Productivity Articles
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Closing the R&D funding circle Sep 30, 2024 In Australia, we fund universities to undertake research for the purpose of creating new knowledge. We separately subsidise firms to undertake R&D. However the 2 funding mechanisms are not linked to encourage collaboration between these parties.
A competitive knowledge market could be used to close this funding gap and:
1. Give universities an incentive to collaborate with smaller firms undertaking R&D
2. Provide smaller firms the confidence to participate in this market and gain R&D collaboration skills
3. Allow Australia to better exploit knowledge created in universities. -
University Competition - Export skills or improving domestic skills Sep 30, 2024 There is a perception that Australian universities have a business model focused on exporting education. The net result of this is, that university management focuses on exporting skills - possibly at the expense of productivity in Australia. This competition model can generate incentives detrimental to productivity. This article proposes an alternative competition model centered around ITE courses which would better focus university management on Australian productivity outcomes. -
Software startup R&D process Aug 15, 2024 Software startups need to move fast. If they carry out R&D, they need processes which are low cost, iterative and very agile. However, if they wish to apply for a AusIndustry R&D subsidy, they need to use 'scientific methodology', which is slower, less flexible and significantly more costly. Also, AusIndustry focuses on 'New Knowledge' instead of 'Creative Destruction' which is what the economy really needs. -
Understanding R&D Subsidies - A software perspective Aug 5, 2024 Applying for a R&D subsidy for a software project is difficult if the subsidy requires that the 'scientific method' be used. This article reviews the principles behind R&D subsidies and discusses the reasons why using 'scientific method' is not a good fit for subsidising R&D in software projects. However some times this is necessary, and the article then presents a R&D framework which attempts to find a suitable compromise between the 2 different methodologies. -
A variation of cost disease Jun 13, 2024 My take on Baumol cost disease -
Introduction to innovation diffusion May 6, 2024 The adoption of existing innovation is called innovation diffusion. In Australia, 98% of innovation adoption is via innovation diffusion.