Linking minds to markets

Abstract

Why do Australian governments bury their heads in the sand? Because that is where the holes are. But we need more than holes in the sand. Our minerals may have helped us weather the ongoing uncertainties in the global economy, but for any government to base our future prosperity on cyclical commodities markets is reckless. Especially as the latest World Economic Forum Global Competitiveness Report shows Australia slipping in ranking on both innovation capacity and business sophistication, the "two critical drivers of competitiveness for advanced economies". While Australia has been riding the mining boom, our competitors have been building the mind-sets and skills needed for the knowledge and technology intensive industries in services and manufacturing that are the real key to driving economic growth. They are designing innovation policies that prioritise increasing investments in basic science; leverage the competitive advantage of highly skilled immigrants; address serious deficiencies in science, technology, engineering and maths (STEM) education; and capitalise on information and communication technologies. They also recognise the vital role that entrepreneurs and entrepreneurship play in transferring new knowledge to the market place. If we are to thrive in the new world order dominated by Asian economies, we must also take a systemic approach to innovation and entrepreneurship. This requires embedding entrepreneurial skills and thinking within our education system and building an entrepreneurial culture that supports risk rather than penalising failure. We need to promote fluidity of movement between universities and the business sector as well as meeting industry demand for top quality STEM graduates with skills in innovation and entrepreneurship. We must build on the entrepreneurial talent, skills and good intentions of our immigrant population; commit greater levels of funding to support the mobility of our S&T talent internationally; and expand provisions for "study abroad" experiences and linguistic competences for our tertiary students.