Innovation Policy, Productivity, and the Reform Agenda in Australia: A Framework for Analysis

Abstract

This paper argues for a new round of economic reform aimed to strengthen Australia’s innovation capability. It develops the case for why an innovation policy is needed, and a framework for creating such a policy in the Australian context. Our point of departure is the proposition that innovation policy in Australia should take greater account than it presently does of the real characteristics of innovation processes, of Australia’s economic structure, and of the areas in which governments can make a difference.