Outlook on Australia's Tech Sector - BDO's International Tech Hubs 2023
Outlook on Australia's Tech Sector - BDO's International Tech Hubs 2023
BDO experts across the world have conducted a deep dive into the vibrant world of international tech hubs.
The tech hubs have a significant role in shaping the future of nations and the global tech market. They are beacons of innovation, producing groundbreaking solutions that redefine our personal and professional lives. They are powerhouses for job creation, drawing in the best talent from around the globe. Their contributions can catapult economic growth, leading nations towards unparalleled prosperity.
Documenting each hub, our experts have taken several factors into account.
These include an overview of the tech landscape - exploring the pioneering start-ups and tech giants that call each hub home - and the encompassing tech ecosystem, from educational institutions to incubators. At the same time, we have explored and evaluated the level of government support—whether through policies or financial incentives. Finally, we have analysed the investment landscape, understanding that the flow of capital is the lifeblood of tech innovation.
It's important to understand how the ripples of tech reach far beyond the tech sector, spreading, influencing, and reshaping all industries—from healthcare and finance to agriculture and entertainment. By delving into the world of tech hubs, we gain insights that might inspire the next evolutionary leap in other sectors - and the formation of future tech hubs.
The Australian Tech Hub
The Australian tech industry is experiencing significant growth and plays a crucial role in the country's economic prosperity. With a joint goal of reaching 1.2 million people in tech jobs by 2030, the Australian Government and the Tech Council of Australia are actively promoting growth within the sector. The sector's expansion reflects a long-term shift towards greater tech transformation across industries, emphasising the need for skilled tech professionals. Many Australians are early adopters, one of several key factors that support the country's vibrant start-up ecosystem.
The technology ecosystem
Australia has positioned itself as a leading digital economy by embracing emerging technologies at an early stage of development. The country’s rapid digital transformation led to the tech sector becoming the fastest-growing area for skilled development. In the fiscal year 2020-21, the tech sector contributed $167 billion to the Australian economy, overtaking the likes of mining and banking. Australia's focus on renewable energy, high-quality education and research facilities, and a thriving start-up sector are among the factors driving innovation. While the Australian tech ecosystem is known for hosting successful international corporations, the local start-up scene is also a significant driver of innovation.
Government support
The Australian Government's billion-dollar Digital Economy Strategy aims to make Australia a global top ten digital economy by 2030. The strategy focuses on digital infrastructure, cybersecurity, skills in emerging technologies, and identifying key digital growth areas and businesses. The government recognises how critical tech impacts economic prosperity, national security, and social cohesion. It has outlined support for such technologies and created a list of specific fields, including quantum technologies, autonomous systems and robotics, artificial intelligence, and advanced manufacturing. The government aims to leverage the benefits of critical technologies while managing the associated risks, such as cybersecurity and supply chain disruptions. The government has allocated significant investments toward a Critical Technologies Challenge Program and the Australian Centre for Quantum Growth to support the growth of these technologies.
Investors
The Australian tech sector has experienced record-breaking growth in the last three years, attracting substantial investments, including in companies like Canva, Airwallex, and ROKT. Australian tech businesses have become desirable acquisition targets for established overseas players, further boosting the ecosystem's momentum. The country’s superannuation structures also contribute to its rich investment ecosystem and the impressive number of overseas companies looking to list on the ASX stock exchange. With economic growth expected to continue on its current trajectory, both inbound and outbound tech investment is expected to thrive well into the future.
BDO in Australia contributed to a BDO Global project to provide our contacts and clients with insights into international tech hubs. Visit International Tech Hubs 2023 to find out more.