Want More Startups, Australia? Fund Schools, Not Incubators

While Australian public schools struggle with outdated technology and overworked teachers, our government pours millions into startup hubs and ‘entrepreneurs-in-residence.’ This misguided approach isn’t just failing our children – it’s actively sabotaging our future innovation ecosystem.

Here’s why every dollar spent on flashy theaters of innovation should be invested in our classrooms.

The “sex appeal” of startup culture is undeniable. It promises rapid growth, groundbreaking technologies, and the tantalizing possibility of creating the next global tech giant. State governments, eager to replicate Silicon Valley’s success, have poured funds into incubators, accelerators, innovation districts, and the ubiquitous titles of “entrepreneur in residence” and “entrepreneur in chief.”

Successive administrations in nearly every state have tried to portray themselves as champions of innovation. Meanwhile, public school funding has struggled to keep up with inflation, let alone the rapidly changing demands of the digital economy. In New South Wales alone, millions of dollars have been slashed from school budgets.

The irony is that by neglecting our schools, we are actively undermining the very ecosystem we are trying to build. True innovation does not emerge from a vacuum. It is the product of a well-educated workforce, critical thinking skills, and a broad knowledge base across disciplines. These are the very things that a strong public education system is supposed to provide.

The skills that drive innovation aren’t limited to coding bootcamps and startup accelerators. They’re cultivated over the years through exposure to diverse topics, problem-solving challenges, and collaborative projects. A well-funded public education system provides fertile ground for these skills to take root and flourish.

But it’s not just about producing future founders. A thriving startup ecosystem requires a deep pool of talent in a variety of roles—from engineers and designers to marketers and operations specialists. By underinvesting in our schools, we’re limiting the potential of countless students who could become the backbone of innovative companies.

Our current approach perpetuates inequality. While children from affluent backgrounds can access cutting-edge educational resources outside the public system, children from disadvantaged communities are left behind. And this creates a self-perpetuating cycle in which entrepreneurial opportunities become increasingly concentrated among a privileged few.

We need to equip public schools with modern technology, provide teachers with specialized digital skills training, and introduce entrepreneurship education programs from an early age. This would not only benefit potential founders – it would raise the level of digital literacy and problem-solving skills across the population.

Some may argue that this approach is too slow, that we need immediate results to compete in the global innovation race. And by “some” I mean the scammers who sell startup services, the VCs who siphon off superannuation money, and the politicians who try to make a good impression in their 3-4 year term. But this view misunderstands the nature of sustainable ecosystems. They don’t happen overnight – they are the result of decades of investment in education, research, and infrastructure.

There is a compelling economic case for prioritizing education. While individual startups may have high failure rates, investments in human capital consistently yield returns. A more skilled workforce drives productivity growth across all sectors of the economy, not just high-tech industries.

Instead of chasing the next unicorn, we need to focus on creating an environment where thousands of innovative ideas can take root. That means moving beyond the “build it and they will come” mentality of startup hubs and cultivating the critical thinking and problem-solving skills that underpin innovation.

It’s time for Australia to make a choice. We can continue to pour resources into flashy theatres of innovation, hoping to stumble upon the next global tech giant. Or we can choose the longer, harder, but ultimately more rewarding path of investing in our educational foundations.

The founders of tomorrow’s startups are sitting in our classrooms today. They’re not asking for ping-pong tables or cold brew on tap. They’re asking for the tools, knowledge, and skills to shape their future. It’s time for us to listen.

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