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Is there any alternative to developing an innovation-driven economy?

“Australia is already regarded as having an innovation-driven economy. However, there is no room for complacency and it is not something that should be taken for granted. If Australia cannot keep its economy moving in this direction the only alternative is to fall back onto being either a ‘factor’ or ‘efficiency’ driven economy.

A ‘factor-driven’ economy is primarily engaged in the production of low-value added commodities such as found in countries like Pakistan, Egypt or Nigeria. By comparison, an ‘efficiency-driven’ economy is one that has developed successful low to mid-tech manufacturing industries. Examples included China, Malaysia, Poland and Turkey.

Australia’s ability to maintain its high living standards and relatively high wage levels depends on innovation. Only through enhanced innovation can we retain high skilled, well-paid jobs and rising productivity. The alternative is to see real wages and working conditions fall, and the economy to become poorer.”

So… Probably worth the effort, then.

Is there any alternative to developing an innovation-driven economy?

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