Policy on innovation in Australia: Divergence in definitions, problems, and solutions

Abstract

Innovation has joined the mainstream in many nations as governments search for new ways to tackle challenging societal and economic problems. But Australia is seen to be lagging on innovation policy. Is this related to how governments define innovation? What do they regard as the problem they are addressing? What proposed solutions follow from this? This paper examines how Australian governments have defined innovation over four decades, signalling their policy intentions about how to make the nation more innovative. Definitions of innovation are analysed using 79 Australian (national level) policy documents published from 1976 to 2019. Close reading of these documents suggests two main definitions: innovation as technology, and innovation as culture. Topic modelling uncovers more differentiated themes, shows how definitions change over time, and demonstrates an association between definitions and political parties in government. The divergent approaches suggest a lack of coherence and continuity to policy on innovation in Australia.

Points for practitioners

• Innovation has expanded and broadened in its definition and governments and policymakers have paid increasing attention to it.
• In Australia, there are two main definitions of innovation used in policy—one related to technology and one related to culture.
• The technology view of innovation can be further divided into a focus on businesses or a focus on research and development (R&D).
• Different innovation definitions, problems, and solutions dominate at different times, with Coalition governments tending to favour business and technology over culture, and Labor governments doing the opposite.
• There are divergent approaches to policy on innovation in Australia which suggest a lack of coherence and consistency in policy over the long term.