Importance of Creativity and Innovation for Economic Development in Australia

This report discusses the significance of creativity and innovation in Australia for boosting the efficiency of the whole country and maintaining its effective position in the global market. It also covers the benefits of investing in creativity and innovation, challenges, and strategies for facilitating creativity and innovation.

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Entrepreneurship and innovation

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Executive Summary
This report will focus over importance of creativity and innovation for a country. In this report,
significance of creativity and innovation will be discussed in consideration to Australia.
Australia is a developed country but still their growth rate is much lower than many developing
countries. With regards to this, it is necessary for the government of Australia to adopt and
implement certain effective strategies in consideration to creativity and innovation in order to
boost up the efficiency of the whole country in order to stand with the top growing nations as
well as for the objective of maintaining its effective position in the global market.

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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................4
Significance of creativity and innovation........................................................................................4
How can country facilitate creativity and innovation......................................................................4
Benefits of investing in creativity and innovation...........................................................................5
Challenges........................................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
Creativity and innovation are two crucial concepts for an economy, organization as well as for an
individual for their overall development. Australian economic conditions are stable as well as it
is one of the richest countries across the globe with sufficient resources and minerals in order to
fulfil their citizens’ demands and wants. Along with this, individual disposable income of
Aussies is also high through which they could easily buy themselves appropriate lives as per
their requirements. On the other hand, overall country’s position in the global market is declining
rapidly and with regards to this, it is necessary for the Australian government to take necessary
actions to encourage creativity and innovation amongst the citizens for the objective of boosting
up their economic conditions (Amabile & Pratt, 2016).
Significance of creativity and innovation
Innovation and creativity are significant for individuals, community as well as for the whole
country in order to enhance their productivity and to match up with the international market
trends. Currently, whole world is running towards creativity and innovation with the objective of
developing their separate image in comparison to the other countries (Kwan & Chiu, 2015). This
is necessary for enhancing the economic conditions as it helps the country to attract foreign
direct investments, increase in exports and there are various other benefits linked with the
implementation of creativity and innovation in an economy. Thus, it is necessary for the
Australian government to encourage society, individuals, business companies, etc. to invest in
the creativity and innovation for the objective of overall development of the country (Barnes,
2018).
How can country facilitate creativity and innovation
With the help of creativity and innovation, a country could implement various tactics and
strategies in order to move towards sustained growth and overall development. For example,
Australian automobile industry is not much into manufacturing of hybrid cars and still they are
struggling to replace fuel based cars with the electronic vehicle. In this manner, Australia needs
to import hybrid cars from other countries for which they need to on the basis of other countries’

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currency value. With regards to this, Australian currency is devalued and Aussies needs to pay
more for hybrid cars as these cars are imported from other nations. If Australian government will
set up manufacturing plans for hybrid cars, then it will be beneficial for the whole country in
various aspects (Vantassel-Baska, 2016). With regards to this, it is necessary for the government
to encourage creativity and innovation in the country along with developing certain attractive
infrastructure with valuable resources to attract hybrid car manufacturing companies. It will help
the country to control emission generated from fuel based cars as Aussies will be encouraged for
buying hybrid cars and as their individual disposable income is sufficient enough to move
towards hybrid cars, government will easily be able to boost up its economic conditions along
with moving towards sustained growth and overall development (Yoshida, Sendjaya, Hirst &
Cooper, 2014).
Benefits of investing in creativity and innovation
These two concepts are necessary in every aspect as this is essential in terms of enhancing
productivity and efficiency. Creativity and innovation ease the functionalities which is ultimately
beneficial for every aspect of the economy. For example, if Australian government will promote
the creativity and innovation amongst the citizens along with describing the benefits as well as
by providing every required resource, it will result in community development, individual
development as well as for the development of overall country. Investing in creativity and
innovation is essential as well as beneficial for every industry as it directly enhances
organizational efficiency, boosts up the productivity and generates various employment
opportunities along with developing an effective and attractive destination for the multinational
corporations (Sarooghi, Libaers & Burkemper, 2015).
Apart from this, it is necessary for the government to allocate the available resources in the
nation in an appropriate manner and as per the requirement of different areas of the nation. With
the help of this, government would easily be able to boost up its efficiency in all areas which will
ultimately build an effective environment for the companies as well as for the individuals.
Creativity and innovation act as the hand-to-hand for enhancing efficiency of the businesses
(Erez, Van de Ven & Lee, 2015). When an organization set ups its business initially, their
primary objective is to attract the customers and setting up their effective position in the target

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market and the mostly used tool for attracting the target audience is creativity and innovation
(Dawson & Andriopoulos, 2014). With the help of these two aspects, any organization could
easily be able to approach to its target audience along with setting up its position in the
marketplace. In Australia, The National Innovation and Science Agenda (NISA) is responsible
for encouraging innovation and science as long term drive for economic development. This
authority promotes innovation and creativity by providing appropriate and required resources to
the talented and capable individuals through which appropriate long term goals could be fulfilled
(Department of Industry, 2018).
Challenges
There are numerous challenges, limitation and barriers linked with the introduction of innovation
and creativity at workplace. With regards to the implementation of creativity and innovation,
following challenges may be faced:
 Negative attitude
 Fear of failure
 Executive stress
 Following rules
 Making assumptions
 Over-reliance on logic (Anderson, Potočnik & Zhou, 2014).
Conclusion
From the aforesaid information, it can be concluded that creativity and innovation are two
necessary aspects for every country, organization, community as well as for the individuals to
boost up the productivity. Apart from this, it is also helpful in boosting up the economic
conditions and with regards to this, it is necessary for the government to adopt appropriate
techniques at their level with the objective of gaining positive outcomes. Australia is a developed
country but still they are behind in terms of growth rate from many developing countries, thus, it
is essential for the Australian government to adopt appropriate measures in terms of innovation
and creativity through which appropriate and desired outcomes could be attained.

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References
Amabile, T. M., & Pratt, M. G. (2016). The dynamic componential model of creativity and
innovation in organizations: Making progress, making meaning. Research in
Organizational Behavior, 36, 157-183.
Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal of
management, 40(5), 1297-1333.
Barnes, S. (2018). Creativity and Innovation. Knowledge Management Matters, 75.
Dawson, P., & Andriopoulos, C. (2014). Managing change, creativity and innovation. Sage.
Department of Industry. (2018). Boosting innovation and science. Retrieved from:
https://www.industry.gov.au/strategies-for-the-future/boosting-innovation-and-science
Erez, M., Van de Ven, A. H., & Lee, C. (Eds.). (2015). Contextualizing creativity and innovation
across cultures. Journal of Organizational Behavior, 36(7), 895-898.
Kwan, L. Y. Y., & Chiu, C. Y. (2015). Country variations in different innovation outputs: The
interactive effect of institutional support and human capital. Journal of Organizational
Behavior, 36(7), 1050-1070.
Sarooghi, H., Libaers, D., & Burkemper, A. (2015). Examining the relationship between
creativity and innovation: A meta-analysis of organizational, cultural, and environmental
factors. Journal of business venturing, 30(5), 714-731.
Vantassel-Baska, J. (2016). Creativity and Innovation. In Giftedness and Talent in the 21st
Century (pp. 221-223). SensePublishers, Rotterdam.
Yoshida, D. T., Sendjaya, S., Hirst, G., & Cooper, B. (2014). Does servant leadership foster
creativity and innovation? A multi-level mediation study of identification and
prototypicality. Journal of Business Research, 67(7), 1395-1404.

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