Research and development is moving from laboratory-based models to digital platforms that integrate data, software, and AI. This Insight examines how many global firms now operate as de facto research environments, the implications for Australia’s capability and sovereignty, and the changes required in policy, measurement, and national strategy.

Australia’s innovation system contains multiple intermediary models, including consultants, brokers, mediators and resource providers. Each model contributes value, yet none resolves the persistent difficulty firms face when adopting external knowledge. This Insight argues that the absence of a dedicated technology transfer agent function is a major structural weakness. TTAs work inside firms, aggregate capability across institutions, and build adoption pathways.

The 2025 Nobel Prize in Economic Sciences was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for showing the role of public investment in innovation for economic growth. The award signals the formal absorption of innovation into the mainstream neoclassical economic paradigm. While this marks a watershed moment, it also raises questions about intellectual lineage and disciplinary boundaries. This 'paradigm capture' may now create direct competition for the heterodox

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.