Embracing innovation crucial for Australia's future

According to the 'From Potential to Performance: Australia's Path to Excellence' report from Urbis, innovation is the cornerstone of future growth and prosperity for Australia. The report acknowledges its pivotal role in fostering economic growth and job creation and addressing pressing societal issues. To ensure national prosperity, the document illuminates that understanding and harnessing innovation-driving forces requires a comprehensive approach.

One focus area identified in the report is the necessity of establishing a robust foothold in technology value chains. A value chain refers to the series of activities and processes undertaken to move a new technology, product, or service from conception to the end consumer. This involves stages like design, production, marketing, distribution, and customer support, with every stage adding value.

Seizing the high-value downstream activities resulting from innovation and commercialisation offers numerous economic kickbacks, including economic growth, job creation, export opportunities, and increased resilience. Australia's primary task is to foster and mobilise the specialised expertise required to generate a wider variety of advanced products and services.

Australia's 2021 export complexity is a testament to this need. While high-technology products only made up about 2% of total exports, minerals, fuels, and agricultural products accounted for roughly 67%. This reveals a deficiency in future growth sources, given that Australia ranks among the lowest countries globally for economic complexity.

To secure a competitive position in sectors and technologies where Australia has a research and technical advantage, it is crucial to strengthen its presence in value chains. This entails nurturing national and local capabilities, expertise and infrastructure to reap economic and other benefits associated with later stages of development, production, and distribution. Establishing a resilient domestic presence in these key downstream stages could result in greater control over essential components, processes and intellectual property.

"Together, we believe these strategies can collectively propel Australia to the forefront of innovation," says Richard Gibbs, Director at Urbis. "A robust innovation ecosystem is pivotal in driving economic growth and creating a sustainable future." Matt Palmen, Director at Urbis, added, "Innovation isn't just about economic advantage; it's key to solving the pressing societal issues that will define our future. Australia has the potential to be an innovation powerhouse, but we need to get better at leveraging the processes and dynamics that underpin innovation performance."

While Australia invests heavily in research, the lack of translation into practical solutions is evident. The emphasis must shift to translating these inputs into outputs that contribute to meaningful national progress. The report encourages stakeholders to engage with these strategies and share insights, aiming to kickstart a national dialogue on accelerating Australia's innovation journey.