A report released today by the Australian Government highlights the key role innovative entrepreneurship needs to play in transforming the nation’s economy. 

The Australian Innovation System Report 2015, released by Chair of Innovation Australia Bill Ferris during a speech to CEDA in Adelaide, demonstrates the importance of innovative entrepreneurs in driving economic growth.

Minister for Industry, Innovation and Science Christopher Pyne said while Australia performed well in terms of entrepreneurial activity – only a very small number of start-ups go on to grow dramatically.

“We have one of the highest rates of entrepreneurship amongst developed economies. But we need to improve in terms of innovation-driven entrepreneurship,” Mr Pyne said.

“Innovative entrepreneurs play an integral role in improving productivity and growing the economy because they are ‘agents of change’, creating opportunities for themselves and others.

The report shows that between 2006 and 2011, the activity of start-ups (firms two years old or younger) added 1.44 million full-time-equivalent (FTE) jobs to the Australian economy, whereas all other firms shed more than 400,000 FTE jobs.

The report also shows that it’s the new firms that are driving change. Start-ups aged one year or less are more likely to introduce innovations that are new to their industry rather than just to the firm.

“The report’s findings reinforce what the Government has been saying for some time about the importance of innovation.

“The Government recognises that innovation, science and entrepreneurship are crucial to establishing the jobs of the future and securing the country’s future economic prosperity.

“We are looking forward to announcing the Innovation Agenda in December, which will outline measures that will encourage more of our smart, creative entrepreneurs to innovate and turn their ideas into reality.”