The federal government faces more fallout from its AU$2.9 billion, five-year Innovation strategy, with industry anaylsts saying it could lead to a wave of well-educated expatriate Australians working overseas.
Research organisation IDC says the lack of policy planned for the short-term may widen the gap between Australia and other tech savvy nations, leaving the country too far behind to catch up.
On the plan to stretch funding over five-years, IDC believes "the country may find itself struggling when faced with the other fast-tracking digitally-aware economies."
"...money devoted to the furthering of IT penetration and development in Australia is good; however the question is whether the funding meets the true needs of today's economy - not yesterday's."
According to IDC, "high costs, volatility and cannibalisation within the workforce," are stifling the growth and success of innovation in Australia.
IDC believes the government is being too "conservative" on funding.
"The danger of the plan is it will create a future wave of well-educated expatriate Australians working overseas rather than a crop of innovative indigenous companies."
Government investment in innovative output and more support for small company efforts - including tax incentives and financial aid - is important to the growth of innovation, according to the report.
IDC believes, "caution must be taken to avoid complacency and the "she'll be alright" attitude that has resulted in a lack of competitiveness and the outflow of talent in search of greener pastures."
