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Australia’s innovation ecosystem is its best bet for growth

From an outsider's view, Australia has all the ingredients for growth. Backing innovation is key to lifting productivity and competitiveness.

David Sabow David is the global head of innovation banking at HSBC.
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Sydney and Perth are home to a growing wave of founders and investors, showcasing Australia’s innovation potential, writes HSBC’s global head of innovation banking David Sabow. Shutterstock.

Lifting labour productivity is one of the most significant economic challenges facing developed economies, and Australia is no exception.

This week in Canberra, a clutch of academics, economists, industry leaders and politicians will meet, charged with the responsibility of laying the groundwork for a uniquely Australian solution to this global challenge.

It is no secret that measured labour productivity (GDP per hour worked) has been in decline in recent years. In Q4 2024, it was no higher than in 2016, posing a real threat to Australia’s global competitiveness.

Complicating matters further, these productivity issues must be tackled against a demanding macroeconomic and structural backdrop.

Ideas is where we publish opinion and analysis from external contributors on the most important topics in the new economy.