Innovation present likely to be all packaging

Irrespective of your take on this argument, the real problem in Australia is how we could move from the present arrangements in which directors are penalised for overseeing an insolvent company and creditors are repaid in a strictly controlled order. Overturning the predetermined privileges of current creditors overnight would create havoc.

Whether a separate bankruptcy provision along US lines could apply only to innovative start-ups is not clear. At least the creditors would go into this arrangement with their eyes wide open. The danger is that a separate provision could lead to a series of unintended consequences.

The Prime Minister has made it clear that he regards our universities as having a central role to play in promoting innovation. But in this regard he has queried the incentives that academics face that value publication of papers in quality international journals above all other activities. To his mind, this has dulled the potential of some academics to develop inventions that could lead to commercially successful new products and services.

To change these incentives, however, would be a quite radical step. And arguably many academics have self-selected and have a strong preference for publishing over invention and entrepreneurship. Even so, we should expect some rejigging of the incentives that universities face in terms of being involved in innovation-­related activities.

So not too many sleeps to go. But just as Father Christmas can disappoint us, it is also possible that Father Innovation may deliver a series of underwhelming but costly proposals.

Whether politicians telling us to abandon our culture of fearing failure really gets us anywhere is unclear. At least talk is much cheaper than some of the other likely offerings.