Innovation in NSW

Innovation is the application of fresh ideas that enable a business to better compete in the future. Such ideas can include any new or significantly improved goods or services and operational processes or managerial processes.

A number of policy instruments are used by Government to encourage innovation. These include:

Profit related drivers

• Customer demands: the drive to meet consumer expectations are common drivers of innovation. Companies increasingly need to respond to consumer buying decisions which can be influenced by such factors as fashion, convenience, indulgence, functionality and 'conscientious consumerism'.
  Innovation projects often begin with what the consumer wants or needs, rather than as a consequence of research and development.
• Competition: the need to differentiate one's product or service from the competition often results in process, product, packaging and/or supply chain innovations.
• Research and development: a stable and well-funded base for building knowledge and capabilities, will in turn result in the development of new, more advanced and more profitable services and products. The ability of manufacturers to access research and technological developments is crucial to driving innovation, as is disseminating enabling technologies that support production flexibility.
• Enabling and platform technologies: major advances in enabling and platform technologies have opened up opportunities for new products and services, and operational efficiencies.

Market related drivers

• Major projects: awarding major projects to companies in NSW attracts new investment and drives innovation by suppliers and contractors
• Investment attraction: attracting global companies that bring new technologies and innovative labour skills
• Globalisation: The globalisation increases levels of competition, drives the application of best practice and brings overseas investment into Australian markets
• Industry trends: trends which occur in a local market or globally, have a significant impact on how business is carried out and how businesses plan for the future.

Legal drivers

• Regulations: these drivers can take the form of environmental, security and safety regulations, amongst others. For example, across sectors, the regulations associated with occupational health and safety issues have led to innovations which have improved safety in workplaces.