SILICON
SILIC
CHIP
www.siliconchip.com.au
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Nicholas Vinen
Technical Editor
John Clarke – B.E.(Elec.)
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Bao Smith – B.Sc.
Tim Blythman – B.E., B.Sc.
Nicolas Hannekum – Dip.Elec.Tech.
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Dave Thompson
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Dr Hugo Holden – B.H.B, MB.ChB.,
FRANZCO
Ian Batty
Phil Prosser – B.Sc., B.E.(Elec.)
Cartoonist
Brendan Akhurst
Founding Editor (retired)
Leo Simpson – B.Bus., FAICD
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Editorial Viewpoint
Risk aversion stifles innovation
Reading Dick Smith’s autobiography for the review
(p37), I noticed several recurring themes. Two of
them are “surround yourself with capable people” as
a business strategy (good advice!) and the concept of
“responsible risk-taking”. I have felt for a while that the
latter is sorely missing from the Australian landscape,
especially now; clearly, Dick feels the same way.
He’s referring to the concept of being willing to take
risks as long as you judge them to be reasonable, such
as climbing a cliff or flying a helicopter through bad weather. For this to work,
one has to be capable of assessing risk and taking personal responsibility for
one’s own safety (what a quaint concept!).
While I see over-the-top risk aversion all over our modern landscape,
one area in which it is evident within Australia is in the fields of business,
technology and innovation.
Have you noticed how most multi-billion-dollar global juggernaut
companies, especially those which are technology-based, are from the USA (or
sometimes Europe)? Australia has plenty of fine minds, including scientists
and engineers, so why can’t we create success stories like those? ‘Brain drain’
is part of the problem, with many Australians moving overseas to America
(or other places) chasing better prospects (including me, briefly).
A lot of it comes down to risk vs reward, including both ends of that
equation. In terms of risk, American and European investors are more willing
to bet their money by investing in up-and-coming technologies and concepts.
Australians seem to view the stock market as a kind of bank account, especially
now that we have enforced superannuation, and demand low risk (and get
relatively low returns as a result).
Many people turn up their noses at rich people, but it’s the drive to
become one of them that has made so many people work hard to create the
foundations of modern life.
Dick Smith did this when he created Dick Smith Electronics (his ex-senior
manager, the late Gary Johnston, did it again with Jaycar Electronics). Dick
decided to ‘quit while he was ahead’, unlike many others in his position, but
that’s beside the point; his desire for money and success drove him to create
something valuable more than once.
But younger generations (and this includes me) have mostly been raised
in a cocoon, never being allowed to take many risks. I don’t think I’d have
the guts to do what Dick or Gary did. I’m not sure I could have even created
Silicon Chip from scratch like Leo Simpson and Greg Swain back in 1987,
even though I seem to be able to keep the magazine going just fine.
Unless we allow young people to use (and hone) their judgment responsibly
and learn how to weigh up risks and rewards, I don’t see how we can compete
on the global business and technology stage. And that can’t happen if we
don’t allow people to use their judgment.
Innovation and risk-taking are activities that often go hand-in-hand. How
many realise that there is risk in the act of not taking any risks? You miss
many opportunities when you’re laser-focused on the negatives and ignore
the potential positives.
We wouldn’t be where we are today if our ancestors were huddled in caves,
scared to go out into the dangerous world. Some of them took journeys of
thousands of kilometres in small canoes to settle far-off lands; they didn’t even
know if, or when, they would see land again. Imagine having the fortitude
to do that! And we’re pretty much all descended from those brave explorers.
by Nicholas Vinen
24-26 Lilian Fowler Pl, Marrickville 2204
2
Silicon Chip
Australia's electronics magazine
siliconchip.com.au
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