Australia’s lack of innovation puts national security at risk, not just economic growth.

Australia’s ability to innovate is crucial not only for economic prosperity but also for national safety. The Indo-Pacific region is witnessing increasing grey zone coercion and competition in regional surveillance, highlighting the urgent need for Australia to enhance its innovation capabilities. Without a robust innovation engine, the country will struggle to address emerging risks and leverage strategic opportunities effectively.

It is essential for Australia to focus on developing, fielding, and scaling technology to accelerate progress, address fragmentation issues, and transition from promising concepts to tangible outcomes. Without these advancements, talented innovators and entrepreneurs may continue to seek opportunities abroad, where capital availability, clear pathways, and strategic demand are more prominent.

Home Affairs Minister Tony Burke has emphasized the concept of ‘national safety’ as distinct from ‘national security’, encompassing various threats like cyberattacks, foreign interference, and infrastructure protection. Protecting Australians, the economy, and the Australian way of life requires addressing risks like economic coercion, disinformation, and supply chain disruptions. In a competitive global environment, the ability to endure and recover from threats is as crucial as the ability to deter and counter them.

National safety innovation involves investing in secure supply chains, resilient public infrastructure, digital and societal resilience, and technologies that safeguard economic sovereignty. While Australia possesses world-class talent and research capabilities, it lags in research and development investment compared to other countries. The low spending on R&D, at 1.7 percent of GDP, significantly impacts the country’s ability to innovate effectively.

Australia ranks low in the Economic Complexity Index, indicating a lack of diversification in its economy compared to OECD nations. Initiatives like AUKUS Pillar Two, focusing on quantum, AI, cyber, and autonomy capabilities, highlight the need for Australia to accelerate its technology deployment to maintain its technological edge. The country’s reliance on foreign components for critical infrastructure poses risks during crisis situations and limits its deployment and export capabilities.

Policy coordination within departments like Home Affairs is essential to address high-speed threats effectively. Connecting innovation efforts with economic security can help streamline research, commercialization, and procurement processes for better accountability and speed. Enhancing coordination between departments and utilizing existing tools like procurement and investment mandates can empower mission owners to shape the innovation ecosystem.

Australia possesses the necessary skills and research capabilities to innovate in areas like secure computing, cryptography, and threat detection. Still, these innovations require scaling up through systemic changes. Addressing innovation inertia and transitioning towards a delivery posture focused on deployability and trust can help Australia maintain its innovation edge and address future threats effectively. The country must act now to prevent valuable capabilities from slipping away amid rapidly evolving risks.