The productivity lag from AI reveals competing logics: automation that replaces labour to cut costs versus augmentation that expands capability to create value. For innovation ecosystems, this choice is existential. Strict safety regulations risk creating moats favouring large incumbents, while unrestricted deployment threatens research quality. The narrow path requires public interest AI infrastructure, risk-weighted governance, and incentives rewarding high-impact discovery

Artificial intelligence is reshaping industries, yet its productivity impact remains elusive. This Innovation Insight argues that the real challenge lies in outdated models of measurement and policy. To navigate the AI era, governments need a new playbook—one that measures transformation, not just outcomes, and builds the adaptive capacity of national innovation systems.

Current debates about artificial intelligence often miss the fundamental difference between AI that replaces human capabilities and AI that amplifies them. Drawing on lessons from economic history and organisation theory, this insight argues for a focus on augmentation. For Australia, choosing to augment human expertise with AI is critical for building an economy that thrives on creativity and avoids the long-term risks of deskilling our workforce.

With 30 Ministers and a growing cohort of Assistant Ministers, the Second Albanese Ministry is structured for delivery. But is that enough? This new Insight explores how administrative consolidation may be masking a retreat from bold reform, especially in research, innovation, and productivity

Australia's Future Made in Australia strategy risks building the factories of tomorrow while outsourcing their digital brains. This new Innovation Insight argues that Computer and Information Services (CIS)—including software, AI, and cloud platforms—must be recognised as essential infrastructure, not an afterthought. This Insight proposes a dedicated Digital Enablement stream into the FiMA National Interest Framework. Without this, we risk building yesterday’s industries wit

Gavin Keeley and Dalene Wray*, 6 February 2025 The Regional Development Australia (RDA) Moreton Bay-Sunshine Coast region presents one of...