Australia’s security requires a workforce skilful and innovative

In a world of ­increasing geopolitical tension and renewed nationalism, Australia must achieve practical independence.

Australia is at an economic crossroads. There is a generation that has grown up experiencing a thriving economy. On the flip side are generations that have experienced the woes of a stagnating economy, who are concerned about their economic future.

The magnitude of recent fluctuations in the price of our natural resources amplifies the challenge. How do we support the growth of new industries, and the creation of new jobs, while reducing fiscal expenditure?

There are no definitive ­answers. However, in a world of ­increasing geopolitical tension and renewed nationalism, Australia must achieve practical independence.

There is a difference between theoretical and practical independence. Australia became theoretically independent in 1901. It wasn’t until World War II, though, that we understood the need to stand on our own feet — a realisation that paved the way for the modernising of the economy and the ANZUS alliance with the US and New Zealand.

This 20th-century brand of practical independence has served Australia well, but times have changed. The old world order has been disrupted by technology, terrorism and nationalism, and it is in our national interest to forge a 21st-century brand of practical ­independence.

I am not proclaiming a bout of Australian protectionism but a com­mitment to a self-­reliance ­exploiting our nation’s strengths, developing Australian ­ingenuity and exporting this to the world.

Australia needs to take three actions to be more self-­reliant.

We must stay ahead of technological change. Australia’s security depends on technological superiority. Maintaining a technological edge will become crucial as next-generation innovations become widely available.

To remain secure, Australia must stress technological innovations. The defence industry must remain an instigator of innovation — using technology to continually disrupt and improve the country’s defence capabilities. If we fail to disrupt ourselves, Australia runs the risk of having our nat­ional security disrupted for us by ­unfriendly forces.

Our second action concerns capability. The federal government has signalled a greater ­emphasis will be placed on the ­Defence Force acquiring capability rather than simply the supply of material and equipment.

This shift recognises Australia’s ­defence has unique requirements that must be deve­loped or supported at home because overseas sources cannot always assure the required level of security.

In other words, Australia needs to expand its sovereign industrial capabilities. Becoming more independent in our industrial cap­abilities will require strategic invest­ment and planning from Defence as well as industry, with a focus on the full life-cycle of ­defence platforms.

Given the capability requirements of Defence, our industrial focus must also broaden. The sector — from large companies to smaller enterprises — needs to work together to create a defence industry base with the flexibility of local expertise and the capability of international expertise.

Australia’s third action must be to invest in skills and education. The defence industry will need to find thousands of new employees over the next decade. Many will be scientists and engineers, many will be blue-collar technicians — all will need to be highly skilled.

Australia’s security depends on the incubation of new technology inno­vations and ideas. Australia should build a reputation for leading-edge knowledge and expertise. We must build and maintain a skilled and agile workforce.

There is no reason why Australia’s defence industry cannot ­become practically independent. We have the brains and ability. Our challenge is to take strategic steps to expand our sovereign capability.

Glynn Phillips is chief executive of BAE Systems Australia