[LINK] AU needs to look beyond traditional tech: author

[Bernard Robertson-Dunn]

AU needs to look beyond traditional tech: author
By James Pearce,
ZDNet Australia
02 April 2003
http://www.zdnet.com.au/newstech/enterprise/story/0,2000025001,20273370,00.htm

Australians pining for a local equivalent of Microsoft or Nokia are in the
dark over the achievements of tech companies associated with dominant
sectors such as mining and agriculture, according to a leading author.

Brad Howarth, author of Innovation and Emerging Markets - Where the Next
Bulls Will Run told attendees at an Australian Stock Exchange seminar the
local investment community may be making a mistake in steering clear of the
local tech sector. He said they could benefit if they were prepared to
support the sector - in particular those tech companies not typically
categorised as being part of the sector.

Australia has traditionally built its economy on the strength of its
primary production exports from the mining and agriculture industries.
Since the tech bubble burst investors have been steering clear of
technology companies due to the stigma attached to the industry, but few
realise that some of the most successful areas of the technology sector are
linked to the primary industries Australia is so good at.

For example, Australian mine management and exploration software is used in
more than 60 percent of the world’s mines, and contributes AU$3 billion
each year to the Australian economy.

"It's completely hidden," Howarth told ZDNet Australia . "There's been no
infrastructure in terms of industry association to channel information into
the marketplace."

This is changing with the creation of industry bodies such as Austmine, who
represent 120 mining technology companies and claims exports of mining
technology and services will outstrip all mineral exports bar coal by 2010.
That would make it bigger than exports of uranium, copper, zinc and
aluminum combined.

"While we lament the absence of an Australian Nokia or Microsoft, we ignore
the fact that combined, our technology effectively 'owns' large markets,"
said Howarth. "Within Australia are real gems that are mostly ignored by
mainstream investors and media – in particular mining and agriculture. And
hence we run the risk of missed opportunity on both sides of the innovation
and investment fence."

"It's ignored to the peril of Australian investors," said Howarth, who said
successful start-ups might issue their Initial Public Offer (IPO) on
overseas exchanges in the belief it would nab them more money.

According to Howarth the reason why "Australia's technology industry was
relegated to producing second-grade companies" is because of two opposing
forces in the industry. On the one side is the fact that Australia can
produce technical innovation that in many fields is at or above the level
of world's best practice. This is opposed, according to Howarth, by the
frequent failure of Australian companies to commercialise that innovation.

The five main reasons for this are:

There is a negative view of entrepreneurs in Australia. 

A small local market means companies must focus on overseas sales almost
from
conception. 

Geographic isolation makes it difficult to keep abreast of industry
developments. 

Australia was slow to develop its own technology industry. 

Australians are not good at pitching themselves to others. 

-- 
Little ol' boy in the Panhandle told me the other day you can still make a
small fortune in agriculture. Problem is, you got to start with a large
one.
-- Jim Hightower


Regards
brd

Bernard Robertson-Dunn
Canberra Australia
brd at austarmetro.com.au