Developing regional innovation, Australian trial program


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Overview of Centre for Rural Innovation trial program in Wide Bay Burnett region of Australia. Aiming to grow both startup and established innovative businesses.

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Developing regional innovation, Australian trial program

  1. 1. 1 Regional innovation & opportunities for business development in the Wide Bay Burnett Region Colin Graham, Causeway Innovation Gympie, 22 Nov 2013
  2. 2. Innovation drivers TechnologyTalent Travel Tenacity
  3. 3. New Environment & Opportunities • The environment for innovation has changed, the importance of new and small firms has increased • Sustainable regional growth depends upon the capacity to innovate • Innovation is the capacity to introduce new products, processes, services, business models and organisational methods • Innovation contributes not just to economic growth but to raise the quality and quantity of jobs and improve the standards of living 3 OECD, Regions and Innovation Policy, 2011
  4. 4. Build on the Evidence base • Regions are the key determinants of national economic performance • 60-80% of jobs growth comes from existing businesses • Importance of ‘trader business’, businesses exporting and trading outside region; in US – 32% of businesses – Wages 66% higher, boost region’s average wages & spillover effect • 80:20 rule - 80% of effects come from 20% of the causes Clusters of Innovation: Prof Michael Porter, Harvard Job Creation In America: Dr. David Birch, MIT The Economic Performance of Regions: Prof Michael Porter, Harvard Principio de Pareto: Vilfredo Pareto 4
  5. 5. Evidence: Building the business base Importance of key people and business networks, learn from Cambridge Phenomenon: – 48,000 jobs – 1,500 companies – Massive influence of key individuals, trust and social networks: 80 key people, 20 at core – ‘The majority of high technology companies that have shaped the success of the Cambridge cluster are connected to a handful of serial entrepreneurs, business angels and venture capitalists as their involvement in developing new ventures has been repeatedly evidenced.’ Dr Shai Vyakarnam Centre for Entrepreneurial Learning, Cambridge University 5
  6. 6. Centre for Rural Innovation • Trial program • Assist people & businesses to turn innovative ideas into profitable businesses • Appointed mid July • Agreed criteria: Innovative startups & established businesses • Built initial shortlist: 26 businesses • Visited 11 businesses • Aiming to select and work closely with 6 • First 3 selected and work underway • Another 3 cos. in early 2014 6
  7. 7. 2 Key Strands: Startups & small growth companies 7 Supportive innovation environment Profile Peer Network Professional Service Firm Connections Investor Connection s Talent pipeline Success breeds success
  8. 8. Initial businesses 1. Z Safe Beds, Bundaberg 2. Suncoast Limes, Gympie 3. Bunya Red Farm Capers, South Burnett 3 more to start in early 2014 8
  9. 9. Strategic direction Develop an innovation program to make a significant impact on a large number of priority businesses across region Could be a combination of face to face activities, networks, and world class education delivered through physical hubs and an online platform 9
  10. 10. A wave of startup initiatives
  11. 11. Startup initiative • Aim higher: target innovative & growth startups • Build profile of Wide Bay Burnett as a place for entrepreneurs • Build network – face to face, online support • Leverage existing programs e.g. I2M & create and roll out own high quality education, network and pitching events across region • Tap into talent: build advisory network 11
  12. 12. Small growth companies 12 • Most small businesses do not innovate, do not grow • Need to target, e.g. by turnover, exporting, R&D & attitude • Needs analysis, online & face to face, easy to access, highlight development pathways • Develop businesses by developing leaders • Build peer group • Example initiatives: Accelerate, Owner Managers Program (NZ), Beacon Companies (UK)
  13. 13. Example: Rural Growth Networks • UK initiative, pilot launched late 2011, 5 delivery areas, each with $3.2 - $5.7m funding • Services for startup and growth businesses, e.g. • Business coaches, networks • Access to finance • Grants, loans • Physical hubs, pods 13
  14. 14. UK Rural Growth Networks: claimed economic benefits Area Investment Forecast economic impact Devon & Somerset £2.9m 1,100 jobs Durham & Northumberland £3.2m 300 jobs Cumbria £3.5m 900 jobs Wiltshire £1.9m 200 jobs, 450 businesses supported Warwickshire £2.4m 500 jobs, 120 startups 14
  15. 15. Example: Silicon Prairie, mapping 15
  16. 16. Example: High profile conference • Running for 5 years • Attracts 600+ people • Gaining reputation as a cool conference on innovation and entrepreneurship • Put Omaha on the map as an innovation hotspot 16
  17. 17. 17
  18. 18. Every few hundred years in Western history, there occurs a sharp transformation. Peter Drucker, The New Realities (1989)
  19. 19. 19 Regional innovation & opportunities for business development in the Wide Bay Burnett Region Colin Graham, Causeway Innovation Gympie, 22 Nov 2013