Australian Innovation System Report released

Innovation is key for Australian businesses to remain competitive according to the latest Australian Innovation System Report, which has been released by the Office of the Chief Economist and the Department of Industry and Science.

Among the findings, the report said that 42% (2012-13) of employing businesses were considered innovative. In the same period, these innovative businesses made up 70% of the economy’s employment, capital expenditure and business income.

The report said that Australia’s small and medium-sized businesses, ranked fifth by OECD standards, appear innovative and domestically competitive. However, Australia’s large businesses, which do almost all of our exporting, were ranked 21st and not considered innovation leaders by international standards.

The report said: “Australia has several, mostly resource, industries that are internationally competitive; and high innovation capability, including high R&D intensity, is found in these sectors. However, the number of these internationally competitive industries is low compared to other comparator countries and our export sector is now less diverse than it was 15 years ago.

“Australian industry needs to invest in innovation across all domestic and exporting sectors as one of several key strategies to lift long-term total factor productivity and ultimately maintain our high standard of living. The scale and impact of innovation appears to be hampered by a poor management culture of innovation and collaboration, and shortages in a range of skills.”

The Australian Innovation System Report 2014 is part of an annual series of reference reports that compiles and analyses data on business innovation and innovation-related activities, such as skills development, and illustrates achievements of Australian innovators, as well as challenges and opportunities for Australian innovation.

The full 2014 report can be found here.