Technology to drive productivity and wage growth
Embracing digital technologies will drive Australia’s productivity growth to boost wages and living standards, according to a report released today by the Office of the Chief Economist.
Minister for Industry, Science and Technology Karen Andrews said the findings of Industry Insights 3/2018 — Future Productivity reveal how digital technologies are bringing benefits to the Australian economy through increased productivity.
“The adoption of digital technologies could see Australia’s economy grow by between $140 billion - $250 billion by 2025, and it’s important we ensure this growth happens,’’ Minister Andrews said.
“The report’s focus on productivity reinforces the important link between wage growth and the standard of living – areas that the Liberal National Government is committed to improving.’’
The report shows Australia is a digital leader in industries where our competitive advantages lie, such as the mining sector.
“An example that will solve real world problems is the Patient Admission and Prediction Tool, which uses artificial intelligence to decrease hospital waiting times and has 90 per cent accuracy in forecasting demand for beds,’’ Minister Andrews said.
Industry Insights also uses an Australian-first survey of management practices to explore the impact on productivity.
“Well-managed businesses are more productive and innovative and the best managed large firms had productivity levels almost 20 per cent higher than businesses with least structured management practices,” Minister Andrews said.
“Continuing to lead the pack is critical to ensuring Australian businesses keep thriving in global markets – that’s why the Liberal National Government is assisting this through the Entrepreneurs’ Programme Business Management stream, which pairs businesses with experienced advisers and facilitators.
“The Industry Growth Centres Initiative also supports firms in selected sectors and can assist with the development of management and practical skills, and identifying skills gaps.”
This report comes in the same week the Liberal National Government has committed to a new independent body to help small businesses go digital and established a Small Business Advisory Group.
The report is available at: www.industry.gov.au/industryinsights.
Media contact: Minister Andrews' office 02 6277 7070