NSW releases its 2024 innovation and productivity scorecard: key insights and TRaCE’s role in driving change  

The NSW Innovation and Productivity Council published its 2024 NSW Innovation and Productivity Scorecard, offering a detailed analysis of the state’s performance in critical areas like innovation, productivity, research, and clean energy. In this article, we break down the key insights and highlight the essential points that emphasize the importance of tackling challenges in clean energy adoption, research investment, and industry collaboration. Read on for a detailed overview.


The urgency of clean solutions: why NSW must accelerate efforts  

The report reminds us how crucial it is to focus on clean energy solutions. Climate change and the transition to a net-zero economy will reshape Australia’s economy and society over the coming decades. Lower energy costs, economic resilience, and higher productivity are just some benefits of making this shift early.  

Yet, NSW remains behind. In 2020, the state recorded 16.25 tons of GHG emissions per capita, with only a modest 2.9% decrease from 2019. NSW fell to seventh place in international rankings, signalling that more aggressive action is needed if NSW and Australia are to meet their 2050 net-zero targets.  

TRaCE is designed to address these gaps by focusing on innovations in clean energy and recycling solutions. By driving research and development in these areas, TRaCE aims to accelerate NSW’s transition to a more sustainable, lower-emission economy. 


The importance of research and where NSW stands  

Research is the backbone of productivity growth and a crucial driver of innovation. Its benefits extend beyond economic gains, impacting health, the environment, and societal well-being. To secure a country’s place in the globally competitive economy, substantial R&D investment is needed.  

NSW excels with top-ranked universities and influential researchers:  

  • NSW ranks 1st for the number of top 200 universities per million people. Six of the state’s 11 public universities are in the global top 200, showcasing NSW’s strong academic presence. 
  • NSW ranks 5th out of 14 economies for highly cited researchers per 100,000 population. This reflects the global impact and recognition of NSW’s research talent. 

But NSW struggles with low R&D investment and industry-university collaboration:  

  • Business expenditure on R&D intensity in NSW was 1.06% in 2021, continuing with a long-term decline. This means that private sector investment in R&D in NSW is lower compared to other countries, highlighting a weaker commitment from businesses to drive innovation.  
  • 34.55% of higher education research income in NSW came from industry in 2022. While this shows a growing trend, collaboration rates remain below top global economies.  
  • Only 4.95% of university research papers in NSW had university-industry co-authorship between 2018-21, falling below the global average. This highlights a need for stronger partnerships between academia and industry, which TRaCE is working to improve.

TRaCE seeks to bridge this gap by fostering stronger collaborations between academia and industry. Through its dedicated programs, TRaCE actively encourages joint research initiatives that align academic research with real-world industry needs. To date, TRaCE has co-funded over $117 million in industry-led R&D projects, helping to accelerate innovation in clean energy and recycling technologies. For more details on our R&D initiatives, visit our R&D page.

  • In addition, NSW had 0.81 patent applications per 10,000 people in 2020, ranking highest in Australia but still behind global leaders like Korea. To address these issues, TRaCE has developed a Patent Course, equipping researchers with the knowledge and skills to secure patents and translate their innovations into market-ready products. Find out more here. 

TRaCE's role in addressing NSW's innovation and productivity challenges  

TRaCE is actively positioning itself to address the critical challenges highlighted in the NSW Innovation and Productivity Scorecard. Through a suite of dedicated programs focused on research-industry collaboration and commercialisation, TRaCE is ensuring that NSW remains competitive in the global market and on track to meet its net-zero goals. 

For example, the Tech Translation Squad (TTS) program provides fast, free R&D support to Australian companies, fostering stronger industry-academia collaboration. Additionally, the TRaCE R&D Vouchers program co-funds projects, helping SMEs like NeoForm Designs and EM Energy de-risk and accelerate their innovations.

The Climate 10x Accelerator nurtures cleantech startups, enabling them to scale their solution. Additionally, the TRaCE Work Integrated Learning (WIL) program equips students with practical experience by connecting them with industry partners, thus preparing them to lead the green transition of tomorrow. Explore the full range of initiatives here. 

Read the complete report here to explore more about NSW’s innovation and productivity landscape.