INNOVATION UNRECOGNISED: A STORY OF INNOVATION AND PLACE
By Narelle Kennedy AM and Dr John H. Howard
Innovation; what it is, how it works and what benefits it delivers, is a contested concept. There are a myriad of different understandings of innovation. These range from new-to-the-world technologies, inventions and discoveries to Research & Development( R & D) spending and research translation for commercial success, to universitybusiness collaboration, to entrepreneurial high-tech and high growth start-ups, to creativity and design.
Despite disparate definitions of innovation( Godin et al., 2021; Godin, 2015), one consistent finding is that innovation is a crucial force for productivity, prosperity and resilience in businesses, local communities, regions, cities and nations.
Innovation goes beyond technology or business. It influences all areas of human organisation and experience and brings about positive change, not only in business but also in personal career growth, institutional management, environmental protection, and cultural expression( Christensen, 1997, Rogers, 2013, Hawken et. al, 1999, Porat et al., 2025).
A major roadblock to securing these economic and societal benefits is the disproportionate focus on technological innovation and R & D, at the expense of the more intangible‘ human’ elements of innovation as capability-building and transformational change.
Both technological and non-technological innovation are needed. In fact, they are interdependent in the quest for action that results in both improved quality of life and higher standards of living. It is a question of balance.
This paper assembles intelligence from innovation research and practice, including that of the co-authors, to redress the imbalance of limiting innovation to predominately high-tech and entrepreneurial endeavours.
The paper aims to illuminate unrecognised innovation and its hidden human and social dimensions. It offers a broader definition of innovation and more options for practical action on innovation tailored to the needs of all types of businesses and communities.
RECOGNISING INNOVATION Australia’ s innovation and industry policies use well-rehearsed R & D expenditure measures as a proxy for innovation, together with programs almost exclusively targeted at advanced technology start-ups backed by venture capital seeking high and fast returns.
A Reality Check The dominance of this approach is at odds with the realities of Australian business and industry, particularly the vast majority of businesses that are small to medium sized.
Most Australian enterprises are not venturebacked, cutting edge start-ups. Rather, they are diligent mainstream small and medium sized enterprises( SMEs) seeking to anticipate and meet customer demands in a superior way to their competitors, to successfully create and sell new or different business offerings in more diverse markets and to earn profits that sustain the business.
As evidenced by Howard( 2025a) and Kastelle( 2025), these enterprises generate value and grow by“ methodical expansion, sustained by customer relationships, cash flows and proprietor investments.” Often
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