Looking around the world, especially in Silicon Valley, innovation hubs are connecting human and financial capital. They are facilitating the often difficult maturation process from idea to venture to enterprise.
A key priority should be to turn Sydney or Melbourne into a buzzing innovation hub for the region.
Ideally, Australia should be a place where international talent and companies want to come to develop their ideas.
However, without government-backed incentives like tax concessions, the likelihood of that goal being achieved is poor.
Apart from tax, other crucial incentives include positive public policy and regulation measures which facilitate new ways to access capital and encourage existing businesses to embark on new partnerships with entrepreneurs and start-ups.
A RISK-ADVERSE CULTURE
Australia has progressively developed a culture of safety, where failure is intolerable. As a nation, Australians are focused on holding down a job and buying property.
Housing and other property constitutes more than 60 per cent of the median household's assets. The Reserve Bank of Australia last month revealed Australian investors spent $A6 billion on the property market.
Both within and outside superannuation, the main investments are in blue chip shares and cash – low risk, 'vanilla' investments.