Governmental industry policies can serve to increase the number of well-paid jobs and alter the performance of industry by, for example, increasing investment. Certain policies are known to work. Industry advisory and technology diffusion services and the support of private R&D are two such policies. Business and university collaborations are also effective, but are less common in Australia than in the US or Europe. On the demand side, government procurement gives a boost to industry. Also, setting high quality and safety standards that businesses adhere to can open up domestic and export markets.
Key Takeaways:
- Industry advisory and technology diffusion services can provide useful expertise to manufacturers.
- Australia lags behind Europe and the US in collaboration between businesses and public research institutions.
- Effective demand side measures include opening markets, government procurement, and mandated standards.
“Crucially over the years Australian federal and state governments have enacted a very broad range of highly successful industry policies but in too many instances of new incoming governments summarily abolish highly successful programmes simply for ideological reason.”
