Australia continues to empower innovation in the global economy

Published: 
18 September 2015

The GII 2015 was launched on Thursday 17 September in London, United Kingdom, and explored the theme ‘effective innovation policies for development’ to understand the impact of innovation-oriented policies on economic growth and development.

Hosted by Dr Francis Gurry, the launch was made up of a press conference and a panel discussion on the topic ‘empowering the innovation economy for growth and development’.

‘Building on our nation’s successes and providing the right framework to encourage the next wave of entrepreneurship and investment in the industries of the future are at the heart of the Government’s industry policy.’ said Parliamentary Secretary Karen Andrews MP.'

Innovation plays a key role as a driver of economic growth and prosperity and the launch of GII 2015sees the continuation of creating an environment to measure, understand and evaluate global innovation.

How did Australia go in the GII 2015?

Australia has done well and again ranked 17th out of 141 economies for our innovation capabilities and performance.

Australia ranked in the top 10 specifically for innovative inputs, infrastructure, universities, credit and creative Outputs, which are a result of growth towards a high-value services economy. We also ranked in the top 25 globally for innovation outputs.

The GII measures innovation based on criteria such as institutions, human capital and research, infrastructure, credit, investment, linkages, the creation, absorption, diffusion of knowledge, and creative outputs.

Australia has consistent innovation inputs but scores better than our innovation outputs.

Despite this, we can see an upward trajectory in outputs especially in 2014 and 2015. Our improvements in our output index have increased our innovation efficiency ratio from 107 in 2012 to 72 in 2015.

Australia can see some big strengths in a number of areas including infrastructure where we have outranked the US and  in our Information Communication Technologies (ICT) and digital creative content, where have outranked Finland and Germany. These strengths show from a digital standpoint that Australia is moving forward.

We have a high qualitative innovation ranking number 11 in the world, a reflection of our quality education, innovation being patented abroad and research being cited.

Other major strengths highlighted in the report include our ease of starting a business, school life expectancy, tertiary enrolment and Quacquarelli Symonds (QS) world university ranking score of top 3 universities.

How can we improve?

Australia’s relative GII weaknesses from innovation input mostly lie in human capital and research and business sophistication,, which can be overcome by encouraging graduates in science and engineering and communications.

From our innovation output side Australia exhibits relative weaknesses in knowledge and technology outputs.

Improvements can be made in knowledge diffusion, communications, computer and information services exports and imports and foreign direct investment.

Read the full transcript for this video.

Published annually since 2007, the GII is now a lead benchmarking tool for business executives, policy makers and those seeking insight into the state of innovation around the world.

The GII model aims to illustrate our understanding of the meaning and implications of innovation by monitoring countries performance and benchmarking their developments.

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