Size Means Nothing in Building an Innovation Nation
I heard Israeli PM Benjamin Netanyahu speak at the World Economic Forum in Davos earlier this year and was struck by the fact that a country’s competitive advantage has nothing to do with physical size.
As an Australian I couldn’t help but reflect on the fact that Israel enjoys none of our geographic or population size or any of our abundance of natural resources. And yet Israel has been able to build a remarkable high-tech sector and is a leading global innovator. Netanyahu told the WEF:
“Israel is often called the start-up nation. I call it the innovation nation. The future belongs to those who innovate. Those who don’t innovate, whether in companies or in countries, will fall behind. Innovation is the only way to consistently add value to your products and services in an increasingly competitive global economy. Israel is a global centre for innovation, and by that I mean two things. It’s not only for science and technology, but for the indispensable ingredient of entrepreneurship. It’s the man or woman who has an idea – or child – who have an idea. And that takes science and technology and turns it into a workable plan that can actually profit and grow.”
Countries like Sweden and Switzerland are equally good examples of countries with comparatively small populations but big ambitions and the energy to create, discover and innovate. They should give us all pause for thought.
Disruptive digital technologies are stimulating the global wave of change that is connecting everyone to everything using smart devices and smart networks. But technology doesn’t innovate, people do, and this rapid change is defining the new skill sets and mind sets needed to compete in the future.
The challenge for governments and industries alike is how to harness this new period of innovation and, in particular, how to nurture those with the skills as well as what Netanyahu called “the indispensible ingredient of entrepreneurship”. We must cherish our start-up sector with its raw, ingenious talent and minds free of legacy thinking. Start-ups hold many of the growth opportunities for our economy.
Countries like Australia need more people choosing an entrepreneurial path, an education sector focused on developing the skills that drive an innovation economy and more companies and investors prepared to back early stage start ups.
And if we don’t do these things? Here I am reminded again of Netanyahu’s words in Davos: “Those who don’t innovate, whether in companies or in countries, will fall behind.”
Photo: Brian A Jackson/Shutterstock
Principal at RealTime Digital
9yThere is a need for leadership and policies to create the right innovative environment in Australia. In the US the statistics show that they will need 1m "coders" by 2020, with technology driving a considerable part of their "green shoots growth. STEM policies in Australia are lagging, with the real potential that the next generation will lack the skills for the future jobs. for example across the 8 universities in NSW, less than 4% of students are enrolled in STEM related courses. Considerable voice is given to the strategic value of our Education capability, however the policies lack STEM focus. We have just completed a financial services enquiry, an activity that occurs once every 20 years or so, and little has been said about the structural reform required to ensure part of our 1.8T $ in funds is diverted into helping make the nation more innovative. Not only is investment skewed through dividend imputation as the report indicates, it is skewed in terms of asset allocation. The next generations opportunities are being defined by today's policies.
Healthcare | Digital | Cyber Security | Cloud | Business Development | Partner Mgt | Startups | Innovation | Strategy | Sales
9yI think innovation is born out of necessity. Growing up in Australia I witnessed how many migrant families using entrepreneurship, an iron will to survive and prosper in this new country, would create businesses out of practically nothing. One of their goals though was to ensure their children didn't have to go through the same "hardships", like their parents. This meant trying to provide the best education for their children (even though they themselves largely lacked an education ) and ensure their children obtained the best university degree and white collar job possible. This would enable their children to attain a stable, secure, comfortable lifestyle with all the trimmings - the antithesis to their parents / the antithesis of an entrepreneur. My message is a simple one: continue to bring in, the young, ambitious migrants, those who never experienced the opportunities that this great country of ours can offer and watch the rising tide of enterpreneurship and hard work that migrants can bring, continue to lift all of Australians into prosperity.
Founder & CEO of KYield. Pioneer in Artificial Intelligence, Data Physics and Knowledge Engineering.
9yThose deeply involved with innovation almost universally come away impressed with Israel after any length of time working with and observing the culture, variety, and quality of creative inventions, innovation, and entrepreneurship. While Israel's outcomes may not be entirely replicable due to uniqueness, much can be learned particularly balanced with others. The most impressive part of Israel for entrepreneurs is the endless cases of early stage support and collaboration from customers with global networks, which is an essential ingredient in all leaders; one of 14 we identified in global early stage VC. All well defined leaders were smaller powerfully packed regions sharing priorities.
Executive Leader: (CSO/VP/Director): Sales • Startup & Established Organizations • Multinational Teams • Public, & Private Sectors
9yDavid, well written. I am sure Australia can do the same as the countries you mention (including my Sweden)... ;-)
Telecommunications Trainer and Assessor, former Telstra Ltd Telecommunications PTO1 (CFW08) Equipment Room Specialist
9yI agree totally 100% sir, I can see beyond the exponential curve, a very wonderful ride forward and into the positive light, awesome.GO Telstra......GO!