The Net Zero Economy Authority engaged Urbis to undertake research into how international place-based industrial and innovation policy approaches have been designed and implemented to support regional economic transition.
The research explored leading policy models, international case studies and practical lessons from regions undergoing economic transformation. It examines how governments, industry and communities have worked together to build regional capability, attract investment, support workforce transition and create new economic opportunities.
The findings show that successful regional transition depends on aligning policy design to the opportunities, challenges and capabilities of individual regions. International experience demonstrates that place-based industrial and innovation policy is most effective when it:
- builds on regional strengths
- is supported by strong governance and delivery capability
- coordinates investment, infrastructure, workforce development and market-shaping interventions.
Key findings
The research found that successful place-based industrial and innovation policies are typically characterised by:
- building on regional competitive advantages, such as natural resources, industrial capability, infrastructure, research institutions and workforce strengths
- government playing an active market-shaping role through investment, procurement, concessional finance, regulation and risk-sharing mechanisms
- strong coordination across governments, industry and communities to align priorities, reduce delivery risks and support implementation
- integrated policy packages that combine infrastructure, skills, workforce development, innovation support, housing and community investment
- region-specific workforce transition approaches that reflect the differing needs of established industrial regions and emerging growth industries
- long-term government involvement and effective sequencing to ensure enabling infrastructure, workforce capability and market conditions are in place when needed
- meaningful First Nations participation, supported through place-based approaches that embed Indigenous governance, ownership and economic development outcomes
- strong delivery capability, including clear mandates, capable institutions and governance arrangements that can turn policy ambition into regional outcomes.
Drawing on global research and international case studies from the United Kingdom, Germany, Sweden, Canada, Japan, South Korea and New Zealand, the report identifies practical lessons and considerations for designing and delivering place-based industrial and innovation policy in the Australian context.