Australia possesses many of the institutional ingredients needed for effective innovation ecosystem development. What remains largely absent is coordination across these instruments around shared, place-based objectives. This Innovation Insight examines the governance challenge through comparisons with the United Kingdom, Canada, Germany, Finland, Singapore, and New Zealand, and asks what kind of institutional mechanism Australia requires to align innovation, research, and in

The centrepiece proposals in Ambitious Australia would redefine what counts as R&D, leave the fiscal cost unexamined, and concentrate benefits on a very small proportion of Australian innovative businesses. The expanded startup stream converts the RDTI from an R&D incentive into an early-stage business subsidy. No OECD country subsidises deployment and commercialisation through its R&D tax incentive. Without forward estimates, it is impossible to judge whether proposed benefi

The Denholm Review presents Australia’s innovation system as a reinforcing flywheel coordinating research, firms, and growth. This Insight challenges that framing. It argues that the central constraint is the absence of strong market formation, capital depth, and global integration. Without these, policies risk improving internal coherence while failing to generate globally competitive outcomes. The question is whether Australia is building a system it can manage, or one that

Australia has revisited the idea of a National Innovation Council many times, often in response to concerns about fragmentation and weak coordination. The latest proposal in the SERD report again raises expectations. This Insight argues that the issue is not the absence of a coordinating body alone, but a deeper policy problem shaped by competing ideologies, institutional resistance, and unresolved tensions between science-led and system-based views of innovation.

The Strategic Examination of Research and Development, released 17 March 2026, is the latest review diagnosing Australia's innovation system and proposing reform. The panel's 20 recommendations are analytically sound and deliberately integrated. But the real test is implementation. Systemic reform must navigate sequential budgets, entrenched institutional resistance, and competing fiscal priorities, including defence, health, and cost-of-living measures.

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

Many critiques of the innovation system miss the specific economic growth role government plays as ecosystem steward. Victoria’s Lead Scientist, Dr Amanda Caples, argues that transforming regions into innovation powerhouses is never accidental. It requires a deliberate approach that builds capability and aligns public and private efforts. Amanda outlines a practical framework for identifying strengths and asking the right questions to drive regional specialisation.

RMIT University’s Enabling Impact Platforms (EIPs) connect researchers, industry, and government to accelerate research translation and deliver outcomes that matter. Covering advanced manufacturing, health, sustainability, and more, the EIPs act as system integrators—breaking down silos, seeding collaborations, and aligning research with national and global priorities.

University–industry ties are rising, but mainly with foreign firms. The real barrier is domestic absorptive capacity: many Australian SMEs lack R&D talent, systems to use outside knowledge, and resources to scale. Multinationals adopt our research, while local work stalls at TRL 6–7. Stop blaming universities. Industry must invest in skills, universities must back implementation, and government must support transfer agents. Without this, R&D returns will stay weak.

For the first time in many years, there is a genuine opportunity to move beyond the oppositional politics that have hindered structural reform. This new parliamentary composition—more diverse but potentially less fractious—opens the door to building coalitions of the willing for major national reform. If we are to grasp this political moment, we must also confront the structural ambiguity that has long undermined innovation policy in this country.

Since 1963, Australia’s federal industry portfolio has been restructured more than 20 times. This extraordinary level of administrative churn exposes a deeper crisis: a persistent uncertainty about the purpose, priorities, and pathways of industrial policy. This Innovation Insight calls for a reevaluation of institutional maturity—one that strikes a balance between executive flexibility and enduring strategic direction.

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

What does the NSW Innovation Blueprint 2035 actually commit to? This analysis examines the strengths and gaps in the state's innovation stra

Rajesh Gopalakrishnan Nair 'What's in a name? That which we call a rose by any other name would smell as sweet.' - Romeo and Juliet,...

This is the first of a series on what makes good public policy. Further Insights will be published weekly on Tuesdays. Other Innovation...

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