Selling minerals, wine and education doesn't need economic complexity. We sell commodities, then buy back "value added" goods. How smart is that?

It is not smart at all.

Of course, we need to sell minerals. It’s what keeps Australia afloat. But we also need to consider the future. For our kids and grandkids, if not for ourselves.

Both our major export and import markets are far more economically complex than we are.?

And with only the exception of Indonesia, they all share ideas and knowledge within their countries better than we do.?

There is a relationship between how well knowledge is shared and economic complexity. The vitality of a country. Its strength, resilience and ability to adapt.?

Knowledge sharing leads to economic complexity. Which then leads to economic success.

Australia is in the unfortunate position of having to rebuild economic complexity from scratch after shutting down the car industry, which was the catalyst and support for many supply chain manufacturers, innovators and designers across Australia.

Without mining we would not have the ability to resurrect.?

Mining exports and royalties – just over 60% - keep most of the lights on in Australia. Supported by food exports (mainly wine at 17%), and inbound tourism and international students.

But we rely too heavily on mining when the rest of world is heavily investing in 21st?century technologies. And they are moving fast.

Mining has served Australia well, and has been responsible for the development of the automation, robotics, AI, drones and software products, used for exploration, mining, environmental management, safety, monitoring, testing, processing and training.

As well as the space industry, defence and agricultural sectors.?

But we now have to leverage the advantages that mining has delivered across all other productive industry sectors.

We need to share the knowledge hidden in our universities, startups and corporates. Share with business. Share with high schools. Share across regions and capital cities.

Which is what myREGION.au is for. To share knowledge, ideas and innovations.

To rebuild economic complexity around key themes where we have competitive opportunity – in space and defence industry, medical devices and assistive technology, Agritech and food, indigenous arts & culture, energy and minerals.?

The AgriPark and Global Digital Farm, at Charles Sturt University in Wagga Wagga, are a demonstration of how to effectively promote 21st century capabilities to the agricultural sector.

The Digital Agrifood Summit - https://www.digitalagrifoodsummit.com.au - showcases emerging technology and farming practices, and is a leading example of how a regional university can act as a catalyst for innovation and collaboration in regional NSW.

We need more universities following this example for other sectors. Newcastle. Wollongong. Western Sydney, UNSW. UTS and in other states. NSW does this well. Other states could follow its example.?

We have mineral wealth. And we have brain power. But we don’t use that wealth and power effectively for common purpose. Parochial, not national.

Our universities can deliver a wealth of ideas and innovation to help rebuild the economy, and increase the complexity of industry beyond just resources.

The advice of the Productivity Commission in 2022 needs turning into action.

“While novel, ‘new-to-the-world’, innovation is an important source of economic performance, it relates to only one to two per cent of Australian firms. The slow accretion of existing knowledge across the economy — diffusion — is often overlooked as a source of productivity. It has the scope to lift the performance of millions of businesses.”

We need to share the knowledge we have more effectively.

Technology innovations and ideas generated in universities can be shared and applied to many industry sectors beyond Agriculture to Defence, Space, Manufacturing, Medtech, Energy, Mining, Construction, Education, Environment, ICT and Transport for business improvement, investment, export, sustainability, procurement and jobs.

Industry sectors that can use the intellectual wealth to build a 21st century economy.

The top ten countries in the ECI are advanced technologically with diversified economies. Smart and well prepared for the future.

An 18th and 19th century Australia is not the future we want for our kids and grandkids.

What is the point of pushing them into STEM and encouraging them into university study if they have to leave the country to find appropriate work elsewhere?

Because we cannot employ them in technologically advanced jobs, if we don’t have the productive industries to employ them. Mining leads the way on the applied use of technology in Australia. But can only employ a relatively small number of people.

We have to do better.

It is time to collaborate in addressing those challenges, not just passing them onto politicians, presidents, premiers and other figureheads.

We have to step up and address the challenges that face us all. Accept the challenges individually and then work with others to fix them.

Because nobody else is going to do this for us.?

We need to target key sectors for development and support, to rebuild economic complexity beyond mining.

1/Health and Wellbeing: 31 Australian universities focus on health in some way.

2/Food security and Quality: 24 Australian universities focus on agriculture and food production.

3/Secure Australia and region: 17 Australian universities focus on regions, 6 on defence, 8 on space industry.

4/Resilient and valuable environments: 7 universities focus on climate and 11 on water.

5/Sustainable energy and resources: 7 universities focus on resources, 12 on energy.

6/Future industries: 20 universities focus on ICT, 15 on materials science and all universities have an incubator program.

These sectors create the foundation for the rebuilding of Australia’s economic complexity. Where we are 93rdin the world.

Our universities can and should be the engine room for positive change in Australia. Brain power is concentrated in universities more than anywhere else.

The banks can’t do it. And most corporates in Australia are sales and branch offices of multinationals headquartered elsewhere. Making local sales decisions. While strategic decisions are made in a foreign head office.

The miners pay to “keep the lights on” in Australia through royalties and taxes.

But the ideas and innovation that can move us all in a positive direction is concentrated in the universities. We need to use that resource wisely.

We need to do 3 things to improve our situation.

1/We need to share knowledge effectively and strategically and remorselessly. Share the knowledge generated in our universities with SMEs and high schools across the country.

2/We need to share knowledge with our startup incubators to provide them with “market intelligence” helping them to better target their innovations and ideas. Customer interest. Competitive advantage.

3/ We need to approach innovation in the same way we approach sport in this country. Go for gold. Lots of it.

Pick winners.

Is it any surprise that the 20 biggest businesses in Australia are miners, banks and retailers with a smattering of software and telecommunications companies. CSL being the only productive business in the list. (And the name of CSL says it all – Commonwealth Serum Laboratories) - established by government in 1916 - only privatised in 1994.

“A winner” picked and supported by government for almost 70 years.

We need sovereign manufacturing capability. We cannot rely on supply from elsewhere for fundamental resources that keep the nation moving. Oil. Defence equipment. Chips. All security concerns.

In the absence of sovereign manufacturing capability, we are open to threats, blackmail, bullying and market manipulation. And we have all witnessed these in action.

Former Treasury boss Ken Henry said, "something is desperately wrong" with Australia's economy, which is beset by "structural deficiencies" that cannot be fixed by interest rate cuts or government largesse.

"Mining makes up over 60% of Australia's exports and yet employs only 2% of Australians and almost all of the mining profits generated out of Australia go to foreigners," he observed.

Dr Henry argued the main reason productivity was declining was a lack of business investment in new technology and equipment that increased the efficiency of the workforce. People need the best tools to do a more productive job. The right software, hardware and automation, supported by strategic networking and collaboration.

The mining sector uses all these technology tools efficiently. But it’s the only one.

We have the brainpower in our universities.

We have the design, branding, coaching and training skills across the country. But all isolated. Insular. Parochial.

Rather than Collaborative. Cooperative. Holistic. Expansive.

It is time to get serious in the way we deliver.

Stop hoping for the best. And start “being” the best that we can be.

We have to stop investing in Australia’s past and invest in its future.

Innovation in our productive industries is where our future should be built.

In energy, waste management, pollution control, water, automation and robotics, arts and crafts, fashion, manufacturing, ICT, education, space, mining services, defence, assistive technology and ag-tech.

These are industries that will help us manage climate change. These are the industries that will deliver high reward jobs and employment opportunities. These are the industries that will provide opportunity for our kids and grandkids.

And these are the industries that will provide products and services that can be exported to the world.

Changing the picture at the top of the page forever.

myREGION.au. See you there.