Overview of Centre for Rural Innovation trial program in Wide Bay Burnett region of Australia. Aiming to grow both startup and established innovative businesses.

1. 1
Regional innovation & opportunities for
business development
in the Wide Bay Burnett Region
Colin Graham, Causeway Innovation
Gympie, 22 Nov 2013

2. Innovation drivers
TechnologyTalent
Travel Tenacity

3. New Environment & Opportunities
• The environment for innovation has changed, the importance
of new and small firms has increased
• Sustainable regional growth depends upon the capacity to
innovate
• Innovation is the capacity to introduce new
products, processes, services, business models and
organisational methods
• Innovation contributes not just to economic growth but to
raise the quality and quantity of jobs and improve the
standards of living
3
OECD, Regions and Innovation Policy, 2011

4. Build on the Evidence base
• Regions are the key determinants of
national economic performance
• 60-80% of jobs growth comes from existing
businesses
• Importance of ‘trader business’, businesses
exporting and trading outside region; in US
– 32% of businesses
– Wages 66% higher, boost region’s average wages &
spillover effect
• 80:20 rule - 80% of effects come from 20% of
the causes
Clusters of
Innovation: Prof
Michael
Porter, Harvard
Job Creation In
America: Dr.
David Birch, MIT
The Economic
Performance of
Regions: Prof
Michael
Porter, Harvard
Principio de
Pareto: Vilfredo
Pareto
4

5. Evidence:
Building the business base
Importance of key people and business
networks, learn from Cambridge Phenomenon:
– 48,000 jobs
– 1,500 companies
– Massive influence of key individuals, trust and
social networks: 80 key people, 20 at core
– ‘The majority of high technology companies that have
shaped the success of the Cambridge cluster are
connected to a handful of serial
entrepreneurs, business angels and venture capitalists
as their involvement in developing new ventures has
been repeatedly evidenced.’
Dr Shai Vyakarnam
Centre for
Entrepreneurial
Learning,
Cambridge University
5

6. Centre for Rural Innovation
• Trial program
• Assist people & businesses to turn
innovative ideas into profitable
businesses
• Appointed mid July
• Agreed criteria: Innovative startups &
established businesses
• Built initial shortlist: 26 businesses
• Visited 11 businesses
• Aiming to select and work closely with 6
• First 3 selected and work underway
• Another 3 cos. in early 2014
6

7. 2 Key Strands:
Startups & small growth companies
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Supportive innovation environment
Profile Peer Network Professional Service
Firm Connections
Investor
Connection
s
Talent
pipeline
Success breeds success

8. Initial businesses
1. Z Safe Beds, Bundaberg
2. Suncoast Limes, Gympie
3. Bunya Red Farm
Capers, South Burnett
3 more to start in early 2014
8

9. Strategic direction
Develop an innovation program to make a significant impact on a
large number of priority businesses across region
Could be a combination of face to face activities, networks, and
world class education delivered through physical hubs and an
online platform
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10. A wave of startup initiatives

11. Startup initiative
• Aim higher: target innovative & growth
startups
• Build profile of Wide Bay Burnett as a place for
entrepreneurs
• Build network – face to face, online support
• Leverage existing programs e.g. I2M & create
and roll out own high quality
education, network and pitching events across
region
• Tap into talent: build advisory network
11

12. Small growth companies
12
• Most small businesses do not innovate, do not grow
• Need to target, e.g. by turnover, exporting, R&D & attitude
• Needs analysis, online & face to face, easy to
access, highlight development pathways
• Develop businesses by developing leaders
• Build peer group
• Example initiatives: Accelerate, Owner Managers Program
(NZ), Beacon Companies (UK)

13. Example: Rural Growth Networks
• UK initiative, pilot launched late
2011, 5 delivery areas, each with
$3.2 - $5.7m funding
• Services for startup and growth
businesses, e.g.
• Business coaches, networks
• Access to finance
• Grants, loans
• Physical hubs, pods
13

14. UK Rural Growth Networks:
claimed economic benefits
Area Investment Forecast economic
impact
Devon & Somerset £2.9m 1,100 jobs
Durham &
Northumberland
£3.2m 300 jobs
Cumbria £3.5m 900 jobs
Wiltshire £1.9m 200 jobs, 450
businesses
supported
Warwickshire £2.4m 500 jobs, 120
startups
14

15. Example: Silicon Prairie, mapping
15

16. Example: High profile conference
• Running for 5 years
• Attracts 600+ people
• Gaining reputation as a
cool conference on
innovation and
entrepreneurship
• Put Omaha on the map
as an innovation
hotspot
16

17. 17

18. Every few hundred years in Western
history, there occurs a sharp
transformation.
Peter Drucker, The New Realities (1989)

19. 19
Regional innovation & opportunities for
business development
in the Wide Bay Burnett Region
Colin Graham, Causeway Innovation
Gympie, 22 Nov 2013