industry & reseArch
campusreview.com.au
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Australia can achieve the PM’s
vision for innovation but policies
that discourage investment
must be removed first.
Alan Duncan interviewed by James Wells
“W
elcome to the ideas boom!” It’s the catchcry
of Prime Minister Malcolm Turnbull, and while
universities are keen on the idea, they want
certainty that it will happen.
With that in mind, a report from Curtin University’s Bankwest
Curtin Economic Centre (BCEC) has questioned Australia’s
readiness for Turnbull’s vision.
Positioned for an ideas boom? Productivity and innovation in
Australia says Australia is in position, but emphasises that there are
barriers that must be torn down first.
The report states that the proportion of investment that goes
into early-stage innovation has almost halved over the past
decade – from 41 per cent of total investment, to 16 per cent.
And government spending in research has remained flat over the
18
past two decades; in real terms, it has decreased. This is despite
university investment into research projects growing.
A trend towards economic risk-aversion in the post-global
financial crisis world is a major explanation of the decline in
investment, the BCEC report argues. It concludes that without an
increase in investment the ideas boom will fizzle.
Amongst the main government policy inhibitors to greater
investment, the report cites tax penalties for business failure, and
failed innovations. Small businesses also need greater support,
despite the report pinpointing that larger firms innovate more.
BCEC director professor Alan Duncan speaks to Campus
Review about the report’s findings and their implications for future
Australian innovation.
CR: So what does this report tell us about the state of innovation in
Australia and its positioning to deliver Malcolm Turnbull’s ideas boom?
AD: In the report we looked at productivity and more particularly
innovation trends and how Australia fares internationally in terms of
its standing as an innovative nation.
What we find is that if you look at the various measures in
the much-anticipated National Innovation and Science Agenda
that Prime Minister Turnbull launched in December, there is a
coherent set of measures in place. There is a commitment of
nearly $1.1 billion in resources towards 28 action areas, including
the risking of startups, investing in STEM education, attracting