australia’s innovation future · fortune global 500, 2011 annual ranking. global value chains ......
TRANSCRIPT
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AUSTRALIA’S INNOVATION FUTURE
ROY GREEN, UTS BUSINESS SCHOOL
ANZAM SYMPOSIUM JUNE 2016
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PRECARIOUS FUTURE
Contributions to average incomes growth: Australian Treasury
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FLAT WORLD... OR SPIKY
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‘Half of current jobs will not exist in 10 years time…’
- Oxford Martin Institute
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MANUFACTURING MATTERS
R&D
SKILLS
TRADE
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Population Manufacturing*
Scandinavia 23 million 5 companies
Australia 23 million 0 companies
Manufacturing companies in the Fortune Global 500, 2011 annual ranking
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GLOBAL VALUE CHAINS
> Vertically integrated manufacturing is being superseded by global production networks and value chains
> ‘Micromultinationals’ capture value in global value chains through ‘smart specialisation’ and clustering
> This is Australia’s future manufacturing opportunity, increasingly interrelated with ‘intangibles’
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CAPTURING VALUE
Pre-production
intangible
Production tangible
activities
Post-production
intangible
MANUFACTURING ACTIVITIES
VALUE ADDED
1970s2000s
R&D
R&D
Logistics:
purchase
Production
Marketing
Logistics
Pre – or after –
sales service
Source: Veugelers 2013
8
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COMPETITIVE ADVANTAGE
> Competitive advantage is gained through
technological change and innovation, such as
‘Industry 4.0’
> Also non-technological innovation
> business model innovation, design and systems
integration, high performance work and
management practices
> Such innovation must go beyond continuous
improvement and become transformative
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INVESTMENT IN KNOWLEDGE
% of GDPOECD composite index
of Higher Ed, R&D, ICT
spending
6.8%
6.1%
5.5%
4.7%
4.1%
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NATIONAL INNOVATION SYSTEM
Government
Finance Research
Enterprises / Clusters
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SENATE REVIEW 2015
> $9.7 billion, research & innovation
> Spending across 13 portfolios
> 150 Budget line items
> 60 innovation reviews in 15 yearshttp://www.aph.gov.au/Parliamentary_Business/Committee
s/Senate/Economics/Innovation_System/Report
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‘Seriousness of purpose’ in PM's innovation roundtable
by Ben Potter Australian Financial Review, Oct 16 2015
“For me that symbolised the seriousness of purpose of our
new Prime Minister in venturing into this space and making it
a key element of his government's program,” said Professor
Green. “This will be a differentiator for him not just for
symbolic reasons but because we have reached a point in our
economic history where measures in this space are
more urgent and essential than ever.”
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3.32
3.19
3.19
3.18
3.15
3.02
3.01
2.99
2.98
2.90
2.79
2.77
2.68
2.67
2.66
2.64
2.6 2.8 3 3.2 3.4management scores
US
Sweden
Japan
Germany
Canada
Australia
France
Great Britain
Italy
Poland
Portugal
Ireland
Brazil
India
Greece
China
Not statistically different *
*
Global management performance
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3.32
3.19
3.19
3.18
3.15
3.02
3.01
2.99
2.98
2.90
2.79
2.77
2.68
2.67
2.66
2.64
2.6 2.8 3 3.2 3.4management scores
US
Sweden
Japan
Germany
Canada
Australia
France
Great Britain
Italy
Poland
Portugal
Ireland
Brazil
India
Greece
China
Not statistically different *
*
Global management performance
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Large, global companies
Significant plant autonomy
High levels of skill &
education
Better management is associated with:
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Australian management performance gaps
2
2.2
2.4
2.6
2.8
3
3.2
3.4
3.6
3.8
4
Australian score
Global best performing country score
OperationsManagement
Performance Management
PeopleManagement
OperationsMetrics
PerformanceMetrics
PeopleMetrics
Australia
Global best
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Australian management performance gaps
2
2.2
2.4
2.6
2.8
3
3.2
3.4
3.6
3.8
4
Australian score
Global best performing country score
OperationsManagement
Performance Management
PeopleManagement
OperationsMetrics
PerformanceMetrics
PeopleMetrics
Australia
Global best
2
2.2
2.4
2.6
2.8
3
3.2
3.4
3.6
3.8
4
Australian score
Global best performing country score
OperationsManagement
Performance Management
PeopleManagement
2
2.2
2.4
2.6
2.8
3
3.2
3.4
3.6
3.8
4
Australian score
Global best performing country score
OperationsManagement
Performance Management
PeopleManagement
‘Instilling a talent mindset’
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‘Using creativity and design-based thinking to solve complex problems is a distinctive Australian strength that can help to meet the emerging challenges of this century.’
Australia in the
Asian Century, 2012
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BUSINESS-UNIVERSITY INTERACTION
CONTRIBUTING TO INNOVATION (% FIRMS)
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SYDNEY’S CREATIVE PRECINCT
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2009 > sketch 2015 > becomes reality
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entrepreneurshipMBA
A unique 1-year intensive MBA designed forentrepreneurs and innovators
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KEY POLICY CHALLENGES
Identify areas of existing and potential competitive
advantage (Knowledge Foresight)
Support SME participation in global markets and value
chains (Micromultinationals)
Invest in knowledge creation, exchange and
engagement (Innovation Ecosystem)
Promote design, technology and business model
innovation (Business Transformation)
Upgrade management capability and integration of
workforce talent (Creative Leadership)