Building Australia’s innovation system

To grow and prosper in an increasingly competitive global environment, this report argues that a mindset change is needed in how government conceives of innovation, and how it mobilises the system that underpins it. Summary This paper, Building Australia’s Innovation System, was the Business Council of Australia’s submission to the Senate Economics Reference Committee Inquiry into the Australian Innovation System, lodged in September 2014. To grow and prosper in an increasingly competitive global environment, we argue that a mindset change is needed in how government conceives of innovation, and how it mobilises the system that underpins it. Action across the entire innovation system is needed if we are to unleash our innovative potential. Innovation needs to be integrated into all aspects of government policy. The BCA has identified five priorities to address in the Australian innovation system: Creating an environment and culture that incentivises innovation and enables risk taking. This includes the broader business environment as well as using government procurement to drive innovation across the economy. Collaboration, including drawing on external expertise, and sharing information, knowledge and experience to leverage opportunities in a globally connected world. Human capital and skills, including educating and training our citizens to think creatively, to problem solve and to apply their skills productively. Knowledge infrastructure, including providing support for institutions and organisations which create and renew knowledge, and ensuring that knowledge is disseminated so that it can be leveraged, translated and practically applied. Regulation, including assessing current regulation on whether it discourages investment in innovation, or undermines the ability of firms and individuals to take risks or adapt to changing market circumstances