Innovative and Vital Business City
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1 Innovative and Vital Business City An Innovative City means promoting Melbourne as a smart, creative and progressive city. Innovation is critical to the continued development and prosperity of the City. A Vital Business City ensures business development, job growth and enhancement of gateway infrastructure. Melbourne s success as a global city will rest on its reputation for innovation and its open-minded and sophisticated approach to change. Specialising and innovating in fields of competitive and comparative advantage, such as advanced manufacturing, food manufacturing, cultural tourism, biotechnology, health, finance, international business services, information and communications technologies, multimedia, tertiary education, arts, retail and environmental industries will advance Melbourne. In order to be globally competitive in knowledge sectors, Melbourne will need a highly skilled, qualified and motivated workforce, as well as a capacity to respond to change quickly, and an urban environment that is recognised internationally as safe, attractive and highly liveable. Further clustering and sharing of resources and infrastructure are essential elements in taking ideas from mind to market. Clusters such as those in Port Melbourne, Parkville, Carlton South and the Central City can generate a profile in the marketplace and lead to joint venturing, resource sharing and rapid transfer of best practices. Innovative and Vital Business City 33
2 Strategic direction 2.1 Grow Melbourne s competencies as a globally-recognised, entrepreneurial and competitive knowledge city The convergence of economic globalisation and the information technology revolution has transformed business and given rise to a knowledge based economy. Our capacity to cultivate and apply knowledge is critically important because it will drive economic development in the City through the creation of new products, processes and services. Leading up to 2010, the City of Melbourne will build on its competitive strengths in ICT, advanced manufacturing, biotechnology, environmental management and tertiary education services. The quality of the urban environment is also critical to the City s future as a knowledge city. A clean, green, safe and liveable city will attract investment and business in the knowledge based economy. Objectives Develop the City as a gateway for biotechnology in Australia and the Asia-Pacific region Redress the skill shortage in the ICT sector and build the City s reputation as the ICT capital of Australia Attract key strategic knowledge industry businesses to move to the City and support and facilitate innovative start-up businesses Promote growth in the City s tertiary education services Develop and promote the City as a place that understands, respects and operates successfully with other business cultures Develop and promote the City s diverse and highly skilled workforce regionally, nationally and globally to attract global projects Enhance and promote the City s liveability and lifestyle options, including its affordable, high quality housing and educational centres and its rich and diverse culture, as some of the particular benefits of conducting business in the City Develop Bio 21 (Parkville) and Alfred Hospital precincts as key centres for commercialisation of medical and biotechnology research Develop a centre for emerging digital design technologies and skills in the northern part of the Central City Develop Comtechport in Docklands as a key centre for the commercialisation of ICT research Develop a Centre for Sustainable Cities that provides environmental services and technologies to the Asia-Pacific region Develop Port Melbourne as an international centre for advanced manufacturing, particularly in the aerospace and automotive sectors Expand tertiary education facilities 34
3 Education/Research and Development Opportunities Innovative and Vital Business City 35
4 Strategic direction 2.2 Foster a civic and business culture that encourages and supports innovation in the pursuit of opportunity Melbourne must enhance its capacity for innovation. Developing a strong educational base and a culture of sharing ideas will significantly improve the City s global reputation for innovation. Information exchange and networking are keys to the City s competitiveness in the global market: sharing knowledge, resources and infrastructure across educational institutions, hospitals, research institutes, industry, the arts and the service and finance sectors must be promoted to ensure ideas are taken from mind to market. Objectives Develop partnerships to promote a culture of innovation in all sectors of Melbourne s life and business Increase the competitiveness of City businesses by developing strategic alliances with tertiary institutions, research and development organisations and training institutions Promote commercial application of Melbourne s research and development Identify and develop early stage technologies and innovations that will establish a competitive advantage for the City Develop globally competitive, sustainable industry and business clusters Attract and develop a pool of domestic and international venture capitalists Pursue start-up innovative enterprises, forums and projects that demonstrate Melbourne s creative capabilities Promote collaboration between education, research and development establishments and the finance communities Build on the City s growing venture capital expertise 36
5 Strategic direction 2.3 Promote and extend the City s role as Victoria s principal centre for commerce, and professional, business and financial services The City of Melbourne provides expertise and specialist services including financial, professional and business services, to metropolitan and regional Victorians. These services contribute to the rural industry value chain and help maintain the international and inter-regional competitiveness of enterprises. The financial services sector is the largest employer in the Central City, employing nearly one in four city workers. Banks and insurance companies account for three-quarters of this figure. The City s world-class educational institutions are also major employers and play a vital role in the economic development of the City and regional Victoria. Objectives Build the City's capabilities in professional, business and financial services Expand the City s share of business support services, such as advertising, retail, media, legal and banking Attract new investment in research and development and new educational institutions to the City to support the financial services sector Facilitate clustering and information exchange between sector participants to increase the critical mass of existing businesses and to attract new participants Develop and promote Melbourne s competitive advantages in funds management, financial education and venture capital Work with the education and private sectors to facilitate new investment in education facilities Encourage a strong market for high quality office space Innovative and Vital Business City 37
6 Strategic direction 2.4 Develop and sustain a world-class retail experience within the City core The City s Retail Core offers a diverse range of external and internal shopping and leisure environments, and its buildings and streetscapes reflect the history and heritage of the City of Melbourne. The Retail Core s proximity to cultural institutions, parks, sporting facilities, entertainment venues, universities, and major medical facilities make it a unique resource, and it is serviced by exceptional public transport facilities. However, competition from suburban shopping centres is growing and investment in the City s retail facilities is declining. The Retail Core s market share has fallen from 11.6 per cent to 7.1 per cent over the 20 years to The City Centre Executive, comprised of key stakeholder representatives, is seeking to address this issue through the Retail Core Development Strategy a new paradigm for the future of City retailing. The strategy s success hinges on a strong partnership and commitment among all key players, including major building owners, retailers, Council and the Victorian Government. The Retail Core and Central City precincts are shown on the following map. Objectives Enhance the Retail Core as the State s pre-eminent shopping, cultural, entertainment and business precinct Facilitate significant new investment and the refurbishment and/or redevelopment of the Retail Core s major attractors and public spaces Establish a precinct management structure that provides strong leadership and is at the forefront of world-class standards and practices Upgrade the Bourke Street Mall to be a world-class pedestrian and retail space Develop a new mid-block arcade link between Bourke Street Mall and Latrobe Street Revitalise Swanston Street as a retail and lifestyle avenue by improving its design and retail mix Integrate the Queen Victoria Village into the Retail Core 15 NIEIR, model estimates,
7 The City s Retail Core Innovative and Vital Business City 39
8 Objectives Develop and attract a diversity of small to medium sized enterprises in and around the Central City Attract and support young innovators and entrepreneurs to develop new business ventures and projects that will lead to the creation of new companies Support local businesses in the Central City and surrounding neighbourhoods Pursue the potential for a range of specialised and general business incubators to support innovative start-up small businesses Support the development of the film industry Use the Queen Victoria Market as a key retail facility, tourist attraction and business incubator Strategic direction 2.5 Enhance the City s reputation as a startup city by supporting the establishment and growth of small to medium sized businesses Small to medium sized businesses continue to be an important element of the City s economy and they are often involved in commercialising new ideas and products. The overall business costs of locating in Melbourne are very favourable when compared to the Asia-Pacific region and other Australian capital cities. This creates many opportunities for new small and growing businesses to establish in Melbourne. Numerous opportunities exist for service businesses to locate in and near the Central City; the affordability of spaces and ready access to clientele, accounting, marketing, planning and logistical support in the Central City are attractive enticements. By encouraging business clustering that attracts nurtures and expands local industries, the City will benefit from the exchange of knowledge between sectors. 40
9 Strategic direction 2.6 Develop sustainable industrial clusters in advanced manufacturing and logistics The City offers facilities, such as transport infrastructure, tertiary institutions, business services, major seminars, conferences and exhibitions, which support advanced manufacturing activities in Port Melbourne and other locations across Melbourne. The proximity of tertiary institutions to advanced manufacturing sectors, as evidenced by the Cooperative Research Centre for Advanced Composite Structures in Port Melbourne, is conducive to collaboration and alliances. The City also contains many logistics and distribution industries that garner competitive advantage from their proximity to the Melbourne Port or the National Rail yards. Such industries include cement and grain bulk storage and processing facilities located in the Port Melbourne and West Melbourne areas. The City is also home to significant traditional manufacturing operations, particularly food production. All of these industries rely on high quality road and/or rail access and generate significant employment in the City. The necessity for these industries to locate near the transport hub is recognised, however their presence can affect the amenity and environment of nearby sensitive land uses. Therefore, while the on-going operation of these industries must be ensured, they must work towards the highest standards of environmental management practice. Objectives Encourage advanced manufacturing and associated research and development organisations to relocate to Port Melbourne to provide mutual benefit through proximity to existing businesses and activities Encourage further collaboration between tertiary institutions and the advanced manufacturing sector Provide infrastructure and services to secure an appropriate business environment in Port Melbourne for advanced manufacturing and research and development Support the ongoing function of the Port of Melbourne, the National Rail Terminal and associated industries Increase the training and skill base of workers in advanced manufacturing sectors Support the ongoing operation of the large traditional manufacturing operations in Port Melbourne, Kensington and West Melbourne Port Melbourne (Fishermans Bend) has the capacity to double its working population to Establish a Centre of Excellence in Research and Development for Aerospace and Automotive Design in Port Melbourne to showcase and act as a focus for advanced manufacturing Build on the aerospace and automotive cluster in Port Melbourne Provide a diversity of building types and size to cater for small and medium sized enterprises that wish to locate closer to major companies Innovative and Vital Business City 41
10 Indicators The City s progress will be measured against the following indicators: Indicators Indicator: Growth in and retention of the City s priority business sectors (advanced manufacturing, biotechnology, ICT and environmental management) Number of businesses in each sector Total floor space occupied by each sector Number of employees in each sector Number of business incubator programs in Melbourne Number of tertiary enrolments within professional services and commerce courses Percentage of local residents employed in the City s businesses Numbers of small and medium businesses in the City Funding provided for business start-ups Number of City businesses started and number of businesses operating 12 months later Number of manufacturing and research and development businesses located in Melbourne Indicator: Employment growth in the City Changes to participation in full-time, part-time and casual employment Changes to City employment rates by occupation Unemployment levels in the City Indicator: Strength of the Retail Core Numbers of visitors and breakdown by type of visitor (per day/month/year) Occupancy rates Percentage mix of retail uses CBD market share of metropolitan retail market Visitor perceptions of the Retail Core, by visitor type Indicator: Growth in the number of firms offering environmental management products or services Number of firms registered in the Sustainable Melbourne Business Directory 42
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