This paper reports initial findings from two of the latest research projects commissioned by Innovation and Business Skills Australia. Studies into digital literacy and adoption of information technology and broadband services at three of the earliest NBN release sites, Armidale (NSW), Brunswick (Vic) and Scottsdale (Tas), show that the readiness of small businesses and regions to compete in the Digital Economy is affected by their ability to acquire specific ICT skills.

Whilst the study results are not unexpected, and although priority skill sets are identified, the backdrop to these studies is likely to be of most interest. It is argued that while national effort to address affordable access is being advanced, efforts to raise the skills necessary to effectively utilise the opportunities on offer are not always keeping pace with demand. This has important implications for the National Digital Economy Strategy, as effective competition in the Digital Economy is primarily a function of two factors: affordable access to ICT, and, critically, the skills to effectively use the technology and services.