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Indo-Australian
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Mar-Apr 2007
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ACT, Ideal Ground for
Fostering Knowledge
Communities

Canberra is a city purpose-built as Australia's national capital and is the country's most knowledge intensive city, according to Jon Stanhope, Chief Minister of the Australian Capital Territory (ACT). Promoting Canberra as Australia's most attractive IT investment destination at the National Association of Software and Service Companies 2007 Leadership Forum, held in Mumbai recently, Stanhope said that on practically every knowledge economy measure that one can think of, the ACT topped the ratings nationally and internationally. Following is the text of Stanhope's speech on the theme, Fostering the Growing Knowledge Communities. The perspective that I will share with you today, as the Chief Minister of a city-state of 330,000 people is, I am guessing, quite different from the experience and background that many of you bring to this Forum.

You may know a lot, or a little, about Australia. You may have heard of our vast 'outback'. When you think of Australia you may think of mining, or agriculture. Or cricket. And while these images are still relevant in the 21st century, they represent just a part of what Australia is all about - and what Canberra is all about.
Canberra is a city purpose-built as a national capital, a city that is not yet a century old. It's officially Australia's most knowledge intensive city. On practically every knowledge economy measure you can think of, we top the ratings nationally and are towards the top of international ratings.
• ICT professionals per 1,000 in the workforce
9 STE skills (Science, Technology and Engineering) per 1,000 in the workforce
• Patents lodged per capita
• Gross R&D expenditure as a percent of GDP
• Households with computers and access to high speed internet connections
• Rates of small and micro business formation
• Bachelor's degrees per capita, higher education qualifications per capita
• School retention and completion rates
• Measures of literacy, numeracy
• And so on …
Indeed, when the term 'knowledge worker' was coined in the late 1960s, most of Canberra's workforce already fitted the definition.
That gives Canberrans a particular view on the topic of knowledge communities and particular experiences in relation to how such communities are built and how they are sustained.
Any student of history will know that knowledge-based communities have been with us for a long time - long before microchips and fibre optics.
Human activity has always been knowledge-based. Human progress has always depended on the sharing of knowledge and the generation of new knowledge. Books, mass media and the spread of schooling and higher education have gradually created what amounts to the world's greatest natural resource - shared knowledge and understanding.
What we are witnessing now, in the 21st century, is an acceleration in the dispersion of knowledge, thanks to technology. We are creating more information, and its transmission is becoming vastly more efficient. But information is just a commodity.
The measure of any knowledge community is not how deep its pool of knowledge is, but how it drinks from that pool - how it dissects, reflects, organises and shares this knowledge. How it uses knowledge.

Fostering Education
It is no coincidence that the communities we regard as the leading knowledge economies are also those that place great store on fostering education at all levels, that exhibit an understanding of the value of research, and that support and foster innovation and entrepreneurialism, through information sharing. These are the fundamentals of any knowledge economy.

Concept of Innovation
It is the concept of innovation I would like to focus upon a little more. By innovation I don't mean 'technology', or commercialisation'. Innovation is simply the process of applying new ideas to products or business processes. We say innovation has occurred if a change we make gives rise to something new, or something with greater value.
Innovation doesn't necessarily require science or engineering or ICT for that matter - but it nearly always requires creativity in some form. Innovation might be a technical change to a product, but it can also be managerial or organisational, or a change to marketing, packaging or distribution.
And what we do know is that firms and institutions that are ‘innovative', are superior economic performers and economy builders. We also know that innovation never occurs in isolation. Innovation is the product of a system. It is the result of interplay and the flow of information and knowledge.
The players in the innovation system are the firms, the institutions and people. People with skills, and diverse skills sets. But firms are the ones that give economic expression to innovation. Innovative firms are strongly influenced by their interaction with institutions and other 'actors' in the system. The innovation system within which a firm operates determines its possible 'innovative' responses. All innovation systems are different and reflect the infrastructure, the history and the culture of the area they occupy.
Canberra has a different innovation system to Sydney. Mumbai has a different innovation system to Bangalore. By virtue of being Australia's National Capital, Canberra has built up an incredible, and quite distinct, innovation system.
While some of this has been organic, some of it is located in Canberra by design. We are home to Australia's leading university - the Australian National University - which ranks in the top 20 universities worldwide.
The Commonwealth Scientific Industrial Research Organisation - or CSIRO as it is best known - is headquartered in Canberra. CSIRO delivers around $1 billion in research support each year to Australian industry and is one of the most capable and influential research organisations in the world.
Canberra has more people in the workforce with tertiary qualifications, and higher qualifications (such as PhDs) than any other place in Australia.
We also have proportionately more people working in the 'creative industries' than any other place in Australia. 12% of Australia's total public research effort is applied in Canberra. We have about 1% of Australia's population.
We are home to Australia's National ICT Centre of Excellence, an organisation that will spend around $500 million over the next five years on pure ICT research. We are the centre of Australia's biotechnology research industry. Over a third of Australia's space sciences capability is located in Canberra.
All of Australia's defence technology organisations are headquartered in Canberra and the Department of Defence administers its $17 billion annual budget from Canberra, about 20% of which is spent directly in Canberra.
On top of this we are home to many of Australia's national institutions and information repositories. Taken together, there is a mass of expertise and concentration of brainpower in Canberra unmatched in Australia, and perhaps the Southern Hemisphere. With this infrastructure behind us, the obvious question is 'what more needs to be done'. There is plenty.
We can make better connections with the emerging global supply chains that are increasingly being driven by India and China. That is why we have brought a small business delegation to India. That is why we will be travelling to China later this year.
We can ensure that the players in our innovation system truly see themselves as being part of a system, and network, share and collaborate. The divide between academia and business is being rapidly closed. Entrepreneurs and researchers are being brought together to jointly solve problems. And that is how it should be.
Building problem-solving capability in firms is probably one of the more interesting challenges for both businesses and government.

What makes one firm more receptive than another to new ways of doing things? What is special about the applied learning environment of some firms? How can we support and better influence that environment across firms and industries?
Australian industry relies to a great extent on external knowledge bases and there is no better example of that than in Canberra - the greatest knowledge bank in the country. Knowledge is maintained, housed and added to our universities, the Australian Government's Cooperative Research Centres, research institutes and government laboratories. These organisations constitute a fantastic knowledge repository. But the flow of that knowledge outwards into the business sector can be disjointed and accidental. How do we make this flow of knowledge work better for both sides?
In Canberra - indeed, in Australia generally - businesses are generally small. We are not a nation of vast multinationals. While small to medium enterprises are rightly credited with being the breeding ground of innovation, their size means they have to work hard to be noticed or to become part of supply chains and connections of global relevance.
In Canberra, we are conscious that businesses need to look at innovation more strategically. Innovation is sometimes accidental, but sustainable firms, the ones that will still be here tomorrow, and next year, and next decade, are the ones that take a strategic and systematic approach to innovation. The successful ones are those that seek innovation and organise for it, that take care to manage and motivate their staff, that create the micro-climates that give rise to new ways of thinking, seeing and doing.
Canberra's human capital base is already without equal, as I have mentioned. Keeping it in that condition means that for ACT education must always be an absolute priority at all levels, and it must be a lifelong process. Adult education is not a luxury. It is vital. And it takes many forms, not all of them based in a classroom or a lecture hall.

Avenues for Life-long Learning
The challenge is to provide multiple avenues for lifelong learning - formal opportunities as well as opportunities for applied and contextual learning - learning by doing, in a business environment that values innovation and the contribution of all staff.
Lifelong learning is of particular importance in an ageing population like Canberra's. India, with its young population, may not be able to easily imagine a workforce where the pool of new workers diminishes each year. That is the Australian experience. And it is the Canberra experience.
While our population is the most youthful of any Australian capital city, it is almost the most rapidly ageing. Within the next 30 years, a third of Canberrans will be aged over 60. That means rethinking not just our traditional ideas about career paths and retirement, but the better uses we might make of the vast, underutilised repository of knowledge and experience at our disposal.
Ladies and gentleman, the challenges we each face in fostering innovation will be slightly different, depending on the cultures and traditions that have shaped our economies. But I am sure there is plenty we can learn from each other, and plenty we can bring to new kinds of partnerships, designed for a new kind of world.
So, in closing these remarks, try not to see ICT as a standalone input to knowledge communities. See it in the context of the firm. Firms and the people that lead them - entrepreneurs - are the true knowledge community builders.