Our economy has long been supported by abundant natural resources. Mining, agriculture, and the export of raw materials such as iron ore, coal, and natural gas have contributed significantly to Australia's prosperity. However, this reliance also raises an important question: are we doing enough to build a more diverse, knowledge-based economy for the future?
Some of the challenges often discussed include:
- Limited collaboration between universities and industry. Around 1.6% of Australian businesses collaborate with universities, compared with an OECD average of roughly 14%. This suggests there is considerable room to strengthen the pathway from research to commercial innovation.
- Low economic complexity. Australia ranks relatively low on measures of economic complexity rated at 105/145. reflecting an economy that exports comparatively fewer advanced, high-value manufactured products than countries such as Germany, Japan, and South Korea.
- Relatively low investment in research and development (R&D). Australia spends less than 1.7% of GDP on R&D, below the OECD average of approximately 2.7%. Greater investment could help drive innovation, productivity, and the creation of new industries.
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