A new survey has found many Australian companies are not confident they can take advantage of new technologies, including high-speed broadband.
The survey, conducted by Australian Industry Group, showed less than half of local businesses are confident they can take advantage of high speed broadband.
The report Ready or Not? Technology Investment and Productivity in Australian Businesses – is based on a survey of nearly 350 CEOs and discussion groups with business leaders around the country.
"Small to medium enterprises are the least confident with 40 per cent of medium size companies and 47 per cent of small companies expressing confidence, compared with 70 per cent of larger companies," said Ai Group chief executive, Innes Willox.
"Also disturbing is the finding that business investment in new technologies is expected to decrease in 2013 due to an uncertain economic outlook and rising cost pressures,” he said.
Only 22 percent of all companies surveyed are looking to invest in new technologies this year – a 10 percent drop over the previous year.
And about a quarter of businesses (26 percent) expect to reduce expenditure on new technologies – a 15 percent rise over the previous year.
The report found that almost a third of businesses that invested in new technologies last year reported an improvement in their labour productivity, compared to just 16 per cent that did not invest in new technologies.
"The reduction in investment in new technologies will slow productivity growth," Mr Willox said.
"The report finds clear evidence of a link between technology investment and improved productivity."
Of businesses that reported labour productivity growth in 2012, 40 percent said the main contributing factor was improved employee skills and capabilities.
"Lifting productivity is Australia’s key long-term economic challenge,” Mr Willox said.
The full report can be found at: http://pdf.aigroup.asn.au/tech%20investment%20report%20FINAL.pdf