Innovation is a key driver of economic prosperity, however Australia is not considered a leader in terms of OECD standards. Whilst considered medium on the scale in many areas, in terms of our innovation journey, Australia is ranked at the bottom of this group globally.
Among many reasons for this, is the proportion of Australia’s investment in physical capital as opposed to knowledge capital. Much of Australia’s capital has been directed to industries such as mining, engineering, manufacturing and agriculture. Many of our global peers are well-progressed in their transitions to a knowledge-based economy.
Similarly, Australia has seen significant growth in R&D expenditure however there is still a large gap when compared with leading countries. The same can be said for education whereby the top innovative OECD countries have more than three times the R&D personnel in industry than is the case in Australia.