On the world stage, Australia isn’t exactly known for its technology achievements.
Sure, we were responsible for the invention of Wi-Fi technology in 1992. And for the black box flight recorders that exist in all commercial planes today. And even for innovations like the electric drill, Penicillin, and ultrasound scanners.
All of these things were beyond impressive at the time. But in recent years, we’ve lagged behind technology greats like China, Korea and the US when it comes to advancing our tech-hungry society.
According to the Global Innovation Index 2018, Australia is currently sitting in 20th place worldwide when it comes to outputs in creative technology solutions and start-up companies. Far behind the UK and US who are in the top 10.
Australia needs to move fast to keep up
We can all agree that Melbourne and Sydney aren’t exactly Silicon Valley. Nor does Australia have any tech pioneers that are world-renowned, like Korea’s Samsung, or the US’ Tesla.
And when it comes to groundbreaking tech developments, unlike in the US, we don’t have any to our name as of late.
In 2018 for example, US companies Helix and 23andMe started offering ‘polygenic risk scores’, which is essentially a DNA report card which provides predictions about what cancer or diseases you’re prone to, whether you have an addictive personality, or even if you’re smarter than average.
And in Japan, another highly ranked country on the technology list, they have recently introduced an artificially-intelligent Buddhist robot at a 4,000 year old temple in Kyoto to chant along with guests. Which just goes to show how the old doesn’t always have to be at odds with the new.
I could really go on forever with the whacky innovations that are popping up all over the globe on a daily basis. But these advancements go far beyond the novelty factor. They indicate a much broader shift towards a world driven by computing power and data.
Thankfully, our government is starting to realise that we need to move fast if we’re to catch up. A realisation that is reflected in the budget outlook which was released earlier this week.
In his budget speech on Tuesday night, Treasurer Josh Frydenberg reiterated that:
‘We are backing the industries of the future…We’re investing AU$9 billion this year in science, research, and technology, including its commercialisation.’
This is a wise move considering that Deloitte’s recent study ‘ACS Australia’s Digital Pulse 2018’ predicts that Australia will need 10,000 new technology workers in the next four years to meet demand.
But is $9 billion really enough to put us in the global race? Probably not. Especially when you consider that China has allocated 60% of their US$256 billion tech budget in 2019 to advancing telecommunications and 5G in particular. And that they have recently performed their first remote surgery via livestream, using 5G technology.
Our government however, can barely deliver on upgrades to basic technology like the internet.
We can all agree, for example, that the NBN has been a disaster. The government royally screwed up that endeavour. And now we’re left with some of the slowest internet speeds in the world.
When it comes to fixed broadband speeds, Australia comes in at number 60 in the world. Behind names like Uruguay, Kazakhstan and Serbia. This really doesn’t bode well when you consider that the US, China, Korea and Japan are all working fast to implement commercially viable, nation-wide 5G technology.
As the recent Aussie budget outlook will also see R&D Incentive spending slashed by $1.35 billion this year, it’s clear that it will be up to strong-willed private companies to carry us into the next era.
Thankfully, they already have.
How you could quadruple your your money in 12-18 months
Two ASX-listed companies are on the cusp of rolling out new 5G technology that is 800 times faster than the NBN, completely wireless and most importantly, puts us in the running to challenge China when it comes to communications.
As Harje explains in his latest research report, ‘The Hypernet Invasion’:
‘Not only will it pave the way for new technologies, but new businesses and income streams as well.
‘Google, Facebook and Amazon, I’m sure they’ll all benefit from this next generation in connectivity. But they probably won’t be the names that double overnight.
‘The really big winners from this opportunity will likely be found in the smaller end of the market, where $50 million in sales is a noticeable addition.
‘Down here in the bottom of the market, you might see stocks rise 100%, 200%, maybe even 300% on this opportunity.
‘With that in mind, I decided to go on a hunt a few months ago. I wanted to find the few stocks that could really benefit from this Internet 2.0 evolution.
‘I kept coming back to two names. These two ASX stocks, I believe, could really benefit from our ever-increasing data-filled world.’
While this may sound farfetched, Harje believes the ASX-listed countries helping to build the hypernet infrastructure have the potential to quadruple your money in the next 12–18 months. Even tech giant, Qualcomm believes the 5G rollout will create $12.3 trillion in new wealth by 2035.
This week in Money Morning
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There’s not much debate. The consensus is low growth, waning profits and a slow hard grind from here. For us Aussies in particular, the next move might be down. But as Harje wrote on Friday, there’s one sector that is rising above the rest. And when they look out to the horizon they don’t see doom and gloom. They see excitement, growth and even more opportunity…
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Until next week,
Editor, Money Weekend