● Government must be more ‘hands-on’ if it wants to boost productivity, solve major challenges and be future-ready, says new report
● Successful industry policy goes beyond providing loans, and integrates areas like employment, education and migration, starting with a clear direction and goals
● Current initiatives like Australia’s National Reconstruction Fund and CSIRO’s “missions” are a start, but they are all pulling in different directions
Thursday 4 April, 2024 – The Australian Government needs to take a more hands-on approach to industry policy to meet productivity targets and tackle major challenges like climate change, supply chain resilience and successful adoption of new technologies, says a new report from the Centre for Policy Development (CPD).
CPD sustainable economy program director Toby Phillips said Australia won’t solve key challenges like the green transition and supply chain instability by continuing the prevailing “hands-off” approach to industry policy.
“The indisputable fact is that the industries of 2050 and beyond will need to look very different to the industries of today, and we can’t rely on capital markets to chart the best course over the long-term,” he said.
The CPD report lays out the essential elements required for successful modern industry policy.
First, a clear direction set by government, backed with a high-level political and fiscal commitment that s
