Can Australia Emerge as a Competitive Player in the Global Race for Innovation?

Last year, we highlighted how Australia had made significant progress, positioning itself as a strong contender among Asia-Pacific innovation ecosystems.
This year, we expanded our analysis – looking beyond scaleups to include the local investor landscape, global corporate innovation presence, and the growing infrastructure tech economy.
Our findings reinforce our earlier conclusions.

Australia hosts 1,582 scaleups – a striking figure given the country’s sparse population – that have collectively raised $36.1 billion in capital, representing roughly 2% of its GDP.
Although ecosystem growth has been modest in early 2025 (45 new scaleups and less than $1 billion raised), the investor landscape remains strong, with 491 active VC and CVC firms managing an estimated $32 billion in active dry powder to invest into the local scaleup economy. Global corporate interest is also increasing, with 26 corporate leaders already operating 36 innovation outposts, many anchored by large-scale R&D centers tapping into local talent.
To accelerate growth and compete with other emerging Asia-Pacific scaleup economies such as South Korea and Japan, Australia can leverage its inherent strengths.

A closer look at the local infratech scene – broadening the definition to construction, mining and resource technology, and energy systems – reveals continuous growth over the past five years.
Major infrastructure projects by both local and foreign corporations (including ACCIONA, BHP, and Rio Tinto) are increasingly incorporating disruptive technologies such as AI, advanced robotics, computer vision, and digital twins.
Investors are also moving into advanced tech areas such as space, UAVs and drones, and autonomous mobility, particularly where they intersect with construction and mining applications.

To fully capitalize on this momentum, Australia must overcome the inherent limitations of its geographical isolation from major global innovation hubs. Initiatives like the Mind the Bridge Scaleup Summit Australia mark key milestones in increasing international recognition. Additionally, for the first time, we have open-sourced our Australian ecosystem data, now fully accessible through our MTB Ecosystem Platform.
Visibility, however, is only the beginning.
To truly unlock its innovation potential, Australia must forge global connections – swiftly and decisively.

The opportunity is here, and the time to act is now.