NAB writes a fantastic article on the importance of innovation after interviewing Dr Massimo Garbuio, Associate Professor in Entrepreneurship at the University of Sydney.
I am delighted that this validates the “NextTech Revolution” - which is about vocational education and training being a key platform for retaining your team, building building a strong culture, encouraging innovation and spurring growth.
Switzerland has topped world innovation for nine years running and Australia has slipped from 17th in 2015 to 22nd on the Global Innovation list.
Australia has always punched above its weight - with inventions such as the Black box flight recorders, spray-on skin, wifi and many others it can lay claim to.
Is Australia’s pipeline of innovation drying up?
Switzerland has Europe’s highest number of patent applications relative to population size, with an impressive record of bringing innovative products to market.
It invests heavily in innovation, particularly start-ups and new technologies – over 300 start-ups are founded each year.
It has World-class Research and Development (R&D) establishments collaborating with educational institutions and universities, and there’s also a focus on the green economy including clean technologies and power production.
So what can we learn from Switzerland ?
5 key factors says Dr Massimo Garbuio,
1. Become a magnet for talent
Switzerland is well-placed to attract and retain talent. The pay is good, there is a good quality of life and their companies nurture its talent.
As the war for talent continues to heat up globally, highly-skilled people are getting harder to find.
Australian businesses could benefit by thinking ahead – recruiting people with potential then providing the education and training they need to develop critical skills. This could be the key to building a loyal team of innovators.
Recruit , Train and Retain is the mantra for NextTech
HBR Talks about the 6 habits of talent management
https://hbr.org/2011/01/the-six-habits-of-a-talent-mag
Summarised below
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Featured snippet from the web
- Get to know the most talented individuals early on, when you don't need them. ...
- Create and manage the right expectations. ...
- Look at their hearts — and not just their smarts. ...
- Cultivate them over time. ...
- On-board them thoughtfully. ...
- Mentor them for their success.
2. Make the most of education
Switzerland has built a strong educational foundation and, importantly, a robust apprenticeship system. Nearly two-thirds of young people pursue a vocational program, and those who gain a diploma or certificate can take on professional education and training to prepare them for highly technical roles.
“Many will be equipped to help translate academic research into practical applications,” Garbuio says. “This may be the key to unlocking product and service innovation.”
Global research has found that businesses that invest more in their people’s training have more engaged staff, and that organisations with more engaged staff deliver better financial results.
What’s more, according to LinkedIn’s 2018 Workforce Learning Report, 93 per cent of employees would stay at a company longer if it invested in their careers.
Consider the learning and development opportunities currently on offer in your organisation or team.
Is there more that could be done to formalise the offering, communicate it and increase your people’s learning?
3. Take risks
There’s a chance that Australia is being hampered by its own good fortune.
“I once heard that resource-rich countries tend to be quite risk averse,” says Garbuio. “After doing my own research in this area I believe that’s true.
I think that countries like Israel, Sweden and Switzerland, with few natural resources to fall back on, are more prepared to take the kinds of risks that drive innovation.”
The latest NAB Australian Business Innovation Index 2019, which measures how businesses are doing things differently, more quickly or more cost efficiently, found that Australian business leaders have become even less willing to take risks and explore new ideas in the face of tougher economic conditions.
Heightened uncertainty around global trade tensions and growth is also weighing heavily on businesses as they focus more on shorter-term cost objectives and outcomes.
“Even at a larger or more established corporate level, many Australian businesses are excessively focused on the short term,” says Garbuio.
3. Embrace failure
Garbuio believes that a cultural stigma attached to failure is another barrier to innovation.
“Failure still isn’t appreciated as a learning mechanism,” he says. “It’s getting better, but we are still a long way from Silicon Valley, Israel and some European countries.”
He is also concerned that management and boards tend to focus on compliance at the expense of big ideas and the long-term growth of companies for the benefit of societies at large.
“There has to be a balance of course – you can’t be all innovation and no compliance,” he says. “But, overall, there is too little of the former and too much of the latter.”
4. Be willing to collaborate
Another theme to emerge is the importance of collaboration.
One of our goals is to encourage more collaboration in Australia - bringing governments, academia and industry coming together to collaborate , learn and grow!
Just get them in a room - says Ivan Kaye founder of BBG
It’s about the 5Cs“Connection, collaboration , contribution - do those continuously and you will build a connected collaborative community!”
Universities Australia Chair Professor Margaret Gardner has made it clear that, by tapping into university talent, business can source new ideas, get the jump on early stage research and cut the time it takes to bring new products to market.
And modelling by Cadence Economics for Universities Australia released in 2018 demonstrated that the 16,000 companies already partnering with universities derive $10.6 billion in revenue from their collaborations.
5. Positive intentions
The NAB Innovation Index found the outlook for innovation over the next 12 months is relatively positive, with around 40 per cent of businesses planning to invest more in innovation than they did in the past year.
The new Australian Business Growth Fund could support this ambition.
“It’s just been announced that the four major banks, plus Macquarie and HSBC, will contribute capital to a fund to help mid-sized SMEs access finance,” Loveridge says.
“This is a very encouraging initiative. It will boost other sources of growth capital in the marketplace by providing capability support for innovative and fast-growing companies.”
