Donald Trump may start up innovation discussion

Shadow minister for the digital economy Ed Husic.

Amara’s Law is stuck in my head.

You know the one? Roy Amara — who headed up US think-tank The Institute for the Future — said when it comes to technology we tend to overestimate its effect in the short run and underestimate the effect in the long run. I’m wondering whether the same law can be applied when predicting the effect of Donald Trump’s election on the technology sector in the US — and over here. Are we over-hyping the impact of president-elect Trump?

It’s a natural reaction. Let’s face it: there’s a furious amount of global activity trying to match over-the-top election statements with likely courses of action. In the short term there’s already been some speculation as to whether current uncertainty surrounding a new president will yank the handbrake on innovation investment decisions.

But now isn’t the time to back away from championing the economic power of start-ups.

While US voters used the ballot box to express their economic anxiety, we must keep explaining how creativity and ingenuity will help us develop more competitive companies across Australia, including our suburbs and our regions. Everyday businesses and employees will benefit as innovations and new technology allow them to run more efficiently and reach more customers.

Australian start-ups and tech-savvy employees will probably watch with a close eye any move by a new Trump administration to clamp down on skilled visa entry into the US — especially into Silicon Valley. That part of the world has become a magnet for international talent, including roughly 20,000 Australians. While shutting the door on them would be bad news for Silicon Valley, it could possibly provide an upside — as Australian tech’s prodigal sons and daughters contemplate a path home. It could also cause some locals who were planning a jump from here to the US to reconsider their plans.

But don’t bank on it — they need a reason to return or stay, ­especially when other countries are actively ramping up their focus on start-up activity.

Locally, how are we placed to attract or keep our talent? I’d say it’s hard going. Any talk of supporting innovation has dried up. Because just like their US counterparts, Australian conservatives have pretty much gagged start-up talk from Malcolm Turnbull’s team. Here’s the proof.

In the aftermath of the US election last week, former prime minister Tony Abbott complimented Malcolm Turnbull, saying: “There has been a lot less talk about innovation and agility and the new economy … a lot more talk about national security and border security.” Conservatives leap on the concerns of blue-collar workers about what a “new economy” means to those workers and whether they can keep their jobs in a start-up nation.

Mind you, those same conservatives congratulate themselves for the growth of part-time (read: insecure) work and never champion wage increases for those same low-paid workers that are worried about innovation and start-ups.

The work of start-ups and early stage innovators is crucial to our longer-term economic future. Now is the time to ratchet up the start-up talk — and do it to build support for the sector.

Here are three steps worth thinking about.

First: clearly explain what start-ups and innovation mean. While the word “innovation” might not mean much, the concept of working smarter is pretty easy to understand. The byproduct of working smarter is reaching more customers, generating more revenue, creating more work — that is what innovation does.

Second, we must show how start-ups create jobs. At the moment, the concern is that their work kills jobs. Out in western Sydney I’ll often point out that you might not work for a start-up but your job may be helped big time by a new market or product unearthed by a start-up. I also point to the nearly two million new jobs created by young, new businesses between 2004 and 2014. Bottom line: if we’re not supporting start-ups, we’re actually not supporting new jobs and economic growth.

Finally, and most importantly, we need to show that start-up communities aren’t going to be corralled within inner-city laneways. The suburbs and regions of this nation are hungry for new businesses and new jobs and they want to mobilise their younger generations to harness technology. From Perth to Geelong, from Launceston to regional Queensland — there’s a determination to reinvent economic opportunity and we need to support this.

You might not agree with the game plan I’ve spelt out but there’s no denying the discussion around start-ups in this country has to change. Or we risk taking a backward step right at the time when we should be taking full advantage of the new ways of working and generating wealth for this country.

Ed Husic is the Labor member for Chifley and the shadow minister for the digital economy.

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