Opinion: Avaya's R&D lab closure a timely warning

The Australian technology roadmap drafted by the Information Technology Industry Innovation Council, part of the Department of Innovation, Industry, Science and Research

The loss of Avaya’s domestic research and development lab is a disappointing turn of events for Australia’s ICT industry, and a timely reminder we need to collectively ramp up incentives for well-funded organisations to set up shop down under.

The Sydney-based lab, known as AusLabs and in operation since 1994, once had global responsibility for research and development of Voice over Internet Protocol (VoIP) services and was home to many of the country’s leading ICT minds.

In 2003, AusLabs was responsible for 33 per cent of all Avaya patent applications globally, and in the 2006 financial year alone it filed 40 patent applications.

It employed anywhere up to 80 staff – a drop in the ocean for the vendor’s 2000 global R&D workforce but clearly a potent percentage.

AusLabs contributed to the development of innovations such as a digital signal processor engine to send voice data over IP networks and an IP video telephony solution.

By any standards, the lab’s track record is a fine accomplishment and a testament to the capabilities of Australian ICT researchers.

So the confirmation this week by the vendor that it is closing its lab doors to realign its “R&D resources globally to better serve our customers around the world” after news reports of the development first emerged in February is to be lamented.

As the country attempts to transition to a digital economy on the National Broadband Network (NBN) the absence of progress on a high-profile and well-funded push to attract research labs to set up here is brought into sharp focus by the loss of highly reputable outfits like AusLabs.

In 2009, the Federal Government set up an Information Technology Industry Innovation Council that produced a strategic plan containing seven targets for 2014. One of these was to ensure we are in the “top quartile of OECD in R&D investment and recognised as a leading R&D player” and that we are “connected with the best-leading R&D global players”.

They are admirable goals and are similarly supported by lofty ambitions in the six other targets. But the questions have to be asked: How many people are even aware this strategic plan exists and know who sits on the Council? If we are looking to leverage the NBN, why aren’t we shooting for number one in the OECD?

Yes, Australia does play host to several successful R&D labs including government-backed organisations like the CSIRO and NICTA, along with private work by Google, TechnologyOne, SAP and Citrix to name a few.

And we do get the odd win here and there – CSIRO’s wireless patent win springs to mind as does Google Maps and Wave – that exemplifies the potential innovation on Australian shores.

Bell Labs decision to set up a $10 million research centre at the University of Melbourne to investigate energy efficient networks and technologies is another that should be celebrated.

Moreover, we have some programs aimed at boosting R&D including the Federal Government’s ICT Incubators program, which in December received a funding boost as part of $64 million pledged by the Minister for Innovation, Industry, Science and Research, Senator Kim Carr.

Eleven fund managers distribute the funds under the Innovation Investment Follow-on Fund (IIFF) program to 35 companies that are receiving assistance to commercialise their projects.

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