The paper questions what influence high-growth firms in Australia have on the Australian innovation system. Is their influence on the innovation system as significant as their contribution to the Australian economy? What role do research and development activities play in this context, especially research and development expenditures?
It is the aim of this scientific work, especially with publications from the Australian government, to provide answers to these questions. To answer the questions just mentioned, this paper is structured as follows. Section 2 deals entirely with the phenomenon of high-growth firms in Australia. First, a few selected data on the Australian economy are presented and put into context with those of another economy. In addition, two innovation indices are discussed in order to classify Australia's innovative capacity. Sections 2.1 and 2.2 define high-growth firms, explain their typical characteristics and then discuss the performance of high-growth firms and their impact on Australian economic performance.
Section 3 continues with the relationship between business performance and innovation. It uses literature and studies to explain the relationship between business performance and innovation and how it is expressed. Building on this, Section 3.1 discusses the role of R&D activities and especially research and development expenditure in high-growth firms in Australia in this relationship. Finally, before concluding this paper, Section 4 provides an outlook on the impact of high-growth firms on Australia's innovation system. First, we define what is meant by a national innovation system and then use this as a basis for answering the main question of this paper.
Table of Contents
1 Introduction
2 Australia’s phenomenon of high-growth firms
2.1 Definition and attributes of high-growth firms
2.2 The performance characteristics of high-growth firms in Australia and their impact on economic performance
3 The relationship between business performance and innovation
3.1 The role of R&D activities/expenditures in high-growth firms in Australia
4 Outlook – Impact of high-growth firms on Australia’s innovation system
5 Conclusion
Objectives and Research Themes
This paper examines the influence of high-growth firms on the Australian innovation system and analyzes the specific role that research and development (R&D) activities and expenditures play within this economic context.
- Definition and identification of high-growth firms (HGFs) in the Australian market.
- Analysis of the performance characteristics of HGFs regarding turnover, labor productivity, and employment.
- Theoretical and empirical exploration of the correlation between business performance and innovation.
- Investigation of the impact of R&D expenditures on the growth and competitiveness of Australian firms.
- Evaluation of the broader contribution of high-growth enterprises to Australia’s national innovation system.
Excerpt from the Book
2.1 Definition and attributes of high-growth firms
A very specific definition of high-growth firms can be found in the publication "Eurostat-OECD Manual on Business Demography Statistics" (Statistical Office of the European Communities and OECD, 2007), which was developed over a long period of time by a large number of experts from the OECD, Eurostat and national statistical offices.
According to this manual, high-growth firms can be defined by their turnover on the one hand and by their employment on the other hand, which is measured by the number of employees in these firms. It is recommended to define high-growth firms as all companies that have an average annual business growth of more than 20 percent over a period of three years and, as already explained, business growth can be measured by the turnover or the number of employees in this enterprise. In addition, a size threshold has been established to ensure that small firms growing at a low level do not distort the picture of high-growth firms, but also that too many firms are not excluded, which would be the case if the size threshold were too high. In the manual a size threshold of 10 persons employed has been defined, who must be employed by the enterprise at the beginning of the growth period.
Summary of Chapters
1 Introduction: This chapter introduces the importance of innovation for economic growth and outlines the research objective regarding the role of high-growth firms in Australia.
2 Australia’s phenomenon of high-growth firms: This section provides an overview of the Australian economy and establishes definitions and characteristics for high-growth firms.
2.1 Definition and attributes of high-growth firms: This subsection details the methodology for identifying high-growth firms, specifically focusing on turnover and employment growth thresholds.
2.2 The performance characteristics of high-growth firms in Australia and their impact on economic performance: This subsection analyzes how high-growth firms compare to non-high-growth firms in terms of productivity, capital expenditure, and their significant contribution to employment.
3 The relationship between business performance and innovation: This chapter discusses the theoretical link between business success and innovation, highlighting that innovation acts as a catalyst for competitiveness.
3.1 The role of R&D activities/expenditures in high-growth firms in Australia: This subsection examines corporate R&D spending trends in Australia and links R&D intensity to revenue growth and performance.
4 Outlook – Impact of high-growth firms on Australia’s innovation system: This chapter defines a national innovation system and evaluates the strategic importance of high-growth firms within this network.
5 Conclusion: This chapter summarizes the findings, confirming that high-growth firms are crucial drivers for the Australian innovation system and suggests areas for future research.
Keywords
High-growth firms, HGF, Australia, Innovation, R&D, Research and Development, Business Performance, Economic Growth, Turnover, Labor Productivity, National Innovation System, Employment, Competitiveness, OECD, Innovation Policy
Frequently Asked Questions
What is the primary focus of this paper?
The paper explores the role of high-growth firms (HGFs) within the Australian economy and their specific influence on the nation's innovation system.
What are the central themes discussed in the work?
Central themes include the definition and performance characteristics of high-growth firms, the relationship between corporate innovation and business success, and the impact of R&D expenditures.
What is the core research question?
The research asks what influence high-growth firms in Australia have on the national innovation system and what role research and development activities and expenditures play in this context.
Which scientific methods are applied?
The study primarily utilizes a literature review and the analysis of existing empirical studies and reports, such as those from the Australian Government and the OECD.
What does the main body of the paper cover?
It covers the identification of high-growth firms, an analysis of their economic contributions, the theoretical correlation between business performance and innovation, and an outlook on their systemic impact.
Which keywords best describe the document?
Key terms include high-growth firms (HGF), Australian innovation system, business performance, R&D expenditures, and economic growth.
How does Australia’s R&D expenditure compare to the OECD average?
The paper notes that Australia lags behind the OECD average in terms of gross expenditure on R&D relative to GDP.
What characterizes the relationship between R&D and firm performance in Australia?
The paper finds a positive correlation between R&D intensity and revenue growth, suggesting that R&D-active firms typically experience higher turnover and wage growth over time.
- Quote paper
- Max Radünzel (Author), 2020, Assessing the Innovation System of Australia. The Influence of Australian Economy, Munich, GRIN Verlag, https://www.grin.com/document/982744
