Visionary thinking vital for WA to become a tech powerhouse

State must move quickly to help startups capitalise on digital transformation.

By John Barrington AM

Western Australia is being left behind as other states pour money into programs that foster technology startups and innovation ecosystems.

Victoria last year delivered a landmark $2 billion Breakthrough Victoria Fund over 10 years to help develop and commercialise innovations. Former Victorian Premier John Brumby is chairing the fund.

The New South Wales government last year announced a record $1.6 billion Digital Restart Fund to make the state the Southern Hemisphere’s digital capital.

And Queensland has invested $755 million to strengthen its innovation economy.

By contrast, WA in 2017 announced the New Industries Fund of $16.7 million over four years. The Future Health Research and Innovation Fund is a step up, but the initial commitment is only for $37 million over the next three years.

As other states invest billions to support tech start-ups, WA continues to lag. For a state that has entrepreneurship in its DNA, this lack of support is embarrassing.

For too long, WA has relied on mining, which now accounts for 43% of our gross state product. Resources are critical, but WA can be much more.

To be fair, the WA government has expertly managed the state through COVID-19. Our economy has roared back to life - the best in the world according to rating agency S&P.

But those gains won’t last. We must think about growth over this decade and beyond.

Why can’t Perth become the “Cambridge” of the Indian Ocean Rim? That is, a booming cluster of technology and life sciences companies.

The city of Cambridge in England leveraged the research strengths of the University of Cambridge to become one of the world’s great innovation clusters (the “Cambridge Phenomenon”).

Perth, too, has exceptional universities and research institutions. What we lack are enough tech startups that can commercialise these ideas for global markets.

We lack visionary thinking. We need a mindset that says another Canva – or the next great medical-technology company – can come from Perth, creating the high value jobs of the future to which our future workforce aspires.

There is no time to waste. COVID-19 has condensed a decade’s worth of digital transformation into a year. Booming online shopping, online education and telehealth is just the start.

Federal Treasurer Josh Frydenberg said in Perth last month that the government wants to capitalise on this digital acceleration. He has now committed $1.2 billion to the nation’s Digital Economy Strategy. WA must do the same.

Other states are building massive leads in tech startup ecosystems and WA is years behind.

Victoria in 2018 was the world’s fifth-fastest growing start-up ecosystem, found the LaunchVic Impact Report. That ecosystem could add $4 billion to Victoria’s economy over a few years.

Tech clusters become job engines. The OECD reports that 50% of member countries’ economic growth comes from innovation. If we want well-paid jobs in knowledge-based industries of the future for our children, WA will need many home-grown tech companies.

So, how can WA fastrack its tech ecosystems? The starting point is getting in the game.

The WA government should appoint a Chief Innovator supported by a small group of the State’s sharpest minds in research, innovation, entrepreneurship and commercialisation.

This group should rapidly map WA’s current and potential tech ecosystem, benchmarked against other states and the world’s best innovation clusters. Then, deliver a 10-year WA innovation strategy with clear milestones.

This will need serious funding from the WA government and from the private and university sectors. Given the lack of investment to date, WA’s innovation strategy could require more than a billion dollars over a decade.

Leading this should be a high-profile agency to champion startups, like Victoria’s LaunchVic.

WA’s innovation strategy should focus on our strengths in mining, energy, health, technology, food, environment and space. We should foster larger clusters of startups in resources tech, agtech and medtech.

I have seen the benefits of medtech first-hand, having co-founded Artrya, a developer of AI technology that more accurately identifies patients at risk of heart disease.

From two people two years ago, Artrya now employs ten people and that will double over the next few months. With other medtech firms, Artrya can become part of a larger network of WA medtech innovation to help position WA as a leader in artificial intelligence and heart disease.

None of this is easy. Innovation takes time and money. It needs government support, particularly at the start. Right now, there is little of that in WA.

-  John Barrington AM is Managing Director of Artrya Ltd and serves on the boards of government and not-for-profit organisations