Importance of Creativity and Innovation in Australia

This report discusses the importance of creativity and innovation in Australia, including its benefits to the economy and society, ways to facilitate it, and challenges faced. It highlights the need for creativity and innovation in all fields of the economy and provides recommendations on how the Australian government can facilitate it. The report also explains the benefits that Australia could realise on investing in creativity and innovation, such as improved economic growth, increased competitiveness, and facilitated value of products. Finally, the report explains the challenges faced by Australia if it invests in creativity and innovation, such as insufficient capital, increased competitiveness, and reaching the target market. Subject: Entrepreneurship

Running head: ENTREPRENEURSHIP 1
Innovation and Creativity in Australia
Student Name
Institution Affiliation

ENTREPRENEURSHIP 2
Executive Summary
This assignment provides a report on the importance of creativity and innovation in Australia. In
the report, the importance of creativity and innovation to the Australian economy and society
will be discussed. Further, the report will provide recommendations on what Australian
governments should do to facilitate creativity and innovation. Also, the benefits that Australia
could realise on investing in creativity and innovation will be explained. Finally, the report will
explain the challenges faced by Australia if it invests in creativity and innovation.

ENTREPRENEURSHIP 3
Table of Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Discussion....................................................................................................................................................5
Why it is important for economy and society to invest in creativity and innovation in Australia?..........5
Increased productivity.........................................................................................................................5
Problem-solving...................................................................................................................................5
How can Australia facilitate the Creativity and Innovation?....................................................................5
Resources provision.............................................................................................................................6
Promote risk-taking and permit failure...............................................................................................6
Role Play..............................................................................................................................................6
Benefits that Australia could get if it invests on Boosting the Creativity and Innovation........................6
Improved economic growth................................................................................................................7
Increased competitiveness..................................................................................................................7
Facilitate value of products.................................................................................................................7
Challenges faced by Australia if it Invests in Creativity and Innovation...................................................7
Insufficient capital...............................................................................................................................8
Increased competitiveness..................................................................................................................8
Reaching target market.......................................................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10

ENTREPRENEURSHIP 4
Introduction
Australia is among the top nations in the world whose major industries thrive under
entrepreneurship and innovation. In this regard, entrepreneurship remains the most critical driver
of economic growth, innovation, productivity and employment in Australia (Collins & Low,
2010). All business industries exist in Australia, and this is the result of entrepreneurship. The
transport, retail, banking and finance, insurance, telecom, education, and the hospitality and
tourism industries among other thrive in Australia’s economy due to creativity and innovation.
However, investing in creativity and innovation is costly to most companies in the country, and
other entrepreneurial ideas may be risky. The assignment provides a report on the importance of
creativity and innovation in Australia.

ENTREPRENEURSHIP 5
Discussion
The world has become highly competitive, and innovative ideas are what separate Australia from
the other countries in the region in terms of economic and social growth.
Why it is important for economy and society to invest in creativity and
innovation in Australia?
Creativity and innovation is a critical skill that Australia requires to achieve economic growth.
The need for creativity and innovation is demanded in all fields of the economy, and without
entrepreneurial innovations, the economy will turn dormant. The primary reasons why the
Australian economy and society should invest in creativity and innovation include:
Increased productivity
The investment in creativity and innovation by Australian companies offer them huge potential
to improve their productivity, competitiveness and growth in the industry. For example, if the
management of Woolworths invests in new technologies that encourage employees to think
outside the box- this motivates and increases their morale and hence increased productivity. As a
result, the overall economic productivity of Australia gets boosted and increased.
Problem-solving
Investing in creativity and innovation gives Australian economy perfect opportunities to solve
any existing problem. For instance, where there is a problem in the supply chain, new strategies
are innovated by employees and help in resolving the issue. In this regard, creativity and
innovation help Australian firms to gain a competitive advantage over other rival firms in other
nations hence attracting more global investors to the country.
How can Australia facilitate the Creativity and Innovation?
The Australian economy can facilitate creativity and innovation of new business ideas in various
ways. These strategies include:

ENTREPRENEURSHIP 6
Resources provision
The Australian economy industries must invest in the new technologies to keep pace with the
world's competitiveness. In this approach, employees will be motivated to create and innovate
new business ideas about product or service improvement and modification hence boosting
economic and social growth (Dodgson et al., 2011). Other essential resources that the Australian
economy can use in facilitating creativity and innovation are finances and proper working culture
and environment through which innovation thrives.
Promote risk-taking and permit failure
Risk taking is a major characteristic of successful entrepreneurs. Australian companies need to
encourage risk-taking of the newly innovated and created ideas and allow failure as a strategy for
facilitating the process (Renko et al., 2015). Consider Steve Jobs in his Apple business
innovation, he risked and failed severally before achieving entrepreneurial success. Companies
like Woolworths, Walmart, and Wesfarmers should promote this habit so as to achieve
entrepreneurial success.
Role Play
Most Australian companies are encouraged to adopt the role-playing strategy to facilitate
creativity and innovation among their workforce. Role play involves the experienced employees
teaching the new colleagues the approach they used to innovate or create new ideas within the
business environment (Bergh, Thorgren, & Wincent, 2011). In this regard, new products will
keep on being innovated hence a continued success of the Australian economy.
Benefits that Australia could get if it invests on Boosting the Creativity and
Innovation
There are many ways that the Australian governments could boost creativity and innovation in
the country. The main strategies include investing in new technology, offering financial support,

ENTREPRENEURSHIP 7
and establishing laws that protect innovation ideas. The major benefits Australia will get on
investing in creativity and innovation include:
Improved economic growth
Creativity and innovation of new business ideas lead to new startups in the country. These
startups create job opportunities to the society something which boosts economic performance
and productivity of a nation (Andersson & Evangelista, 2006). This is the main benefit that
Australia will achieve on investing in creativity and innovation.
Increased competitiveness
New entrepreneurial innovations increase the competitiveness of a company and the country at
large. When the Australian economy invests in creativity and innovation; new product ideas and
services will be created that are relied upon in the given industry overseas (Harris &
Ammermann, 2016). As a result, Australia will become competitive in the world market hence
attracting more investors than the rest countries in the continent and world at large.
Facilitate value of products
The value for Australian made products will increase in the global markets. Investing in
creativity and innovation in Australia will mean that employees will become more productive in
terms of ideas hence come up with more viable business ideas that can drive Australian goods to
higher scales in the international market.
Challenges faced by Australia if it Invests in Creativity and Innovation
Despite the immense benefits available to Australia when it invests in creativity and innovation,
this process can also be faced by some challenges. The possible challenges include:

ENTREPRENEURSHIP 8
Insufficient capital
Investing in creativity and innovation requires huge amounts of capital that neither the Australia
companies nor the government itself cannot afford (Vanevenhoven, 2013). This poses a major
challenge since funding to acquire resources that aid innovation is a problem.
Increased competitiveness
While Australia is working harder to invest more resources on creativity and innovation, other
world's largest countries such as America and China are spending more in the same. As a result,
the desired objective of innovation could go unmet since companies in these countries tend to
produce better innovation products and services that are demanded more in the market than those
of Australia (Trimi & Berbegal-Mirabent, 2012).
Reaching target market
Reaching the targeted market of the newly innovated product requires Australian companies to
incur more costs of marketing the same product.

ENTREPRENEURSHIP 9
Conclusion
Creativity and innovation play significant roles in entrepreneurship. Entrepreneurship and
innovation go hand in hand and greatly contributes to business success. Investing in creativity
and innovation helps countries become productive, competitive, and sustainable in terms of
economy and social growth. Therefore, Australia should invest more funds in creativity and
innovation and enhance its resources facilitation to entrepreneurship given its immense benefits
to the economy.

ENTREPRENEURSHIP 10
References
Andersson, S., & Evangelista, F. (2006). The entrepreneur in the born global firm in Australia
and Sweden. Journal of Small Business and Enterprise Development, 13(4), 642-659.
Bergh, P., Thorgren, S., & Wincent, J. (2011). Entrepreneurs learning together: The importance
of building trust for learning and exploiting business opportunities. International
Entrepreneurship and Management Journal, 7(1), 17-37.
Collins, J., & Low, A. (2010). Asian female immigrant entrepreneurs in small and medium-sized
Businesses in Australia. Entrepreneurship and Regional Development, 22(1), 97-111.
Dodgson, M., Hughes, A., Foster, J., & Metcalfe, S. (2011). Systems thinking, market failure,
and the development of innovation policy: The case of Australia. Research Policy, 40(9),
1145-1156.
Harris, A., & Ammermann, M. (2016). The changing face of creativity in Australian
education. Teaching Education, 27(1), 103-113.
Renko, M., El Tarabishy, A., Carsrud, A. L., & Brännback, M. (2015). Understanding and
measuring entrepreneurial leadership style. Journal of Small Business
Management, 53(1), 54-74.
Trimi, S., & Berbegal-Mirabent, J. (2012). Business model innovation in
entrepreneurship. International Entrepreneurship and Management Journal, 8(4), 449-
465.

ENTREPRENEURSHIP 11
Vanevenhoven, J. (2013). Advances and challenges in entrepreneurship education. Journal of
Small Business Management, 51(3), 466-470.