But with a changing global economy and a decline in traditional manufacturing, our great challenge as a nation is to not just have the ideas, but have the ecosystem that allows Australians to pursue them.

That is why under the new prime minister, innovation has moved into the centre of public debate, and rightly so. The future of our economy and maintaining our standard of living as a first world country depends on it.

It is therefore excellent timing that the inaugural StartupWeek Sydney began on Friday, focusing on new and innovative businesses, a community that has never before seen this level of energy and momentum.

The prime minister has asked me to lead a cross-portfolio task force to develop an innovation agenda, a plan to unlock the growth potential of innovation, boosting our economy and creating jobs.

The growth potential here is remarkable. Startups drive employment growth, adding 1.44 million jobs to the economy from 2006- 2011. 

Innovative businesses are twice as likely to report productivity increases than businesses that do not innovate.

Despite representing less than half of all employing businesses in the economy in 2011-12, innovative businesses accounted for around 70 per cent of total employment, total capital expenditure and total business income, and more than 80 per cent of total internet income.

PriceWaterhouse-Coopers modelling shows an innovation focused economy has the potential to raise GDP by $37 billion in 2024, with a longer contribution to GDP as high $136 billion in 2034, creating close to 540,000 jobs. I want to unlock this potential.

We're investing $9.7 billion in science, research and innovation – above the OECD average. Our $225 million Industry Growth Centres are helping industry and research work together.

Our Entrepreneurs' Programme helps startups commercialise good ideas, providing market and industry information and access to advice and skills.

Through the R&D Tax Incentive we are encouraging thousands of Australian companies each year to innovate. To give you an idea of its effectiveness, the R&D Tax Incentive helped 13,000 companies with $2.4 billion in tax support for eligible R&D investment in 2014-15.

Our Co-operative Research Centres are promoting cutting-edge research in our universities and research institutions and producing graduates with hands-on industry experience.

Greater tax concessions for employee share schemes will allow employees to share in, and benefit from, the future growth and success of the business.

We announced this week plans to reform crowdfunding, to make it easier for startups to get the money they need to get their ideas off the ground and turn their dreams into reality. This government knows innovation is critical to Australia.

It's an exciting time to be in the startups and innovation sector and this government wants to embrace an entrepreneurial, risk-taking culture which is critical to drive jobs and growth into the future.