Mitchell Bingemann | July 30, 2008
INNOVATION in Australia is growing at a snail's pace, with a lack of skilled workers and red tape hindering growth, according to a new report.
The rate of innovative activity in the country increased by a mere 0.7 per cent in 2006 over the previous year.
Growth in innovation is measured based on six indicators - research and development, patents, trademarks, design, management/organisation and productivity.
One of the authors of the report said a lack of skilled workers has hindered Australia’s overall growth in innovation.
“The skills shortage and the increase in red tape, such as compliance issues, is killing innovation,” the Melbourne Institute of Applied Economic and Social Research's Paul Jensen said.
The Innovation Index was compiled from a range of sources including Australian Bureau of Statistics findings, IP Australia and annual Melbourne Institute surveys, whereby 200 businesses from the largest 1500 firms in Australia participate in.
However, there was a glimmer of hope: the study found that four of the 13 industries included in index experienced growth in innovation activities.
According to the report, jointly produced by the Melbourne Institute and IBM, the largest recorded increases occurred in communication services, finance, mining and insurance sectors.
The communication services industry recorded the largest gain, with an increase of 36.9 per cent in 2006. This was fuelled by a strong rise in patent applications and R&D activity which grew 247.1 per cent and 42.7 per cent respectively.
The report's overall findings does not bode well for the research fraternity as the Government prepares to take delivery of Terry Cutler's anxiously anticipated innovation review tomorrow.
Your Comments:
4 Comment(s)
I agree with the other posts that the skills shortage isn't playing any role here. Australia has lacked a proper wealth-generating innovation capacity for 20 years and the recent skills shortage does not impact that capacity. With the proper processes in place firms who know how to innovate will continue to do so, and the others (the majority) will continue to flounder, misled by the "innovation industry" that purports to help.
As someone who works in Innovation I can say that there is no lack of skills, it is more a lack of leadership. You do not need special people to innovate you need to have a commitment to do new things. Giving your people a chance to be innovative by working on new products, services or business models is what drives innovation.
There IS NO SKILLS SHORTAGE - only a shortage of IT people that are willing to work for peanuts.
The lack of skilled workers, is not true, the problem is the Companies want contract in casual conditions, young technical people without any experience, for only low cost of the salary, we are many experience Engineering in Australia, canot found any job in IT Areas. We want support Telecommunications Companies, but they only look for save money, that why the technology in our Country, now is under development Country.
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