Digital innovation is set to deliver $315 billion in gross economic value to Australia in the next decade, according to a new report.
The Digital Innovation report from AlphaBeta Advisors, commissioned by CSIRO’s Data61, highlighted some of the next billion dollar industries and strategic areas where success can be created in data-driven industries, further driving jobs growth.
“Every sector of the global economy has been re-defined as a result of digital science and technology and the extensive use of data,” said Adrian Turner CEO at CSIRO’s Data61.
“This next digital wave to revolutionise existing industries and create entirely new ones is ours to capture. But the opportunity is perishable if we don’t collectively take action now."
Turner emphasised data-driven organisations were investing in four core areas to realise value from data such as data capture, management, analysis and taking action with it.
“Combining this data with domain expertise, in areas like healthcare, agriculture and mining, is where we can create an unfair advantage,” he said.
AlphaBeta director, Andrew Charlton, added that digital innovation accounts for around 11 per cent of GDP in advanced economies, amounting to an annual value of $6 trillion. But further pointed out that Australia has lagged behind in capturing these benefits.
“Digital innovation is critical to improving our nation’s productivity and sustaining economic growth. It’s not just about creating the next Google or replicating Silicon Valley,” Charlton said.
“Rather, almost half of economic benefit from digital innovation comes from the adoption of new technology across existing industries.”
Some of the strongest opportunities were within focusing on research and development investment and applying digital innovation to existing industry strengths.
Specifically, the report identified eight ‘high-potential opportunities’ for Australia in digital innovation, penning the worth at $155 billion annually in the Asia Pacific region within the next decade in areas such as precision healthcare, digital agriculture, data-driven urban management, cyber-physical security, supply chain integrity, proactive government, legal informatics and smart exploration and production.
Data61 has already begun tackling some of these high-potential opportunities, through the launch of a national digital challenges program, which is designed to facilitate stronger collaboration between research, government and industry on strategic and national data-driven challenges to accelerate large scale outcomes.