Stimulating business investment in innovation

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Publication Date: 
February 2020


About this report

Australia’s prosperity significantly rests on the global competitiveness of its business sector. Business competitiveness is driven by the rate and type of firm-level innovation. Australia’s business sector appears to be falling behind in the global innovation race, which is a concern for business leaders and policymakers.

Innovation and Science Australia (ISA)’s report to government explores opportunities to stimulate business investment in innovation. ISA is an independent statutory board comprising entrepreneurs, researchers and educators. This report draws on the board’s experience as well as quantitative and qualitative analyses with over 180 businesses.

The report:

  • identifies current levels of business innovation investment
  • highlights barriers and drivers to this investment
  • provides insights into the role of research and development (R&D) and non-R&D innovation in our economy
  • shows how businesses are growing through investment in innovation, beyond research and development
  • outlines strategic recommendations to drive investment
  • discusses case studies and examples of government and business-led initiatives

Supplementary reports

Australian Business Investment in Innovation 

AlphaBeta Advisors prepared a report to inform this advice.

This report provides a quantitative baseline for Australian business investment in innovation based on available data. It analyses trends, drivers and opportunities by sector and firm size. It also asks strategic questions of policymakers to accelerate investment.

Read Australian Business Investment in Innovation: levels, trends, and drivers [1.91MB PDF] [4.61MB DOCX]

Policy Directions to Increase Business Investment in Innovation 

Nous Group prepared a report to inform this advice.

This report provides qualitative analysis and findings from workshops across the country. The workshops used human-centred design to understand the barriers and drivers to Australian businesses innovation investment. 

Read Policy Directions to Increase Business Investment in Innovation [1.8MB PDF] [1.97MB DOCX]

Read more

Read more about Industry Innovation and Science Australia.

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