The upcoming release of the 2016/2017 Australian Federal Budget has the nation abuzz with speculation of many changes, including possible tax concessions to businesses. However, one policy focus getting particular attention is “the Ideas Boom”– the government’s proposal of investment in innovation across all sectors. One of the key areas in discussion is to provide easier pathways to funding for Universities and businesses to collaborate in industry based research. So what does this mean for the economy?
Currently, Australia is trailing behind many other countries in the world when it comes to innovation. Europe, Israel and the U.S have been investing in this area for a lot longer and the results are evident. Our great resources boom is scaling down and now we need the next big thing to keep the economy going. If we have businesses collaborating with researchers, the research will be conducted in the areas which are most vital to the industry and those which will help propel that particular industry into the future.
The National Innovation and Science Agenda website explains plans to fast track the project funding process, meaning a shorter lag time between research and development of products and services and those being used in industry. The increase in project-based work will produce a transferrable workforce with added emphasis on more flexible working arrangements, where workers can move more easily from project to project.
The Turnbull government has also recognised the need to attract the best of the world’s talent to Australia and to be able to retain the talent we have. As we move into the New World of Work, the emphasis has shifted to the value of human talent, and in order to produce this valuable commodity, it is necessary to invest in research and innovation. According to CEDA’s 2016 Economic and Political Overview report, Universities and Business working together will:
- Enable businesses to focus on research and development in a more targeted, intensive way
- Result in organisations spending less money and time in this area
- Produce talent that is relevant, more aligned to business needs and job ready by involving university students in research and development
In combining our talent in these areas, we are increasing our competitive advantage on a global scale. The National Innovation and Science Agenda states that “Innovative firms are more competitive, more able to capture increased market share and more likely to increase employment than their competitors.” It can be argued that this is a case of too little, too late for the government to be pushing such an agenda and that the private sector has been fuelling this for a lot longer, but the fact remains that we can only benefit from investment in these areas.
