Ideas are plentiful
Every year, in Australia we spend over $30 billion on R&D, and many hundreds of millions of dollars on developing and registering patents for our products, technologies, and intellectual properties. Patent regulatory cost alone is $10 million a year.
Despite this significant spend, it’s evident we punch well below our weight in the international patenting stakes – with, for example, only 9.14% of patents in force in Australia, being held by Australians.
Further, many Australian ‘inventions’ are capitalized on by overseas companies. And surprisingly few of the inventions left ever get to market. Even fewer of those actually make money.In the end the main benefits ofAustralian patents are to prevent others stealing our invention – as we make money, by making sales. Or fromlicensing our technology.
Poor university linkages
In other nations, strong links between universities and business are vital to getting innovations profitably to market. Yet, Australia ranks 29th out of 30 OECD countries in regard to the links between Universities, business and entrepreneurs. In Australia, it seems publishing research papers is the major academic output – not inventions, innovations, jobs, or new industries.
So while our current Prime Minister rightly claims as Australians we needs to be ‘agile and smart’ to take advantage of technological change, it seems that so far, we are not that smart. Lucky yes! Smart no! We’d far rather be ‘early adopters’ of all the smart technologies from overseas! And send our innovations overseas to be developed, and then buy them at 10 times the price.
Slow change – accelerating
And, yes, yes, yes! As a long-term Australian innovator, and venture banker, I know this dismal situation is slowly changing. Thank the heavens, or who ever it is we should thank.
And, yes, there has never been a better time to be a tech entprepreneur or netpreneur. As ‘The Global Startup Ecosystem Report, 2015’ states: “The [entrepreneurial] era is in full bloom now and there has never been a better time to be a tech entrepreneur, as entrepreneurs are now blessed with the tools, resources, and market conditions to scale a company to billion dollar ‘Unicorn’ status faster than ever before.”
“The rise of the start-up ecosystems all around the world should also be seen in the context of the larger socioeconomic structural shift taking place. Information Era businesses have become the dominant source of economic growth, significantly automating or altering much of the industrial and service businesses of the previous economic era.”
So good reasons to be confident about our near future…
However, the reasons for our historic low success rate are many:
- Ever since the white man’s ‘invasion’ of Australia, we have habitually fallen back on agriculture and mining to spearhead our economic growth
- Governments alternate between supporting and ‘punishing’ innovation
- Successful start-ups and effective venture capital need to be supported by a dynamic innovation support ecology – virtually always city-based. And until now Australian cities were well outside the top 20 cities with such ecologies. Sydney now  ranks 16th. And Melbourne is around 22. Silicon Valley tops the list. And the 9 next cities are; New York, Los Angeles, Boston, Tel Aviv, London, Chicago, Seattle, Berlin and Singapore.
- Our ideas are often not scalable, don’t have enough legs, or a big enough market. g. while Sydney technological innovations are more oriented to global markets, many Melbourne start-ups seek only to service a domestic market
- We ran out of money and enthusiasm.
- We just get stuck and don’t know how to advance.
See : The Australian Innovation Report, 2015
And: How to support tech startups and accelerate Australian innovations, PWC, 2013.
Why not collaborate – to share the risk and return?
In score-carding the health of the Australian Innovation System, The Australian Innovation System Report 2014 emphasizes the need for collaboration:
“For innovation to lead to commercial outcomes that maximize competitiveness and productivity, businesses need to collaborate with other businesses in their supply chain, with researchers in universities and research agencies like the CSIRO, and with government. In short, they need to collaborate with all entities that can assist them to know more about what their customers want and how to supply it.”
Enter New Enterprise Services – a Melbourne-based Venture Bank – which specializes in collaborating with you to overcome every obstacle, and provide every resource needed to get your innovation:
Talk with the Bank
Why not talk with the one of the Directors of the venture bank – at no initial cost or obligation. And see if they will form a joint venture with you.
If you and they agree, they join with you to do all that’s necessary to get your innovation to market, making money:
- recruit the CEO and key resources.
- inject the equity capital
- appoint a Strategic Innovation Board to direct the whole venture to market…
- develop ‘killer’ business models
- build core resources
- create appropriate marketing and sales channels….
Collaborative entrepreneuring and innovating
Best of all, because this is collaborative entrepreneuring and innovating, within a joint venture, all key players share equity in different ways. No fees or salaries are paid until the joint venture makes money from sales and profits actually banked.
See Venture Bank, New Enterprise Services Pty Ltd.
Or email: firstname.lastname@example.org