ACS says the incoming government needs to put digital skills reform and research commercialisation at the top of its priority list

Industry body the Australian Computer Society (ACS), which represents around 50,000 members in tech, said whoever forms government after the May 3 election needs to take urgent, coordinated action on digital skills reform and research commercialisation to secure the nation’s economic future.

The recent ACS 2025 Election Forum in Sydney brought together leaders from industry, education, and venture capital concerned about the growing urgency of two national priorities: developing a modern skills recognition system and transforming research into commercial success.

ACS released an election position paper with nine key recommendations for the incoming government across two major pillars: skills and commercialisation.

They are:

Develop a National Innovation Strategy that is not subject to election cycles
Leverage public procurement to stimulate innovation and support Australian businesses
Treat the national R&D review as a priority reform process
Enhance CRC business models to foster enduring collaboration across sectors
Support scalable, sustainable co-investment models between industry and universities
Fast-track the development of a National Skills Taxonomy
Invest in lifelong learning and fast-track a National Digital Skills Passport to recognise learning
Fast-track harmonisation between VET and higher education
Expand the use of skills frameworks like SFIA and formalise skills-based professionalisation

ACS President Helen McHugh said that while the tech sector was united on what needs to be done reform at the government level had been piecemeal.

“Australia has the ingenuity, the research capability, and the talent to thrive in today’s digital economy. What we need now is a unified, national approach to developing skills and translating innovation into impact. These are not side issues — they are central to our future prosperity,” she said.

“We’re calling for government and leaders to connect the dots: from digital skills, lifelong learning, and alternative pathways to venture capital and commercialisation. We need to build an economy that’s not only productive and resilient, but also globally competitive. The talent is here. The ambition is here. Now we need the support and systems that match that vision and strategy.”

Skills struggle with outdated systems

Australia’s current skills and qualifications system is still geared to the industrial era, leaving employers and workers without the agility to keep pace with technology and workplace change.

A recent paper revealed nearly 76% of Australian employers are struggling to fill roles due to persistent skills mismatches — a problem compounded by fragmented frameworks, poor recognition of informal learning, and limited pathways between vocational and higher education.

NSW Chief Scientist Hugh Durrant-Whyte, Main Sequence partner Phil Morle, Rainstick cofounder Mic Black, Cooperative Research Australia CEO Jane O’Dwyer, Investible CEO Charlie Ill, and UTS special innovation advisor Roy Green at the 2025 ACS Election Forum.

“We should be really worried about the increasing number of boys who are not finishing school in this country, and we should be really worried about an education system which they do not think is relevant, engaging and empowering.” said Melinda Cilento, CEO of CEDA.

The ACS is calling on the next government to fast-track the National Skills Taxonomy, invest in a Digital Skills Passport, and expand professionalisation frameworks like SFIA — especially in high-urgency areas like cybersecurity.

“We need to continue to leverage what’s in place and working, continue to build those strategic partnerships between education providers, technology providers, and employers, and to build a common language,” said Cherie Diaz, Eexecutive director of education innovation at Western Sydney University.

The paper also urges harmonisation between the VET and higher education sectors, calling for stackable, job-ready qualifications and lifelong learning pathways.

A global research leader, laggard in results

Despite producing over 3% of the world’s research, Australia still struggles to convert new knowledge into market-ready products and services — dubbed the ‘valley of death.’

The ACS paper identifies structural fragmentation, cultural risk-aversion, and a lack of mid-sized enterprises as key reasons why promising Australian ideas often end up commercialised overseas.

“There comes a time when funding rounds are getting bigger and bigger, and to do the next thing you’ve got to raise more money to take more risk and work with a bigger global customer base,” said Phil Morle of Main Sequence Ventures.

“So you look around and you don’t find that money in Australia, but you do find it overseas and you move the whole company. This happens time and time again.”

The next government to act on the forthcoming National R&D Review, ACS said, and develop a long-term innovation strategy, and strengthen co-investment models that allow public and private capital to share risk and reinvest returns.

Jane O’Dwyer, CEO of Cooperative Research Australia, said regulatory changes have made it harder to replicate past success stories like Cochlear.

“The regulatory changes we’ve made over 30 years mean that it couldn’t have had the three CRCs that participated in. Of course, it might not need it now – things happen faster – but we’ve over-regulated that space.”

Government procurement, too, is flagged as a powerful but underused lever.

The ACS paper recommends using federal purchasing power to stimulate innovation and support Australian businesses, a move that could have greater economic impact than many standalone funding programs.