Measuring innovation in the Australian economy: an applied approach

This thesis explores how innovation strategy is applied and measured in the Australian economy. Traditionally, the measurement of innovation has focused on the technological nexus between invention and commercialisation. Innovation definitions have broadened from the technological to include the non-technological. Innovation literature also highlights the considerable gaps in research in the measurement of innovation; the lack of available data in measuring innovation and the need for new measures which reflect the developing definitions of innovation moving beyond the technological to the non-technological. This thesis considers the measurement of innovation at a number of levels across the Australian economy. First, the measurement of venture capital was considered at a macro level. The thesis commences by measuring the amount of venture capital available to underpin and fund innovation in the Australian economy concluding that there is adequate financial support in the form of venture capital underpinning the R&D capacity in the Australian economy. Having established that there is a substantive financial inflow to support R&D and innovation our attention then moved to innovation at a market level, and consideration of how innovation is measured in the emerging market and R&D intensive industry of biotechnology. The results of this research confirmed research conducted in both the US and Europe that investors are more comfortable in investing in the market once the invention or innovation, has moved from conception to final proof of product and is close to market. Next the research moves to markets at a local level and considers the operations of farmers markets in Gippsland as incubators for innovation and entrepreneurial activity. Whilst the first two research projects, were undertaken using econometric models, the next research project collected and made use of qualitative data and other performance indicators in measuring innovation. The results of this research confirm much of the present research in innovation highlighting the need to further develop approaches in regional communities to encourage entrepreneurship and economic growth. The next two research projects consider the innovation workforce, and in particular gender and the involvement of women in the innovation economy. The first of these research projects surveyed all available current performance indicators to consider the involvement of women in the innovation economy. This research, found that women are not yet engaged at optimal levels in the developing innovation economy. The last research project considered the participation of women in the operation of CRCs and found that there is a high representation of women involved in CRCs. 6 In countries all over the world innovation policy continues to expand and develop. The research projects that comprise this thesis all contribute to our understanding of innovation and its contribution to the growth of the economy. The applied approach which underpins the measurement of each research project has further highlighted the complexities in measuring innovation and the developing definitions of innovation and innovation strategy.