Does Innovation Flow to Manufacture?

19 Jan 12

Australia is one of the world leaders in innovation according to an independent report released by The Acting Minister for Innovation and Industry, Senator Chris Evans.

Reading between the lines it is clear that the report whilst indicating Australia rates as leading in five, and above average in two, out of the seven innovation indicators, that innovation is not flowing through to the Manufacturing Sector which continues to shrink. The comment that the Gillard Government recognises the importance of innovation to achieve a balanced and diversified economy, would appear to contradict reality.

The Australian economy is strong only because of the mining sector, manufacturing, retail and the tourism sectors are doing it tough so whilst the report is good for the Government's ego, they need to take a reality check as the benefits of innovation are not flowing through to other parts of the economy. Just how much of our innovation is prototyped here then manufactured elsewhere?

This opinion may be considered harsh by some so Senator Chris Evan's Press Release reads as follows, and readers can form their own opinions.

Australia considered a global innovator

The Acting Minister for Innovation and Industry, Senator Chris Evans, has welcomed the release of an independent report which shows Australia is well positioned as an innovative nation amongst global competitors.

The report, by the independent economics firm, the Milken Institute, rates Australia as leading in five, and above average in two, of the seven innovation indicators used to examine the efforts of 22 countries.

Commissioned by GE, the Milken Institute Innovation Report considers Australia to be a leader in facilitating collaboration.

“These results are broadly consistent with the findings of the Australian Innovation System Report, 2011, (AIS) which is an annual report on the performance of the national innovation system,” Senator Evans said.

The Acting Minister noted that while broadly consistent with the AIS report, the levels of university-industry interaction and of venture capital deals are still well below the Gillard Government’s expectations. To help stimulate improved links between university research and business innovation, the Government announced a new $249 million Industrial Transformation Research program last December.

“The Gillard Government recognises the importance of innovation to productivity and the development of a balanced and diversified economy,” Senator Evans said.

“That is why the Government’s new R&D Tax Incentive is also encouraging companies to undertake genuine research and development by doubling assistance rates for small and medium enterprises and increasing assistance rates for large firms by a third.

“8,400 companies are registered to participate in this major innovation program.

“This is another example of how a government with a clear innovation agenda, that is responsive to business needs, is making improvements to Australia’s business environment.”