THE POWER OF PLACE IS KEY TO PRODUCTIVITY AND A DYNAMIC AND RESILIENT ECONOMY. If Australia seeks to stem or reverse the decline in economic complexity experienced over the last decade, more impactful policy settings which accelerate areas of competitiveness, support collaboration and innovation are urgently required. EDA is building capacity in high-value investment attraction through its national training program and National Community of Practice( Investment Attraction).
Economic Development Australia is the ideal conduit of this nationally important intelligence to ensure better connectivity, more impactful investment and greater engagement in the national productivity ambition.
The Australian Government must recognise that transformational economic development happens locally, influenced by many factors outside its own macro policy controls. However, the Federal Government needs to be far more plugged in to the job creation, innovation and productivity driving activities happening within cities and regions across the nation in order to leverage and supercharge nascent and emerging competitiveness and also to better understand the challenges and barriers emerging in a rapidly changing world.
The Government’ s Industry Growth Centre Program and Regional Investment Frameworks are just two examples that illustrate the Government’ s intent in taking a place-based approach but these programs lack nation-wide connectivity and coordination, which would amplify their impact.
Australia is home to several thriving innovation ecosystems and industry clusters; geographically and institutionally embedded networks that bring together anchor institutions, research organisations, startups, SMEs, corporates, investors, and government. Economic developers are the essential facilitators of these ecosystems. Through their work fostering collaboration, building trust, and enabling knowledge exchange, they ensure the flow of ideas, the acceleration of innovation, and the creation of long-term partnerships. EDA members have been instrumental in the success of major initiatives like Lot Fourteen in Adelaide, Sydney Tech Central, and Melbourne Connect.
These examples demonstrate how place-based economic development is vital to sustaining innovation ecosystems, driving economic complexity, and boosting national productivity.
Australia’ s innovation output does not reflect its input. The Global Innovation Index( 2024) ranks Australia higher on innovation infrastructure than on innovation outcomes. The Productivity Commission( 2023) highlighted the importance of capacity building:“ Innovation is essential, but capability is the multiplier.” Without a stronger innovation capability architecture, we will continue to underperform. The Government must consider capacity building efforts to actively build clusters and high value, innovation ecosystems. EDA can support this through program design, review and coordination of implementation.
The connecting role of highly skilled economic development teams‘ in place’ has been proven to be the key to collaboration, leading to competitiveness. EDA encourages consideration of a program supporting these roles in key innovation hot spots across Australia.
Throughout the economic reform review period, many experts will offer advice that, in order to future proof Australia’ s economic future, we boost productivity through innovation. It is the view of EDA that this will not happen passively. Meaningful, national economic development designed to drive productivity requires a national, coordinated, place-based approach focussed on building capacity and collaboration at a local level. A mature ecosystem of economic development policy is required. 2
ECONOMIC DEVELOPMENT JOURNAL VOL 18 NO 2 2025 09