Business competition and investment encourage the creation and adoption of new ideas and technologies.
Firm entry and exit rate, employing firms
The rate of firm entry and exit, an indicator of competition, has trended downward for employing firms over time. Source: ABS 2007, 2010a, 2014a, 2018a, 2019b, 2022a, 2023c
Barriers to innovation commercialisation, 2022–23
The most common barriers to commercialisation are insufficient funds and lack of commercialisation skills within the business. Note: Firms were able to select multiple barriers. Source: ABS 2024c
Barriers to firm innovation
The most common barriers to innovation are lack of skills and access to additional funds. Source: ABS 2012a, 2018c, 2024c
Venture capital, deals and aggregate deal value
The total venture capital deals have increased from 2010 to 2023, along with the overall value of these transactions. Alternative data sources on venture capital show similar trends. Source: AIC/Preqin 2024
Knowledge-intensive capital investments, by category
Australia has seen either a decline or low growth in knowledge-intensive types of capital as a share of GDP since the mid-1990s. Machinery and equipment hold the largest share of capital spending. Investments in computer software and research and development have remained stable. Investment growth has picked up since 2021 in machinery and equipment, and software. Source: 2021a
Firms seeking finance for innovation
Mining, utilities and arts and recreation industries have the highest proportion of firms that seek for funds for innovation. The middle 11 industries in 2022–23 are not included in this chart. Source: ABS 2022c, 2024c
