Speech

The World Congress on Information Technology

Adelaide, 26 February 2002

Innovative Australia

Introduction

Visiting dignitaries, distinguished guests, ladies and gentlemen.

This week is obviously a very important week and it is great that this Congress is being held here in Adelaide.

The Australian Government views every international investment and every export as a vote of confidence in Australia, our economy and importantly our people - our greatest resource in this country.

Investment and trade in the information and communications technology (ICT) industry in particular is recognised for its strategic importance to the Australian economy.

You will be aware from the IT Business Forum that Australia's ICT industry is confident, diverse, sophisticated and, most importantly, innovative.

The breadth and depth of our industry and research base is reflected in the leading work being conducted in fields like quantum computing, software development, e‑security, wireless networks, photonics and nanotechnology.

That work is being undertaken by a broad range of companies, from multinationals, such as Alcatel, Ericsson, Fujitsu, Motorola and NEC, to the smallest home-grown start-ups. Some of these companies are here today.

And with annual sales of $75 billion, a growing export base, and an annual sustained growth rate of around 17 per cent throughout the 1990s, Australia's ICT industry is attracting significant investment and partnerships.

Australia is now a far cry from the resources-based economy it was 10 years ago. The WCIT here in Adelaide gives us the opportunity to focus on innovation in the Australian ICT industry; the impact of innovations in ICT on the Australian economy; and the leadership role the Australian Government is taking to encourage continued ICT based innovation.

Innovation in Australia's ICT Industry

Innovation is universally regarded as a driver of economic growth. And a rapidly expanding and high value ICT sector is seen by many as catalysing the development of other industry sectors.

Importantly, ICT innovation is driven by more than just effective entrepreneurship and commercialisation.

ICT innovation is driven by access to a highly skilled workforce and strong research infrastructure.

• Australia can boast one of the highest percentages of tertiary education enrolments in the world, with increasingly strong overseas student enrolments.

ICT innovation is driven by the clustering of industry and research capabilities.

• Most Australian capital cities have a critical mass of ICT companies, offering opportunities to collaborate with local research and education organisations.

ICT innovation is driven by enforced intellectual property rights.

• Last financial year around 7000 IT patents were filed, up from 6150 the previous financial year - a good sign of confidence in our IPR regime.
• And protecting our intellectual property in export markets is also important. We are active players in the WTO Trade-Related Aspects of Intellectual Property Rights (TRIPS) Council and the World Intellectual Property Organisation (WIPO).

ICT innovation is driven by effective capital markets and availability of venture capital.

• Australia has one of the largest and most highly developed marketplaces for financial services in the Asia-Pacific.
• Venture capital companies in Australia include ABN Amro, Citicorp Equity Capital, Deutsche Bank, GE Equity, JP Morgan, Rothschild and UBS Capital.

Finally, and not least, ICT innovation is driven by the right regulatory and taxation environment.

• Companies operating in Australia are given preferential treatment for research and development, including tax concessions of up to 175 per cent.
• And government programs include a nationwide system of business "incubators", focused on growing ICT firms.

Market Access

International market access is critically important for the growth of our IT industries.

The Ministerial Declaration at the World Trade Organisation (WTO) meeting in Doha last November marks the launch of a new round of multilateral trade negotiations. These negotiations will provide Australia and other WTO member countries the opportunity to pursue issues affecting trade, including in ICT goods, computer and related services and e-commerce.

Australia is also active in regional forums like APEC, and we are pursuing WTO-consistent free trade agreements with some major trading partners, including Singapore, Thailand, the ASEAN grouping of countries in our region, and importantly the United States.

There are numerous highly-capable Australian ICT firms that are making their mark in the global industry, both individually and through transnational partnerships.

E-security, photonics and software development are three key areas where Australian companies are doing extremely well in the international market place. We are developing a significant skills base in some of those critical sectors of the ICT industries.

Australia's e-security sector has received a lot of attention, particularly after the events in New York on September 11. Australian companies such as Eracom Technologies, SecureNet and Keycorp have wide expertise in areas such as access control, biometrics, common criteria evaluation, e-commerce transaction security, encryption, virus protection, data recovery and disaster management.

Those same companies are creating strategic partnerships and export opportunities with countries throughout the Americas, Europe and Asia.

And Australian firms, such as ERG Group and eGlobal, are also making substantial contributions to the increasing array of international smart card products, services, applications and solutions.

Australia is widely recognised as a provider of specialised photonics technology and component solutions, with over 25 years of investment in R&D. The sector has grown rapidly, and is anticipated to grow further at an average 29 per cent per annum to 2010.

Australian companies such as Redfern Photonics, and multinationals such as JDS Uniphase, ADC Australia, Corning Inc, Alcatel, Ericsson, Altamar Networks and Peregrine Semiconductor are enjoying the benefits of Australia's photonics capabilities.

Australia's software sector consistently produces leading edge solutions and applications for diverse markets across the world. No less than 33 of Australia's 39 universities are engaged in software R&D, with Australian software companies, such as Creative Digital Technology, Tower Software, Fractal Graphics and Computershare, having a significant export focus.

Innovation and the Australian Economy

Australia is building for the future on a strong ICT platform, supporting the ongoing development of our ICT industry and its global integration.

In 2001, the International Monetary Fund ranked Australia's technology spending - as a proportion of GDP - as the second highest in the world, ahead of countries such as the USA, the UK, Singapore and Japan.

With 72 per cent of Australian adults and 75 per cent of small businesses connected to the Internet, Australia is the first in the region for commerce-ready websites and is rated as second in the world, behind the US, in "e-readiness" by the Economist Intelligence Unit.

It is little wonder, therefore, that commentators such as Goldman Sachs anticipate that Australia's smart employment of ICT will continue to drive strong productivity growth.

Government Leadership in Innovation

Australia's rapid take-up of ICT equipment in part reflects our economic reforms. These reforms have also improved Australia's ability to weather the changes in global economic conditions.

Innovation is not static, and the Government is constantly reviewing Australia's competitive standing and improving its economic policies.

A recent example is the Government's Backing Australia's Ability statement, which provides a comprehensive and integrated package to encourage investment in technology development. The package is worth $2.9 billion over five years and includes:

• establishing World Class Centres of Excellence in the key enabling technologies of ICT and biotechnology;
• reforming the R&D tax concession;
• encouraging greater market access by small and medium enterprises;
• increasing funding to universities, with priority given to ICT, mathematics and science; and
• adjusting the existing immigration arrangements to attract more migrants with ICT skills coming into Australia to add value and strength to an already existing strong industry in Australia.

It is estimated that the Government's $2.9 billion investment will underpin business and research organisation expenditure of approximately $6 billion.

My own agency in Austrade is also strongly committed to assisting knowledge based industries.

Given the Government's objective to double the number of exporters by the year 2006, we know it is critical to source many of those firms who are going to move into the export market place from the knowledge economy in Australia.

To this end, Austrade is developing initiatives to increase substantially the proportion of ICT, biotechnology and services businesses internationalising within the next three years.

We cannot do it alone. The task is too great and too important. So we will be working closely with allies an dthe private sector, and indeed the community as a whole, to achieve this vital outward growth as an intelligent nation.

Conclusion

With Australia now ranked 5^th place in the World Economic Forum's 2001 Growth Competitiveness Index, there is no doubt that we are a strategic business location for investment and trade.

The Australian Government has provided the leadership to encourage innovative developments in the Australian economy and the Australian ICT sector.

On behalf of the Australian Government, I would like to welcome all visiting delegates from overseas to WCIT, and to Adelaide. I trust you will have a productive visit to Australia. Take advantage of the networking opportunities, take advantage of having a look at what we have achieved in a short space of time in Australia.

Recognise the well acknowledged fact that modern economies are not just those that have a very large manufacturing and producing base in technology industries. They are economies that strategically use and effectively use new technology - ICT technology - making old economy type industries much more effective, much more competitive, and productive for the future.

That's part of what we have successfully achieved in Australia. Captains of our so-called old economy industries have been very quick in the uptake and application of new technologies to those industries, making them much more competitive in the global marketplace. That's part of the strength of the Australian economy.

Thank you for coming to Australia for this congress. I am sure you will find it productive and profitable. Make the most of the networking opportunities of accessing and learning about the technology based industries that are being developed in Australia.

Thank you very much.

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Local Date: Saturday, 22-Nov-2008 06:45:08 EST