Want more startups, Australia? Fund schools, not incubators
The misguided approach of funding millions into startup hubs while ignoring our schools is failing our children and future innovators, writes Joan Westenberg.
While Australia’s public schools struggle with outdated technology and overworked teachers, our government is pouring millions into startup hubs and “entrepreneurs in residence”. This misguided approach isn’t just failing our children – it’s actively sabotaging our future innovation ecosystem.
Here’s why every dollar spent on flashy innovation theaters should instead be invested in our classrooms.
The “sexiness” of startup culture is undeniable. It promises rapid growth, disruptive technologies, and the tantalising possibility of creating the next global tech giant. State governments, eager to replicate the success of Silicon Valley, have poured funding into incubators, accelerators, innovation precincts and the ubiquitous “entrepreneur in residence” and “chief entrepreneur” titles.
Every successive administration in almost every state has attempted to paint itself as a champion of innovation. Meanwhile, public school funding has struggled to keep pace with inflation, let alone the rapidly evolving demands of a digital economy. In NSW alone, millions of dollars have been cut from school budgets.
The irony is that by neglecting our schools, we’re actively undermining the very ecosystem we’re trying to build. True innovation doesn’t emerge from a vacuum. It’s the product of a well-educated workforce, critical thinking skills, and a broad base of knowledge across various disciplines. These are precisely the elements that a robust public education system is designed to provide.
The skills that drive innovation are not confined to coding bootcamps and startup accelerators. They’re cultivated over the years through exposure to diverse subjects, problem-solving challenges, and collaborative projects. A well-funded public education system provides the fertile ground where these skills can take root and flourish.
But it’s not just about producing future founders. A thriving startup ecosystem requires a deep talent pool across various roles – from engineers and designers to marketers and operations specialists. By underinvesting in our schools, we’re limiting the potential of countless students who could become the backbone of innovative companies.
Our current approach perpetuates inequality. While children from affluent backgrounds can access cutting-edge educational resources outside the public system, those from disadvantaged communities are left behind. And it creates a self-reinforcing cycle where opportunities for entrepreneurship become increasingly concentrated among a privileged few.
We need to equip public schools with modern technology, provide teachers with specialized training in digital skills, and introduce entrepreneurship curricula from an early age. This wouldn’t just benefit potential founders – it would raise the baseline of digital literacy and problem-solving skills across the entire population.
Some might argue that this approach is too slow, that we need immediate results to compete in the global innovation race. And by “some” I mean grifters who sell startup services, VCs who funnel superannuation money, and politicians trying to look good for their 3-4 year term. But this view misunderstands the nature of sustainable ecosystems. They don’t emerge overnight – they’re the result of decades of investment in education, research, and infrastructure.
There’s a compelling economic argument for prioritising education. While individual startups may have high failure rates, investments in human capital consistently deliver returns. A more skilled workforce drives productivity gains across all sectors of the economy, not just in high-tech industries.
Instead of chasing the next unicorn, we need to focus on creating an environment where thousands of innovative ideas can take root. This means moving beyond the “build it and they will come” mentality of startup hubs and nurturing the critical thinking and problem-solving skills that form the bedrock of innovation.
It’s time for Australia to make a choice. We can continue pouring resources into flashy innovation theaters, hoping to stumble on the next global tech giant. Or we can take the longer, more challenging, but ultimately more rewarding path of investing in our educational foundations.
The startup founders of tomorrow are sitting in our classrooms today. They’re not asking for ping-pong tables or cold brew on tap. They’re asking for the tools, knowledge, and skills to shape their future. It’s time we listened.
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