Small Business, Clusters, and Exports

Gavin Artz, South Australian Department of State Development, Australia

Parallel Session 2.4: Successful Internationalization Strategies – Part 1

• Remote from global markets• 96% of businesses small businesses• Fiercely competitive (with each other)• Commodities focused• A city focused state.

• University town• Real specialisations, e.g. water, wine• Creative (Australia ranked #1 –

Global Creative Index 2015)

Context – South Australia

Economic complexity 2012 Australia

Observatory of Economic Complexity – 2012 figures

Economic complexity 2012 - Australia

Observatory of Economic Complexity – 2012 figures

Australia and Innovation

Global Innovation Index 2014 Australia Singapore Germany

Global Innovation Ranking 17th 7th 13th

Institutions 11th 6th 21st

Human Capital & Research 7th 2nd 14th

Infrastructure 7th 2nd 17th

Market Sophistication 10th 4th 25th

Business Sophistication 26th 1st 21st

Knowledge & Technology Outputs 31th 13th 11th

Creative Outputs 12th 33rd 14th

Innovation and information

• Failure of information markets

• Inefficient allocation of accumulated capital

• Equilibrium

• Innovation drives economic growth

• Change not equilibrium

• Innovation drives economic growth

• Varity is needed for innovation

• Change not equilibrium

Clusters

• Cluster Coordination Office• Cluster Leadership Group

• Aerospace• Musitec• 2 Water Industry Clusters• MedDev• IoT In Resources• Specialist Vehicles• Other clusters forming

• SA is an Asia Pacific leader.• The establishment of a Cluster Observatory

links SA to the European Cluster Observatory.

Australian Cluster Observatory

Shandong

• Sister State relation ships – 29 years• Population 97 million• 2nd largest province based on

population• GDP USD $967 billion

Planning for development activities in:• Water Management• Agriculture• Fisheries• Waste Management• Health care

Context – South Australia

• Sister State relation ships – 29 years• Population 1.6 million• GSP USD $96 million

Major exports:• Iron ores & concentrates • Wheat • Copper • Alcoholic beverages • Copper ores & concentrates• Meat (excl beef)

Liveability

South Australia

#5 The Economist Intelligence Unit Liveability Rating

#1 Australia’s Property Council Liveability Index

Best Place in the World to Live by the United Kingdom’s Sunday Times liveability Index

Listed as New York Times “Places to Go” in 2015

*Pablo Gonzalez (2015) –”What is Liveability? An initial approach 2015” Department of State Development

*

Adelaide – South Australia#5 The Economist Intelligence Unit Liveability Rating

Melbourne – Victoria#1 The Economist Intelligence Unit Liveability Rating

Liveability – does it stack up

Selling Liveability

Architects and designers on why South Australia“Simple Solutions for Modern Societies”

“Meeting middle class aspirations on tight budgets”“Making something out of nothing”

“Being innovative in difficult situations”

Artz, G., Gonzalez, P., Zipeng, L (2014) “Enabling Increased Exports of Architectural Services” Department of State Development

Selling Liveability

Clusters of Clusters

A liveable city:• Architecture and design• Water• Waste and recycling• Smart Cities

Selling Liveability – Outcomes and Learnings

• One opens the door, the rest follows

• Exporting from a small business economy

• Collaborative problem solving• Building specialisations and

new clusters

Selling Liveability – Outcomes and Learnings

• The city as an innovation lab

• The city as a marketing tool