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‘ Sustainable & productive ’
Australia needs a ‘ knowledge economy ’ fuelled by scientists and arts graduates : here ’ s why
By Matt McGuire and Catharine Coleborne
The federal government has been asking for “ bold ideas ” to “ reimagine ” the future of Australian higher education for decades to come .
An interim report for the Universities Accord was released in July . Feedback on this draft closed on September 1 .
While there have been many ideas floated by commentators and the review panel ( such as a new national university for regional students and a levy on international student fees ), there has been less discussion about what our university education system is for .
We think there is an urgent need to talk about how higher education can fuel a “ knowledge economy ” – an economy based on technical and scientific advances . This is crucial if we are going to move past our economic reliance on carbon .
We are not the only ones calling for a shift . Australian Academy of Science president Chennupati Jagadish told ABC ’ s Radio National “ we need to move towards a knowledge-based economy […] do we really want to be so vulnerable as an economy and as a country ?”
What is a knowledge economy ? A knowledge economy is focused on activities that accelerate the pace of technical and scientific advances . Research and development generate products and services which lead to the formation of new companies , new industries and new economic opportunities .
This requires both the discovery of new technologies and the application of these technologies to new and existing industries , in both domestic and international markets .
Australia has a strong history here . We have invented Wi-Fi , solar panels and cochlear implants .
But we need to do more .
Research and development generate products and services which lead to the formation of new companies , new industries and new economic opportunities .
Economic complexity The Atlas of Economic Complexity is produced at Harvard University . It is better for countries to be ranked as more complex . The assumption is the more complex a country ’ s exports are , the less exposed they will be to cheap substitutes from rival nations .
According to 2021 data , we ranked 93rd out of 133 countries , down from 60th in 2000 . This is way behind countries such as Japan ( first ), Germany ( fourth ), the United Kingdom ( eighth ) and the United States ( 14th ).
As the Atlas notes , “ Australia is less complex than expected for its income level ”.
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