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 This Innovation Insight argues that the real challenge lies in outdated models of measurement and policy.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.

Policymakers, business strategists, innovation professionals, and researchers are increasingly being asked to invest in, create, or replicate innovation ecosystems. Until now, a clear framework for understanding what ecosystems are, how they function, and what enables their success has been largely missing, particularly in Australia. The Handbook of Innovation Ecosystems: Placemaking, Economics, Business, and Governance, just published by the Acton Institute for Innovation,

Modern public administration is now defined by systemic complexity, marked by institutional fragmentation, overloaded systems, and the rise of symbolic reformism. Today’s policy failures are not just technical—they’re conceptual. Consensus without strategic alignment, reform without clear problem framing, and consultation without coherence all contribute to a landscape where governments “do more” but achieve less.