Overview & Comments

Re-examining the three industries of wine, mining and listed property trusts developed fresh insights into the critical success factors for fostering industry development.  In particular, these industries shared certain industry characteristics and were exposed to transformative events within their industry that gave rise to an 'ecosystem' that was highly self supportinve and with a structure and culture that were strongly oriented towards growth and success.

Industry characteristics that each industry share include:

• inherent characteristics suited to Australian conditions - including resources, skills and aptitudes;
• a cyclical growth path enabling consolidation and preservation of capital in the downward phase;
• appropriate size - small enough to shape but large enough to matter;
• focused market opportunities - breakthroughs in the structure of the industry;
• 'seeding' or fostering support by visionary entrepreneurial champions.

Events that transformed the industries include:

• release of a seminal document that addressed key problems and focused industry on solutions/courses of action;
• networking supported and encouraged by professional industry associations;
• formal innovation strategies encouraging small company innovation;
• cooperative regulatory environment for framing industry standards and structures;
• the Australian Stock Exchange facilitated development of acceptable forms of investment.

The result of these developments was a growth oriented industry structure characterised by:

• higher levels of integration, cooperation and clustering within the industry;
• prominent and active industry and professional associations;
• a skilled professional base;
• an innovation mindset;
• access to liquid financial and investment markets.

Industry leadership and governments can actively intervene in a number of cost-effective and targeted ways to transform an industry including:

• stimulating industry clustering and growth;
• fostering industry associations;
• establishing specialist, industry focused tertiary courses;
• leveraging industry leadership within professional associations;
• supervising self-regulation by professional and financial institutions;
• developing a targeted innovation strategy.

Related Knowledge

• New Tools to Map and Manage Innovation Networks (Report)
  Mon Mar 03 2008 | Dr John Steen, Senior Lecturer (Strategy), University of Queensland Business School; Mr Sam MacAulay, PhD Student, University of Queensland & the Australian Research Council Centre for Complex Systems; Dr Tim Kastelle, Lecturer in Innovation Management, University of Queensland Business School

Your Comments