Challenges of the Global Knowledge Economy: Reconfiguring the Public Domain Professor Ron Johnston, FTSE Executive Director Australian Centre for Innovation University of Sydney

Australian Centre for Innovation & International Competitiveness ‘The Australian Predicament?’ Strength in innovation, weakness in commercial/industrial outcomes BUT the same criticism is heard in the UK, Finland, Germany, Israel and even the US

Australian Centre for Innovation & International Competitiveness The Basis of the Predicament n Low industry R&D n IT trade deficit n Few home-grown globals in new industries BUT n Leading economic performance n Ranked second in entrepreneurial activity n High quality of life

Australian Centre for Innovation & International Competitiveness Where Have We Come From? n Primary sector strengths, always knowledge- based n CSIR/O key driver and influencer n Inherited British emphasis on learning over commerce n Strong research performance led by universities n Leading innovation by the public sector n Command of neo-classical economics

Australian Centre for Innovation & International Competitiveness Where Are We At? Achievements n Global brand image n Rapid technology adoption n Broad technology competence n Flexible, responsive institutions n Participation in most industry sectors n A range of specialist knowledge- intensive firms

Australian Centre for Innovation & International Competitiveness Impediments n Scale - small domestic markets, further fragmented by States n Distance - to other markets n Industry structure - truncated n Limited investment in knowledge and innovation - resources, salaries n Performance of governments -politicians and officials n Current generation of company directors

Australian Centre for Innovation & International Competitiveness Some Vexatious Fads n The market is the single effective mechanism to address all issues n The quality of private sector management is inherently higher than that in the public sector n Spin-offs are the key to effective research commercialisation n Universities cant commercialise research n Problems of industry structure can be addressed through commercialisation of research

Australian Centre for Innovation & International Competitiveness Reinventing the Public Domain n Reasserting the role and value of the public interest n Acknowledging that the return from public investment is not achieved only through private gain n promoting public-private partnerships with public and private objectives n promotion of public debate by academics reclaiming the territory colonised by ‘politically interested’ think-tanks