Productivity Inquiry Interim Reports 3 to 6
Innovation investment in Australia is driven largely by the willingness of investors, such as private capital firms (and their investors), to take risks and invest in businesses that are creating new and innovative products and services, and in doing so, establishing markets that often do not even currently exist. These investments are often at the earliest stages of a new venture’s life, or at key points in the life cycle of family business succession, both of which are considered to carry high risk for different reasons.
Along with the provision of capital, this funding is accompanied by highly valuable strategic and operational advice and guidance to the founders and management teams of private, early-stage and fast-growth businesses. This model of working in partnership is often the ‘x-factor’ or “know-how” that can help these innovative businesses to realise their ambitions in domestic and global markets. The expansion and growth of such businesses leads directly to more revenue and sales, greater levels of investment into innovative market-leading research and development, and ultimately, is the key driver behind the creation of new high-value jobs within the economy and higher contributions to income tax and other government revenue streams, including GST.
Australia can no longer afford to rest on its past successes and rely on the top five per cent of companies to provide innovation growth for our future. Transitioning and adapting business models to the highly technological and globalised marketplace supported by policies focussed the innovation economy will provide pathways for a knowledge-based economy and will create jobs for future generations.
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