By Gavin Artz, presented at the 18th TCI Global Conference, Daegu, 2015.

1. Small Business, Clusters, and Exports
Gavin Artz, South Australian
Department of State
Development, Australia
Parallel Session 2.4: Successful Internationalization Strategies – Part 1

2. • Remote from global markets
• 96% of businesses small businesses
• Fiercely competitive (with each other)
• Commodities focused
• A city focused state.
• University town
• Real specialisations, e.g. water, wine
• Creative (Australia ranked #1 –
Global Creative Index 2015)
Context – South Australia

3. Economic complexity 2012
Australia
Observatory of Economic
Complexity – 2012 figures

4. Economic complexity 2012 - Australia
Observatory of Economic
Complexity – 2012 figures

5. Australia and Innovation
Global Innovation Index 2014 Australia Singapore Germany
Global Innovation Ranking 17th 7th 13th
Institutions 11th 6th 21st
Human Capital & Research 7th 2nd 14th
Infrastructure 7th 2nd 17th
Market Sophistication 10th 4th 25th
Business Sophistication 26th 1st 21st
Knowledge & Technology Outputs 31th 13th 11th
Creative Outputs 12th 33rd 14th

6. Innovation and information
• Failure of information
markets
• Inefficient allocation of
accumulated capital
• Equilibrium
• Innovation drives
economic growth
• Change not
equilibrium
• Innovation drives
economic growth
• Varity is needed for
innovation
• Change not
equilibrium

7. Clusters
• Cluster Coordination Office
• Cluster Leadership Group
• Aerospace
• Musitec
• 2 Water Industry Clusters
• MedDev
• IoT In Resources
• Specialist Vehicles
• Other clusters forming

8. • SA is an Asia Pacific leader.
• The establishment of a Cluster Observatory
links SA to the European Cluster Observatory.
Australian Cluster Observatory

9. Shandong
• Sister State relation ships – 29 years
• Population 97 million
• 2nd largest province based on
population
• GDP USD $967 billion
Planning for development activities in:
• Water Management
• Agriculture
• Fisheries
• Waste Management
• Health care

10. Context – South Australia
• Sister State relation ships – 29 years
• Population 1.6 million
• GSP USD $96 million
Major exports:
• Iron ores & concentrates
• Wheat
• Copper
• Alcoholic beverages
• Copper ores & concentrates
• Meat (excl beef)

12. Liveability
South Australia
#5 The Economist Intelligence Unit Liveability Rating
#1 Australia’s Property Council Liveability Index
Best Place in the World to Live by the United
Kingdom’s Sunday Times liveability Index
Listed as New York Times “Places to Go” in 2015
*Pablo Gonzalez (2015) –”What is Liveability? An initial approach 2015” Department of State Development
*

13. Adelaide – South Australia
#5 The Economist Intelligence Unit
Liveability Rating
Melbourne – Victoria
#1 The Economist Intelligence Unit
Liveability Rating
Liveability – does it stack up

14. Selling Liveability
Architects and designers on why South Australia
“Simple Solutions for Modern Societies”
“Meeting middle class aspirations on tight budgets”
“Making something out of nothing”
“Being innovative in difficult situations”
Artz, G., Gonzalez, P., Zipeng, L (2014) “Enabling Increased Exports of Architectural Services” Department of State Development

15. Selling Liveability
Clusters of Clusters
A liveable city:
• Architecture and design
• Water
• Waste and recycling
• Smart Cities

16. Selling Liveability – Outcomes and Learnings
• One opens the door, the rest
follows
• Exporting from a small business
economy
• Collaborative problem solving
• Building specialisations and
new clusters

17. Selling Liveability – Outcomes and Learnings
• The city as an
innovation lab
• The city as a
marketing tool