Is innovation the secret to business success?

Can Australian businesses really grasp innovation?

Coming up with new ideas is a must in the world of business. After all, those that stagnate may see their bottom line negatively impacted, and ultimately fall behind their more progressively thinking rivals.

So, what's the answer? To come up with unique products, services and offerings. Or, in other words, to innovate. Australian businesses have the potential to not only be a success on these shores but

Organisations across Australia need to get innovative in order to grow.

also overseas if they're ready and able to think outside the box.

One of the first messages that new Prime Minister Malcolm Turnbull has been trying to get across is that organisations across the country need to get innovative in order to grow. 

"Innovation and job creation has been and will continue to be a strong focus of the Coalition Government. Innovation has to be more than a political buzzword, it's the only option for our economy if we are to maintain our current standard of living," explained Minister for Industry, Innovation and Science Christopher Pyne.

The small business difference

So, while innovation is clearly important, is it achievable for all business owners? Well, in an article published by Entrepreneur, Virgin founder Richard Branson suggested that small businesses can pioneer innovation at a rate that even their biggest peers would be jealous of.

While huge conglomerates may have 'innovation' written as a footnote on their business development strategies, smaller entities can build their entire operation around the practice.

In fact, Mr Branson cited his own company as a small innovator that went on to hit it big – and become a multi-billion dollar global force.

Closing the gap

In the here and now, Australian businesses as a collective are lagging behind some of the more progressive countries around the world. The Age suggested that businesses in several of the Nordic states, United Kingdom, Singapore, Israel, United States and South Korea are generally considered to be the most innovative across the globe.

How can Australian businesses catch up? Well, the government believes that reforms to the taxation that covers innovative processes is a good starting point. The Research & Development Tax Incentive is open to firms of all sizes and sectors, and could be the key ingredient in unlocking more progressive thinking.

Naturally, companies that are eligible will need to seek the advice of experienced tax accountants if they're to make the biggest gains, but finding ways to unlock better ways of doing things through accounting is certainly a good starting point for businesses in pursuit of innovation.

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