Innovation creation and diffusion in the Australian economy

Innovation creation and diffusion through entrepreneurial ventures are important drivers of national economies. Despite this, the innovation creation and commercialisation process at the individual or small enterprise level within Australia is often inhibited by taxation and non-competitive legislative constraints. On the other hand, the corporate entity is often in a powerful position to reap the benefits from the efforts of the individual. This position of power has been entrenched by government legislation concerning employment and taxation. Tax breaks are available to corporate entities that are not available, on a pro-rata basis, to the individual. In addition, federal legislation provides tax breaks to corporations for innovation creation inputs, such as research and development (R&D) expenditure, yet it would seem more effective to offer tax breaks on the generation of revenues which are the outputs of the innovation creation and commercialisation process. An innovation creation and commercialisation model is proposed that takes into account the intra-organisational, as well as external, factors that support or impede the overall innovation process.