Overview & Comments

Professor Foster’s paper proposes a model of economic growth where entrepreneurship, knowledge, technology and innovation are positioned at its centre, rather than as external peripheral forces. His prescription is for a more dynamic innovation policy aimed at making entrepreneurial activity the hallmark of old and new industries and large and small enterprises.

Professor Foster argues that this is the basis for surviving the forces of creative destruction and positioning Australia for a new long wave of productivity growth and innovation-led prosperity.

Fresh from the global financial crisis and with the long term challenges for services, living standards, infrastructure and cities presented by Australia’s aging population, the need to lift Australia’s productivity and the skills and contribution of our workforce is urgent. Professor John Foster’s argument is for a fresh approach to innovation policy that is directly linked to enhancing Australia’s productivity and that faces the reality that firms and industries can decline and die.

Rather than taking a laissez-faire approach, Professor Foster urges government to act to secure productivity gains by creating the environment that allows entrepreneurial behaviour in firms to flourish.

The Australian Business Foundation presents Professor John Foster’s thought leadership in this Occasional Paper and invites debate and action to advance its ideas.

Related Knowledge

• Systems thinking, market failure and the development of innovation policy: The case for Australia (Report)
  Wed Feb 17 2010 |

  This latest piece of scholarship from Professor Mark Dodgson, Professor Alan Hughes, Professor John Foster and Professor Stan Metcalfe, all of whom are close associates of the Foundation, argues the case for alternative approaches to innovation policy in Australia.
  ...read more

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