Gavin Keeley and Dalene Wray*, 6 February 2025
The Regional Development Australia (RDA) Moreton Bay-Sunshine Coast region presents one of Australia’s most ambitious examples of regional transformation. This extensive coastal corridor, encompassing the Local Government Areas (LGAs) of the City of Moreton Bay, Sunshine Coast, and Noosa, is deliberately transitioning from its traditional identity as a tourist destination into an advanced technology and innovation hub.
The scale of this transformation is significant; the region is projected to reach 1.309 million residents by 2041, with Moreton Bay expected to grow to 734,943, Sunshine Coast to 509,159, and Noosa to 64,822. This growth trajectory makes it one of Australia’s fastest-growing regions, which, since COVID, has outstripped all government projections.
This case is particularly compelling because the region manages multiple strategic imperatives simultaneously. It must accommodate rapid population growth while developing knowledge-intensive industries, all while preserving the environmental and lifestyle attributes that make it so attractive. This balancing act is complicated by the distinct characteristics of its constituent areas.
Moreton Bay, with its younger demographic profile (median age 39) and proximity to Brisbane, demonstrates strength in advanced manufacturing. The Sunshine Coast (median age 43) is a leader in health innovation and sustainability initiatives. Meanwhile, Noosa (median age 50) leverages its UNESCO Biosphere Reserve status to pioneer eco-innovation and sustainable development practices with an emergent AI cluster around its technology precinct.
The Sunshine Coast International Broadband Submarine Cable, operational since 2020, anchors the region’s digital transformation with the addition of the recently announced Tabua trans-Pacific subsea cable at the “green field” Maroochydore CBD. This infrastructure provides one of Australia’s fastest international connections, enabling business growth in digital innovation and software services, offering the best telecommunications capabilities in Australia, superior even to those in our state capitals. The strategic alignment of these cables with the coastal seaway creates opportunities for developing integrated maritime services, advanced marine monitoring systems, and sophisticated emergency response capabilities.
The region has developed several strategically positioned innovation precincts that form the backbone of its knowledge economy development:
The Turbine Precinct, near Caloundra, exemplifies the region’s focus on industry specialisation. It is designed to be a national centre of excellence as a collaborative innovation hub focused on scaling up food and beverage production, promoting sustainability and fostering regional economic growth in Agri-food and AgTech.
The Mill at Moreton Bay focuses on advanced manufacturing, automation, robotics, and clean technologies. It provides spaces for high-tech companies and supports workforce development initiatives through its connection to the new UniSC campus.
The Peregian Digital Hub acts as a base for an emergent AI cluster in the region and continues to attract Australia’s leading technology talent.
NEO (National Centre for Immersive Reality) at UniSC’s Sippy Downs campus specialises in extended reality and generative AI technologies, facilitating collaboration between commercial entities, students, and researchers.
The University of Sunshine Coast Innovation Centre focuses on tech start-ups, biotech, digital health, and ICT.
Healthcare represents a significant economic driver and innovation opportunity for the region. The Sunshine Coast University Hospital anchors a growing health precinct that has evolved beyond traditional healthcare delivery to encompass research, biotechnology, and digital health initiatives. This is in a setting where Healthcare and social assistance make up the largest sector by industry value-added across all three LGAs (Moreton Bay: 15.5%, Noosa: 11.6%, Sunshine Coast: 15.3%).
The region’s demographic profile, particularly in the Sunshine Coast and Noosa areas with their higher proportions of older residents, creates extraordinary opportunities for healthcare innovation. This alignment between population needs and innovation focus areas strengthens the potential for developing and testing new healthcare solutions.
The University of the Sunshine Coast (UniSC) is central to the region’s innovation ecosystem through targeted research initiatives and industry partnerships. However, current enrolment patterns reveal a strategic challenge: with only a very small proportion of students enrolled in science, engineering, and IT, there is a clear need to diversify program offerings to support the region’s ambitions in advanced manufacturing and digital technologies.
This educational profile highlights a crucial challenge for the region’s innovation strategy. While healthcare represents a current strength, the limited alignment between education programs and emerging industry needs, particularly in engineering and digital technologies, could constrain future growth in these sectors.
The region demonstrates specific strength in several key sectors. Construction represents a major economic driver, contributing 12.1% of value-added in Moreton Bay, 11.1% in Noosa, and 12.0% in the Sunshine Coast. Manufacturing, particularly in Moreton Bay (7.5%) and Sunshine Coast (6.1%), shows potential for transformation through advanced technologies and Industry 4.0 practices.
Professional, scientific, and technical services represent another growth sector, especially in Noosa (8.9%) and Sunshine Coast (7.2%), indicating the region’s evolution toward knowledge-intensive industries. Financial and insurance services also show strength, particularly in Noosa (7.9%) and Sunshine Coast (7.8%).
While the region has made significant infrastructure investments, particularly in digital connectivity, several challenges remain. The Bruce Highway, as the primary arterial road, experiences significant congestion, especially between Caboolture and the Sunshine Coast. The $13 billion Bruce Highway Upgrade Program demonstrates the scale of investment required to support the region’s growth.
Public transport infrastructure, including rail and bus networks, is a major concern as it has suffered from historically low investment compared to other regions and requires substantial further development to match population growth. The Beerburrum to Nambour Rail Upgrade Project represents an important step in addressing these needs, aiming to boost freight and passenger capacity; however, doubts remain as to whether the Sunshine Coast Direct Rail link will ever be built despite recent bipartisan commitments from the state and federal governments.
Environmental sustainability is deeply embedded in the region’s development approach. Both Noosa and Sunshine Coast contain adjacent UNESCO Biosphere Reserves, which adjoin a third UNESCO Biosphere Reserve to Noosa’s north, reflecting strong commitments to balancing economic development with environmental protection. The Sunshine Coast Council’s achievement as the first local government in Australia to achieve carbon neutrality exemplifies the leadership in climate action in the region.
The 2032 Brisbane Olympic and Paralympic Games present a unique “once in a lifetime” catalyst for accelerating infrastructure development and enhancing the region’s global profile. However, success will require careful management of several key challenges:
The region faces critical skills shortages in healthcare, digital technologies, and advanced manufacturing sectors. Addressing these gaps requires stronger alignment between education providers and industry needs.
Housing affordability pressures, particularly acute in Noosa and the Sunshine Coast, risk impacting workforce attraction and retention.
Integrating sustainability objectives with economic development goals demands sophisticated policy responses and continued innovation in clean technologies.
Transport infrastructure requires a significant uplift in investment to support regional connectivity and growth and remains the region’s biggest risk to future success.
The RDAMBSC case demonstrates how regions can pursue knowledge-intensive growth while maintaining their distinctive character and environmental values. Success requires sustained collaboration between government, industry, and education providers, supported by substantial strategic infrastructure investment and careful attention to skills development.
The foundation for sustained innovation-led growth is clearly established, but realising the region’s full potential will demand continued strategic focus and coordinated action across all stakeholders.
We thank Professor Carol Mills and Dr John Howard from the UTS Centre for Local Government for preparing the MBSC Shaping the Future Insights Report from which this Innovation Case Study draws.
Learn more here: Shaping the Future: Insights Report: Prepared by the Centre for Local Government, Centre for Local Government, University of Technology Sydney.
* Gavin Keeley is Chair, and Dalene Wray AM is Deputy Chair of Regional Development Australia Moreton Bay Sunshine Coast, Queensland, Australia
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