AUSTRALIA S INNOVATION FUTURE ROY GREEN, UTS BUSINESS SCHOOL ANZAM SYMPOSIUM JUNE 2016

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1 AUSTRALIA S INNOVATION FUTURE ROY GREEN, UTS BUSINESS SCHOOL ANZAM SYMPOSIUM JUNE 2016

2 PRECARIOUS FUTURE Contributions to average incomes growth: Australian Treasury

3 FLAT WORLD... OR SPIKY

4 Half of current jobs will not exist in 10 years time - Oxford Martin Institute

5 MANUFACTURING MATTERS R&D SKILLS TRADE

6 Population Manufacturing* Scandinavia 23 million 5 companies Australia 23 million 0 companies Manufacturing companies in the Fortune Global 500, 2011 annual ranking

7 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 Vertically integrated manufacturing is being superseded by global production networks and value chains 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

8 CAPTURING VALUE VALUE ADDED R&D 1970s 2000s Pre or after sales service R&D Marketing Logistics: purchase Logistics Production Pre-production intangible Production tangible activities MANUFACTURING ACTIVITIES Post-production intangible Source: Veugelers

9 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

10 INVESTMENT IN KNOWLEDGE 6.8% 6.1% 5.5% 4.7% 4.1% % of GDP OECD composite index of Higher Ed, R&D, ICT spending

11 NATIONAL INNOVATION SYSTEM Government Finance Research Enterprises / Clusters

12 SENATE REVIEW 2015 > $9.7 billion, research & innovation > Spending across 13 portfolios > 150 Budget line items > 60 innovation reviews in 15 years s/senate/economics/innovation_system/report

13 Seriousness of purpose in PM's innovation roundtable by Ben Potter Australian Financial Review, Oct 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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15 Global management performance US Sweden Japan Germany Canada * Australia France Great Britain Italy Poland Portugal Ireland Brazil India Greece China Not statistically different * management scores

16 Global management performance US Sweden Japan Germany Canada * Australia France Great Britain Italy Poland Portugal Ireland Brazil India Greece China Not statistically different * management scores

17 Better management is associated with: Large, global companies High levels of skill & education Significant plant autonomy

18 Australian management performance gaps Austra Global countr Operations Metrics Performance Metrics Australia Global best People Metrics

19 Australian management performance gaps Instilling a talent mindset Austra Global countr Operations Metrics Performance Metrics Australia Global best People Metrics

20 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

21 BUSINESS-UNIVERSITY INTERACTION CONTRIBUTING TO INNOVATION (% FIRMS)

22 SYDNEY S CREATIVE PRECINCT

23 2009 > sketch 2015 > becomes reality

24 MBA entrepreneurship A unique 1-year intensive MBA designed for entrepreneurs and innovators

25 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)