Google predicts that in two decades, Australia’s tech start ups will be able to account for 109 billion Australian dollars (US$112 billion) a year to the economy and directly employ 540,000 people by 2033. And if this is achieved, tech start ups will be contributing about 4% to the GDP of the country, which is very close to the education system and the training business. The education system accounts for 4.2% of the country’s GDP, while the training business makes up to 4.4% of the GDP of the country.
There are a number of tech start ups taking birth in the continent recently, and a few of them have already become quite well know and started drawing attention. For example, you can consider the Australia based online music discovery service, We Are Hunted. You would have read about this company a lot recently, as Twitter, the world’s most popular micro blogging service, just acquired the Australian start up for its new service, Twitter Music.
Currently, the tech industry in Australia employs 9, 500 people, and accounts for 0.1% of the economy of the country. And according to a recent report, this is less than arts and recreation.
“It’s really since 2007 that we’ve gained a tech startup culture,” PwC partner Jeremy Thorpe, who worked on the report by Google, told The Wall Street Journal. “We missed, in a sense, the first tech boom and we’re late for the second tech boom, so we’re coming from a weaker position.”
What is holding back Australia in the tech world, you may ask. The answer to this is the deficiency of tech entrepreneurs. Less than 2% of the graduates coming out of universities in Australia have a computer science degree. And whatever may be the population of the continent, that is a small number of computer science engineers. If this improves, which looks like it will, the condition of the tech start ups will soon change.
Source: Wall Street Journal