NSWInnovationandProductivityScorecard

NSWInnovationandProductivityCouncil

August2019

20182019

Foreword

WelcometothesecondNSWInnovationandProductivityScorecard.

ItismypleasuretoreleasethesecondeditionoftheNSWInnovationandProductivityScorecard,whichoutlineshowNSWistrackingagainstcomparablejurisdictionsandworldleadingeconomiesonarangeofinnovationandproductivitymetrics.

TheScorecardbuildsonthe2018Scorecard,animportantachievementforNSWandthefirsttimeanAustralianstatehadproducedacomprehensivereviewofitsinnovationandproductivityperformance.

TheInnovationandProductivityCouncil(IPC)isproudtoworkwiththeNSWGovernmenttogrowtheNSWeconomy,includingbyincreasinginnovationandproductivity.Todothis,wemustunderstandwhereNSWisat,whereourstrengthsandweaknessesare,howwecomparetootherjurisdictions,andhowourperformanceistrackingovertime.TheannualIPCScorecardprovidesanevidencebasetogiveusthisunderstanding,andtoensuredecisionsarebasedonrobustdata.

The2019ScorecardshowsNSWhasastrongeconomy,ahighlyeducatedandentrepreneurialworkforce,andisthestartupcapitalofAustralia.Thenumberofhighgrowthbusinessesisincreasing,whichisagreatresultforNSWasgrowingbusinessesarecriticalforjobsgrowthandeconomicprosperity.Morebusinessesarealsousingdigitaltechnologieswhichareassociatedwithhighgrowth.

WhileNSWhasstronguniversities,universityandindustrycollaborationremainsachallenge.TheIPCiscurrentlyundertakingresearchintowaystosupportcollaborationbetweenuniversitiesandsmalltomediumenterprise(SME),andthetranslationofresearchanddevelopment(R&D)intocommercialoutcomes.Thisresearchwillinformfuturepolicymakinginthisarea.

TheScorecardwillbepublishedagainin2020.Bythistime,wewillhavecollectedandanalyseddataforthesamemetricsatthreedifferentpointsintime.ThiswillenableevenbetterinsightintohowNSWistracking.

Ihopeyoufindthe2019Scorecardahelpfulresource.

IwouldliketothankmycolleaguesontheIPCaswellastheIPCSecretariatfortheircontributiontothisreport.

Mr.NevilleStevensAOChair,NSWInnovationandProductivityCouncil

Mr.NevilleStevensAO

Chair,NSWInnovationandProductivityCouncil

ScorecardYear2018

2019

NSWInnovationandProductivityScorecard

Betterdatainformsbetterdecisions

ThisreportprovidesanimportantsnapshotintohowNSWistrackingonarangeofinnovationandproductivityindicators.

ItisproducedbytheInnovationandProductivityCouncil(IPC),comprisedofhighlyrespectedindustry,educationandresearchleadersthatadvisetheNSWGovernmentonhowtoimproveinnovationandproductivityinNSW.

GooddataisthestartingpointforgoodadviceandgooddecisionsthatwillgrowtheNSWeconomyandenablecitizenstoprosper.

TheScorecardcomparesNSW’sperformanceagainstkeybenchmarkjurisdictions

Traditionally,innovationwasmeasuredatthenationalandinternationallevelusingarangeofbusinesses,universityandgovernmentdataonresearch,collaboration,skillsandenterpriseactivity.Whileuseful,keymetricswerenotavailableataStatelevelmakingitdifficulttoassesshowNSWwasperforming.

The2018Scorecardchangedthis.Itusedtraditionaldatasourcesandnewmetricsmadeavailablethroughadvancesindatasciencetechnologytodevelopcomplementaryinnovationmetrics.ItwasanewapproachthatallowedustodrilldeeperintothedatatoidentifythestoryforNSW.

TheScorecardallowsmeaningfulcomparisonsandthetrackingofNSW’sperformanceovertime

The2019Scorecardreportsonthesamemetricsasthe2018Scorecard.Bycollectingdataonthesemetricsannually,NSWwillbuildadatabanktotrackNSW’sperformanceovertime.Thiswillenableustorespondpromptlytoareasofweaknessandcelebrateareasofstrength.

ThereportcomparesNSW’sperformanceagainstarangeofinternationaljurisdictionsandcomparableAustralianstates,includingCanada,Germany,NewZealand,Singapore,theUnitedStates,theUnitedKingdom,AustraliaandtheAustralianstatesofVictoriaandQueensland.NSWisalsocomparedwiththeOECDaverageandtheUSstatesofGeorgiaandCaliforniawheresuchdataexists.

ScorecardYear2018

2019

ScorecardYear2018

2019

NSWranks1stfortheproportionofbusinessesthathavegrownby10%overatwoyearperiod.

NSWperformsaboveaverageforGDPgrowth,andrankswellforlabourproductivitywhichmeasuresGDPperpersonemployed.

EnergyproductivityinNSWisaboveaverageandhasbeensteadilyimprovingsince2010.

AlmosthalfofallNSWworkersaretertiaryqualified.

NSWalsohasahighproportionofstartupfounders,althoughlagsleadingjurisdictionsonventurecapitalinvestment.

NSWranks2ndfordigitalcapability,whichmeasuresusebybusinessesofdigitaltechnologiesassociatedwithahighermedianheadcountgrowth.

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InternationalRanking*

University-industrycollaboration

GovernmentinvestmentinR&D

Topresearchers

Patentapplications

Toppapers

Topuniversities

AboveAverage

JurisdictionsNSW

Labourproductivity

GDPgrowth

Energyproductivity

Growthfirms

AboveAverage

Venturecapitalinvestment

Venturecapitalfirms

Employmentoftertiary-educatedpeople

Tertiary-educatedworkforce

Startupfounders

Digitalcapabilityindex

AboveAverage

InternationalComparison

*ThisrankingcomparesNSWtotheUS,theUK,Canada,Singapore,Germany,NewZealand,theAustralianaverage,theAustralianstatesofQueenslandandVictoria,and,wheredataareavailable,theUSstatesofCaliforniaandGeorgiaonarangeofmetrics.They-axisshowswhereNSWranksagainthose11comparisoneconomies.Thex-axisshowshowcloseNSW’sperformanceistotheaverage.

NSWhasahighly-educatedandentrepreneurialworkforce NSWhasastrongeconomywithgrowingbusinessesNSWinvestsinR&Dandhasgooduniversities

NSWrankswellforbusinessinvestmentinR&DandperformsaboveaverageforhighereducationinvestmentinR&D.

NSWuniversitiesalsoperformwell,althoughuniversity-industrycollaborationremainsachallenge.

NSWresearchersproduceahighnumberofhighlycitedpapers,butthenumberofresearchersinNSWiscomparativelylow.

Governmentandnot-for-profitR&Dinvestmentisrelativelylow,butthisfigureexcludesR&Dfundsgovernmentprovidestohighereducationorbusiness.

ScorecardYear2018

2019

CurrentPerformance&RecentTrends

NSWataGlance

Trademarkapplicants

Patentapplicants

Inventiondisclosures

Highereducationresearchfundedbyindustry

Governmentandnot-for-profitinvestmentinR&D

AustralianResearchCouncillinkageprojectgrants

Research&Collaboration

NSWCOMPAREDTOINTERNATIONALANDSTATEBENCHMARKS

NSWCOMPAREDTOAUSTRALIAANDSTATEBENCHMARKSONLY

Universityandindustrycollaborationindex

TotalinvestmentinR&D

Top200universities

Top1%citedpapers

Researcherswhoaretop10intheirfield

Patentapplications

Numberofresearchers

HighereducationinvestmentinR&D

Governmentandnot-for-profitinvestmentinR&D

BusinessinvestmentinR&D

Scoreswithin0.5standarddeviations(ineitherdirection)ofthemeangetayellowlight,>0.5getagreenlightand<-0.5getaredlight.

Skills&Enterprise

NSWCOMPAREDTOINTERNATIONALANDSTATEBENCHMARKS

Venturecapitalinvestment

Tertiary-educatedworkforce

Numberofventurecapitalfirms

Numberofstartupfounders

Employmentoftertiary-qualifiedpeople

Digitalcapabilityindex

NSWCOMPAREDTOAUSTRALIAANDSTATEBENCHMARKSONLY

Vocationallytrainedworkforce

Startupsfromresearchinstitutions

Commercialisationstaffinuniversities

Australianstartupfounders

Growth&Productivity

NSWCOMPAREDTOINTERNATIONALANDSTATEBENCHMARKS

Labourproductivity

Growthfirms

Energyproductivityimprovement

Energyproductivity

AnnualGDPgrowth

NSWCOMPAREDTOAUSTRALIAANDSTATEBENCHMAR..

Netbusinesscreation

Multi-factorproductivity

ScorecardYear2018

2019

LEGEND Currentperformance

• NSWperformsaboveaverage

• NSWperformsataverage

• NSWperformsbelowaverage

NSWfiveyeartrend

ã Upwardtrend

Downwardtrendä

– Notrenddata

GERMANYGDP2018:$4,346B11.1xNSWGDP¹Population2017:82.7MMajorityservicesandITindustries.Strongmanufacturingsector–vehicles,machinery,chemicalgoods,electronicproducts,equipment,pharmaceuticals.Thirdlargestexporterintheworld.GlobalInnovationIndexrank2018:9HumanDevelopmentIndexrank2018:5EnvironmentalPerformanceIndexrank2018:13

ScorecardLegend ■NSW■Australia■Nations■States■OECDaverage

ThesefiguresareinUSDollars.ThecalculationsintheScorecardarebasedonUSDPPP.PurchasingPowerParity(PPP)comparesdifferentcountries'currenciesthrough�amarket“basketofgoods”approach.TwocurrenciesareinPPPwhenamarketbasketofgoods(takinginto

accounttheexchangerate)ispricedthesameinbothcountries.

ScorecardYear2018

2019

SINGAPOREGDP2018:$542B1.4xNSWGDP¹Population2017:5.6MRegionalhubforfinancialservices.Significantexportsinelectronicsandchemicals.Dependentonimportsofnaturalresources.GlobalInnovationIndexrank2018:5HumanDevelopmentIndexrank2018:9EnvironmentalPerformanceIndexrank2018:49

VIC VIC

UNITEDSTATES

UNITEDKINGDOM

SINGAPORE SINGAPORE

QLD QLD

NSW NSW

NEWZEALAND NEWZEALAND

GERMANY

GEORGIA

CANADA

CALIFORNIA

AUSTRALIA AUSTRALIA

©2020Mapbox©OpenStreetMap

AUSTRALIAGDP2018:$1,222B3.1xNSWGDP¹Population2017:24.6MMajorityserviceindustries.Secondwealthiestnation(wealthperadult).Eighthhighestgloballyfortotalestimatedvalueofnaturalresources.GlobalInnovationIndexrank2018:20HumanDevelopmentIndexrank2018:3EnvironmentalPerformanceIndexrank2018:21

QUEENSLANDGDP2018:$222B0.6xNSWGDP²Population2017:4.9MStrongmining,agriculture,tourismandfinancialservices.Mainexportsarecoal,metals,meatandsugar.

NEWSOUTHWALESGDP2018:$391B1xNSWGDP²Population2017:7.9MNSWisAustralia'slargesteconomy.Ithasadiverserangeofindustriesandishighlycompetitiveinthefinancialservices,educationandtourismsectors.Italsohasastrongprimarysector,withhighexportsofbothagriculturalproductsandmineralresources.

VICTORIAGDP2018:$277B0.7xNSWGDP²Population2017:6.3MFinanceandinsurancesectorsproducemostincome.Healthcareandsocialassistanceemploythemostpeople.SecondlargesteconomyinAustralia

NEWZEALANDGDP2018:$194B0.5xNSWGDP¹Population2017:4.8MMajorityservicesector.Largescalemanufacturingindustries–aluminum,foodprocessing,metalfabrication,woodandpaper.GlobalInnovationIndexrank2018:22HumanDevelopmentIndexrank2018:16EnvironmentalPerformanceIndexrank2018:17

CANADAGDP2018:$1,707B4.4xNSWGDP¹Population2017:36.7MMajorityserviceindustries.Strongprimarysector–forestry,petroleumandagriculture.Sizeablemanufacturingsector.GlobalInnovationIndexrank2018:18HumanDevelopmentIndexrank2018:12EnvironmentalPerformanceIndexrank2018:25

UNITEDSTATESGDP2018:$19,485B49.9xNSWGDP¹Population2017:326.0MDiverseeconomywithabundantnaturalresourcesandwelldevelopedinfrastructure.Rankssecondintheworldforhighestestimatesvalueofnaturalresources.GlobalInnovationIndexrank2018:6HumanDevelopmentIndexrank2018:13EnvironmentalPerformanceIndexrank2018:27

CALIFORNIAGDP2018:$2,810B7.2xNSWGDP³Population2017:39.4MDiverseeconomy,knownfortechnology,entertainmentandagriculture.LargesteconomyintheUnitedStates.

GEORGIAGDP2018:$562B1.4xNSWGDP³Population2017:10.4MMajorityserviceindustries.Significantmanufacturing–textiles,pulpandpaperproducts.Sizeableagriculturalsector

UNITEDKINGDOMGDP2018:$2,966B7.6xNSWGDP¹Population2017:66.0MMajorityserviceindustries.Strongfinancialservicesindustry.Significantdefence,aerospaceandpharmaceuticalsectors.GlobalInnovationIndexrank2018:4HumanDevelopmentIndexrank2018:14EnvironmentalPerformanceIndexrank2018:6

OECDTheOrganisationforEconomicCo-operationandDevelopment(OECD)isanassociationof35developednationsfounded‘topromotepoliciesthatwillimprovetheeconomicandsocialwell-beingofpeoplearoundtheworld’.

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0.000.040.080.12

CommonwealthInvestment

0.04 0.08 0.12 0.16

StateInvestment

VIC

AUS

QLD

NSW

2010 2015

0.5

1.0

1.5

2.0

2011 2016

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2010 2016

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GER USA OECD SING VIC NSW AUS CAN UK QLD NZ

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%

BusinessInvestment

HigherEducationInvestment

GovernmentInvestment

GOVERNMENT&NOT-FOR-PROFITR&DINAUSTRALIA GOVERNMENT&NOT-FOR-PROFITR&D HIGHEREDUCATIONR&D

TOTALR&DINVESTMENT BUSINESSR&D

GrossinvestmentinR&DasapercentageofGDP,2014 BusinessinvestmentinR&DasapercentageofGDP,2010–2015

Source:ABS5206.0(Dec2015,Mar2017),5220.0(2014-15,2015-16),8104.0(2013-14,2015-16);OECDMSTI,2017.OECDaverageisnotincludedinrankings

Australianandstategovernmentandnon-profitorganisationsexpenditureinR&DasapercentageofGDP,2016-17

Othergovernmentandnon-profitorganisationexpenditureinR&DasapercentageofGDP,2011–2016 HighereducationinvestmentinR&DasapercentageofGDP,2010–2016

Source:ABS5206.0(Dec2018),5220.0(2017-18),8109.0(2016-17). Source:ABS5206.0(Dec2018),5220.0(2017-18),8109.0(2016-17),OECDMSTI(2018).OECDaverageisnotincludedinrankings.

R&DInvestment

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ScorecardYear2018

2019

*Differenttimeperiodshavebeenusedtoreflectthelatestavailabledata

NSWRank

NSWRank

NSWRank

NSWRank

Researchanddevelopmentexpenditureisthemoneyspentoncreativeworkundertakenonasystematicbasistoincreasethestockofknowledgeandtheuseofthisknowledgetodevisenewapplications⁴

NSWranks5thforoverallinvestmentinresearchanddevelopment(R&D),with1.9%ofNSWGDPspentonR&D.

MostR&DinvestmentinNSWcomesfrombusiness.NonewdataonbusinessR&Dinvestmenthasbeenreleasedsincethe2018Scorecard,butthedataavailableshowsNSWranks4thforbusinessinvestmentinR&DoutperformingallAustralianbenchmarks.

NSWoutperformsmostinternationalbenchmarksforhighereducationR&Dinvestment,butlagsAustralianbenchmarksonthismetric.ItalsolagsAustralianstatesinCommonwealthR&Dinvestment,presentinganopportunityforNSWtosecuremoreofthisinvestment.

Governmentandnot-for-profitR&Dmeasuresspendingwithingovernmentdepartmentsandnot-for-profitorganisations.ItdoesnotincludeR&Dfundsgovernmentprovidestohighereducationortheprivatesector.WhileNSWisoutperformedbymostbenchmarksonthismetric,i..

ResearchandCollaboration

Source:ABS5206.0(Dec2018),5220.0(2017-18),8104.0(2013-14,2015-16),8109.0(2016-17),8111.0(2016);OECDMainScience&TechnologyIndicators(MSTI;2018).Timeseriesdatahasnotbeencalculated.OECDaverageisnotincludedinrankings.

Source:ABS5206.0(Dec2018),5220.0(2017-18),8111.0(2016),OECDMSTI(2018).OECDaverageisnotincludedinrankings.

UK

NSW

CAN

QLD

VIC

AUS

SING

OECD

NZ

USA

GER

NZ

USA

UK

OECD

GER

NSW

QLD

SING

AUS

CAN

VIC

QLDNZ

CANAUSUKVIC

NSWSINGOECD

USAGER

Source:CSIROData61Ribit.netanalysisofLinkedIndata(2018);OECDMSTI,2018Timeseriesdatahasnotbeencalculated.*TheUSStateofCaliforniaandGeorgia.

GA* USA NSW AUS GER NZ

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NZ AUS VIC QLD CAN GER

0.05

0.100.150.20

0.250.300.35

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ResearchWorkforce

RESEARCHERS TOPPAPERS

TOPRESEARCHERS

05101520

NSWRank

NSWRank

NSWRank

NSWRank

ScorecardYear2018

2019

Source:InCites(2006-2018);ABS3101.0(Mar2018);OECDMSTI(2018);USCensusBureau(2018)Timeseriesdatahasnotbeencalculated.*TheUSStateofCaliforniaandGeorgia.

TOPUNIVERSITIES

Source:CSIROData61Ribit.netanalysisofLeagueofScholars(2018)Timeseriesdatahasnotbeencalculated.*TheUSStateofCaliforniaandGeorgia.

Source:QSWorldUniversityRankings(2018);ABS3101.0(Mar2018);OECDMSTI(2018);USCensusBureau2018)Timeseriesdatahasnotbeencalculated.*TheUSStateofCaliforniaandGeorgia.

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UK

SING

CA*

AUS

CAN

NZ

VIC

NSW

QLD

USA

GA*

GER

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ResearchandCollaboration

Numberoftop1%citedpapersover10yearsto2018per10,000population

Numberofresearchersper1,000workers,2018

Percentageofresearcherswhoaretop10intheirfield,2018 Numberoftop200universitiespermillionpopulation,2019

WhileNSWhasfewerresearchersper1,000workersthanmostbenchmarks,ithastopresearchersproducingqualitywork.

NSWresearchersproduced4,236top1%citedpapersovera10yearperiod,outperformingmostinternationalbenchmarks.

Aroundoneinseven(14.4%)NSWresearchersareinthetop10inthetheirfield,asrankedbytheLeagueofScholarswhichratesscholarsoncitations,industrycollaborationandpublicengagement.NSWperformanceonthismetriciscomparabletootherAustralianjurisdictions,butlagsbehindUSbenchmarks,theUKandCanada.

ThenumberoftoppapersandtopresearchersinNSWhasincreasedsincethe2018Scorecard,whichisgoodnewsforNSW.

NSWuniversitiesalsoperformwell.NSWranks3rdforthenumberoftop200universitiespermillionpopulation.Ofthe11publicuniversitiesinNSW,threearerankedinthetop200oftheQSWorldUniversityRankingsandsixarerankedinthetop250.

NSWuniversitiesarerankednumberoneforresearchinover50diversetopics,includingfieldrobotics,informationsystems,socialmarketing,physiotherapyandmolecularecology⁵

Collaboration

UNIVERSITYANDINDUSTRYCOLLABORATION

GER CA USA UK GA CAN NZ SING AUS QLD VIC NSW

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UNIVERSITYANDINDUSTRYCOLLABORATION

HIGHEREDUCATIONRESEARCHFUNDEDBYINDUSTRY

RESEARCHGRANTS

QLD AUS NSW VIC

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50K

100K

150K

200K

250K

300K $287,614 $274,227 $274,227 $263,825

CWTSLeidenRankingUniversity-IndustryCollaborationscore,2018 Percentageofhighereducationresearchfundedbyindustry,2012–2017

Worldheatmapofhighest(green)andlowest(red)collaboration,2018AustralianResearchCouncil(ARC)LinkageProjectfundingperresearcher,2018

AlljurisdictionsoutperformNSWforuniversityandindustrycollaboration,althoughNSW'sperformanceonthismetriciscomparabletootherAustralianbenchmarks.ThismetricismeasuredbytheNetherlands’LeidenUniversitybylookingatthenumberandproportionofauniversity’spublicationsthathavebeenco-authoredwithprivate-sectorforprofitenterprises.

LeidenUniversity’sfindingsaresupportedbythe2018GlobalInnovationIndex(GII)whichrankedAustralia32foruniversityandindustryresearchcollaboration,wellbelowAustralia'soverallGIIrankingof20.

Whileuniversityandindustrycollaborationremainsachallenge,thepercentageofhighereducationresearchfundedbyindustryhasincreased.In2017,almostonethird(31.8%)ofNSWhighereducationresearchwasfundedbyindustry.

TheAustralianResearchCouncil(ARC)providesLinkageProjectgrantsforcollaborativeresearchpartnerships.WhilethedollarvalueofgrantsNSWattractsperresearcherhasincreasedsincethe2018Scorecard,QueenslandnowoutperformsNSWonthismetric,whereasinthe2018ScorecardNSWmarginallyoutperformedallAustralianbenchmarks.

GreatercollaborationbetweentheresearchandinnovationsectorandindustryiscriticaliftheresearchandinnovationtakingplaceinAustraliaaretoyieldcommercialoutcomes⁶.

Source:CSIROData61Ribit.netanalysisofCWTSLeidenRankingUniversity-IndustryCollaborationdata(2018)(averageacrossalluniversitiesinajurisdiction)Timeseriesdatahasnotbeencalculated.*TheUSStateofCaliforniaandGeorgia.

Source:DepartmentofEducationandTraining(DET)HigherEducationResearchDataCollection(HERDC),ResearchIncome(1994-2017).

Source:CSIROData61Ribit.netanalysisofCWTSLeidenRankingUniversity-IndustryCollaborationdata(2018).

Source:CSIROData61Ribit.netanalysisofAustralianResearchCouncildata,DET,(2018).

©2020Mapbox©OSM

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NSWRank

Research&Collaboration

2012 2017

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35VIC

QLD

NSW

AUS

ScorecardYear2018

2019

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Inventiondisclosuresperinstitute,2011–2016Trademarkapplicantsper10,000population,2011–2016

Patentapplicantsper10,000population,2011–16Patentapplicationsper10,000population,2016

Source:ABS3101.0(Mar2017);OfficeofChiefEconomist,InnovationMap,accessed5December2017

Ideas&Inventions

Source:ABS3101.0(Sep2018);IPAustralia(2017);OECDMSTI(2018)Timeseriesdatahasnotbeencalculated.OECDaverageisnotincludedinrankings.

PATENTAPPLICATIONS PATENTAPPLICANTS

TRADEMARKAPPLICANTS INVENTIONDISCLOSURES

NSWRank

GER USA SING OECD NSW UK CAN AUS VIC QLD NZ

0.0

0.5

1.0

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2.0

Source:ABS3101.0(Mar2017);OfficeofChiefEconomist,InnovationMap,accessed5December2017.

Source:DepartmentofIndustry,Innovation&Science,NationalSurveyofResearchCommercialisation2000–2016(NSRC).

ScorecardYear2018

2019

2011 2016

2.0

2.5

3.0

3.5

4.0

4.5

5.0

VICQLD

NSW

AUS

2011 2016

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QLD

AUS

NSW

2011 2016

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VICQLD

NSW

AUS

Research&Collaboration

Apatentisusedtoprotectnewinventionsandgivesthepatentrecipienttherighttocommerciallyexploittheirinventionforthelifeofthepatent.Atrademarkisusedtodistinguishgoodsandservicesfromthoseofanotherbusiness.⁷Whilepatentandtrademarkapplicationratescanindicatetrendsininnovation,cautionisneededwhenusingthemasacomparativemeasureofinnovationastheyaredependentoneconomiccompositionandindustrystructure.

NonewdataonpatentandtrademarkapplicationsinNSWhasbeenreleasedsincethe2018Scorecard.ThedataavailableshowstherateofpatentapplicationsinNSWishigherthanotherAustralianbenchmarksandcomparabletotheUKandCanada,butissignificantlylowerthanGermany,theUSandSingapore.ThismaybebecausethemajorityofAustralia'stradedgoodareeitherservicesorcommoditieswhichdonotcorrelatetohighlevelsofpatenting.

TherateofpatentapplicantshasdecreasedinallAustralianstatesinrecentyears,whiletherateoftrademarkapplicantshasremainedmoresteady.

Aninventiondisclosureisaconfidentialdescriptionofaninventionthatispotentiallypatentableormayhavecommercialvalue.TheNSWinventiondisclosureratehasincreasedslightlysincethe2018Scorecard,butisstilllowerthantherateforotherAustralianbenchmarks.

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Overthelastfewyears,theAustralianinnovationlandscapehaschangeddramatically—start-ups,incubators,andacceleratorshaveemergedacrossthecountry.SavvyinvestorsareincreasinglyseeingthecommercialvalueofnewtechnologiesbuoyedbythesuccessoflocalcompanieslikeAtlassian,CanvaandHatchtech⁸

Percentageofpeopleonsocialmediathatidentifyasstartupfoundersandco-founders,2018

VenturecapitalasapercentageofGDP,2018Venturecapitalfirmsper1,000firmsonsocialmedia,2018

NSW37%

VIC27%

QLD14%

Other22%

NSW49%

VIC13%

QLD20%

Other19%

VentureCapital&Startups

VENTURECAPITALFIRMS VENTURECAPITALINVESTMENT

STARTUPFOUNDERS

NSWRank

NSWRank

NSWRank

STARTUPSFROMRESEARCHINSTITUTIONS

0246810 0.0 0.2 0.4 0.6 0.8

SINGGERCA*NSWCANNZUKAUSUSAVICQLDGA*

CA* SINGNSW VIC AUS UK CAN QLD GER USA GA* NZ

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2019

Source:CSIROData61Ribit.netanalysisofLinkedIndata(2018)Timeseriesdatahasnotbeencalculated.*TheUSStateofCaliforniaandGeorgia.

Source:OECD,Entrepreneurshipataglance(2017):OECDMSTI(2018);ABS5206.0(Dec2018),5220.0(2017-18),5678.0(2016-17);Duff&Phelps,TransactionTrail(2018)Timeseriesdatahasnotbeencalculated.*TheUSStateofCaliforniaandGeorgia.

AUSTRALIANSTARTUPFOUNDERS

Source:DepartmentofIndustry,Innovation&Science,NSRC(2000-2016). Source:StartupMusterAnnualReport(2018).

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Locationofstartupsarisingfromuniversitiesandresearchinstitutions,2011–2016 Locationofstartupfounders,2018

Skills&Enterprise

NSWisthestartupcapitalofAustralia.Itisestimatedthatalmosthalf(49%)ofallstartupfoundersinAustraliaarelocatedinNSW,wellaheadofQueenslandat20%andVictoriaat13%.NSWalsohasmoreventurecapitalfirmsandreceivesmoreventurecapitalinvestmentasapercentageofGDPthantheAustralianbenchmarks.

NSWstilllagsmostinternationalbenchmarksonventurecapitalinvestment.However,sincethe2018Scorecard,therateofNSWVCinvestmentasaproportionofGDPhasdoubled,albeitfromalowbase.

In2017,NSWinvestedheavilyinstartupsbyestablishingtheSydneyStartupHubtosupportcollaboration,attractinvestorsandstrengthenthestartupcommunity.TheHubhousesmorethan480startups,leadingincubatorandcoworkingcommunities,andlargecorporateaccelerators.⁹Inthe2019GlobalStartupEcosystemReport,NSWrankedinthetop10forglobalandlocalconnectedness,wellaboveitsoverallrankingof23.

NSWranks3rdfortheproportionofpeopleonsocialmediaidentifyingasst..

Source:CSIROData61Ribit.netanalysisofLinkedIndata(2018)Timeseriesdatahasnotbeencalculated.*TheUSStateofCaliforniaandGeorgia.

DigitalCapabilityDIGITALCAPABILITY

GROWTHTECHNOLOGIES

NSWRank

CA* NSW QLD GA* CAN USA GER AUS SING VIC UK NZ

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ScorecardYear2018

2019

Source:CSIROData61Ribit.netanalysisofLinkedInandBuiltWithdata(2017).

Source:CSIROData61Ribit.netanalysisofLinkedInandBuiltWithdata(2017).

12

11

10

9

8

7

6

5

4

3

2

1

Percentageofbusinessesusingtechnologiesthatarecorrelatedwithgrowth,2016-2018

-100.. -80% -40% -20% -10% -5% -2% -1% 0% 1% 5% 10% 20% 40% 80% 160% 320% 640% 124.. 248.. More

0%

5%

10%

15%Non-users

Users

DigitalCapabilityisameasureofhowwidelybusinessesareusingleadingdigitaltechnologiesthatareassociatedwithhighgrowth.

ResearchundertakenbyCSIROData61forthe2018Scorecardshowedthatthemedianheadcountgrowthforcompaniesthatusecertaindigitaltechnologieswas8%higherthanforcompaniesthatdonotusethesetechnologies.Thedigitaltechnologiesassessedincludecloudproductivityapps,searchengineoptimisationtoolsandservices,andwebsitesthataredesignedformobileusageaswellasdesktop.

NSWranks2ndfordigitalcapabilitybehindCaliforniaonly,withalmostoneinfive(17.9%)NSWbusinessesonLinkedInusingthesetechnologies.NSWperformanceonthismetrichassignificantlyimprovedsincethe2018Scorecard.

Skills&Enterprise

Distributionofemploymentgrowthandusersandnon-usersofgrowthtechnologies,2015–2017

Source:ABS6291.0(Nov2018).

Percentageofmanagersandprofessionalsemployedonsubclass457&482visas,2018

NSWhasahighlyeducatedworkforce,withalmosthalf(48.6%)ofNSWworkerstertiary-qualified.NSWranks4thfortheproportionoftertiaryqualifiedworkers,behindCanada,SingaporeandVictoriaonly.Theemploymentrateoftheseworkersisveryhigh(96.9%)andcomparabletootherbenchmarkjurisdictions.

NSW’sproportionofVETqualifiedworkersisonparwithVictoria,butlowerthanQueensland,andmaybeconnectedtothehigherratesoftertiary-qualifiedworkersinNSWandVictoria.Almostoneinfive(18.8%)NSWworkershaveaVETqualification.

NSWattractsthehighestrateofmanagersandprofessionalsonAustralianskilledworkervisas.Itisalsohometoonequarter(25%)ofallresearchcommercialisationfull-timeemployeesworkinginuniversities.

SkilledWorkforce

TERTIARY-QUALIFIEDWORKFORCE EMPLOYMENTOFTERTIARY-QUALIFIEDPEOPLE

SKILLEDWORKERVISAS VOCATIONALLYTRAINEDWORKFORCE COMMERCIALISATONSKILLS

Percentageoflabourforcewithtertiaryqualifications,2017 Percentageoftertiaryqualifiedpeopleinthelabourforcewhoareemployed,2017

Percentageoflabourforcewithvocationaleducationandtrainingqualifications(uptoCertificateIV),2017

Dedicatedresearchcommercialisationfulltimeemployees(FTE)inuniversities,2016

Source:ABS6291.0(Nov2018);OECDEducationataglance(2017,2016);SingaporeMinistryofManpower(2018)Timeseriesdatahasnotbeencalculated.OECDaverageisnotincludedinrankings

Source:ABS6291.0(Nov2018);OECDEducationataglance(2017,2016),SingaporeMinistryofManpower(2018)Timeseriesdatahasnotbeencalculated.OECDaverageisnotincludedinrankings

Source:DepartmentofImmigration&BorderProtectionTemporaryWork(Skilled)visasgranted2018-12-31;ABS6291.0(1986onwards).

Source:DepartmentofIndustry,Innovation&ScienceNSRC(2000-2016).

NSW VIC AUS QLD

0.0

0.2

0.4

0.6

0.8

1.0

QLD AUS NSW VIC

0

5

10

15

20

25

NSW25%

VIC24%

QLD30%

Other21%

01020304050 50 60 70 80 90 100

CAN

SING

VIC

NSW

USA

UK

AUS

QLD

NZ

OECD

GER

Skills&EnterpriseScorecardYear

2018

2019

NSWRank

NSWRank

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

-4 -3 -2 -1 0 1 2 3 4 5

2014

2014

2014

2014

2018

2018

2018

2018

NSW

VIC

QLD

AUS

EconomicPerformance

SING USA NSW AUS GER OECD CAN QLD VIC UK NZ

20

40

60

80

100

120

140

NSW UK CA* AUS VIC SING NZ CAN USA GA* QLD GER

0

50

100

2012 2013 2014 2015 2016 2017

0

1

2

3

4

5

GDPgrow

th

1995 2000 2005 2010 2015

95100

105

110

115

120

125

VIC

QLD

NSW

AUS

LABOURPRODUCTIVITY GROWTHFIRMS

NETBUSINESSCREATION ANNUALGDPGROWTH MULTI-FACTORPRODUCTIVITYINDEX

1

2

3

4

5

6

7

8

9

10

Source:ABS8165.0(Jun2014-Jun2018)

Changeinannualgrowthofnetbusinesscreation(businessentryrates–exitrates)between2014and2018

NSWRank

NSWRank

1

2

3

4

5

6

7

8

9

10

NSWRank

Firmsper1,000,000populationthattheheadcountgrewby>10%perannumovertwoyearsto2018

Source:CSIROData61Ribit.netanalysisofLinkedIndata(2018);OCEDMSTI(2018);ABS3101.0(Mar2018);USCensusBureau(2010-2018)Timeseriesdatahasnotbeencalculated.*TheUSStateofCaliforniaandGeorgia

ScorecardYear2018

2019

NSWhasastrongeconomy.GDPgrowthwas2.6%in2017whichisonparwiththefive-yearaverage.

NSWranks1stfortheproportionofbusinessesthathavegrowntheiremployeeheadcountbymorethan10%perannumoveratwoyearperiod,animprovementfromthe2018ScorecardwhichrankedNSW3rdforthismetric.Italsoranks3rdforlabourproductivity,whichmeasuresGDPperpersonemployed.

NSWcreated3.9%morebusinessesin2018comparedto1.3%morebusinessesin2014,aheadofQueenslandbutbehindVictoria.

Nonewdataonmulti-factorproductivity(MFP)hasbeenreleasedsincethe2018Scorecard,butthemostrecentdatashowsNSWoutperformingallAustralianbenchmarks.MFPgrowthisessentiallythepartofGDPgrowththatcannotbeexplainedbychangesinlabourandcapitalinputs.¹¹Researchhasshownthatinnovation,andanorganisation’sabilitytoabsorbandutilisenewknowledge,isakeydriverofeconomy-wideMFP..

Growth&Productivity

Source:WorldBankWorldDevelopmentIndicators(2018);ABS5220.0(2017-18),6202.0(Dec2018).OECDaverageisnotincludedinrankings.

Source:WorldBankWorldDevelopmentIndicators(2018);ABS5220.0(2017-18).OECDaverageisnotincludedinrankings

Source:NSWCentreforEconomicandRegionalDevelopment(Oct2017).

GDP(2011USD)perpersonemployed,2018

AnnualpercentagegrowthinGDP Multi-factorproductivityforthemarketsectorindexedto1995

QLD

UK

AUS

GER

USA

OECD

NSW

NZ

CAN

VIC

SING

2010 2015

4

6

8

10

12

14

16

2005 2015

100

110

120

130

1401

2

3

4

5

6

7

8

9

10

1

2

3

4

5

6

7

8

9

10

EnergyProductivity

ENERGYPRODUCTIVITY ENERGYPRODUCTIVITYIMPROVEMENT

Energyproductivity(2011USDGDP/kgoilequivalent),2015 Energyproductivityindexedto2005,2005-2015

Source:WorldBankWorldDevelopmentIndicators(2018);OfficeoftheChiefEconomistAustralianEnergyStatistics(2017),ABS5220.0(2017-18).OECDaverageisnotincludedinrankings.

Source:WorldBankWorldDevelopmentIndicators(2018);OfficeoftheChiefEconomistAustralianEnergyStatistics(2017),ABS5220.0(2017-18).OECDaverageisnotincludedinrankings.

NSWRank

NSWRank

Businessesthatuseenergyefficientlycanreducetheirrunningcostsandenvironmentalimpactandincreasecompetitiveness.

NSWranks4thforenergyproductivity,behindSingapore,theUKandGermany.

Whenmakingcomparisonsbetweenjurisdictions,itisimportanttorecognisethatenergyproductivityisaffectedbyeconomiccomposition.Forthisreason,itisusefultoconsiderajurisdiction’simprovementinenergyproductivityovertime.Since2005,NSWhasmadesteadyimprovementsinenergyproductivity,withtheUKandSingaporemakingthemostsignificantimprovements.

NSWoutperformsallAustralianbenchmarksforbothenergyproductivityandenergyproductivityimprovement.

Growth&ProductivityScorecardYear

2018

2019

CAN

QLD

USA

VIC

NZ

AUS

OECD

NSW

GER

UK

SING

NZ

QLD

VIC

AUS

CAN

OECD

NSW

USA

GER

SING

UK

InNSW,LinkedIndatacoversanestimated99%oflargebusinessesemployingover200people,andmorethan95%ofallbusinessesemploying10ormorepeople.Theestimatedcoveragebysectoris:

ThelowerpenetrationofLinkedIninsectorssuchasconstruction,retail,financeandinsurancereflectsthelargenumberofindividualcontractors,soletraders,owner-operators,familytrustsandotheraccountingentitiesinthesesectors.Source:CSIRO'sData61May2019.BasedonestimatesderivedfromABS8165.0CountsofAustralianBusinesses,includingEntriesandExits2018&LinkedInAustralianbusinesscountsbyIndustry2019.ValuesshowrelativecoverageofAustralianbusinessesonLinkedInbyindustry.

TheStateofNewSouthWales,includingtheNSWDepartmentofIndustry(“theDepartment”),doesnotgiveanywarranty,guaranteeorrepresentationabouttheaccuracy,currencyorcompletenessofanyinformationcontainedinthisdocument(including,withoutlimitation,anyinformationincludedinthedocumentwhichwasprovidedbythirdparties).TheStateofNewSouthWales(includingtheDepartment)providesthisdocumentwithoutassumptionofadutyofcaretoanyperson.Tothefullestextentpermittedbylaw,theStateofNewSouthWales(includingtheDepartment)excludesallliabilityinrelationtotheinformationcontainedinthisdocumentorforanyinjury,expenseloss,ordamagewhatsoever(includingwithoutlimitationliabilityfornegligenceandconsequentiallosses)sufferedorincurredbyanypersonacting,orpurportingtoactinrelianceuponanyinformationcontainedherein.PUB18/157

1.WorldBank(2019)-InternationalComparisonProgramdatabase-seehttps://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD?locations=AU-CA-DE-SG-GB-US-NZ2.ABS(Nov2018)-YearendingJuneestimatesfromABS(Nov2018)5220.0-AustralianNationalAccounts:StateAccounts,2017-18-Table1.ConvertedusingoutcomesforAustralia.3.USBureauofEconomicAnalysis(2019)-seehttps://apps.bea.gov/itable/iTable.cfm?ReqID=70&step=1#reqid=70&step=1&isuri=14.OECDGlossaryofStatisticalTerms:'Researchanddevelopmentexpenditure'https://stats.oecd.org/glossary/detail.asp?ID=23155.LeagueofScholars(Jan2019)CSIROData61analysis6.DepartmentofEducationandTraining(Cth)(2016)InquiryintoAustralia’sFutureinResearchandInnovation:SubmissionfromtheDepartmentofEducationandTrainingtotheJointSelectCommitteeonTradeandInvestmentGrowth7.IPAustralia2019.8.ElAnsari,Y,CEO,AustralianPrivateEquityandVentureCapitalAssociationLimited(2017),FeatureArticle:Australia'sventurecapitalandprivateequitymarketinAustralianInnovationSystemReport20179.NSWGovernment(2019)SydneyStartupHub:OneYearreport10.StartupGenome(2019)GlobalStartupEcosystemReport11.OECDData(2019)'Multifactorproductivity'https://data.oecd.org/lprdty/multifactor-productivity.htm12.ProductivityCommission(2008),EnhancingAustralia'sproductivitygrowth

COVERAGE

Endnotes LinkedIndatacoverageScorecardYear

2018

2019

Alldatainthisscorecardisthelatestavailableforalljurisdictionsasat31March2019.

SectorProfessional,ScientificandTechnic..

FinancialandInsuranceServices

Mining

InformationMediaandTelecommu..

EducationandTraining

ArtsandRecreationServices

PublicAdministrationandSafety

OtherServices

Construction

Rental,HiringandRealEstateServ..

HealthCareandSocialAssistance

AdministrativeandSupportServic..

WholesaleTrade

Electricity,Gas,WaterandWaste..

RetailTrade

Transport,PostalandWarehousing

Manufacturing

AccommodationandFoodServices

Agriculture,ForestryandFishing

100%

84%

83%

69%

60%

57%

56%

55%

39%

34%

31%

29%

28%

22%

21%

21%

15%

8%

4%