Business SA chief executive, Andrew Kay, told the parliamentary Committee on the Establishment of Adelaide University the new Adelaide University would help stem the exodus of local students to eastern states universities.
"We have seen an exodus of students to interstate universities where they have the perception that it's a better standard of university because potentially their ranking is higher than South Australia," Mr Kay said.
Mr Kay said a larger, higher internationally ranked university would also attract more research and development funding from the private sector.
"Businesses who look to invest in South Australia will be looking for an ecosystem of innovation, entrepreneurship and skills," he said.
"If they can come here and invest knowing that the skills base is on their doorstep, it makes it a far more attractive proposition for them."
Also appearing before the committee was Group of Eight (G8) chief executive, Vicki Thomson. The G8, which consists of the nation's leading universities, have said they would invite Adelaide University to join its ranks once established.
Ms Thomson said the merger would provide an opportunity for South Australia to increase its global competitiveness in terms of research and she also highlighted the opportunities within the defence sector.
"We have the opportunity in this state to be streets ahead," Ms Thomson said.
"The ability to attract investment, to attract the right students, to attract the right researchers, to encourage our young kids who might be 15 or 16 thinking, Oh yeah, I might do engineering because I might get this great opportunity building submarines or whatever it might be. I think they're all the things that I would be looking at if I was looking at what a merged institution could potentially bring that may not be able to bring now.
As put by Susan Close
This recent round of hearings has highlighted how important scale is in terms of attracting research and development funding in an increasingly competitive international market.
While some people that have appeared before the committee have raised some concerns and questions, largely we have heard about the importance of having a larger institution.
Not only will the Adelaide University attract more international students, it will allow a broader range of local students to acquire the skills we need to service growth industries such as defence and renewables.
We need a larger university that is capable of undertaking high quality, internationally recognised research that supports our economy.
