The clusters approach to ICT wealth creation
The information and communication
technology (ICT) sector underpins much of the Australian economy, and drives growth in
many industry sectors, especially the service sector. One of the fastest growing
industries in Australia, ICT, directly or indirectly employs around 700,000 Australians,
and contributes in the order of $100 billion of income. Australia ranks fourth among OECD nations in per capita expenditure on
ICT. ICT is also the engine of growth for other parts of the economy and, as such, an
industry in which federal and state governments are vitally interested.
Yet Australia underperforms against its potential. We have a trade deficit of $16 billion
in ICT equipment. Our ICT industry participants are somewhat fragmented and we lack major
world-class ICT participants. What initiatives can Australia seize to reverse this trend?
The Warren Centre has a
longstanding interest in ICT and previous experience in the areas of smart cards,
photonics and medical devices. It was a driving force behind the creation by the
Commonwealth Government of the ICT Centre of Excellence.
The potential for wealth creation through clusters is one such initiative. A cluster is
‘a geographically bounded concentration of interdependent businesses with active
channels for business transactions, communications and dialogue, that share specialised
infrastructure, labour markets and services, and are faced with common opportunities and
threats’.
Clusters promote both competition and cooperation. Competition for customers occurs in the
normal manner between industry participants, while cooperation can simultaneously take
place across the value chain and with related industries. Cluster members include upstream
suppliers and downstream distributors, as well as universities and other public sector
institutions and trade organisations. Successful ICT-related clusters can be found in the
United States (for example Silicon Valley, the Georgia Centre for Advanced
Telecommunications Technology), the United Kingdom (eg. the technology-related industry
community around Cambridge University, Silicon Glen in Scotland). Japan, Finland, Germany
and Singapore offer further examples.
Within the Australian ICT industry, three immediate areas for cluster opportunities are in
photonics and optoelectronics, wireless/mobile technology, and microelectronics.
Photonics and optoelectronics
Australia is already a strong player, building on the strengths of the Australian Photonics CoOperative
Research Centre (CRC). A cluster in this field has begun to form around the CRC’s
base at the Australian Technology Park,
and good potential exists to build on this foundation to create a mature industry with
turnover in the order of $2.4 billion (80 per cent exports) and 18,400 jobs.
Wireless/mobiles
This is another area with outstanding potential. The world market for wireless LAN
products is forecast to be US$5 billion by 2005, with the market for integrated
applications being much larger still. Radiata, recently acquired by Cisco, is a case study of the
successful commercialisation of wireless LAN technology through clustering in a
collaborative relationship with the CSIRO
and Macquarie University.
The Australian Microelectronics Network (AMN)
AMN shows how a cluster can be
fostered in a highly focussed manner from a relatively small base. The AMN concept covers
microelectronics chip design, testing, materials, fabrication and distribution, with both
private sector and public sector participants. The vision is a world-competitive and
targeted microelectronics industry in Australia, supplying the building blocks from which
other next-generation industries such as photonics, biotechnology and nanotechnology can
grow.
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DIARY DATES
April to July 2002
A series of ICT
Cluster Forums, on Thursdays at 8.30 for 9.00 am
Contact Fiona Hearne
4 April Microelectronics Cluster
2 May Photonics & Opto-electronics
23 May Electronics Manufacture Cluster
13 June Embedded Software/Software Cluster
4 July New Media Cluster
Venue: NSW Trade & Investment Centre, Grosvenor Place, 225 George
Stree, SYDNEY
May 2002
2002 Innovation Lecture
"Why is it so difficult to develop great ideas and inventions in
Australia: Australians can make it".
The 2002 Innovation Lecture by Dr Jim Fox, Managing Director, Vision Systems Limited, Dr
Fox has particular expertise in establishing and building international, technology based
businesses.
8 May : Melbourne - Vision Systems, Mt
Waverley, 6pm for lecture and cocktail reception
9 May : Sydney - The Regent Hotel, 6pm for lecture and cocktail
reception
Sponsored by: AusIndustry, Baldwin Shelston Waters & Macquarie Bank
Contact Fiona Hearne
Sustainable Transport in Sustainable Cities - May 2002
Launch of the Sustainable Transport in Sustainable Cities
project report and recommendations.
For information and
registrations, Contact Fiona
Hearne
4 - 6 September 2002
Computers in Manufacturing Expo 2002
Sydney Convention & Exhibition Centre Darling Harbour
www.cimexpo.com.au
contact Jeremy Nathan
ttelephone (02) 9319 3099, email Jeremy.Nathan@industracom.com
Fiona Hearne can be contacted by email by clicking on the links above or by
phone on (02) 93517205 or fax on (02) 9351 2012.
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