Innovation The Government, like the companies I have mentioned, is aware that now, more than ever before, innovation and technological change are at the core of economic activity and one of among the most important drivers of economic growth. The Government is aware of the need to work with industry and the education and research communities to boost innovation. My colleagues Senator Minchin and Senator Kemp are developing an Innovation Action Plan. The prominent US commentator, Lester Thurow, Professor of Management and Economics at MIT, has characterised the present phase of the world economy as a new industrial revolution, combining technological change and the emergence of a global economy. In his words, skills and knowledge have become the only source of sustainable long-term competitive advantage.
Intellectual property lies at the centre of the modern company s success or failure.
The advent of the Internet means that the infrastructure exists for knowledge to move faster and more cheaply than ever before, without regard to national borders. So the emerging knowledge-based industries are intrinsically global. In these circumstances, Australia must look to mechanisms to help ensure that the new global economy runs as freely and smoothly as possible. Foremost amongst these is the World Trade Organisation. Improving the international trading environment Experience has shown that broad-based multilateral trade negotiations, such as those facilitated by the WTO, are the best way to deliver more open markets and a more predictable trading environment.