Richard Hayes (Research Fellow at MBS/IPRIA) and I have updated the Innovation Index. The index is a measure developed initially by Scott Stern and Michael Porter to measure a country's capacity to innovate. Scott Stern and I did an update for Australia in 2003 and Richard and I produced an update in 2004.
This years Innovation Index is refined further. The bad news is that Australia's potential has declined -- mainly due to a loss in the perceived strength of IP protection. Nonetheless, our ranking with respect to other countries remains unchanged.