News release

From: Curtin University

A new report from the Bankwest Curtin Economics Centre reveals Western Australia’s startup and innovation ecosystem requires targeted reforms and investment to unlock its full potential, calling for improvements in talent development, gender diversity and access to capital and infrastructure to support a more diversified economy.

The report, titled ‘Dare to Venture: Startups and the innovation ecosystem in Western Australia’, highlights WA’s strengths in mining, energy and resources but points out that the state’s reliance on these sectors limits growth in emerging fields such as artificial intelligence, biotechnology and data analytics.

Co-author and Bankwest Curtin Economics Centre Senior Research Fellow Dr Daniel Kiely said WA was at risk of falling behind other states, particularly in industries that could contribute significantly to economic growth, employment and prosperity.

“Startups drive innovation, productivity, job creation and social wellbeing and while WA’s startup ecosystem has grown significantly over the last decade, it is still small compared to other regions, with a startup labour force of just 9,650 workers in 2024,” Dr Kiely said.

“WA’s startups are heavily concentrated in industries like mining, oil and gas, and energy while emerging sectors such as artificial intelligence, FinTech, biotechnology and health are underdeveloped.

“But startups do not emerge in a vacuum. Investing in leadership, talent and skills, as well as in knowledge, through R&D investment, will help bridge the gap with other states and build resilience in the WA economy.”

Strengthening WA’s innovation ecosystem could create up to 350 new businesses, generating 3,500 highly skilled jobs and broader economic benefits, the report found.

Co-author and Bankwest Curtin Economics Centre Senior Research Fellow Dr Abebe Hailemariam said key recommendations from the report include initiatives to increase tertiary and vocational education in high-growth fields, provide additional supports to incubator and accelerator programs, and attract investment into new industries to close the gap with eastern states.

“Key drivers of startup success include access to funding, entrepreneurial experience and talent,” Dr Hailemariam said.

“Gender disparities do exist, with male founders having a higher exit success rate via acquisition or IPO. But much of this gap can be closed by addressing factors like access to funding and enhancing the founders’ experience.

“The report calls for targeted policies to develop talent, improve access to grants and address gender disparities, ultimately boosting WA’s economy and fostering a more diversified and resilient innovation ecosystem.”