This is the second paper in CEDA’s series on the importance of dynamic capabilities for Australian businesses. It focuses on the role governments can play in educating businesses about dynamic capabilities, in line with the federal government’s ambition of building a more productive, dynamic and resilient economy. It presents two case studies of highly successful overseas government programs – one in New Zealand and one in Singapore – that Australia could learn from.

The research also found that almost all businesses have plenty of room to improve their dynamic capabilities. But this is challenging, because firms are generally too tied up with 'business as usual' to lift their eyes and focus on longer-term objectives of building capabilities and comparative advantage.6 Our findings have resonated with CEDA members across the country, who tell us they are among the key challenges they grapple with every day.