We proposed earlier in this report that ICT is becoming increasingly embedded in processes and products such that it could become 'invisible' in the future. In addition, even though ICT and productivity seemed poorly related at the end of the last century, the evidence is now clear - ICT has a major impact on productivity and competitiveness of the firms that adopt it (Jorgenson 2004, Bloom et al 2006). ICT investment doubled its contribution to economic growth through productivity improvements over the period 1995-2001 in most G7 countries. Parham (2003) of the Productivity Commission also underlines the importance of ICT investment in productivity improvements in Australia.
The Department of Communications, Information Technology and the Arts (DCITA), in research on the factors driving productivity growth in Australia and the role of information and communication technologies (ICT) in this growth has confirmed that ICT contributes more to output than its cost to producers [of other goods and services]. In fact, the report estimates indicate that ICT inputs are worth around 40 percent more to producers in terms of marginal product than they pay for them. The undervaluation of ICT inputs by producers is likely to be due to a combination of market disequilibrium, innovation related externalities and intangible investment in human capital associated with investment in ICT.
New technologies drive economic development, increase employment and productivity and introduce new production methods. The IT2010 Report proposed that investment in information technology would be justified where each regional investment fostered linkages with strategic industries within the relevant region. We concur and propose that the ICT strategy should have a significant focus on the industry users of ICT. Ballarat can significantly improve economic development by its major public and private sector entities becoming leading users and early adopters of ICT innovations.
Build local, regional and international linkages to support achievement of the Ballarat’s ICT 2030 goals.
Actions to 2012:
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Foster the development of specific collaborative projects between Ballarat ICT and other recognised national and international clusters.
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In conjunction with related agencies, organisations and members of the Ballarat ICT community organise, develop and promote an annual program of events to build the social structure of the Ballarat ICT Cluster
Short term actions:
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Establish and maintain relationships with comparable Australian and international ICT clusters.
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Facilitate regular forums and knowledge exchange events to bring local firms and organisations together around ICT innovation.
Work with State and Federal governments and the University to accelerate establishment of ICT spinout enterprises from the University and other organisations.
Actions to 2012:
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Accelerate valuable commercialisation projects by developing a joint agenda for a networked and supportive environment which will assist individuals and organisation in more rapidly taking ideas from concept stage to market release.
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Work with the University of Ballarat Technology Park and with Government to implement technologies and ideas identified for ‘spinning–out’ into incubator sites.
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Create a local environment that encourages creative industries and high end ICT professionals by encouraging the attraction and development of Ballarat's arts and social infrastructure.
Short term actions:
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Together with the University of Ballarat identify individuals in local companies, research organisations and other enterprises who have ideas for new enterprise development.
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Facilitate discussions among major and lead users to identify technologies and ideas available for ‘spinning–out’ into incubator sites.
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Examine the criteria established by Richard Florida and others for the attraction of creative professionals to a city and identify how Ballarat could upgrade its social and creative infrastructure in line with these.
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