Australia is no innovation leader: GE
- 20 January, 2012 12:03
- Comments 3
Despite Australia being often seen as a “mature” market and quick to adopt new technologies, it is not quite as innovative as people may think, according to recent surveys by technology vendor, GE.
The two independent surveys, titled the GE Global Innovation Barometer and Milken Institute Innovation Report, polled senior business executives in several countries, including Australia, to see what perception they have towards innovation domestically as well as internationally.
While the Milken Institute Innovation Report found that Australia is leading in five of seven innovation indicators and above average in the remaining two, the GE Innovation Barometer survey ranked Australia 16th out of 30 countries in innovation.
The first report was compiled by the independent economics firm, Milken Institute, while the second report was done by market research firm, Strategy One.
Tellingly, 31 per cent of Australian polled felt that innovation has not improved over the last five years, and formed one of the most negative responses globally.
With the surveys found a low sentiment towards Australia as an innovation leader among global business leaders, GE feels that industry support and innovation programs can help to increase competitiveness and productivity in the region.
“Both reports highlight the importance of innovation to strengthening the Australian economy, but they are poles apart in assessment of the local commitment to research and development,” GE Australia and New Zealand strategy and growth vice president, Michael Ackland, said.
While the responses by Australian respondents to the GE Innovation Barometer survey were found to be quite negative overall, 86 per cent of Australian business leaders did agree that innovation will lead to a “more competitive economy.”
As proof of that sentiment, 85 per cent of respondents felt that the best way to create jobs was through innovation investment and 84 per cent believing that it was the best way to create a “greener” economy.
When asked what areas innovation can improve Australian lives, local business leaders selected communications (96 per cent) and education (90 per cent), closely followed by health quality (89 per cent), job market (89 per cent) and the environment (87 per cent). The findings also highlighted that the local energy and healthcare sectors are the ones with the biggest innovation driven growth potential, several points higher in Australia than typically viewed overseas.
“The challenge for Australia in the 21st century is competitiveness, and to achieve that we've got to drive productivity,” Ackland said.
Despite $3.5 billion already invested by Australia in establishing over 40 Cooperative Research Centres nationally, the GE Innovation Barometer found that more than half of Australian business leaders felt that the government policy could be better organised.
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Comments
Justin
1
Australia is no where near "innovative" we don't have any high speed rail networks, the NBN's Fibre footprint only covers 93% of the population while the remaining 7% will still be using outdated and inefficient Satellite and or Wireless with speeds to only 12mbps compared to 100mbps and eventually gigabit speeds for cable. Our road network is a mess and needs a massive overhaul to bring it up to international standards and we need to be encouraging companies that have sent jobs offshore to return to Australia.
Kevin
2
There are two thoughts on this subject, actual and perceived.
Actual would be based on the number of patents applied for and the products seeking patents.
The perceived is what is publicly known via the various news outlets, which tend to concentrate on major developments often those in early stages of development.
Most of Australia's innovation has come from the medical sphere, particularly from the Government owned institutions.
Our schools and universities are more concerned with producing a workforce than developing thinkers who will enter into the research and development arena. and worldwide, universities is where most major developments begin.
The other problem is companies are more interested in raising the shareholders slice of profits than taking R&D Risk.
Governments can help here with bigger tax incentives.
Bottom line is much of the lack of R&D has been caused by present and past Governments, especially during the Fraser and Howard years when we were probably No 60 on the GE data.
Roy Pater
3
I agree with Kevin to some extent. There is actual and perceived. Also there is the question of whether Australians are innovative and to this the answer is a resounding YES! but....
Our innovators get poached to go offshore and the government does not do enough to support and reward innovation projects. Government also needs to align with business to harness new opportunities.
For example we are no longer (nor can we be competitive) in manufacture but we could be a GREAT place for cloud storage. Why?
Well we have a very stable land mass, we are politically very stable and we have the right skilled resources to set this up and manage it. However to do this, the government needs to provide the tax breaks to attract off shore companies to use Australia and provide the funding to have the data centre and data storage services set up plus assist with the promotion of this off shore.
Now we would have a services business that is exportable and bringing money into the country.
So in summary I believe we have enough smart people, we just dont support them and the proof is when you look around the world and see how many companies have Aussies at the helm or the main innovator at that organisation.
So how do we get the government to change this ?