Australia/Documents/ISA-system-review/index.html

5. Strong innovation = Strong economy
PWC, (2013), The startup economy 2013 - Digital Pulse, Commissioned by Google Australia,
https://www.digitalpulse.pwc.com.au/wp-content/uploads/2013/04/PwC-Google-The-startup-economy-2013.pdf viewed 29 January 2016

6. Australian Innovation, Science and Research (ISR)
System
Innovation and Science Australian. (2017),
Performance review of the Australian Innovation, Science and Research System 2016,
https://industry.gov.au/Innovation-and-Science-Australia/Documents/ISA-system-review/index.html

7. Research method

8. Research method
April to June 2017: Questions based on the ISR System :
• Quantitative – 39 online survey responses – LinkedIn VET
contacts were send inbox invite
• Qualitative – 7 structured interviews – Originally took online
survey and volunteered to be interviewed
Limitations:
• Very small sample set compared to people associated or
working in VET sector but representative mix of VET
demographics
• New researcher, no reference group, first time used questions
• Respondents connected to researcher, initial broad request to
participate failed

9. Research method
Image from: Inductive or Deductive? Two Different Approaches,
Sociological Inquiry Principles: Qualitative and Quantitative Methods –
https://2012books.lardbucket.org/books/sociological-inquiry-principles-qualitative-and-quantitative-methods/s05-03-inductive-or-deductive-two-dif.html

10. Demographics of
respondents

11. Demographics

12. Demographics

13. Demographics

14. Demographics

15. Demographics
Interviewees:
• Head of school/department, Other senior
manager (5), consultant,
• TAFE (4), consultant, For profit private (2)
• Regional public (2), Metro public (1), Metro
private (2), Metro n/a
• VIC (2), WA, NSW (3), SA

16. Results – who are the
enablers / actors
supporting RTO
innovation?

17. Government policy as an enabler –
strategic direction and leadership (policy)
• Limited – harder to see and should be
more
• Not very public
• Good hype at national level but no clear
vision for VET
• Not in last 3-5 years
• Disagree but there is potential
• Leadership in VET not about innovation
in RTOs

18. Government policy as an enabler –
Research and development opportunities
• Yes – at a State level
• NCVER – scholarships; VDC –
elearning skills training for Vic
RTOs, eWorks, ACPET, AVETRA
• NCVER – can extract from their
research
• Generally No
• No (2)
• Not aware

19. Government policy as an enabler –
Australian Government research agencies
• ACECQA – child education and
care quality authority –
regulates teaching awards
• NCVER – use their research
case studies
• HE & Innovation research
related to start-up
• NCVER
• Yes but RTO is not utilising
them
• No

20. Government policy as an enabler – State /
Territory Governments programs
• Strongly agree that State government is
active in providing support through
funding (Vic)
• Grants available but not related to R&D
• Opportunities to tap into government
funding for innovation and startups
• Digital first approach for TAFE NSW
• ASQA briefings eg TAE

21. Government policy as an enabler –
Regulation
• None – missed this question in the
interviews as did appear on printed
version

22. Government policy as an enabler –
Procurement, purchasing and commissioning
• No but making changes eg One TAFE
• No
• Long term tenders which are cost-based
– cheapest wins
• Agree
• IP grants

23. Government policy as an enabler –
summary
Doing well:
• State/territory government policies
• Australian Government research agencies
More needed:
• Australian government strategic direction and leadership
• R&D opportunities for RTOs
• Government procurement, purchasing and commissioning
to support innovation in RTOs
Unsure:
• Regulation
digitalcapabilitycom.au

24. Monetary sources as an enabler – RTO
expenditure on R&D
• Employing a market analyst, has business
processes to determine where/what to expend
on R&D
• Large budget to improve innovation with
accountability and return on investment
• Large RTOs employ people to drive innovation
• No – can’t even afford to buy pens and paper
• No (2)
• Some but not enough

25. Monetary sources as an enabler – Higher
education expenditure on R&D
• No (2)
• No – looking more broadly at
education – mostly focussed on
schools
• No – work about adult
vocational workplace learning /
L&D
• Happening in isolation eg dual
sector uni/TAFEs
• Focus on entrepreneurship in
general, innovations hubs at
university
• Share library as co-located with a
university

26. Monetary sources as an enabler –
Government expenditure on R&D
• Disagree
• No (4)
• Squeezed by cost
cutting, centralised
services eg eWorks no
longer around and
greatly missed

27. Monetary sources as an enabler – Industry
expenditure on R&D
• AIG/Bus Council Aust, NSW Chamber of Bus – not
necessarily targeting innovation
• ACPET or similar could be offering more outwardly
facing support and funding innovative practice
• Potential eg funding Applied research for industry in
R&D
• No
• AFAANZ – doing market research on student
experience
• RTO partnering with large industry group for
workforce development
• Partnership with industry group to improve how
they operate as a business

28. Monetary sources as an enabler –
Private/Non profit expenditure on R&D
• Come to RTO for help with
their training
• Partnering with large
organisations for workforce
development
• Potential to partner with
edu-techs to develop more
simulated training
• Church-related groups
working to improve
completions for disadv
learners
• No (2)
• Less activity – survival vs
innovation

29. Monetary sources as an enabler – Venture
capital
• No (3)
• No – some appetite but no promotion
of this
• VCs not interested in traditional
learning and assessment methods –
looking for unique IP/Proposition with
potential across the educational
ecosystem but should be looking to
invest long term
• No – Edu techs could be partnering with
RTOs
• Don’t know

30. Monetary sources as an enabler – other
sources of funding
• Don’t know
• No (2)
• Professional bodies (TDA, ACPET)
could do more
• Opportunity to collaborate
• Government grants
• UNESCO – research into LLL

31. Monetary sources as an enabler –
summary
Doing well:
• Private/Non Profits seeking partnerships with RTOs
More needed:
• Government R&D expenditure
• Higher education R&D expenditure
• Venture capital
• Other sources
50/50:
• RTO R&D expenditure
• Industry R&D expenditure
digitalcapabilitycom.au

32. Infrastructure as an enabler – Research
infrastructure
• No (2)
• AVETRA, TAFE Qld – Redface –
research in VET and
dissemination
• RTOs could work with uni
research teams (2)
• Work with organisation with
funding to do research
• Market analysis and marketing
departments

33. Infrastructure as an enabler – Intellectual
property (IP) rights
• Inclusion of non-disclosure agreements
• More in the non-accredited space eg
simulations at BHP Billiton
• Copyright authority protecting
publisher/writer’s rights
• Mixed bag – difficult to implement as IP has a
half life, value in team / individuals
• State government shares information about
copyright and IP to meet compliance over
commercialisation
• Expensive – put more value on the resources
they develop than what they are worth– more
value in sharing economy, collaboration and
competition are not mutually exclusive
• No

34. Infrastructure as an enabler –
summary
Doing well:
• Nil
More needed:
• Some are using research infrastructure but
opportunity to work with universities more
50/50:
• Use of intellectual property (IP) rights
digitalcapabilitycom.au

35. People in Australia with skills as an enabler
– Basic, foundation, core skills for work
• Find staff easily
• Yes
• Yes – good basic skills
• No – small percentage able to do more
than developing content driven courses
• Skill base receding and replicating the
past
• Need more basic entrepreneurial skills
• No

36. People in Australia with skills as an enabler –
Knowledge skills to create, manage use and transfer
knowledge-based products/services
• Some extent
• Less amount
• Not sure
• Dumbing down of Australians
• Need to think outside square
• Yes
• Yes when working in a team

37. People in Australia with skills as an enabler –
Technical/Technician skills to build and maintain
systems and products
• Yes – in house
• Yes – available
• Yes
• No – can’t even use Outlook
calendars
• Don’t have the right type of skills
• Need people with more broad
technology skills, otherwise need
to employ 3 people – 1 to do
programming, 1 to do simulation
and 1 to do web development

38. People in Australia with skills as an enabler
– Creativity, design and cross-cultural skills
for idea/opportunity creation …
• Yes (2)
• Where is it happening = good cross-cultural staff
• Through external staff
• Able to access these skills
• Limited
• Don’t have enough
• No – regional area – low cross cultural awareness
• Teachers need to do more in this space

39. People in Australia with skills as an enabler –
Business skills to implement/administer critical
systems/processes
• Nimble / Small team
• Yes (2)
• Yes but hard to find and not in
the right roles to influence
• No not available
• Don’t see educational
organisations as real businesses
• Migrants – but not utilising skills
and they are not using services
(BECs) to improve themselves,
not aware of Australian business
processes

40. People in Australia with skills as an enabler –
Management/Leadership skills to make key
decisions / communicate / co-ordinate
• Some extent – limited perspectives of the work
• Limited in number – decline in number of
people with these skills
• No – generally lacking in all industries in
Australia
• Yes but management mindset more about
traditional business practices
• Yes but limited in their thinking and view of the
world
• Yes, younger generation with natural leadership
skills
• Yes, regional location attracts people looking
for a tree-change

41. People in Australia with skills as an
enabler – summary
Doing well:
• Nil
More needed:
• Knowledge skills to create, manage & transfer
knowledge
• Management/leadership skills – decision-making,
communication/co-ordination
50/50:
• Basic skills, technical skills, creative skills, business skills
digitalcapabilitycom.au

42. Networks as an enabler – Networks
facilitated by people/orgs with specific
roles
• Victorian Training Association, VDC, ACPET, VET
leaders group, internal
• Internal closed FB groups
• Consultancies, training, RTO leadership support
• Vic TAFE groups, specialist teaching collectives
• VET practitioners not good at sharing while younger
people utilise sharing economy services eg Air BnB
• Used to be but no longer funded, some support
from TDA, ACPET

43. Networks as an enabler – Networks co-
located based on geographical proximity
• Pathway programs to
co-located university
• No (3)
• Tech Park – RTOs are
not using
• Potential for RTOs (2)

44. Networks as an enabler – Networks using
digital technologies
• LinkedIn – VET leaders
group, Elnet
• Twitter, LinkedIn
• Meetup
• FB, webinars, LinkedIn
• RTO manager database
• Twitter

45. Networks as an enabler – Networks formed
around shared problems
• Twitter
• Velg conference
• LinkedIn groups
• Learning design
networks
• Yes (VDC webinars,
consultants) & No
• No (2)

46. Networks as an enabler – Networks co-
resourced/funded through formalised
sharing
• Vic Training Association, eWorks Training
VC
• Yes – to survive; Shire, Catholic school &
RTO partnership
• Edugrowth
• Internal sharing of resources
• Regional alliance groups
• Not sure
• No – highly competitive

47. Networks as an enabler – summary
Doing well:
• Networks through digital technologies (mostly social
media)
More needed:
• Networks supported by co-resourced/funded through
funded bodies and alliances
• Networks supported by people and organisation with
specific roles
50/50:
• Networks based on shared problems
digitalcapabilitycom.au

48. Culture as an enabler – Cultural diversity
• Yes (2)
• Yes – but people with voice are not
culturally diverse
• Yes – in metro area but not regionally (2)
+ gender imbalance
• Not in RTOs
• Regionally not so and with less gender
diversity

49. Culture as an enabler – Organisational RTO
culture
• Yes (3)
• No – everyone
thinks it is
someone else’s
job, no
accountability
• Survival mode
• Busy work &
survival
• No – lack
managers with
right skills

50. Culture as an enabler – National culture to
support innovation
• Yes (2)
• No – people in power are not diverse
(middle aged white men)
• No – but trying hard
• Potentially – need more to make
innovative practice happen
• Not personally – lack vision as a nation
• A lot of talk – not enough action

51. Culture as an enabler – summary
Doing well:
• Nil
More needed:
• Cultural diversity in regional areas, and gender
diversity more generally across the board
• National culture – a lot of talk but need more action
50/50:
• Organisational culture to support innovation
digitalcapabilitycom.au

52. Summary of enablers
• Government policy – Partly there
• Monetary sources – Lots more needed
• Infrastructure – Partly there
• Skills – Some way there
• Networks – Lots more needed
• Culture – Lots more need

53. Conclusions

54. Australian RTOs = Weak ISR system
• Ecosystems = Those quickest to adapt thrive
(Reeves & Deimler, 2011) so opportunity to
leverage RTO ISR system strengths and potentials:
– Workforce capability framework (attract, retain,
upskill), leadership styles and business processes to
identify and filter innovative ideas based on ISR skills
& culture
– Develop partnerships with industry and universities
(start-up/innovation) for R&D monetary sources
– Research infrastructure (NCVER)
– Utilise networks – network with start-
ups/entrepreneuris, co-locate in innovative hubs, esp
edu-tech companies to develop shared IP
– Take advantage of regional (RDA)/ State Government
support

55. Questions

56. digitalcapabilitycom.au
Allison Miller
0400 732 270
allison@digitalcapability.com.au
digitalcapability.com.au
linkedin.com/in/theother66
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