Australia is on par with other countries when it comes to innovation

All too often, people from around the world view Australia as just an exciting backwater, home to some beautiful scenery, devilish wildlife and sprawling desert. They think Australia holds its own and has a decent economy but is not necessarily a major contributor to global growth. Yet nothing could be further from the truth, as Australia stacks up really well when it comes to innovation.

Boasting World-Class Academic and Scientific Institutions

Several recent studies show just how innovative the people in Australia can be. One particular report, ‘Why Australia Benchmark Report‘, released in 2021 by Austrade, cited the country’s world-class academic and scientific institutions and the amount committed to research and development. In helping to encourage foreign investment, the authors of the report also pointed to the multilingual, multicultural and well-educated workforce as a principal draw.

Making Unrivalled Investment in R&D

The Australian government has long been committed to innovation, recognising that it is vital in helping to raise the country’s growth potential, productivity and attraction on the world stage. Australia is one of the top world nations when it comes to investing in R&D, with more than $34 billion committed as part of gross domestic expenditure in 2018/2019. In this respect, Australia stands alongside global powerhouses like France, Singapore and UK.

Featuring a Dedicated and Literate Workforce

According to the Austrade report, Australia is home to some of the world’s most dedicated and literate people, ranking in eighth place on the United Nations Human Development Index of 2020. Most Australians have jobs within the service economy, and almost half are employed in sectors that demand a tertiary education. 

The country is even stronger due to its multicultural nature. 29% of the population is from outside the country, which is a much higher average than other OECD countries. This is important when it comes to international companies looking for people with key intercultural capabilities.

Championing Entrepreneurial Excellence

Innovation and entrepreneurship go hand in hand, and Australia is first in the Asia-Pacific area on the Global Entrepreneurship Index. Perhaps surprisingly, it’s well ahead of China, Hong Kong and Japan, as well as some of the key European Union economies.

Many of the entrepreneurial founders in Australia graduated from domestic colleges and universities. These academic institutions rank highly here again, with seven rank within the global top 100. Some of these graduates have published scientific papers that contribute to the worldwide think tank. Research publications shine in most fields of academic research.

In Australia, 41 universities offer 584 topics that are related to the field of entrepreneurship. This further spreads into 135 entrepreneurial ecosystems, and this level of engagement is well set out in ‘The status of entrepreneurship education in Australian universities’ (published by Research Gate) about the status of entrepreneurship education in Australian universities.

The Accelerate programme allows standout students with professional or technical skills to register and attend several universities in Australia. This will bring some of the brightest talents from around the world, which can only serve to boost the growth of entrepreneurial activity in the country.

Becoming a Global Leader in Infrastructure Innovation

Australia’s remote location may have driven this superiority in innovation, but the country has long been a global leader in using innovative ways to build its infrastructure. Government leaders have recognised the need to plan and pay for road and rail infrastructure and other critical facilities that are essential in supporting a growing economy. They have also invested in the more high-tech elements required to support entrepreneurial growth, such as energy infrastructure and communications.

In fact, Australia has invested far more in infrastructure projects than the average, growing 30% year on year. This commitment grew steadily to nearly AU$77 billion in 2020, according to a separate study called ‘Australia’s infrastructure innovation imperative‘, published by McKinsey & Co.

Spending More on Infrastructure

Infrastructure spending now contributes almost 10% to the Australian economy per year and employs 7% of its workforce. This places Australia second only to Norway in terms of this type of spending when looking at member countries of the OECD. Some of these groundbreaking projects include the Sydney Metro North West, which showcases innovation in infrastructure. This includes a curved cable-stayed railway bridge and a 4 km viaduct.

Other Positive Trends

There’s been plenty of growth among digitally native businesses, especially post-pandemic. Australia is one of the leaders in this sector according to a report from Mastercard – ‘Recovery Insights – Small Business Reset’. The country ranks third among all developed countries, with a 73% growth, year-on-year over 2020.

According to data from the World Bank on the ease of starting a business, Australia ranks well too. On a scale of 0 to 100, the country scores 96.6, with it taking two days on average to establish a business.

Expecting Higher Investment Ahead

As the country’s population grows and demand increases, Australia needs to push even harder regarding infrastructure development. After all, some predict that the Australian population could grow by 60% to more than 40 million by 2050. This will call for a large increase in infrastructure investment along the scale of 1% of GDP.

Grasping the Challenges

Huge increases in infrastructure investment will not be easy to achieve alongside other challenges. For example, the electric vehicle revolution is likely to gain pace, and this will require its own infrastructure spending in order to provide the necessary support. There may also be difficulty in attracting the type of skill necessary to deal with major construction projects.

As Australia plans to invest more money in infrastructure, careful planning will be a priority. Certainly, the government will have to take into account electric and autonomous vehicles, as well as significant changes to commuting patterns. After all, people may no longer work in dense urban centres as much as they once did, which may require a complete change to transportation planning.

Innovation will also be sought in project management to streamline the design, development and construction process. This may require regulatory changes and a closer bond between the public and private sectors, allowing larger projects to roll forward together and take advantage of the economies of scale.

Embracing Technology

As technology moves forward at pace, Australia needs to embrace this change. On the one hand, it will need to attract qualified workers to these burgeoning sectors and make sure that they are well compensated to stay and contribute. On the other hand, an increasing number of jobs (especially in the logistics and construction fields) could be automated.

You only need to look at the number of valuable tech companies in Australia that have reached the coveted ‘unicorn’ status. This includes Afterpay (buy now/pay later), Atlassian (project management software) and the design platform Canva. Atlassian employs some 2,000 people near its Sydney-based location, with Canva accounting for a similar number of Australian employees.

Capturing Overseas Investment

If the country is able to grasp the challenges ahead and build on its great track record in innovation, it will continue to be an attractive destination for overseas investment. With a diverse skill base and a pervasive ‘can-do’ attitude, the country could be the perfect location for a research or business partnership.

As a Footnote…

If you are looking for more proof that Australia has long been on par with other countries in terms of innovation, remember that Wi-Fi is an Australian invention. Indeed, the 802.11 technology behind Wi-Fi (and W-LAN) originated from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in Canberra in 1996. CSIRO retains the original patents behind this groundbreaking technology, and John O’Sullivan is the Australian engineer behind the breakthrough.