An innovative Australia doesn't need another Silicon Valley

While much of the conversation around the federal government’s Innovation Statement has been centred around building a ‘Silicon Valley-esque’ start-up sector in Australia, such an approach would be short-sighted, cautions Daniel Boland, director of the Small Enterprise Association of Australia and New Zealand (SEAANZ).

Innovation, says Boland, is about more than just new technology. It can also include finding better ways of using existing resources and opportunities.

One prime example lies in the commercialisation of Australian-developed ideas and research.

“The studies that SEAANZ has undertaken over the last 30 years, and our current studies with the Australian Chamber of Commerce and Industry, indicate that in terms of the commercialisation of ideas, particularly in manufacturing, we are languishing right near the bottom,” Boland said.

“We are funding great research in our universities, and the creative talent is there, but these ideas are not being implemented commercially. This is because academics and industry have been siloed, and there has been an under-investment in industry connections with the global economy.”

According to Boland, current studies show that one efficient way to leverage existing opportunities would be to establish regional incubators in places like Perth, Newcastle or Geelong.

“Those regions have intellectual capital and creativity at a local level, which could give us an unique advantage as we look to engage with players in the Asia-Pacific and global economy,” he explained.

Another opportunity lies in leveraging existing small enterprises.

“The small enterprises already in Australia really embody the entrepreneurial spirit that the Innovation Statement aims to nurture,” said Boland.

“These company owners have a track record, and they know the pitfalls and where to find the right sources of finance. They can play a key part in providing mentoring services, incubating and supporting newer, younger start-ups.”

These existing small enterprises are innovative in their own right and, with the proper support and investment, can make massive leaps in evolving their profit models, improving the way they network with global players, improving their organisational structures and management, increasing the efficiency of their processes, creating cutting-edge complementary products and services to supplement their existing offerings and delivering new ways for their customers and clients to experience their solutions.

All of these are also types of innovations that can deliver major boosts to the Australian economy, revitalise the advanced manufacturing sector and yield new job opportunities as the nation transitions away from an economy based on resources extraction.

“Having a two-part strategy of looking after both start-ups and existing enterprises makes good political and practical sense,” said Boland.

Participation is key

As for current entrepreneurs or start-ups, the key to ensuring they maximise their opportunity for success is to ensure they are in the running in the first place and making the most of networking opportunities. The upcoming Automation and Innovation Summit, to be held on 25 May in Sydney, is one such opportunity.

“One of the hardest issues for small enterprises to crack is finding the right people, especially if they are looking to crack the global market,” said Boland.

“We are enthusiastic about participating in the Automation and Innovation Summit because it is an event for the industry. This networking event is a prime opportunity for establishing strategic partnerships with global players who are already active in the advanced manufacturing industry, exploring potential collaborations between research and industry and finding out if your business can benefit from government grants and assistance.”

With the convergence of government stakeholders, an international roster of experts, representatives from academic research and peers from the industry, the Automation and Innovation Summit is set to be a fertile networking opportunity.

“We encourage you to be part of the conversation on 25 May. This is your opportunity to make sure your voice is heard. It’s time to stop being a bystander and be part of the game. As an individual business owner, you can ensure you have a say in your future direction.”