Cities and Productivity: Insights from the CEDA State of the Nation Conference

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These urban centres are crucial economic assets, and sustaining their productivity is more important than ever.

James Tuma View Profile

The second main contextual point that is important to acknowledge is that economic productivity in and of itself is not an outcome – just a measure of things that really matter. What we are really talking about is our collective ability to deliver quality of life outcomes, to access to education, healthcare and opportunity, and to have the capital needed to invest in societal and environmental outcomes that can sustain the nation.

Looking at global benchmarks or indicators of above average growth in productivity – innovation and research districts are a good proxy for a city’s economic diversity and health. These districts tend to exhibit strong ‘place capital’, resulting in a distinctive identity, invest-ability and attractiveness to talent. They also often exhibit collaborative governance frameworks and a strong sense of intentional specialisation.

In Australia, whilst we often boast precincts and districts with strong ‘place capital’, we have not consistently seized the opportunity to build fit for purpose governance models, nor are there enough examples of the successful pursuit of clustering specialised industry sectors.

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If all Australian cities invested in their competitive physical and structural advantages and explored fit-for-purpose governance models, the impact would be significant.

James Tuma View Profile

The Australian Government has a significant role to play in driving more productive cities, controlling the major infrastructure agenda, taxation, and key regulatory levers. Directing these three forces into specific ‘positions’ on productivity outcomes in our cities could elicit an almost instantaneous response from industry and capital markets, with a significant impact.

Imagine if all our national programs and policies aimed to make our cities more competitive and liveable. This perspective offers an opportunity for the Australian Government to lead, using the emerging National Urban Policy to deliver cross-cutting benefits for the cities in one of the world’s most urbanised countries.

A bottom-up approach to productivity is also essential. The university and research sectors, start-ups, scale-ups, and the development of local business ecosystems significantly contribute to innovation and, by implication, productivity. Encouragement and nurturing are needed for local and state governments, venture capital, industry engagement, and other strands in this complex system if we are to meet our incredible potential.