Australia’s tech sector is going places. As 2023 approaches the end of its first quarter, the tech industry is the third biggest in the nation and is growing rapidly.
Australia’s technology sector contributes in excess of AU$120 billion towards the nation’s economy every year. That represents more than six percent of Australia’s GDP and it is growing dramatically with every passing year. The tech sector is now the third highest contributor to GDP.
Significant contributors to this are the facts that Australia is ranked number one nation in the world for tech readiness, and that major tech firms see it as a springboard to the Asia Pacific region.
What is tech readiness all about?
Tech readiness is very much a state of mind. Australians have shown time again that they are early adopters and keen users of innovative technology. We will look at an example or two in just a moment. Tech readiness actually encompasses seven components and Australia scores high across the board. The seven components of tech readiness are as follows:
- Basic needs
- Human capital
- Ease of doing business
- Business and government investment
- Start-up environment
- Technology infrastructure
- Technology adoption
Singapore and Sweden are the only other nations that come anywhere close to Australia’s score in terms of tech readiness.
iGaming a prime example of tech-readiness against the odds
We have already mentioned that Australians are early adopters and love technology. We see it in everything from the rate of smartphone penetration to the speed of cloud adoption in small businesses. But the example that really stands out is the popularity of Australian casinos online and how they are superseding traditional pokies. The interesting aspect to this example is that real money online casino gaming scores high on some of the tech readiness components, specifically points 1,2,6 and 7, while scoring extremely low on others.
The point about iGaming is that this is an area of technological innovation that is thriving and growing rapidly with every passing month, despite a regulatory environment that actively opposes it. When we stand back from that, we start to get a real picture of what tech readiness means in Australia!
A launchpad into the Asia Pacific region
When multinational corporations see tech-ready Australia, they see an opportunity that goes beyond the nation’s 25 million souls. Businesses as diverse as Boeing, Google and Mastercard view Australia as a doorway to much larger markets in the Asia Pacific region. Not only does Australia provide the perfect testing ground for innovative products and services, having a presence there also provides access to these wider value chains via Australia’s various Free Trade Agreements with its (relatively speaking) close neighbors.
Quantum technology and an eye on the 2030s and 2040s
Quantum research capability in Australia is world-class. This could be another area of early adoption that will pay dividends in the years – or decades – ahead. Having already covered the groundwork and developed some cutting edge IP in its research institutes, Australia stands ready to take the lead in this emerging field, which is also attracting interest from early adopters in Africa.
Commentators predict that by 2040, the quantum technology industry in Australia will be generating annual revenue in excess of AU$4 billion. It is also likely to create something in the region of 16,000 jobs.