The Lucky Country Still?

Abstract

This chapter provides conceptual and historical backdrops focusing on Australia’s economy and its innovation landscape. It outlines the shifts in economic development goals, particularly in the context of cities, from seeking comparative advantage to competitive advantage and now collaborative advantage, and the new city development models that have emerged in the context of an innovation-led knowledge economy—the creative city, the knowledge city, and the smart city. The chapter then traces the history of Australia’s economy, built on human ingenuity and the luck of natural endowments, which has allowed Australia to sustain a high standard of living and resulted in a prosperous society. Australia has made significant contributions to human innovation in its short history. Transitioning from a resource economy to a knowledge economy poses the question of whether Australia should continue to export minerals or rather should export ideas. Although minerals still dominate Australia’s exports, education has become a leading export sector. We argue that Australia must maintain an innovation edge through human ingenuity, not natural resources, for the health of its future economy.