Purpose-built for government, the ACT is supporting a thriving private sector with a knowledge emphasis.

	Area:	2360 sq km
	Population:	314,200
	as % of total:	1.0%
	Capital:	Canberra (population 310,000)
	Gross State Product:	A$13.08bn (2000/2001)
	as % of total:	2.0%
	State Final Demand:	A$20.02bn
	SFD growth:	3.7% (2001)
	Credit rating (S&P):	AAA
	Average weekly earnings:	A$766.10 (08/2001)
	Unemployment rate:	4.7%

Purpose-built as the national capital of Australia, Canberra is a young and vibrant city. While Canberra and the surrounding ACT form Australia’s political centre, Canberra’s business focus is on clean, green and knowledge-based industries. The ACT Government sees future growth in the private sector, and has a suite of economic development strategies and incentives to promote and encourage further private sector growth. Despite its position as a centre for government, the ratio of private to public sector workers is about 3 to 2. The fact that this reverses the position only five years ago indicates the growth of the ACT’s private sector in recent years.

Business environment
The ACT has been rated the best performer in Australia by Access Economics in its State and Territory Budget Monitor (June 2000). The ACT Government prides itself on access to decision-makers and an ability to provide the highest level of customer service. A single-tiered government, unique in Australia, provides business with a regulatory environment that is responsive to its needs.

With an ideal location between the major population centres of Sydney and Melbourne, Canberra boasts light industrial and technology parks, and excellent transport facilities. Transport and travel are relatively uncomplicated when compared with other Australian city journeys: traffic jams are virtually unknown in Canberra, and the average commute is less than 20 minutes, compared with 40 minutes for Sydney. Maximum travel time to Canberra Airport from anywhere in Canberra is 20 minutes.

The cost of constructing commercial buildings in Canberra is an average of 16% cheaper than in either Sydney or Melbourne. ACT figures show land zoned for industrial purposes is nearly 18% cheaper in Canberra than in Western Sydney. Commercial leasing in Canberra is also highly cost effective, around 33% cheaper than in Sydney’s CBD, for example.

Education and workforce
Canberra provides some of the best educational facilities in the country. There are five tertiary institutions in Canberra providing a large range of degrees. All have English language training facilities, and various scholarships are offered. The Australian International Hotel School is also based in Canberra.

As a result the Canberra region offers a highly skilled, educated and committed workforce ideally suited to the knowledge-based and high technology industries. It leads the nation in home computer and internet usage.

The rate of absenteeism in Canberra is 14% lower than the national average (about half that of Sydney and Melbourne), and the rate of industrial disputes is one-third of that in Western Australia and a sixth of Melbourne. The low labour costs in Canberra are one of its key attractions to investors. Coupled with its high level of qualification, local employers benefit from a highly cost-efficient workforce.

Research and development
As a proportion of GDP, the ACT’s gross expenditure on R&D is more than 5% higher than in Sweden, Japan, Korea or the USA. Canberra is an ideal location for research and development in terms of level of skills and expertise, proximity to research institutions, ready availability of highly qualified labour, and access to government regulators. It is home to organisations including:

• the Commonwealth Scientific and Industrial Research Organisation (CSIRO);
  
• Australian National University;
  
• University of Canberra;
  
• Australian Defence Force Academy; and
  
• a significant number of Cooperative Research Centres.

Information technology. One of the fastest-growing industries in Canberra’s economy has been the Information Technology and Telecommunications (IT&T) sector. With its depth of IT&T knowledge and infrastructure, the ACT remains ideal for companies servicing the federal Government, Australia’s largest purchaser of IT products. Multinational companies such as EDS, Hewlett Packard, NEC, IBM, Unisys and Oracle have all located in Canberra to tender for and service government contracts estimated to be worth more than A$2bn (US$1.1bn) annually. This cluster of IT&T companies has also assisted in the emergence of the ACT as an exporter of e-Government services.

Biotechnology
Biotechnology R&D is a particular ACT strength – it is estimated that some 35% of Australia’s biotechnology R&D is undertaken in the ACT. International recognition has been achieved through major successes such as:

• outstanding research undertaken at the John Curtin School of Medical Research, resulting in several international awards, including two Nobel Prizes;
  
• Gene Shears – a mechanism for gene expression in plants for the purposes of genetic engineering and plant improvement, developed by CSIRO Plant Industry;
  
• FDT Visual Field Instrument –
  a portable and affordable screening instrument for glaucoma;
  
• human vaccine development
  programmes, particularly for the lungs and middle ear;
  
• research into oral vaccine delivery systems; and
  
• pioneering combinatorial chemistry techniques applied to drug discovery.

Advanced technology and manufacturing
This sector has diversified in recent years, particularly in technologically advanced products based on the application of innovative technologies. Manufacturing is increasingly attuned to export markets, with many producers in Canberra developing strong niche markets in international arenas.

New developments in advanced technology manufacturing are also growing in the region, through new material technology, medical and scientific instrumentation, aerospace and defence. A number of innovative firms in Canberra are producing leading-edge scientific communications, military and industrial products, radar systems, optic-fibre connectors, spaceborne communications and electronic warfare equipment.

The advanced technology and manufacturing sector has the potential for long-term growth, making use of Canberra’s location advantages, its strengths in training, research, education and production.

Key strengths include: medical and pharmaceutical products; professional and scientific equipment; telecommunications and broadcasting equipment; electronics, fibre optics and satellite equipment.

Other sectors
Photonics. This industry has emerged as a very strong growth sector in the ACT, and is at the cutting edge of the development and application of new technology. It is estimated that the photonics industry will be worth close to A$900bn (£326bn) by the year 2013. The support the ACT Government provides for the development of the photonics industry in the ACT, including funding to promote the attainment of the necessary education skills, is seen as a useful way to build on what the ACT offers to the industry.

Environment. Canberra’s environment industry is unmatched in Australia, with expertise in areas such as sustainable town planning and architecture, including landscape, the physical sciences, earth biology and rural sciences as well as renewable energy, waste water treatment and resource recovery. The ACT leads best practice in environmental legislation, is the first state or territory to set its own greenhouse target, and is also the first in the world to set the bold target of no waste by 2010. Agreements in Hangzhou and Beijing in China will assist Canberra’s environmental management firms.

Tourism. Canberra is home to national institutions such as the new state-of-the-art National Museum, the National Art Gallery and the Australian War Memorial, while government buildings and the planned nature of Canberra are a tourist attraction in their own right. Over half of the ACT is classified as national park or nature reserve. Tourism has become the ACT’s first billion-dollar industry, employing over 14,000 people, with visitor numbers approaching 4m each year.

Sport. The Australian Institute of Sport (AIS) is recognised as one of the world’s premier training facilities and has an unequalled range of world-class sporting facilities including indoor stadiums, training halls, swimming and gymnastic facilities, indoor and outdoor synthetic hockey and football fields. The AIS Sports Science and Sports Medicine Centre is recognised for developments in biomechanics and performance testing.

Wine. The Canberra District wine industry has the potential for rapid development over the next decade. There are strong synergies with other industries, particularly tourism.

Culture and lifestyle
Canberra enjoys a spectacular lifestyle, with four distinct seasons, and with ski fields and untouched beaches both just 90 minutes away. With a relaxed lifestyle, a population that is well serviced by amenities and a working environment that rivals much larger cities, Canberra is definitely a great place to work and live.

Websites:
ACT Government
www.act.gov.au

Canberra Connect
www.canberraconnect.act.gov.au

Chamber of Commerce & Industry
www.actchamber.com.au