Currently, in its innovation stage of development, Australia was featured in a study by the Deutsche Telekom Stiftung and the Federation of German Industry, where it was found that whilst Australia was ranked above average in the areas of education (6th), science (9th) and society (8th), it underperformed in the categories of public sector (18th) and industry (19th). As a result, this implicitly demonstrates a lack of utilising the innovation potential generated by education, science and society, which has in turn, hindered its innovative position in an international setting. This is further augmented by the OECD, which ranked Australia well behind other developed nations in terms of companies collaborating in pursuit of innovation. Therefore, as global competition increases, facilitated by advancements in technology and mobility, Australian firms will need to collaboratively innovate and develop new products and services, in order to decrease costs, increase efficiency and enhance consumer experiences.
The World Economic Forum recently released a study comparing various advanced economies with 12 pillars based on a country’s economic and social development. For the purpose of this paper, four pillars have been analysed: (1) higher education and training, (2) technological readiness, (3) business sophistication and (4) innovation by comparing Australia to the US, Singapore, Germany and Switzerland. In terms of infrastructure, Australia is ranked number 35 in the world for the quality of its overall infrastructure. Switzerland is the top ranking country in this respect (ranking 8th and 9th in its quality of air transport infrastructure and quality of roads).
It appears that Australia is ranked well below other advanced economies in this area and both Australian companies and governments should look to expand and build on the country’s infrastructure, as a foundation to enhance its innovation potential.
To find out more, please contact Martin Schlegel
Melbourne | Sydney
Dr Martin Schlegel
Principal Consulting
+61-3-9939-4495
martin.schlegel@aa.tax
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