New research looks at how to boost tech adoption at SME manufacturers

A new report published by the James Martin Institute for Public Policy (JMI) examines the state of Industry 4.0 adoption among NSW SME manufacturers and ways to lift this.

Recharging SME manufacturing in NSW, authored by Western Sydney University Associate Professor Dilupa Nakandala, identifies barriers to adoption including “specific leadership capabilities, people, skills and experience, financial capability, and innovation capability”.

SME firms make up 99 per cent of manufacturing businesses in the state, and “have been slow to adopt” the relevant digital technologies, “missing out on improved performance and economic impact”, according to a statement from JMI.

Noting that the NSW government has announced plans to develop industry policy and an Innovation Blueprint, the report identifies four policy opportunities: 

1) Establish a “NSW-SME-Centric Manufacturing Technology Centre” for tailored demonstrations of SME-specific technologies;

2) Provide a technology advisory program for SME’s spanning technology selection to implementation;

3) Enhance knowledge exchange through an industry secondment program; and

4) Introduce a technology leasing program for increased technology accessibility by eligible SME manufacturers.

Nakandala, who completed the report as part of her JMI Policy Fellowship, said in a statement on Tuesday: “My research outlines concrete steps for policymakers to close the technology readiness gap between large and small firms. 

“By tackling barriers and enhancing support, we can unlock SMEs’ full potential and boost productivity, resilience and sustainability.”

JMI’s website describes it as a formal partner of the NSW government and a unique joint venture between government and Australian universities. 

CEO Libby Hackett said that the report’s recommendations could help empower the state’s manufacturers “to leverage digital innovations, drive productivity, and maintain a competitive edge in a rapidly evolving global market.”

Recharging SME manufacturing in NSW can be accessed here.

Picture: credit CSIRO