Recently, the Minister for Industry announced a $5 million initiative to enhance the visibility of the Made in Australia logo across Asian markets. This move aims to reinforce Australia’s reputation for producing high-quality and safe goods, which are highly valued in international markets.
Shortly thereafter, both the Minister for Industry and the Minister for Finance introduced significant measures designed to create a more equitable environment for Australian businesses seeking government contracts. These initiatives emphasize the responsibility of federal agencies to consider the broader economic benefits of their procurement decisions. To support this, tailored guidance for various industries will be gradually introduced.
Notably, the first sector to benefit from these updated policies was the technology industry. This prioritization is not coincidental but rather a response to global economic shifts and growing concerns about Australia’s long-term economic resilience. Policymakers have recognized the urgent need to address the nation’s declining position in global innovation and economic complexity rankings.
In 1995, Australia ranked 55th on the Harvard Economic Complexity Index, a measure assessing the diversity and sophistication of a country’s exports. However, by 2021, Australia had dropped to 93rd place, and by 2024, it had further declined to 102nd. Compounding this issue, national investment in research and development (R&D) has fallen sharply, from 2.24% of GDP in 2009 to just 1.6% in 2022. These trends have raised significant concerns among policymakers and industry leaders alike.
The focus on the technology sector is driven by its substantial contribution to business-led R&D. The information and communication technology (ICT) industry is the second-largest contributor to private-sector R&D investment, trailing only manufacturing and accounting for 18% of total R&D expenditure. Moreover, the world’s most successful economies typically have thriving technology sectors, underscoring the link between innovation and economic strength.
Additionally, ICT represents Australia’s second-largest non-commodity export sector, following education. Given this, fostering growth in the technology industry is essential for reversing Australia’s decline in innovation, economic complexity, and productivity. The COVID-19 pandemic further highlighted the importance of building resilience in critical industries, reinforcing the need for strategic investments in local technology enterprises.
Achieving meaningful change, however, requires a fundamental cultural shift within government institutions. Over the past few years, numerous Senate and government inquiries have revealed a troubling pattern: Australian technology firms often struggle to gain recognition from government procurement officials. Many public-sector buyers appear to assume that superior solutions can exclusively be sourced from overseas providers.
This challenge has been exacerbated by the pervasive influence of major consulting firms, particularly the Big Four, which have deeply embedded themselves within government advisory roles. Parliamentary investigations have revealed that these firms frequently have undisclosed conflicts of interest and maintain close commercial ties with foreign technology companies, further disadvantaging local businesses.
The recent policy announcements signal a critical shift in government attitudes. Cultural change within public institutions often begins at the highest levels, and when national leaders consistently advocate for fair opportunities for Australian businesses, this message gradually influences procurement policies and decision-making processes. By reinforcing the importance of supporting local industries, policymakers can help create an environment where Australian technology firms are given a genuine opportunity to compete for government contracts.
Members across the political spectrum have actively engaged in parliamentary inquiries that have shed light on these systemic challenges. Many have acknowledged the injustices faced by smaller and emerging Australian technology firms when competing against well-established international players.
Given the momentum generated recently, there is optimism that these positive changes will persist, regardless of future political developments. As Australia seeks to rebuild its position as a leader in innovation and economic complexity, fostering a robust domestic technology industry will be essential. Through targeted policy measures and a cultural shift in procurement practices, the nation can move toward a more sustainable and competitive economic future.
