A little over a week ago I commented on the eNewsletter site Business Spectator, that with the latest round of cyclical slowing in the resources sector what Australia needs to do is get more ‘economic diversity’. By this I was promoting the need to develop our industry/business renewal cycle, in part through the better development of a researched and proper theory based venture funding model (not just venture capital).
To my suprise this week the same eNewsletter reported a speech given by Senator Carr for the PM in an article titled ‘Diversity key to economic future: Carr’.
My comments to that article were as follows:
Of course Senator Carr is correct in that it is a complex interrelated structure but one that sees Australia’s economic diversity become its strength (Diversity key to economic future: Carr, September 26). Couple those comments with the ones made by Malcolm Fraser two days ago and it is even more complex but will result in our standing as important independent international contributors.
Senator Carr includes innovation and while the short-term focus needs to be on significant national or multinational enterprises we also need to prepare for the future by establishing our industry/business renewal base. Part of this is the venture funding (note not just venture capital) so that perpetual industry/business renewal can occur naturally and steadily, not the stop-start jolting we have experienced historically.
By this I am not proposing mandatory contributions by super funds but a well researched and designed process based on substantiated theory.
“Resources swamps innovation” is the title of an article appearing in the Australian Financial Review on Wednesday 24 October 2012 (News p.13, see below). This article tells us that the University of Sydney Business School has undertaken research from which they conclude that “Resources [sic] can mask the problem, make us feel more comfortable” but that “the day will come when the customer doesn’t want that stuff and we’d better have something else in its place.” As such the research is pro-innovation and the development of alternate business in Australia. It does not use the phrase but this is just about ensuring there is greater economic diversity.
This article is not about, and does not mention, how to fund such innovation but of course effective funding mechanisms become imperative if innovation is to be commercialised.
Commendations to the University of Sydney, Elcano Capital would welcome the opportunity to work with this university if opportunity permits.