The value of research: using the Impact Tool to evaluate realised and anticipated benefits of the Cooperative Research Centre for Beef Genetic Technologies
G. R. Griffith A B D and H. M. Burrow A CA The authors were previously Chief Economist and Chief Executive Officer, respectively, with the CRC for Beef Genetic Technologies, CJ Hawkins Homestead, University of New England, Armidale, NSW 2351, Australia.
B Currently with the UNE Business School, University of New England, Armidale, NSW 2351, Australia and the Department of Agriculture and Food Systems, University of Melbourne, Parkville, VIC 3052, Australia.
C Currently with the UNE Business School, University of New England, Armidale, NSW 2351, Australia.
D Corresponding author. Email: ggriffit@une.edu.au
Animal Production Science 55(2) 133-144 https://doi.org/10.1071/AN13351
Submitted: 23 August 2013 Accepted: 27 May 2014 Published: 23 September 2014
Journal Compilation © CSIRO Publishing 2015 Open Access CC BY-NC-ND
Abstract
The Cooperative Research Centre (CRC) for Beef Genetic Technologies operated for its third successive 7-year term from July 2005 to June 2012. It developed new genetic and genomic technologies and non-genetic ‘products’ (practices, processes, tools and technologies) to improve profitability, productivity, animal welfare and responsible resource use of Australian beef businesses. In this paper we assess how well the third-term Beef CRC met its objectives, at the end of its funding period, using the Impact Tool software package developed by the CRC Program of the Commonwealth Government. The Impact Tool generates two commonly used measures of return on investment: the net present value (NPV) and the benefit : cost ratio (BCR). The NPV, the sum of discounted benefits minus the sum of discounted costs, was $233.2 m, when evaluated over the period 2005/06–2020/21. The BCR, the sum of discounted benefits divided by the sum of discounted costs, was 2.94, over the same period. Thus on both measures, investing in the Beef CRC is expected to have been profitable. We conclude by noting that the value of the Impact Tool is not only for ex-ante and ex-post evaluation of the impacts of particular technologies, but it also provides a very effective tool for RD&E project planning.
Keywords: Beef CRC, impact assessment, Impact Tool, return on investment.
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