New research examining 80+ international innovation districts reveals what drives success. From MIT's Kendall Square to Singapore's One North, thriving ecosystems integrate placemaking, economics, business development and governance. Success comes from institutional capabilities and relationships, not impressive buildings. Australian policymakers can learn from global best practices whilst avoiding common pitfalls like property-led development models

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.