Innovation: a New Vehicle of Growth for the Australian Economy

October 13th, 2015

The Turnbull government is focusing on crowdfunding as a top priority and investing in innovation  to move the Australian economy forward.
In a recent report by the IMD World Competitiveness Yearbook measuring the global competitiveness of 61 countries, Australia descended to a rank of 18 — indicating a concerning decline over the last five years. Thus, our ability to innovate and cultivate a resourceful workplace is becoming more vital as our economy shifts away from the traditional mining and resource sector.

Subsequently, Australia’s economic future rests in making innovation a national priority, an agenda supported by the Turnbull government.  This week it was revealed that the Turnbull government is working on a major innovation agenda with crowdfunding for start-ups and tax breaks for “angel investors” in fledging tech companies as top priorities.innovation

Furthermore, the Turnbull government has highlighted the importance of Australia to remain competitive in a changing economy and invest in new ideas. Reforms to tax breaks is predicted to ensue, such as capital gains tax breaks for investors in tech start-ups younger than two years and earning less than a $1 million a year. Crowdfunding, currently prohibited by the Corporations Act, is under re-examination and a new bill is expected in Spring.

Indeed, the Australia economy is at a critical juncture, innovation is what is going to push the economy forward as a new avenue of growth. Mr Pollaers, a former chief executive of apparel and footwear manufacturer Pacific Brands, said aiding new firms reach early stage and growth funding would address weak points in the Australian innovation system.

Evidently, innovation is now a central policy issue moving forward and it is vital that the Turnbull government sees through the changes. This will be no easy task as Australia’s average investment in science and innovation is below the Organisation for Economic Co-operation and Development average.Consequently, it is vital to create bold policies and stress building an agile economy that is capable of capitalising on the huge opportunities technology has made available.