Action Plan for Enduring Prosperity: Creating the Right Environment and Systems for Innovation

This booklet, Action Plan for Enduring Prosperity: Creating the Right Environment and Systems for Innovation, is a chapter of the full report of the Business Council of Australia’s Action Plan for Enduring Prosperity.

The action plan identifies 93 recommendations across nine policy areas that can deliver prosperity through well-managed growth. This booklet is focused on creating the right environment and systems for innovation.

Innovation outcomes will be strongly influenced by each of the other areas that the Business Council of Australia’s action plan has identified as being required for growth and prosperity. This chapter builds on the actions already identified elsewhere in the plan.

Innovation will flourish when people and organisations have the requisite skills and abilities and when they operate in an environment that provides them with an incentive to innovate.

We need to have the right innovation systems and environment in place to ensure that creative people and businesses in Australia are allowed to thrive and create value from new ways of doing things. A paradigm shift is necessary in the way we construct our approach to innovation. We need to shift away from an approach that is dominated by government programs toward a systematic and incentives-driven approach to innovation that utilises both supply and demand side measures.

A successful innovation system is one that is robust, adaptable and capable of evolving over time. Such a system should be capable of providing the connections and linkages that enable individuals and organisations to translate new knowledge into commercially viable innovations and enhanced productive capacity.

The booklet also contains a suggested approach to the phasing of the policy recommendations and an assessment of their ease of implementation versus their overall importance.