Australia ranks low on global innovation chart

Australia ranks just 22nd out of the major economies in terms of how its domestic policies support worldwide innovation, according to a global technology policy think tank.

A study by the Information Technology and Innovation Foundation (ITIF) assessed 56 countries, which together comprise close to 90% of the world’s economy, on the extent to which their economic and trade policies contribute to or detract from innovation.

Countries were assessed based on 14 factors that both support innovation domestically and have positive spillover effects globally, as well as another 13 that have negative spillover effects.

Examples of positive factors are supportive tax systems and strong per capita investment in R&D, while negative factors include forced localisation or weak intellectual property protection.

Australia was found to be the 23rd best in its positive contribution to global innovation, and also the 21st least damaging.

The report argues that nations should undertake policies to improve their impact on worldwide innovation. For example, it recommends that leading nations establish a global science and innovation foundation to fund collaborative international research on key global challenges.

“While policymakers are primarily focused on the interests of their own citizens, they usually overlook the fact that adopting policies that also happen to be good for the global innovation ecosystem will compound the benefits for their citizens,” ITIF president and report co-author Robert Atkinson said. “Innovation altruism really does pay.”

Image courtesy of Missy Schmidt under CC