OUT OF SIGHT, OUT OF MIND? - AUSTRALIA'S DIASPORA AS A PATHWAY TO INNOVATION MARCH 2018 - PWC AUSTRALIA
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Out of sight, out of mind? Australia’s diaspora as a pathway to innovation March 2018
Contents Collaborating with our diaspora..........................................................................................................3 Australian businesses’ ‘collaboration deficit’........................................................................................4 The diaspora as an accelerator for collaboration..................................................................................7 Understanding the Australian diaspora’s connection to Australia.......................................................14 What now?........................................................................................................................................27 References.........................................................................................................................................30 This report has been prepared jointly with Advance. Advance is the leading network of global Australians and alumni worldwide. The many millions of Australians who have, do, or will live outside of the country represent an incredible, unique and largely untapped national resource. Its mission is to engage, connect and empower leading global Australians and Alumni; to reinvest new skills, talents and opportunities into Australia; to move the country forward. diaspora di·as·po·ra noun A diaspora is a scattered population whose origin lies within a smaller geographic locale. Diaspora can also refer to the movement of the population from its ancestral homeland. Defining the Australian diaspora The Australian diaspora is made up of Australians living overseas, Australians who have returned to Australia with global experience and know how, the circulating diaspora who have returned home temporarily, and overseas-born alumni of Australian universities who have settled in Australia and those who have returned overseas. PwC Out of sight, out of mind? | 2
Collaborating with our diaspora
86% 23rd 1.35m
of global CEOs say Australia is ranked 23rd out By 2030 we expect
that collaboration is a of 25 countries in the Global there to be 1.35 million
very important skill Innovation Index for 2017, Australians overseas, with
falling four places in the past year a third of those in Asia
7.7%
of Australian businesses
$23.5bn
GDP can be expected to increase by
collaborate with international $23.5 billion over the next 10 years if
firms while innovating products Australian businesses collaborate on
and/or processes innovative activities to the level of the
(putting Australia 27th in the OECD) five best collaborating OECD nations
58% 94%
of Australians currently overseas see of Australians who have returned
benefits associated with engaging from overseas continue to
with peers back in Australia. Of these, associate with peers overseas.
they identified benefits from their These returnees identified a range
engagement, including: of benefits from such continued
engagement:
8% 44%
new or streamlined innovative solutions
operational to problem
processes 6% 35%
the creation of superior
17% organisation or
managerial processes
Productivity
benefits
innovative solutions 24%
to problems
14%
the creation
new or improved ways of superior
13% of working, goods
or services
organisation
and managerial
processes
28%
productivity new or improved
benefits goods or services
The returned diaspora were most likely to bring
back ‘ways of thinking’ and ‘methods of working’
upon their return to Australia.
PwC Out of sight, out of mind? | 3
Australian businesses’
‘collaboration deficit’
In PwC’s 20th Global CEO Survey nearly a quarter Collaboration can be thought of as networking
of the CEOs singled out innovation as their top for innovation projects. It is the mechanism with
priority for the coming year, in order to capitalise on which a business can source a wide range of ideas
new opportunities (see PwC 2016c). This focus on and resources to improve their ability to create new
innovation far outstripped other concerns such as and unique innovation. By increasing the scope
human capital, competitiveness, customer experience, and sharing the resources, risk and ideas with
and even technological capabilities. another, the business can achieve much more than
working alone.
At the core of innovation is collaboration.
Collaboration is becoming more and more relevant
“Innovation happens through in our globalised world. Australian companies
collaboration. The best are facing an increasingly competitive global
trading environment, especially as technological
organisations are not only improvements allow innovations to be diffused and
harnessing innovation from their implemented quicker. This means that businesses
must innovate, and innovate efficiently, to survive.
employees, but also from outsiders
Collaboration is already a priority for many
such as suppliers or competitors.” CEOs, with 86 per cent saying collaboration is
Forbes, Jan 13 2015 a very important skill. That direct link between
‘Innovation and Collaboration’ Kate Vitasek collaboration and innovation is something also borne
out in PwC’s ongoing Innovation Benchmark study,
It is difficult for a single business to be able to obtain where leaders cite innovative behaviours and culture
all the knowledge, skills and resources necessary to as integral to success (PwC 2017).
create breakthrough innovation that will cement or
progress their competitive advantage. This is where
collaboration comes to the fore. In PwC’s 21st CEO
Survey, 88% of Australian CEOs cited collaboration as
being very important to their organisation.
PwC Out of sight, out of mind? | 4
Hence, without: Not surprisingly, if businesses collaborate on
• collaboration and the cross-disciplinary innovative projects, they are more likely to develop
fertilisation that it enables, it’s difficult to generate an innovation at the frontier, or ‘new-to-world’
radically new ideas (Department of Industry, Tourism and Resources
2006, p.8). There’s also evidence that collaborative
• challenges from outside your domain, it’s too easy Australian businesses are more productive than non-
to get stuck in the same boxes collaborative businesses (Department of Industry
• outsiders to test your preconceptions and push you 2013, p.13).
to defend your more outrageous ideas, it’s hard to
The real challenge is that Australian businesses do not
develop inspiration into true innovation.
have a strong track record of external collaboration.
While it is easy to focus on how well people are For example, comparative Organisation for Economic
collaborating within a particular organisation, we Co-operation and Development (OECD) data shows
also need to look outside: that:
• 7.7 per cent of Australian businesses collaborate
“External collaboration is equally with international firms while innovating products
important, because there are and/or processes (putting Australia 27th in the
OECD)
billions of IQ points outside your
• 24.9 per cent of Australian firms co-operate
company. If you can harness them, on innovative activities (OECD average is 32.4
you will establish a significant per cent)
competitive advantage over those • 4.1 per cent of Australian firms collaborate with
higher education or government institutions when
who can’t.” undertaking innovative projects (putting Australia
Shelton (2016) 30th, or 2nd last, in the OECD)
PwC Out of sight, out of mind? | 5
This relative lack of collaboration has a real impact on
the individual businesses who are not collaborating,
and the economy as a whole.
PwC modelling1 suggests that if we can get Australian
businesses to collaborate with other organisations on
innovative activities to:
• the OECD average: then we can expect an increase
to Australia’s gross domestic product (GDP) from
the productivity improvements of $8 billion
• the level of the top five largest collaborators in the
OECD: then the increase to GDP over the next ten
years would be $23.5 billion.
These estimates focus on improving the quantum
of collaboration, but additional benefits could
be expected if we can improve the quality of
collaboration.
This is the collaboration deficit facing Australian
businesses.
1.
Firstly, a comparison between Australia and other OECD
countries was made. The OECD reports the percentages of firms
that co-operate on innovative activities. So using the latest data
for each OECD country, two scenarios were created:
• the first fixed the proportion of Australian businesses
collaborating on innovative activities to the OECD average for
2017 and onwards.
• the second fixed the proportion of Australian businesses
collaborating to the average of the top five OECD countries. For
note, the countries with the largest proportion of businesses
collaborating on innovative activities are Belgium, Slovenia,
Denmark, Spain and Austria.
The increase to businesses productivity growth for each scenario
was estimated and aggregated at a whole-of-Australia level. This
was then fed into PwC’s Intergenerational Fiscal and Economic
Model (IFEM), a model based on the most recent data on the
Australian economy and is forecast using Australian Bureau of
Statistics (ABS) population projections. The IFEM calculates
the economic impact by calibrating fiscal, macroeconomic and
demographic projections. This allows us to estimate the economy-
wide impact of productivity improvements.
PwC Out of sight, out of mind? | 6
The diaspora as an
accelerator for collaboration
It has long been a tradition that many Australians, “[Diaspora] is primarily used to refer
some briefly (i.e. the ‘gap year’), some for many
years, and some ultimately permanently, will strike
to a group of people, bound together
out from Australia to other countries. by a common ethno-linguistic and/
Australia is also fortunate to attract a high number or religious identity, who no longer
of Asian born and other foreign university students reside in their home country. Though
who represent an important national resource for once specific to groups of people
the country.
who had fled their home country
Hence, every day, in countries around the world,
Australian and Australian-educated managers, CEOs,
due to fear of persecution, the term
entrepreneurs, engineers, scientists and workers from diaspora has progressively adopted
any field you would care to mention are doing great a far broader definition to reflect the
things: running businesses, developing products contemporary trends of globalisation
and services, innovating for better outcomes for our
people, our communities and our businesses. This is
and transnationalism.”
the Australian diaspora at work.
Joint Standing Committee on Migration
(2013, pp.131-132)
PwC Out of sight, out of mind? | 7
The co-author of this report, Advance, was founded
in 2002 to harness the skills, influence and
goodwill of the Australian diaspora to move the
country forward. Under the Patronage of all Prime
Ministers since the Honourable John Howard OM
AC, Advance has worked closely with Government
highlighting the important role of the diaspora to the
Australian economy and facilitating collaboration and
innovation on the global stage.
Over the past decade there has been a notable
increase in policies of engagement seeking to
activate the ‘diaspora capital’. Alongside Advance in
Australia, leading examples of diaspora organisations
harnessing talent for the benefit of their countries
include New Zealands’ KEA, Global Scot and Ireland
Connect. Much has also been written on the way
Israel, China and India derive value from their
diasporas for their home countries.2
The Australian Government has a bilateral The Honourable Julia Gillard MP, Former Prime
approach to engaging our Australian diaspora, by Minister of Australia and Former Patron of Advance
collaborating with a range of diaspora organisations. said: “The Advance network brings together an amazing
Prime Minister Malcolm Turnbull MP and Advance array of distinguished and rising Australians … In our
Patron highlights: “A million adventurous, enterprising, globalised world, strong and productive networks with our
innovative, competitive Australians right around the fellow Australians will underpin our continued growth and
world… The important thing is to harness this smart grid of prosperity, leveraging our skills and knowledge to promote
human capital and with Advance we’re doing that.” our nation and its achievements to the wider world.”
2.
Kuznetsov “Mobilising Intellectual Capital of the diasporas: from first movers to a virtuous cycle” (2008) 9 Journal of Intellectual
Capital 2 pg 269.
PwC Out of sight, out of mind? | 8
Figure 1: Estimated distribution of Australia’s diaspora by region and key city centres
100,000 - 200,000
Key city centres
20,000 - 29,999 150,000 - 199,999
Key city centres Region
200,000 - 500,000
Region
50,000 - 149,999
Region
30,000 - 99,999
10,000 - 19,999 Key city centres
Key city centres
Source: Advance.org
“Australians Abroad: Preliminary findings on the Australian diaspora”
While there is no official reporting of the scale of “Diasporas – communities which
the Australian diaspora, it is generally considered to
be sizeable, approximately 1 million overseas. live outside but maintain links with
Additionally, it is estimated that there are 2.5
their homelands – are getting larger,
million (non-Australian born) alumni of Australian thicker and stronger. They are the
universities living overseas. human face of globalisation.”
Michael Fullilove, World Wide Webs: Diasporas and
the International System, Lowy Institute, Sydney 2008
PwC Out of sight, out of mind? | 9
Indeed, more recently, PwC suggests that by 2030 A 2003 Organisation for Economic Co-operation and
Australian expatriates could number 1.35 million Development (OECD) survey of 346,000 Australian-
(PwC 2016b). born expatriates revealed that Australians were
mostly abroad for employment reasons.3
Advance’s estimate of key pockets of density for the
Australian diaspora is shown in Figure 1. The OECD went further, stating that over two-
thirds of expatriate Australians are ‘professionals,
In a time before instantaneous ‘always on’ global
para-professionals, managers or in administrative
communications, with Australia somewhat
occupations’.
disconnected from global happenings, it was
reasonable to see Australia’s diaspora pulled overseas Consistent with this view, an examination of 2010/11
by cultural as much as economic factors. Passenger Cards suggests that, prior to leaving
Australia, over 60 per cent of people departing
This is no longer the case: permanently were employed, with:
“The ‘new expats’ are different from • 42 per cent as professionals
the expatriates who left Australia • 21 per cent as managers
during the 1950s and 1960s … Today, • 7.3 per cent as technicians and trades workers.
Australians live overseas not because As shown in Figure 2, Australians departing Australia
have relatively high standards of qualifications.
they resent a provincial Australia,
Advance includes Australia’s overseas-born alumni
but because the world is now truly of Australian Universities as diaspora. Given that
global and Australia produces global they come to Australia for the purposes of study, a
citizens. The motivation for today’s high proportion will return overseas as professionals,
managers, potential innovators and investors.
Australians to live abroad is no longer
rooted in a cultural cringe, but in the Figure 2: Percentage of expatriates with a high level of education
recognition that the world is a large 50 49.8 49.2
place, worthy of exploration, and
that Australians are well-placed to 44.8 44.4
take advantage of what globalisation 40
41.4 40.3
has to offer.”
33.7
Leigh (2005)
30 29.2
27.5
21.9
20
17.4
13.1
10
6.8
5.6
0
US
NZ
Australia
UK
Canada
France
Germany
Ireland
OECD
Greece
Italy
Turkey
Mexico
Japan
Source: Australian Bureau of Statistics (2006)
3.
This observation is corroborated by the PwC/Advance survey; the relevant findings are presented in Figure 4 and Figure 11.
PwC Out of sight, out of mind? | 10This pull of talent overseas is only going to accelerate, Specifically, PwC modelling suggests that Australia
as there is increasing: will slip from the 19th largest economy to be the 28th
• ease of travel largest by 2050 (PwC 2016a) – see Figure 3. As other
countries see their economies continue to grow faster
• internationalisation of labour markets than Australia’s, these countries, predominantly in
• global demand for skilled workers. Asia, will become even more significant magnets
This will be further exacerbated as, in relative terms, for Australians, and our broader diaspora.
the rest of the world, and particularly Asia, becomes
more attractive due to the advancement of specific
economies.
Figure 3: Projected GDP rankings (at PPPs)
2016 2030 2050
China 1 1 1 h
China
United States 2 2 2 India
India 3 3 3 United States
Japan 4 4 4 Indonesia
Germany 5 5 5 Brazil
Russia 6 6 6 Russia
Brazil 7 7 7 Mexico
Indonesia 8 8 8 Japan
United Kingdom 9 9 9 Germany
France 10 10 10 United Kingdom
Mexico 11 11 11 Turkey
Italy 12 12 12 France
South Korea 13 13 13 Saudi Arabia
Turkey 14 14 14 Nigeria
Saudi Arabia 15 15 15 Egypt
Spain 16 16 16 Pakistan
Canada 17 17 17 Iran
Iran 18 18 18 South Korea
Australia
a 19 19 19 Philippines
Thailand 20 20 20 Vietnam
Egypt 21 21 21 Italy
Nigeria 22 22 22 Canada
Poland 23 23 23 Bangladesh
Pakistan 24 24 24 Malaysia
Argentina 25 25 25 Thailand
Netherlands 26 26 26 Spain
Malaysia 27 27 27 South Africa
Philippines 28 28 28 Australia
South Africa 29 29 29 Argentina
Colombia 30 30 30 Poland
Bangladesh 31 31 31 Colombia
Vietnam 32 32 32 Netherlands
PwC Out of sight, out of mind? | 11Equally, we will see a shift in our diaspora over time In 2016, the Department of Foreign Affairs and Trade
as the economic centre of gravity moves even further released Australia’s Global Alumni Engagement
to Asia. Hence, while we estimate that Australia’s Strategy with a mission to grow a global alumni
expatriate community in Asia currently makes up 20 community that actively engages and promotes
per cent of our total expatriate community, we project Australia and advances our national interests,
the Australia’s Asian diaspora to constitute a third of especially in the Indo-Pacific region.
the total Australian diaspora by 2030 (PwC 2016b).
For example, the Australian Governments’ ‘Australia
Hence, Australia’s place in the world will create Global Alumni Strategy’ notes that “Australia’s global
an even greater pull of Australian talent (the ‘gold alumni are highly talented, globally mobile and
collar’ diaspora) overseas (Fullilove 2008, p.22), and empowered by a world-class education. They are
increasingly to Asia. current and future leaders, influencers and change
makers. Individually and collectively, Australia’s
The obvious talent departing Australia is often
global alumni are helping to shape the world
portrayed as a ‘brain drain’, but need not be.
around them.” 4
This is because there is evidence of strong
Foreign Affairs Minister the Honourable Julie Bishop
correlations between the evidence of a diaspora
MP noted: “INSEAD recently carried out a survey of
residing in a country and trade ties to the country
118 nations, ranking them for talent competitiveness,
of origin for the diaspora (Plaza 2013), including
and Australia came in as number six, meaning we were
studies in Canada, the United Kingdom and the
able to attract and retain talent, and we were a place to
United States (Head & Ries 1998; Yu 2002; Co,
develop global skills. Now this is where Advance comes into
Euzent & Martin 2004).
the picture, and the Australian Government is happy to
Indeed, a broader perspective on the benefits of the partner with Advance and work with Advance in supporting
diaspora are often enunciated. Australians to succeed overseas but also ensuring that they
bring their skills and their perspectives and their insights
back home, so that all Australians benefit from what they
are achieving overseas. Advance’s mission is a remarkable
one: help Australians succeed overseas, help the economy
and the Australian society benefit from their work.’
4.
Australia Global Alumni Engagment Strategy 2016-2020, DFAT
PwC Out of sight, out of mind? | 12Similarly, the Lowy Institute CEO Michael Fullilove While possibly more pronounced for smaller
noted that: countries, Newland and Plaza point to evidence of the
relationship between a diaspora and the benefits of
“The Australian diaspora represents a market, a
collaboration:
constituency, a sales force and an ambassadorial corps.
In recent years, Australians have become more alive to the “For many countries, the diaspora
reality of our diaspora. We should now build on these early
steps and work to engage the diaspora in our national life
acts as a brains trust, connecting
and create a global community of Australians.” critical components of the public and
Fullilove (2008), World Wide Web: Diasporas private sectors to expertise available
and the International System, Lowy Institute for within the country and compensating
International Policy to some degree for the departure of
highly skilled emigrants.”
In addition to the diasporas being a form of soft
diplomacy and cultural marketing, they are also an
innovation conduit. Newland & Plaza (2013, p.6)
We welcome Innovation and Science Australia’s
vision for 2030 for Australia5 to be counted within the As a specific example, it has been pointed out that
top tier of innovation nations, and the opportunity international migration and the mobility of human
it presents to strategically engage and empower our capital may strengthen the scientific capacity of the
diaspora to help achieve strong economic growth, home countries (Marmolejo-Leyva, Perez-Angon &
competitive industries, collaborative education, Russell 2015; Basu 2013; Saxenian 2006).
meaningful and productive jobs and a fair and In this way, the diaspora becomes a channel for
inclusive society. new ideas, and also a mechanism for potential
collaboration.
To better understand this channel for collaboration,
PwC and Advance conducted an online survey of
Australia’s current and returned diaspora (see Box 1
pg.14).
5.
Innovation and Science Australia 2017, Australia 2030: prosperity through innovation, Australian Government, Canberra.
PwC Out of sight, out of mind? | 13Understanding the Australian
Diaspora’s connection to
Australia
To better understand the connection between the Interviews were also held with 4 leading Australian
diaspora and Australia, PwC and Advance developed thought leaders and innovators who have returned
a survey to elicit the views of members of Australia’s to Australia after living and working abroad. They
current diaspora and the returned diaspora. shared insights about the value that the returned
The results of the survey are presented on the diaspora brings back to Australia. These interviews
following pages. are presented as case studies on the following pages.
Box 1: The PwC/Advance diaspora survey
To ensure maximum comparability, standard definitions/
terms were used to describe industries (i.e. standard ABS
industry classifications) and descriptions elements related to
innovation and technology knowledge/transfer were drawn
from ABS surveys of innovation.
The survey was distributed through Advance’s and PwC’s
formal and informal networks (e.g. web page, Facebook,
LinkedIn, direct connections, etc.).
In total, 1,039 respondents completed the survey, comprising
74 per cent current members of the Australian diaspora, and
26 per cent of people who have returned to Australia.
PwC Out of sight, out of mind? | 14The current Figure 4: Reasons for choosing host country
diaspora
70%
62%
60%
The reasons that Australians
head to particular countries are
varied, but the PwC/Advance 50%
44%
survey suggests that better job
opportunities (whether in the same 40%
36%
organisation or more broadly)
dominate, and that the potential 30% 28%
for travel is also a significant
motivator when choosing a 21%
20%
particular country other than
Australia – see Figure 4. 10%
10%
6%
“The thing with Australians is that
we are not escaping Australia. The 0%
fact that we have chosen to leave a
Better job opportunities
Travel opportunities
Employment opportunities not
available in Australia
Career advancement within
the same organisation
Advancement professionally (for myself
and my company) as an entrepreneur
Research/scientific
opportunities
Investment opportunities
spectacular country means we have
to do something spectacular with
what we do.”
David Droga, Founder and Creative
Chairman, Droga5 (NYC) and Advance
Global Australian Award Winner 2012
Note: Multiple responses permitted so results will not sum to 100
Australians appear to gain broad Figure 5: Exposure to new tools, techniques or issues
exposure to a range of ‘new things’
in their work environments – see
Sales and
Figure 5. Specifically, there appears marketing 24% 27% 28% 13% 8%
to be relatively consistent exposure techniques
to all but sales and marketing on a
very regular or quite regular basis. Ways of thinking
(research methods,
37% 36% 21% 6% 1%
problem solving,
thought leadership)
New business
33% 33% 23% 8% 2%
models
Methods of working
(communication
techniques, 34% 35% 22% 7% 1%
organisational or
operational tools)
Technologies
(software, 42% 23% 23% 9% 2%
hardware, devices)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Very regularly/Always Quite regularly/Most of the time A moderate amount
Not very often/Once in a while Not at all/Never
PwC Out of sight, out of mind? | 15While exposed to new ‘things’ Figure 6: Engagement with peers back in Australia
overseas, almost a quarter (24 per
cent) of the diaspora respondents 6%
do not engage with their peers
back in Australia (see Figure 6).
Conversely, at the other end of the 24%
engagement spectrum, 6 per cent 16%
of respondents note that they are
in daily/constant contact with their
peers back in Australia.
“Australians abroad are highly
valued for their can-do attitude
and big-picture capabilities. They 5%
are often bad networkers but
great learners. Whilst on their
grand adventures they appreciate
how collaboration underpins
innovation. Having spent half
my working career overseas I can
attest that the diaspora return with
worldly innovation capabilities that 49%
are vital to Australian companies
as they seek to compete in global
supply chains.”
Daily constant contact Frequently Scheduled (once a month)
(once a fortnight or more)
Tony Frencham, WorleyParsons As necessary Not at all
Group Managing Director,
and Advance Global Board member
Figure 7: Ways of maintaining networks with Australia
100%
92%
90%
80%
70% 65%
61%
60%
51%
50%
39%
40%
30% 29%
25%
20%
20% 18%
14%
10% 8%
10%
0%
Maintenance of networks back
Digital communications
– Blogs
Communications with family
and friends in Australia
Digital communications
– Facebook
Regular visits back
to Australia
Digital communications
– Linkedin
Formal communities of interest
e.g. chat rooms or online forums
Digital communications
– Instagram
Digital communications
– Twitter
Your organisation’s
global networking events
Education alumni groups
(universities, schools or other)
Digital communications
– Other
Subscribed newsletters
to Australia is, not surprisingly,
a combination of return visits,
communications with family and
friends and the use of social media
– see Figure 7.
Clearly, engagement with peers
is both a mix of social and
professional objectives. Note: Multiple responses permitted so results will not sum to 100
PwC Out of sight, out of mind? | 1669% of respondents living Figure 8: Results of engaging with Australian peers
overseas saw either no benefit from
engaging with Australian peers 50%
(40 per cent) or felt it was too
40%
early to tell if there were benefits 40%
(29 per cent) – see Figure 8.
While this may seem a pessimistic 30% 29%
outcome, in contrast, a number
of respondents identified benefits
20%
from their engagement: 17%
14% 13%
• new or streamlined operational
processes – 8 per cent 10% 8%
• the creation of superior 6%
organisation or managerial 0%
processes – 6 per cent No benefit
Too early to tell
Innovative solution to problem
New or improved ways of working,
goods or services
Productivity benefit – time or cost
savings because of the e
sharing of informationn
New or streamlined
operational processes
Creation of superior organisation
n
or managerial processes
• innovative solutions to problems
– 17 per cent
• new or improved ways of
working, goods or services
– 14 per cent
• productivity benefits
– 13 per cent.
Note: Multiple responses permitted so results will not sum to 100
The challenge is to link these Figure 9: Barriers to doing business with Australia
identified beneficial learnings
back to Australia, and overcome 60%
60%
the barriers to collaboration –
see figure 9.
50%
40%
30%
19% 19%
20%
16%
14%
10%
4%
0%
e
None of the above
Lack of bilateral associations
providing introductions and d
promoting business relations
and collaborations with Australia
Lack of mechanisms for connecting g
with Australian research for the
e
purpose of innovation and d
commercialisation of ideas
Lack of fundingg
for research collaborations
Lack of clarity about the rules of
business activities across borders
Concern over copyright
and intellectual property protection
n
PwC Out of sight, out of mind? | 17The returned Figure 10: Time spent outside Australia
diaspora 7%
2% 1%
12%
While maintaining our connections
with the existing diaspora is 8%Survey respondents were most Figure 12: Degree of innovative tools/techniques/issues brought back to Australia
likely to bring back ‘ways of
thinking’ and ‘methods of working’ Sales and
marketing 12% 22% 19% 23% 24%
upon their return to Australia – see techniques
Figure 12. Not surprisingly, new
technologies were less likely to be
brought back to Australia. Ways of thinking
(research methods,
There is evidence that the problem solving,
26% 36% 23% 8% 7%
underutilisation of expats who thought leadership)
have returned to Australia is
costing the country in terms of
potential economic growth. New business
12% 24% 23% 27% 14%
models
“As a country we need to
understand much better the
importance of living and working Methods of working
(communication n
overseas, and how to leverage more techniques, 17% 35% 32% 10% 6%
effectively the fruits of the resultant organisational or
operational tools)
expertise, insights and experience.
We really need these to meet head on
some of the major challenges facing Technologies
Australia today. Technology shrinks (software, 8% 10% 24% 30% 27%
hardware, devices)
distances and collapses borders,
and today competition is coming 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
from every corner of the planet.
Those like myself who have spent Very regularly/Always Quite regularly/Most of the time A moderate amount
many years offshore know only too Not very often/Once in a while Not at all/Never
well how this allows them to learn
new things, experience different Note: Multiple responses permitted so results will not sum to 100
cultures, and creates a unique and
immensely valuable awareness of
what it takes to participate, to be
competitive, and to be successful in
the very global world in which we
all live today. In my old firm, IBM,
we had a saying: ‘If you don’t go,
you simply don’t know.’ ” The returned diaspora were relatively likely to maintain an engagement
with their networks outside Australia – see Figure 13.
Michael Cannon-Brookes,
Retired Vice President, Global Strategy Figure 13: Amount of engagement with networks outside Australia
for Growth Markets, IBM, and Advance
Global Board member
41% 31% 9% 14% 6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
As necessary Frequently (once a fortnight or more) Scheduled (once a month)
Daily/constant contact Not at all
PwC Out of sight, out of mind? | 19Not surprisingly, geographic and Figure 14: Biggest barriers to engagement with peers outside of Australia
time constraints provided the
largest barriers to engaging with
Existing network/
peers overseas – 97 per cent, see connections not 9%
properly established
Figure 14. More concerningly,
however, barriers included: Knowledge gaps with
existing networks/ 10%
• lack of interest from Australian- connections
based peers – 25 per cent
None of the above 10%
• the lack of relevant skills
Lack of relevant skills
in Australia or the relative in Australia or the
relative advanced nature 20%
advanced nature of the overseas of the overseas market
versus Australia
market versus Australia
Easier to
– 20 per cent collaborate locally
25%
• knowledge gaps with existing
networks/connections Lack of interest from
Australian peers
25%
– 10 per cent
• existing network/connections Time constraints 41%
not properly established
– 9 per cent
Geography/time zones 56%
• easier to collaborate locally
– 25 per cent 0% 10% 20% 30% 40% 50% 60%
“In my two decades working
offshore in a Regional or Global
CEO capacity, I was amazed at
the number of times winning
business models presented from
around the world were questioned,
challenged or suggested not
suitable for Australia rather than
embraced. Upon probing, there
was genuine concern from the
Australian-based teams, retailers
& agencies that Australia was
different from the rest of the world,
whether it be consumer needs,
customers/retail environment
and/or logistics/operational
processes. As an Australian, I had
wished we had focused more on
finding the elements of the plan
that could work in Australia, learn
more about what made these
winning programs tick and look to
implement an overall stronger plan
rather than rejecting the idea.”
Joanne Crewes,
Advance Global Board member
PwC Out of sight, out of mind? | 20Where returned respondents Figure 15: Result of engaging with peers outside Australia
continue to engage with peers
outside Australia, only 8 per cent 50%
44%
identified there to be no benefit, 45%
and 19 per cent said that it was too 40%
early to tell if there were benefits – 35%
see Figure 15. 35%
30% 28%
Instead, as shown in Figure 15,
respondents identified a range of 25% 24%
21%
benefits: 20% 19% 19%
• innovative solutions to problems
15%
– 44 per cent
10% 8%
• productivity benefits
– 35 per cent 5%
• new or improved goods or 0%
Innovative solution
to problem
Productivity benefit – time
or cost savings because of
the sharing of information
New or improved goods
or services
Creation of superior
organisation or
managerial processes
New or streamlined
operational processes
Too early to tell
New or improved
marketing methods
No benefit
services – 28 per cent
• the creation of superior
organisation and managerial
processes – 24 per cent
Note: Multiple responses permitted so results will not sum to 100
PwC Out of sight, out of mind? | 21The returned diaspora: Case Study 1
Adrian Turner
CEO Data61, Former Advance Chairman
Adrian Turner spent 18 years Adrian reflects on what his return “The creation of a trusted group that
competing in the ‘cauldron’ of Silicon to Australia has brought back to can give each other a leg up to compete
Valley as a successful technology the country: globally, the relationships, the trusted
entrepreneur. His decision to return advice.. Its understanding the value of
to Australia came from ‘a genuine ‘What I think I bring all of those things and bringing it back.”
concern about the way that Australia
was tracking, falling outside of the
back to Australia is, Data61 has teams from 70 different
global frame of building platforms and more than anything countries around the world, part of
which is due to the PhD student body.
understanding the impact of digital else, a mindset. I have a Data61 are building a global network
and data trends in transformation of
economies and industries’. growth mindset versus that Adrian explains this will give
the country new pathways to build
In Silicon Valley (and other parts of
a fixed mindset, an regional and global ties, underpinned
the world), the ‘pay it forward’ culture ambition and a scale by science and technology.
of giving back ‘to the system’ without of thinking with global “Having a programmatic way to
an expectation of anything in return
underpins the success of the collective. context, and that’s what engage and capture mindshare and
Adrian found a way of doing this is needed for Australia to communicate with the diaspora is an
though Advance, by helping to create incredible asset for the country and
a platform and a trusted environment
compete.’ that’s how we think about Data61.’
to accelerate informal networking for He also taps into his overseas networks
global Australians based on the west “I don’t ever want to lose touch with
and relationships regularly, to get a these people. In fact, I suspect they will
coast of America. Advance played a pulse of what’s going on in other parts
key role in Adrian’s network building be even more valuable for us, knowing
of the world. His experiences whilst who we are, having spent the time with
back into Australia and Adrian served being part of the creation of Advance
as chair of the Advance board for us, but sitting in another part of the
have influenced his thinking in the world in another organisation and still
5 years. way he is organising Data61, which he feeling connected to us, they’ll probably
describes as ‘a network with porous
And now he is bringing this ‘pay it wind up being even more valuable to
boundaries, not an institution’.
forward’ culture back to Australia. the country.”
When Adrian was approached for the The 1,100 people working
CEO role at Data61, the largest data at Data61 operate as one big
innovation group in Australia, he saw network, which Adrian notes is a
an opportunity to give back to his learning he is bringing from his
country. Adrian now leads 1100 people previous experiences.
including 680 PhD students in his role
at Data61. “Not only will they be more employable
after working at Data61, when they
“I really care about this country’s future leave they will be part of an alumni
and I think that this group can change network and wherever they go in
the trajectory of Australia from within. the world the network will help
And that’s’ why I came back, to lead it”. them succeed. ”
He cites another example of the value
of a network in the ‘8200 Unit’ in
Israel. This unit is an elite cyber team
‘like the navy seals for cyber security’.
Many of their alumni have gone on to
found leading Israeli IT companies and
the majority of Israel’s cyber security
successes are one or two degrees
removed from the 8200 Unit.
22 | PwC
PwC Out of sight, out of mind? | 22The returned diaspora: Case Study 2
Michelle Guthrie
Managing Director, ABC, Former Advance Board Member
Working internationally has given “You have retailers here who expect “In particular, I make sure that I keep
Michelle Guthrie valuable perspective Government to regulate Netflix or up with Australians who are doing
about different ways of doing Amazon, but when it comes down to it, interesting things in Asia. It is why I
things, reacting to market conditions if you are providing a better consumer try to participate in Advance events,
faster and moving with audience experience - as Amazon will be if it can because I think that the connection
expectations. get to two-hour delivery in Australia - at internationally is very important.
a cheaper price, then that’s what’s going Post the ABC, I would hope that I
The Managing Director of Australia’s to win, not Government regulating could pick up a couple more NED
national public broadcaster believes them. I do get the sense that there is roles internationally or potentially do
it’s a perspective she may not have more focus on the market environment something else in Asia. I don’t see this
gained, had she not worked abroad instead of on the customer, which you as the final move. I see myself as an
and experienced the complexity and see around Uber, and around a whole lot international person who has spent
diversity of countries like Asia. of market disruption.” some time in roles in Australia.”
The way television programs are She also points out that very few
made is one example of where this people on executive teams or boards
perspective has been valuable – in Australia have international
particularly the approach to TV experience – something she believes is
production in countries such as to their detriment.
Taiwan, India and Indonesia where it
is done at a lower cost. “If you look at any
Michelle says that the Australian multinationals, it’s
media environment can seem
simplistic by comparison due to its completely the other way
less complex market structure but the around. Someone like
experience she’s gained internationally
is now relevant to her role guiding the
Proctor & Gamble or any
ABC through the country’s changing of the big miners who
media landscape. operate internationally,
“Your ability to cope with disruption is all their executives have
better for having had the international
experience, as you’re not frightened by
done stints in Latin
things being different today compared to America or in Asia or in
yesterday, because that’s what happens
internationally. It helps to have seen the
London or wherever…
movie play out in other countries and That’s normal. But it’s
have that perspective.” unusual to have that
These are just some of the learnings kind of experience on
informing Michelle’s work now she’s
back in Australia.
the boards of Australian
companies.”
Since returning, she has noticed some
surprising differences in the corporate It is imperative to Michelle that she
environment. maintains her networks abroad.
She does this in various ways, by
She contrasts the ‘entrepreneurial maintaining a role on international
culture’ experienced in Asia, with boards, through in-person visits to Asia
how some Australian organisations and participating in Advance events.
tend to look to Government for more
regulation to solve problems.
PwC Out of sight, out of mind? | 23The returned diaspora: Case Study 3
Genevieve Bell
Director, 3A Institute, Australian National University, and Senior Fellow, New Technology
Group, INTEL and 2016 Advance Global Australian Award Winner
Genevieve was inspired at a young age She credits her pivot into the world of “One thing you need to know about
to study overseas, and made a great technology, and her huge success in being a returning Australian, having
success of it, she did her PhD at Stanford that field, to the Australian cultural been gone that long, is that I still
and landed a job on the faculty of the values that were instilled in her which sound Australian but the things I say
same University, which was one of she describes as a kind of fearlessness: frequently are incredibly American.
the highest ranking anthropological ‘just have a go’, ‘ what’s the worst thing So usually when I rattle off my CV to
faculties in the US at the time. that can happen’, ‘roll up your sleeves Australians they get this look on their
and get it done’. face of total cognitive dissonance which
Genevieve describes her move into is ‘she sounds like one us, she said it was
Intel as ‘a classic Australian pivot’, “I find it really interesting that I’ve had just a fang around the block and then
which may not happen as frequently a lot of unexpected push back since I she bragged about all she accomplished’,
anymore as it did in the 80’s and came back, in ways I don’t recognise as and they don’t know how to make sense
90’s when the idea that you might being Australian cultural practice, but is of that. It’s not an attitude we know how
be following one direction, and then clearly where we have moved in the time to deal with terribly well.”
make an entire re-direction and go that I’ve been gone. Whereas I’ve kept
somewhere else was for Genevieve a a set of these little things curated in my Genevieve notes that she never would
very familiar Australian narrative. heart very carefully as being Australian, have been able to set up the Institute
that look weird now, here at least.” at ANU if she had just been in similar
She was educated to be an academic roles in Australia. She believes that
in cultural anthropology, in a big ‘When I came home, that tall poppy she wouldn’t have had the intellectual
American university, which she syndrome which was lurking in the capital or the personal brand assets to
describes as being the ‘obvious’ path back of my head the entire time I was draw on to get it done. She ascribes
for her. Taking her knowledge and overseas, had metastasized,and we still this to Silicon Valley still being the
know-how to a technology field in have that, and that’s problem #1. But beating heart of technology innovation
the middle of the dotcom boom was problem #2 is, it’s become perverted globally and that you have to be in it to
not an obvious thing to do. Genevieve into this notion about managing risk. see it really unfold. She also credits the
explains that her ‘guiding north star And frankly, almost a ‘you don’t want ethos of Silicon Valley, being ‘ just do
principle’ was that your life should to set things up to be successful, because it’, ‘build it and see what happens’, and
amount to more than your own self- success will expose you to tall poppy ‘build it and break it, build it and break
gratification and that your labour syndrome’. So now we are going to it, act now and break things fast’ as a
should be in the spirit of service. mitigate risk to zero, which of course huge factor.
means the possibility of doing anything
When Intel came calling, they were at interesting has gone to zero too.’
a critical intersection as a technology
company about where they wanted Genevieve has hit the ground running
to go next, about what mattered to since coming back to Australia 7
them, and they wanted to engage in months ago. She moved back to
wholesale reinvention. Canberra to join the ANU where,
she has launched a new research
“I thought, ‘here’s a company that’s institute. Its focus is the creation of
making the future, if they’ve got room a new academic discipline around
for me in there, I want in’.” the management of emerging
And so she left Stanford, joined the technologies in the fields of Artificial
tech field, and spent the last 20-odd Intelligence, machine learning, big
years at Intel, worked her way up data, algorithms, and associated ethics
from a very junior ‘bunny’ to the most and morality.
senior ranked technical woman in the
country, the first woman senior Fellow,
a title she still holds, as well as being a
vice-president in the company. When
ANU recruited Genevieve to come
home, Intel didn’t want to lose her so
she now maintains both jobs.
PwC Out of sight, out of mind? | 24“There is a much greater orientation “This approach was a huge success “It’s interesting when you think of who
towards risk and a willingness to try for Intel. We landed ourselves deals is taking advantage of social media
new things.” and made relationships and got into platforms, particularly given the time
conversations we wouldn’t have been lag. I always joke about this as I would
All of that being said, Genevieve able to get into otherwise because, go to sleep and wake up and there
concedes that she couldn’t have like many multinationals, our offices will be some meme that has happened
started a similar institute in Silicon were mostly in those days sales and overnight in Australia while I was
Valley. marketing. Many still are.” sleeping and I’ll have no idea what the
genesis is, so I can’t actually work out
“The tyranny of distance Being overseas has shaped Genevieve’s why everyone is now doing what they
cuts both ways. We may way of thinking in so far as it has left are doing. Social media is so immediate
her with a ‘very American impatience’
be a long way away for things in Australia. She notes
we forget that there is that time lag.”
from things, but it also that, at a tactical and strategic level, Genevieve raised a missed
means we are not in there are ways that Australia moves opportunity for a cultural connection
that irritate immensely, for example with the diaspora during the last
the centre of things and the technical infrastructure being far federal election.
that can be powerful below par for a first world country.
“I went and voted in the consulate
if you want to build On tapping into the diaspora from in New York, and it was incredibly
something new without Australia, Genevieve notes that instrumentalist and pragmatic. There
it being usurped.” some of the moves most recently were voting booths and there were
by Government to change the visa people and there were folders, but there
During her time abroad, Genevieve regulations have negatively impacted was no sense of using the opportunity of
maintained engagement with what she is trying to get done. Australians gathering together to extract
Australia. In the late 2000’s, more from it. There was no Australian-
she helped the South Australian “The way to brute force your way ness to it, nothing to hold us together. I
Government go through an early audit over that is to just go and find other remember thinking at that time it was a
of what would happen when high Australians and bring them home too.” total wasted opportunity.”
speed internet access came to South Genevieve has always maintained
Australia and how to think about strong Australian connections while
the barriers to adoption. Genevieve overseas. When she returned to
also worked with NBN Co, and in Australia, she already knew ‘what
the last 7 years with NAB and CBA, the conversations were, who was
helping them think differently about on the various cricket and football
reimagining banking and financial teams, what we were listening to
services and the role of technology. on the radio and what the debates
As a result, Genevieve returned to were, because they have played out
Australia frequently. Her overseas in her twitter feed over the preceding
credentials also helped the Australian 5 years’. Genevieve notes that
branch of Intel to open doors they technology makes it easier to maintain
couldn’t open locally. a connection culturally than it used
to be.
“It’s the day-to-day stuff, and the
minutiae, and frankly it’s that that
keeps us connected. I look at what are
the touchstones of ‘Australianness’ that I
can consume overseas.”
PwC Out of sight, out of mind? | 25The returned diaspora: Case Study 4
Professor Jane Burns
Innowell Founder and Commercial Advisor to the Board
Whilst working on the start-up Maintaining these relationships is hard “I think the answer to
of beyondblue, where she was work. Jane reflects on the ‘tyranny
instrumental in establishing their of distance’ as well as the difficulties those questions will
nationally and internationally in taking ideas and concepts from be in the success of the
recognized youth agenda, Jane was Australia across to countries like the
selected as a Commonwealth Fund US, Canada and the UK who all have
InnoWell model, with
Harkness Fellow in Health Care Policy very different healthcare systems. The PwC and the University
(2004-2005), at the University of San
Francisco. This time spent in the US,
population of these countries adds to
the challenge as does the complexity
of Sydney collaborating
collaborating with Fellows from the in health policy between the states in together.”
other Commonwealth nations and the US. Jane’s time abroad exposed her to
sharing knowledge, helped Jane to a number of key learnings that she
forge international networks that she Not dissimilar to the CRC partnership
model, Jane currently advises another has brought to bear. She reflects on
still leverages today. the ‘razor-sharp’ focus of the US on
collaborative venture, Innowell:
Upon her return to Australia in 2005, diversity and disparities in access
Jane joined the Inspire Foundation “PwC and the University of Sydney are to care as a key learning from the
to lead their international expansion taking technology to help people manage international dialogue she was a part
of ReachOut.com into the US as their mental health to scale. Funding of through the international posting.
International Director of Research, has been provided by the Federal
“The global experience shaped the way I
Policy and Practice. Department of Health. It’s about how
have led. Prior to going I wouldn’t have
you translate the research conducted
“I possibly would have got this role thought about diversity or disparity in
but it wouldn’t have been with an and what I think are quite incredible
access to care in any great depth, and
international lens around it if I hadn’t products that have come out of the
this really changed my thinking. If we
been overseas and developed those work that we have done collaboratively
are really talking about innovation and
networks in suicide prevention.” and collectively, and take them to scale
how we can create accessible health
internationally. The only way this can be
Jane took her international networks services, what does it mean for someone
done is by working with Industry. And
one step further, and established the who lives with a severe disability or in a
that’s the bit that I don’t think Australia,
Young & Well CRC in 2011, involving community that is remote that is reliant
in the area of mental health, has been
75 organisations from across Australia, on fly in fly out services? This insight
US and the UK, including Inspire particularly great at.”
has shaped the organisations that I have
Ireland. Part of the work done by the “If you look at the collaboration built since I went on that fellowship.”
CRC looked at international models
that’s led out of the University of
of how to use technologies in a global
California in San Diego, their whole
mental health system.
focus is on establishment of Industry
“CRC’s include industry, academia & Academia partnerships, with the
and the not-for-profit sector, and our drivers being excellent research but also
industry partners at that stage were commercialisation. Similar models
Google, Telstra, eventually Facebook and are used in Israel. We have not done
Twitter, as well as a number of SME’s that in Australia. We have got great
working in the digital health space, like
foundations and a lot of interest to
the Sydney company Zuni.”
allow that to happen - but the real
Jane spent time in the US in Silicon challenge is how to do this in a way
Valley with these industry partners that’s commercially viable, sustainable
and cultivated more relationships and drives R&D in Australia while
across the US, Canada, New Zealand positioning Australia as a world thought
and the UK amongst the people she leader in this space of mental health and
met there.
digital health.”
PwC Out of sight, out of mind? | 26What now?
Collaboration is critical to Australia’s It would be easy to note that Australia is an advanced
innovation agenda. economy and hence suggest that we do not need to
view the diaspora as a strategic source of inbound
Innovation is critical to the success of business as
learnings. Such an approach, however, overlooks the
well as to a more socially and economically inclusive
world. Collaboration is widely recognised as a key value that can be provided to a small remote country
ingredient of innovation. In order to further our like Australia by linking Australian organisations with
transition to a knowledge economy, collaboration best practice overseas; the diaspora is one avenue to
across industries and with Universities must continue address Australia’s collaboration deficit.
to be encouraged. Global collaboration, leveraging
our powerful diaspora, should be planned and Opportunities for the Australian
supported. Additionally, the success of collaborations
such as Innowell should also be celebrated. Government
There has been a largely bipartisan approach by
Harnessing the growing power of global Australian Governments to our diaspora. Successive
Australians and alumni offshore, and those governments have engaged elements of our diaspora,
who have returned home, should be an integral acknowledging its potential as a national asset,
part of the nation’s innovation agenda. including:
Over the past decade, there has been a radical growth • In 2017, the statement in the Foreign Policy Paper
in policies and projects of engagement seeking to that, “We also have an estimated one million
activate the ‘diaspora capital’.5 Australians living overseas. We will continue to
leverage the knowledge, networks and expertise
The Migration Policy Institute (Washington) reports
of our expatriates through chambers of commerce
450 government diaspora initiatives in 56 countries
and organisations such as Advance.” 6
(with one third established since 2005) to leverage
diaspora communities. • In 2016, the Department of Foreign Affairs
and Trade released Australia’s Global Alumni
In addition to Israel and New Zealand, this is certainly Engagement Strategy with a mission to grow a
the strategic orientation of the two most populous global alumni community that actively engages
nations with significant diaspora: and promotes Australia and advances our national
“The Chinese and Indian interests, especially in the Indo-Pacific region.
governments are deeply conscious of • Advance has been supported by the Department
of Foreign Affairs and Trade and Department
their global diasporas and want to of Industry as the only global, cross-sector non-
continue using the knowledge and governmental organization connecting, engaging
skills of their emigrants who have and leveraging our diaspora (expatriates, returnees
and global alumni) to enhance Australia’s
settled elsewhere. In recent years these development and international status.
governments have become sharply • Support for other Australian networks overseas
focused on using the resources of their and resources in posts to reach out to expatriates
diasporas abroad to forge and sustain and alumni, by way of in-country promotional and
links for economic development, networking events, information dissemination, and
public diplomacy.
increased knowledge transfer and
innovation collaboration.”
Rizvi, Louie & Evans (2016, p.36)
5.
Overseas resources available to a country, region, city or location... made up of people, networks, finance, knowledge, ideas, attitudes and
concerns for places of origin, ancestry or affinity.’ http://diasporamatters.com
6.
2017 Foreign Policy White Paper, Australian Government
PwC Out of sight, out of mind? | 27You can also read
