There has been a marked decline in the proportion of Australian executives believing that their workplace environment allows innovation to flourish, according to a newly published study.
The latest innovation index from the Australia-Israel Chamber of Commerce, in collaboration with Sky News Business, also reveals that Aussie executives are looking for more transparent structures in the workplace to support innovation.
“In today’s disruptive climate the social imperative to innovate is stronger than ever. Key themes from this index are the importance of R&D, collaboration and a workplace environment supportive of innovation,” says Michelle Blum, CEO of the AICC.
“Australia can take advantage of the progress and experiences in Israel, where embracing uncertainty, collaboration, and exploring new and dynamic ways of working, have led it to consistently be recognised as a role model for innovation.”
{loadposition peter}The AICC study also reveals that executives are placing increasing importance on customer engagement as a driver of future business growth.
And, the study found that engagement was ranked as the largest area of future growth for businesses, with a 100% year-on-year increase in executives indicating that customer engagement is an area for future business growth.
R&D is seen as the leading driver of innovation and of the innovation-active companies in the AICC survey (90%), investing in internal R&D, or seeking collaborative R&D partnerships were seen as the key ways of innovating in 2017.
In addition, 65% of executives surveyed believe that innovation will directly impact jobs in 2017, with a quarter of participants thinking that innovation will reduce the need for some jobs – and 4 out of 10 thinking innovation will generate new jobs.
The AICC says that innovation is central to a healthy competitive economy and ultimately improving the quality of life for Australians.
“It drives productivity, boosts growth, and creates new jobs. Indeed, innovation-active businesses in Australia (45% of all employing businesses) consistently outperform non-innovation-active businesses and contribute to over 60% of sales and employment,” the AICC says in its latest innovation index.
“Innovation-active businesses also account for a disproportionate share of economic activity- they are twice as likely to export, and two to three times more likely to report increased productivity, employment and training than their non-innovation-active counterparts,” the AICC observes.
The AICC notes that as Australia continues its transition to a knowledge-based economy, innovation has once again become a major focal point for policy.
“It is just over a year since the Australian government confidently launched the National Innovation and Science Agenda (NISA) and dedicated $1.1 billion to innovation. This report seeks to shed light on whether this enthusiasm has translated to an innovation boost in the day-to-day mindset of executives.
“In today’s disruptive climate the social imperative to innovate is stronger than ever. In the context of the globalisation of innovation, Australia is increasingly recognising that it can take advantage of the progress and experiences of other countries to accelerate its own ecosystem.
“Israel, the ‘Startup Nation’, is a role model for successful innovation, attracting $4.8 billion investment into its high-tech startups in 2016.”
To view the full AICC innovation Index click here.