 I chose this topic because often people in the farm and agricultural sector, their only exposure to forest and wood products is actually in the agricultural shows, where this wonderful international support of wood chopping is often profile. And we've actually had some true international leaders in this sport, like the Foster family out of Tasmania. The Australian forest and wood products sector is around $24 billion in turnover and employs directly about 70,000 people. That's not excluding the people in the downstream processing such as in the fabrication area. And it's a sector that has actually gone through significant change over the last 10 years. We're talking about innovation, we're talking about a range of decision making, and we often want to jump to innovation as being disruption. The reality is that if you actually look at that, continuous improvement is part of innovation and it's probably where much of the innovation actually occurs. I also like to point out the one area in the middle which we often don't think about as innovation, which is fashion. Fashion is hugely, obviously the woolen and cotton industry are highly exposed to this, but so is the forest and wood products sector. And one of the key things that I always do not think about innovation is that innovation has been driven by being unhappy with your current situation. If you're happy with where you are, then you ain't going to innovate. And this is from the Gardner Hype Cycle and it's one of my personal expressions is about where expectation can lead to disappointment. So every year the Gardner maps onto this curve and this is the wonderful area here called Trough of Disillusionment. So every year these technologies go, get hyped right up, then collapse back down and after time they will go through the slope of enlightenment into the plateau of productivity. And so for anyone who's in the big data session there before, I'm not sure where they'd put that on the curve, but it goes through all the time. So we often keep saying that companies have to invest in innovation. Well, they don't have to. They can go bankrupt, right? They don't actually have to change their ways. If they're happy where they are, they're happy with declining profitability, then that's fine. But investing in innovation is about creating opportunities, whether that's about revenue or whether that's about reducing costs. And it's also about reducing risks, risks in market, risks in biophysical, social and political. But I also take the other point that governments should invest in innovation because they're actually creating things around economic growth, social wellbeing, changes in society, biophysical again, market failure and regulatory failure. And it's important that as we're going through our whole discussion about the innovation system that we realise that governments have a key role to play here in providing this framework type of innovation. Now I play to the buyer here. This is one of the things that's great. Research is turning money into knowledge. Innovation is turning knowledge into money. And we often forget, we often want to focus on research when actually innovation can come from many places. Innovation can come from the person sitting on the tractor, from sitting in the office or operating in the sawmill. And it's about capturing all those sources of ideas, putting them into knowledge and creating innovation out of that. Now you're all probably aware of the horizon one, two and three. And this is a simple model which is based on products and just if you want to think about it, products can be services in this instance. But it's about the knowledge of your market. Is it an existing market you know? Is it an existing market we do not serve? Is it a new market versus knowledge and technology? And the continuous improvement area, most people in our RDC is investing around 70 to 80% of activity in this area. In those new generation products or adjacent growth, it's only 10 to 20%. In those areas of disruption, the ones that are really exciting that we want to talk about, that's not a big area for us. And it's only, it's well less than 5%, probably 1 to 2%. There was some discussion about the Rumsfeldness this morning and it's always important when we're trying to understand how to make decisions in innovation in relation to future, we've got to realise there's a whole science or approach around scenario planning. And that's by understanding the things that we do know. These are the trends. Then there's the impact of foreseeable disruptions. These are the things that we know we don't know. And then this is the thing that Donald Rumsfeld got canned for which is actually quite correct. There is the thing about surprises of disruptions, the things we don't know we don't know. In the forest and wood product sector, there's a number of known trends and that we don't know exactly when they all arrive but we know that they are real and they will be arrived. Australian's housing stock continues to grow. There's growth in multi-residential construction. There's focus on building systems and prefabrication rather than on-site, increased use of engineered products. These are hard and fast and there is no doubt that that's going to occur. Unforeseeable disruptions, this probably exists across every sector of the economy. I think you could probably create your own list but things that are specific for the forest and wood product sector, restrictions on foreign ownership, it's a possibility, green support for the wood products industry. This would have been a totally ridiculous idea 10 to 15 years ago. FWPA, we have a partnership with Planet ARC and it's actually showing that sustained and focused environmental groups see wood products as part of the solution and not the problem. The critical thing about research is how do we actually know for things we don't know. This is that little cartoon. We'll just get all the information we can and we'll work out what we do with it later and that's a little bit what big data is trying to do at the moment. It's about trying to get the decisions out of that. For those and most of you are unfamiliar with the forest and wood product sector, this is a little schematic to try to understand the change that we've gone through over the last 20 years. Once upon... So if you take the situation that this occurs everywhere in the world, there would not be a forest sector anywhere in the world if it wasn't for government intervention. In most cases, all the forest would have been cleared for agriculture and grazing and we wouldn't have a forest sector. So Australia is exactly that same situation. Back in the pre-1990 times, there was a lot of organisations, very large organisations in the sector that had a very strong focus on producing public goods. They were universities, they were state agencies, they were Commonwealth agencies. And there was a much more fragmented private sector. Often small regional companies, very few national sized companies. And I've highlighted in orange there, you know, a schematic, this is not, don't take this to the bank, the type of companies that were foreignly owned. So it was very much an Australian organisation. If you look at the sector now, we are largely dominated by international large companies with very few public good organisations left. Now that plays a very key role in the innovation and research into the sector, where a lot of the research for the sector was actually provided by government agencies. In that glory days, pre-1990s, the sector actually had the luxury of having two divisions of CSIRO focused on it. Now we have less than 30 scientists. So there has been a significant dramatic change in the sector. But just in terms of where the sector ranks its own priorities, this was based on an industry outlook survey we did in 2014, innovation, new investment in productivity were the three top issues that were identified. So if you put that in the context of those private international organisations, collaboration is actually quite a challenge. If you don't have the glue of publicly focused organisations, public good focused organisations trying to hold that together, that makes it a lot challenging. But collaboration is not always the solution. Collaboration is a tool. It's not a goal in itself. And collaboration, to be successful, requires you to give up something. You have to give up time, you have to give up money, or you have to give up power. And Richard pointed out that where we sat on the innovation collaboration scale, and often Australians are not very good at giving up these things. We actually like to compete because competition is actually easier and it's more fun. And this is one of the roles of FWPA and for all the RDCs is that we're actually hardwired for collaboration. Our whole focus is around collaboration. Like all the RDCs, we try to measure our impact. And we measure, do that through benefit cost analyses. Now benefit cost analyses, it's not a hard science. It's about trying to understand what would have happened if you hadn't done it, the counterfactual. And that's actually trying to imagine a future that never actually occurred. So when you're trying to do a benefit cost analysis, it is really just a true economist trying to imagine and trying to create it. And it's about trying to create a language or a persuasion tool. Now people in the space know that we're doing good things, but people in the central agencies, if they're only here, want actually hard numbers. So we go through this exercise of creating benefit cost analyses. And every year we do a random survey of our portfolio of research or activities and we do that measurement. Last year we actually did our measurement on our generic marketing activity which actually demonstrated a return of seven to one which we thought was pretty good. So our focus is very much around new markets and new technologies and trying to make forest and wood products the preferred product in the Australian market. What we have done and was actually announced two to three weeks ago is we've secured a major change in the building code. It's actually the biggest change or market opportunity in the forest and wood products sector for about 30 to 40 years which is to allow for timber buildings to go up to eight stories as a deemed to satisfy solution. Currently, this is a market that we haven't been able to access because of the cost of doing the fire engineering. So we've worked with a range of professional groups, Australian Institute of Architects, Engineers Australia, Quantity Surveyors to actually end fire engineers to develop the tools or rules or specifications that can allow timber to go up to this height. This actually brings us in line with North America and Europe and this will actually take effect on the first of May of this year. So we're hopeful that if you're living in the middle suburbs of the major capital cities that you're going to start to see a lot more timber based buildings. So in terms of our activities going back to the Horizon 1, 2 and 3 type area, the area of the blue, we do lots of boring stuff but it's really important. It's all about continuous improvement. It's stuff that's in the mills, in the forest growers giving them tools to actually improve. In the area of the Horizon 2 we are actually the eight story timber building certainly one that's based heavily on our research activities. Genetic modification. It's gone obviously quite successfully in the cotton industry and in a range of other agricultural sectors. There is no very little activity internationally in the forest sector around genetic modification and I think that's going to be one of the mixed areas of activity. Biorefineries or using wood waste to actually create bio precursor chemicals is certainly an area and there's a recent investment in Tasmania for a small pilot plant in this space. New technology. We've got our research projects with Queensland universities around 3D printing with wood fibre. We see that as an interesting opportunity space. Powder coated wood for those who know the technology you can't run electricity along wood so how do you actually do powder coating? We've worked with CSIRO to create a chemical that will allow electrical current to go down the wood to allow wood to be powder coated. This is to provide lower maintenance guaranteed life for external uses. And then the top corner which is quite a disruptive technology is around nano crystalline cellulose. It's a technology that's actually been around for probably 15 to 20 years but it's actually creating a lot of excitement in Japan. Industry there has committed $100 million to trying to find potential market applications for this technology. So there is a range of activities globally and because we're quite a relatively small organisation we try to be very networked and bring technologies to Australia where possible. So innovation in my mind complacency is the enemy and what we need to do and just in this cartoon instead of risking anything new let's play it safe and continue our slow decline into obsolescence and hopefully that won't happen to us. Thank you.