Aussie companies not so clever

THE corporate leaders of the so-called “clever country” are badly mishandling the nation’s innovation program, a new study has found.

The alarming conclusion flows from a study by the Australian Institute of Company Directors.

It found more than half of board members do not know how much the companies they oversee spend on research and development. The Australianfirst study found 57 per cent of directors reported that innovation never or rarely came up at board meetings, while only 3 per cent had any expertise in science or technology.

Two out of three directors admitted their board lacked the appropriate skills and experience to assess both the ethical and practical implications of modern technology. AICD chief Angus Armour said the study, to be released today, made for “sober” reading.

“The study tells us that innovation is often missing from Australian boardroom agendas,” Mr Armour said.

“It reveals that traditional risks are the focus rather than the risks, and opportunities, associated with innovation and disruption. In short, (it reveals) a director community that feels overwhelmed by internal and external pressures, and struggling to look up and see what is on the rapidly approaching horizon.”

Mr Armour said corporate Australia was lagging international counterparts by failing to prioritise innovation and have a broader range of skills on its boards to deal with it.