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NSW Regional Innovation Strategy

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NSW Regional Innovation Strategy = = kpt=oÉÖáçå~ä=fååçî~íáçå=píê~íÉÖóW oÉëáäáÉåí=_ìëáåÉëëÉëI=pìëí~áå~ÄäÉ=gçÄë= NSW Regional Innovation Strategy NSW Regional Innovation Strategy Executive Summary................................................................................................i 1. Introduction....................................................................................................1 1.1. Purpose of the Regional Innovation Strategy..........................................1 1.2. What is Innovation?...............................................................................2 1.3. Strategic Context...................................................................................3 1.3.1. Key Regional Statistics......................................................................................3 1.3.2. Current Regional Challenges...........................................................................4 1.3.3. Existing Government Policies...........................................................................4 1.4. Methodology.........................................................................................6 2. Main Drivers and Enablers of Innovation in Regional NSW...............................9 2.1. Drivers of Innovation: Pressure to Innovate............................................9 2.1.1. Adapting to Evolving Consumer Preferences..................................................9 2.1.2. Industry Competition......................................................................................10 2.1.3. Environmental Constraints.............................................................................11 2.1.4. Skills and Labour.............................................................................................13 2.1.5. Regulations and Standards..............................................................................14 2.2. Drivers of Innovation: Willingness to Innovate.....................................14 2.3. Enablers of Innovation: Access to Knowledge......................................15 2.3.1. Skills to Develop Knowledge Internally..........................................................16 2.3.2. Networks.........................................................................................................17 2.3.3. Market Interactions.........................................................................................18 2.3.4. External Knowledge: From Outside the Region.............................................18 2.3.5. External Knowledge: Cross-industry..............................................................19 2.3.6. Research Institutions.......................................................................................19 2.4. Enablers of Innovation: Implementation Tools......................................22 2.4.1. Access to Professional and Technical Business Services...............................22 2.4.2. Access to Finance............................................................................................23 2.4.3. Information and Communication Technology................................................23 2.4.4. Logistics..........................................................................................................24 2.4.5. Government Support......................................................................................24 3. Case Studies.................................................................................................27 3.1. Wine Industry in the Riverina...............................................................27 3.1.1. Background.....................................................................................................27 3.1.2. Drivers of Innovation.......................................................................................28 3.1.3. Enablers of Innovation....................................................................................31 3.1.4. Government Support......................................................................................34 3.1.5. Conclusion......................................................................................................34 3.2. Tourist Parks in the North Coast...........................................................35 3.2.1. Background.....................................................................................................35 3.2.2. Drivers of Innovation.......................................................................................36 3.2.3. Enablers of Innovation....................................................................................38 3.2.4. Conclusion......................................................................................................39 3.3. Manufacturing in Western NSW...........................................................41 3.3.1. Background.....................................................................................................41 3.3.2. Drivers of Innovation.......................................................................................44 3.3.3. Enablers of Innovation....................................................................................45 3.3.4. Conclusions.....................................................................................................46 NSW Regional Innovation Strategy 3.4. Integrated Pest Management Uptake in the Vegetable Industry...........48 3.4.1. Background.....................................................................................................48 3.4.2. Drivers of Innovation.......................................................................................49 3.4.3. Enablers of Innovation....................................................................................53 3.4.4. Conclusion......................................................................................................55 3.5. The Coal Industry in the Hunter...........................................................56 3.5.1. Background.....................................................................................................56 3.5.2. Drivers of innovation.......................................................................................57 3.5.3. Enablers of Innovation....................................................................................59 3.5.4. Conclusion......................................................................................................63 4. Key Drivers and Enablers for Innovation........................................................65 4.1. Drivers of Innovation...........................................................................65 4.2. Enablers of Innovation.........................................................................66 5. A Regional Innovation Strategy for NSW........................................................68 5.1. Guiding Principles..............................................................................68 5.2. Recommendations for Immediate Enhancement of Innovative Capacity69 5.3. Innovation Initiatives...........................................................................70 Consultation List..................................................................................................72 Glossary..............................................................................................................73 References...........................................................................................................74 NSW Regional Innovation Strategy NSW Regional Innovation Strategy: Resilient Businesses, Sustainable Jobs Executive Summary Overview Businesses in regional NSW face a number of challenges, many of which are common across the state though some are unique to specific regions or industries. The ongoing effects of the drought, inland de-population coupled with population growth on the coast, access to markets, and fluctuating global economic conditions are among these. Innovation is relevant to regional businesses as it increases competitiveness through the development of new, or significantly improved, products, services, systems and processes. The NSW Regional Innovation Strategy (RIS or ‘Strategy’) proposes a set of government actions to improve the innovative performance of regional businesses. A framework based on extensive research has been developed that describes both the drivers of innovation in regional NSW (the pressures and the willingness to innovate) and the enablers of innovation (access to knowledge and the ability to implement change). Case studies of five industries explore this framework at the industry level – the wine manufacturing sector in the Riverina, tourist parks in the Northern Rivers, manufacturing in Western NSW, the coal industry in the Hunter, and the adoption of Integrated Pest Management in the vegetable industry. Informed by the framework and the case studies, a Strategy for regional business innovation has been developed. The Strategy encompasses two key components: 1. A series of recommendations for the immediate expansion of innovative capacity in regional businesses. These recommendations will enhance the viability of businesses allowing them to maintain and create jobs. 2. The development and implementation of Innovation Initiatives for each major region in NSW1 to increase the level of innovative business activity in the medium to long term. The outcome of the Strategy implementation will be that regional businesses increase their level of innovative activity and are better equipped to face changing
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