Why the innovation statement is just a sideshow

From the archive | 16 December 2015

Nick Wailes

Professor, Dean of Lifelong Learning and AGSM Director

The federal government's recent innovation statement has a number of really positive elements, and is very welcome. However, many of us at universities are asking if more could have been done.

The emphasis on STEM (science, technology, engineering and mathematics) in the education system will help ensure that more and more students have the knowledge they need to succeed in the digital economy of the future.

And our students will certainly benefit from the growth of early stage investment that will follow from the changes in taxation treatment. A small percentage will probably take advantage of the more relaxed insolvency provisions.

But ultimately, the innovation statement can only provide a framework and help get the policy settings right.

The main game for innovation and entrepreneurship is actually taking place on campuses across Australia. The real alchemy of forming the next generation of founders and successful entrepreneurs is, and will continue to take place, at our universities.

A record number of students are learning about entrepreneurship by actually doing it. It's these students who will form the ventures and take the risks that will underpin the next stage of Australia's economic growth.

Ground zero of the ideas boom is a small group of students huddled around a laptop in a café on a university campus putting a pitch deck together between lectures.

Arguably for this group of students, a much more significant announcement than the innovation statement was when Atlassian - a company created by two UNSW students with a credit card debt - listed on the NASDAQ for an estimated $5.6 billion.

Welcome as it is, this government's innovation statement might just be a sideshow. Go to any Australian university and you will find hackathons, start-up competitions and incubators popping up.

For students, the benefits of being involved in these types of activities are enormous. They get hands on experience in identifying a market need, figure out how to size a market, map who their competitors are and focus on what will differentiate them.

They will also get to talk to customers and potential users, and to develop a minimum viable product. In many cases they will use the customer insight to pivot from their original idea.

Ground zero of the ideas boom is a small group of students huddled around a laptop in a café on a university campus putting a pitch deck together between lectures

The benefits to students of being involved in these types of programs extend beyond acquiring knowledge about venture creation. In most instances they do this work in addition to, and sometime at the expense of, their other studies.

This gives them early insight into the reality of many early stage start-ups, when founders often have to balance their new venture with the demands of their day job. They also get the opportunity to benefit from mentors and advisers.

At UNSW, as at many other universities, we have a constant flow of alumni - many of whom have been successful in creating their own ventures - helping student teams refine their business proposals and their pitches. This gives students early exposure to the power of networks and the value of an experienced adviser.

Our student entrepreneurship development team has supported more than 200 student-founded ventures and our recently opened Michael Crouch Innovation Centre welcomed more than 5000 students through its doors in its first four months of operation.

But it's not just the students that benefit from university-based start-up programs. For early stage investors and accelerators, the universities and these programs in particular are a vital source of deal flow.

One consequence of the innovation statement is that the amount of money available for early stage investment will increase, and gaining access to a pipeline of quality ideas and talented young entrepreneurs will become increasingly important.

For the thousands of students who are actively engaged in entrepreneurship across Australian campuses, the realisation that they too could be working on creating the next Atlassian will be a much stronger driver than anything the government could have come up with.

Nick Wailes is a professor and an associate dean (digital and innovation) at UNSW Business School.

Innovation

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<h1>Why the innovation statement is just a sideshow</h1>

<figure><img src="?w=1320" /><figcaption></figcaption></figure>
 The emphasis on STEM (science, technology, engineering and mathematics) in the education system will help ensure that more and more students have the knowledge they need to succeed in the digital economy of the future.
And our students will certainly benefit from the growth of early stage investment that will follow from the changes in taxation treatment. A small percentage will probably take advantage of the more relaxed insolvency provisions.
But ultimately, the innovation statement can only provide a framework and help get the policy settings right.
The main game for innovation and entrepreneurship is actually taking place on campuses across Australia. The real alchemy of forming the next generation of founders and successful entrepreneurs is, and will continue to take place, at our universities.
A record number of students are learning about entrepreneurship by actually doing it. It's these students who will form the ventures and take the risks that will underpin the next stage of Australia's economic growth.
Ground zero of the ideas boom is a small group of students huddled around a laptop in a café on a university campus putting a pitch deck together between lectures.
Arguably for this group of students, a much more significant announcement than the innovation statement was when Atlassian - a company created by two UNSW students with a credit card debt - listed on the NASDAQ for an estimated $5.6 billion.
Welcome as it is, this government's innovation statement might just be a sideshow. Go to any Australian university and you will find hackathons, start-up competitions and incubators popping up.
For students, the benefits of being involved in these types of activities are enormous. They get hands on experience in identifying a market need, figure out how to size a market, map who their competitors are and focus on what will differentiate them.
They will also get to talk to customers and potential users, and to develop a minimum viable product. In many cases they will use the customer insight to pivot from their original idea.
Ground zero of the ideas boom is a small group of students huddled around a laptop in a café on a university campus putting a pitch deck together between lectures
The benefits to students of being involved in these types of programs extend beyond acquiring knowledge about venture creation. In most instances they do this work in addition to, and sometime at the expense of, their other studies.
This gives them early insight into the reality of many early stage start-ups, when founders often have to balance their new venture with the demands of their day job. They also get the opportunity to benefit from mentors and advisers.
At UNSW, as at many other universities, we have a constant flow of alumni - many of whom have been successful in creating their own ventures - helping student teams refine their business proposals and their pitches. This gives students early exposure to the power of networks and the value of an experienced adviser.
Our student entrepreneurship development team has supported more than 200 student-founded ventures and our recently opened Michael Crouch Innovation Centre welcomed more than 5000 students through its doors in its first four months of operation.
But it's not just the students that benefit from university-based start-up programs. For early stage investors and accelerators, the universities and these programs in particular are a vital source of deal flow.
One consequence of the innovation statement is that the amount of money available for early stage investment will increase, and gaining access to a pipeline of quality ideas and talented young entrepreneurs will become increasingly important.
For the thousands of students who are actively engaged in entrepreneurship across Australian campuses, the realisation that they too could be working on creating the next Atlassian will be a much stronger driver than anything the government could have come up with.
Nick Wailes is a professor and an associate dean (digital and innovation) at UNSW Business School.

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