The Tech Council of Australia (TCA) has issued a call for an ambitious national tech investment target to address Australia’s lagging productivity growth.
The TCA’s latest report, *From Research to Reality: Scaling Tech Investment in Australia*, released today at their National Summit, argues that increasing tech investment could unlock substantial productivity gains and improve economic resilience.
According to the report, raising Australia’s tech investment to 4.6% of GDP could yield an additional $38 billion in GDP by 2035.
Reaching a 6.9% investment level could generate a remarkable $167 billion in productivity growth. This investment includes research and development (R&D) and broader technology adoption, essential to countering Australia’s declining productivity.
TCA CEO Damian Kassabgi explained the urgency of setting a tech investment target for 2035, calling on both government and industry to commit to a shared goal.
“Australians enjoy some of the highest living standards in the world. To ensure we can keep growing, we need to see an uplift in productivity growth,” he said.
“Australia’s productivity growth has been declining for some time, which is one of our most pressing economic challenges. Achieving the level of growth we need to turn this around and see our economy thrive requires greater tech development and adoption.”
“Tech investment enables companies to commercialise their research and create new business models, making our economy more productive and resilient. There are also practical benefits to increased tech adoption, which can accelerate the growth of both small and large businesses.”
Need to tech industry
“The results of this report show how vital tech investment is to our economy and the need for the tech industry, the wider business community and government to work together to create an environment that supports tech innovation and adoption,” said Laura Malcolm, Managing Director for Datacom Australia, a key sponsor of the report.
“The work we’re doing with our customers in the areas of AI, cloud and digital engineering clearly highlights how the smart use of technology can transform operations and performance, so it is critical that tech investment in Australia keeps pace with our global competitors. We’re also very supportive of the report’s recommendations around education focused on technology adoption and managing technology risk.”
With tech investment currently at 3.9% of GDP and projected to fall further, the TCA recommends five key policy changes, including refining tech policies and boosting R&D investment from global firms.
The TCA will work with stakeholders to finalise a concrete target, reinforcing its mission to grow Australia’s tech sector and drive economic progress.
