Increased industry-driven R&D, effective enabling services and well-designed regulation are the keys to diversifying and growing Australia’s economy, a new report has found.
The second annual edition of the Australian Industry Report by the Department of Industry, Innovation and Science, places a strong emphasis on innovation as Australia’s economy enters a transition phase following the resources boom.
“The report continues the story of Australia’s economic transition and sets out the planks for a more resilient and adaptive economic future, where innovation and entrepreneurship can thrive,” said Industry Minister Christopher Pyne.
“With the investment phase of the resources boom winding down and commodity prices softening, our economy is in transition and needs new and broader drivers of growth,” Mr Pyne said.
“This stage presents an opportunity to actively encourage innovation to grow the jobs of the future and ensure Australia’s ongoing prosperity.
“The Government’s National Innovation and Science Agenda is an economy-wide strategy that will support entrepreneurs and innovative businesses, closely link research and industry, and ensure our great ideas reach the global market.”
Mr Pyne said the report demonstrated the positive impact of well-designed regulation on firms’ behaviour and performance.
“Better regulation remains an important element of the government’s economic policy,” he said.
“We will continue the success of the Government’s Cutting Red Tape Agenda and strengthen the regulation reform agenda to unlock private sector-led growth.”
Mr Pyne said the report also showed how a diverse range of service sectors – like ICT, transport and professional services – supported other industries to help them create their final products.
“We often overlook the economic importance of the enabling services sectors that provide business-to-business support,” he said.
“Ensuring the viability and dynamism of these sectors will have positive and widespread benefits across the economy.”