Australia in the global network economy

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Last week The Bulletin, Australia’s premier newsweekly magazine, ran an interesting article on the role of technology in the future of Australia, drawing heavily on an interview with me. The broad topic of how Australia – and all other countries – can be successful in the swiftly evolving global economy is taking much of my attention, and I anticipate spending increasing time on this theme. In an intensely connected and interdependent world, it is impossible to stand alone. The idea of creating products, services, and ideas at home and then taking them to a global market is increasingly dated. All aspects of the innovation and commercialization process need to access global best-of-breed talent from the outset. Australia certainly doesn’t suffer from a lack of talent. Australians are well ensconsed in the most sophisticated business, technology, and academic circles around the planet. An interesting statistic is that 6% of open source coders hail from Australia, making it the most heavily-represented country in this domain relative to its population. However, with some notable exceptions, Australian technology innovation isn’t positioned to capture global markets. Part of the issue lies in the size of the economy. With 20 million people – not to mention the reality of geographical isolation – there is a mentality of economic self-sufficiency. Countries such as Singapore, with 3 million people, and Finland, with 5 million people, have no illusion of self-sufficiency and so seek more actively to integrate themselves into the global economy. A key theme that is brought out from my quotes in the article is that of specialization. As scientific and technological progress drives deeper specialization, we must as individuals, organizations, and indeed countries, very carefully select the domains in which we specialize, where we can have a reasonable possibility of being world leaders, and then who we will collaborate with to create value from our expertise. Very likely those collaborators will not be in the same country as us. We must form ties with whoever in the world provides the best complement to our skills. Building and leveraging the supporting networks is a critical skill that Australians – and others – must develop. We live in an increasingly location-independent economy. If you have deep specialist expertise, and connect and collaborate well, you can create massive value, wherever you reside.

3 replies
  1. Randal Leeb-du Toit
    Randal Leeb-du Toit says:

    Good discussion point, Ross. In my humble opinion, Australia needs to become one highly desirable node within a flat world, high tech ecosystem – an ecosystem that requires a community of like-minded parties who can augment one another’s capabilities. One essential component to us achieving this is more folk like myself who are highly efficient and effective network connectors, people who can recognise a technology breakthrough in the rough (fro example, within a research environment) and hook it up with the right productisation parties, funding mechanisms and eventual exit pathways wherever those facilities happen to be in the world (hyderabad, palo alto or london).

  2. Politics from the sidelines
    Politics from the sidelines says:

    Australia in the global network economy

    Trends in the Living Networks: Last week The Bulletin, Australia’s premier newsweekly magazine, ran an interesting article on the role of technology in the future of Australia, drawing heavily on an interview with me. The broad topic of how Australia

  3. Laurie Lock Lee
    Laurie Lock Lee says:

    One thing that geographic isolation engenders is a fiercer need to network…something I think Austlian’s have. Unfortunately “networking information directories” are not that visible. How do we find effective and efficient brokers. Can we build the “Social Netowrk” of Australian Based information/knowledge brokers and make that visible to the broader community?

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