WHAT INNOVATION MEANS TO BUSINESS

WHAT INNOVATION MEANS TO BUSINESS 

 

Recently the Australian Business Foundation commissioned Professor Keith Smith to undertake some research into innovation in Australia. The research found that in the heartland of Australian industry - in the traditional low-to-medium tech industries - we are knowledge intensive and growing steadily.

It also highlighted that, while government innovation policy has focused on high tech industries and R&D, most industries were undertaking a path of continual, practical innovation.

The key findings of the paper are: innovation in low-to-medium tech industries is significant and pervasive; learning by doing is more important to knowledge creation than research; and business transformation is the key to successful innovation.

In other words, Australian businesses are particularly good at finding better ways of solving problems for customers and meeting market needs more imaginatively. The small to medium size businesses, especially, are at the forefront of this "practical innovation".

These businesses achieve this through a strong ethical framework, a long term investment in business intangibles: strategy, people, networks, know-how and established partnerships for business growth as well as innovation and improvement.

I believe it is these three principles that will set apart Australian business from some of its low cost competitors: indeed, it sets the Australian economy apart from some of its competitors.

Kevin MacDonald, CEO,
Australian Business Limited, State Chamber

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