Australia's SERD report, Ambitious Australia, strengthens the research system but treats it as though it were the innovation system. This Innovation Insight argues for two shifts: defining innovation as the successful application of new ideas rather than production of research outputs, and widening the frame beyond science and technology to include creative practice, social innovation and place-based ecosystems. Firms, users and places, not universities alone, should be at th

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