Innovatia

duced an innovation, whether goods and/or services or processes. However, the number of “for profit” businesses operating in Australia (or globally) as a result of our R&D expenditure is notably absent from the reporting. Australia spends just under 2 per cent of our annual GDP – about $32 billion – on R&D. We need to ask: • what is our innovation success rate or the ROI for our R&D investment? • what “for profit” businesses, industries and Australian jobs have been created over the last 10–20 years? • what Australian intellectual property has been commercialised over the last 10–20 years? • what international revenue has been creat- ed for Australia? • which industries are growing because of Australian investment in R&D? Over the past 40 years, Australia’s track record in commercialisation has been, at best, mod- est, and not much has happened since the pe- riod of economic restructuring in the late 1980s and early 1990s. Six specific challenges for the commerciali- sation of Australian R&D 1. Our devotion to lifestyle and sport. For over a century, many of our major industrial re- lations debates have focused on recreation. 2. Our focus on our natural mineral resourc- es, which are the basis of our comparative economic wellbeing. The last 29 years of economic growth were underwritten by a mining boom, rather than investments in in- novations such as computers, the black box

flight recorder, transistors and satellites. 3. The absence of genuine models of commer- cialisation and innovative leaders. There are very few Australian global business success stories, and many of our innovations have been sold off internationally. How many Australians can name successful Australian businesses and startups like Atlassian, Ac- onex or Canva? 4. Our low level of manufacturing commitment and competence. Over 60 years, Australian manufacturing has declined to less than 6 per cent of GDP. COVID-19 has further high- lighted the weakness of our manufacturing capacity, which may take 30 to 50 years to redevelop. 5. Our limiting 20th century worldview. Histor- ically, business has been treated with some suspicion, amid rumblings about unfairness and discrimination. Now there is a multi- plicity of business degrees, and digital tech- nology is the emerging platform. However, our government and business languages are limited by 20th century economic and finan- cial paradigms, in turn limiting innovation. 6. The absence of a great aspiration. Our first identifiable national aspiration was the move to form Australia in 1901 after 20 years of debate, and even now, we do not cele- brate the formation of Australia. In the 120 years since Federation, Australia as a nation has had few great aspirations. We are not as good as we think we are Having been told for most of my adult life that Australia is a small country that “punches above our weight”, I was more than a little sur- prised to discover that, in fact, we don’t. If an-

ything, we pursue mediocracy with passion. To punch above our weight would mean we are in the top 10 of all the comparative indices listed below. 1. To become the healthiest nation in the world. 2. For biotechnology to replace mining as the major driver of Australia’s wealth creation. 3. To develop a global top 5 food/fibre brand. 4. To develop a national transport system mod- elled on the best in the world. 5. To become a renewable energy hub for the world (and especially Asia). 6. To become water-resilient for a population of 50 million. 7. To become one of the world’s top 10 defence technology exporters. 8. To develop an advanced manufacturing sec- tor that contributes 15 per cent of our gross value-added product. 9. To develop trade links with at least 50 per cent of Asia by 2050. 10. Literally landing a person on the moon via an Australian space project.

In the wake of COVID-19, the institutions that have sustained society for generations are un- der extraordinary pressure, setting the stage for Australia to revitalise our nation and transition from a mediocre 20th century economy into an innovation leader. This will require business leaders and government to work together and deliver a 22nd-century industry base. It’s im- portant for the participants in the conversation to understand four fundamentals: 1. Business is the primary wealth-creation sec- tor in society. 2. Innovation is a core pillar of wealth creation. 3. The commercialisation of Australian intel- lectual property is a major platform for pros- perity. 4. For Australia to thrive in the later part of this century, some cultural challenges must be confronted. Ben Kehoe is a management consulting pioneer in Australia. Since the late 1970s, he has worked with 250+ organisations and businesses. In that time, he has engaged in over 20,000 hours of conversation on the future with business leaders of Australia. In 2019, he wrote and published In- novation in Australia: Creating Prosperity for Fu- ture Generations. “Australia does not punch above our weight – in fact, we pursue mediocracy with a passion.”

https://youtu.be/grOog- r7igS0?si=VjSLkWHeor- j0EMHN

Australian Space Agency - Part 3: Australia on the Moon

The catalyst for change

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