The tectonic shifts in the global economy—from manufacturing to services, from tangible goods to intangible assets—demand more than incremental adjustments to our statistical and analytical frameworks, Australia, a nation increasingly powered by services and innovation, risks undermining its competitiveness by clinging to an outdated framework. The case for adopting modern, flexible, and globally aligned industry classification systems has never been more compelling.

How can innovation policy become both empirically rigorous and open to wisdom that cannot easily be measured? This new Innovation Insight examines the strengths of evidence-based policymaking in building accountability and transparency, while also questioning whether excessive reliance on measurable outcomes risks excluding critical interdisciplinary perspectives. As research and innovation challenges become more complex, the need for richer, integrative policymaking grows.