IF AUSTRALIA businesses collaborated on innovative activities to the OECD average we could expect an increase to current gross domestic product (GDP) of $8 billion from productivity improvements, according to a new report by PwC Australia and Australian business alumni organisation Advance.
The report Out of sight, Out of Mind? Australia’s Diaspora as a Pathway to Innovation reveals the injection to GDP over the next 10 years would be $23.5 billion if Australian businesses collaborated to the level of the five best collaborating OECD nations.
“Global competition is heating up as trade barriers are reshaped and improvements in tech allow innovation to be diffused and implemented more quickly,” Advance chair Yasmin Allen said.
“For Australia, it is imperative that we utilise and leverage our network of global Australians and Alumni to collaborate and drive growth.
“Our diaspora are risk takers and adapters. This know how is critical for our success and we need to leverage and harness these connections for the benefit of Australian companies and our economy.”
The PwC-Advance report said collaboration between businesses, government, higher education and global markets were key metrics that drove innovation.
Australia is towards the back of the pack on every indicator of collaboration among OECD countries and is facing a significant collaboration deficit.
This will have a real impact on individual businesses and see the nation fall further behind our global counterparts on innovation, which is a key driver of growth.
The report shows that a fraction of Australian businesses collaborate with international firms when they are innovating products and the same applies when it comes to collaboration with higher education or government institutions.