The third is cognitive caution, our brain’s natural instinct to avoid risk, failure, uncertainty and embarrassment.

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While I have seen this third form of innovation hesitation around the globe, it has become an especially normalised element of the Australian psyche, which is worth re-evaluating as we strive to innovate to improve our national productivity.

Amplifying this cognitive caution in the Australian context is a uniquely Australasian tendency to cut down those who think they can try to be creative or innovative, or who are being the “tall poppy”. This cultural tic creates an environment where striving too high or doing things differently invites criticism.

The result is that many Australians don’t like to talk about their ambitions and they develop a pervasive fear of success to match nicely with a pervasive fear of failure. That results in inaction and perpetuation of the status quo.

Together, these factors form a powerful national culture of innovation hesitation.

So, how do we unlock Australia’s innovation potential?

Confronting this hesitation is both imperative and possible. After all, we’ve done it before. Our nation boasts a track record of innovation and ingenuity – Wi-Fi technology, the black box flight recorder, ultrasound scanners, even the humble Hills Hoist clothesline.

The Hills Hoist was invented in Australia.

The Hills Hoist was invented in Australia. Credit: Ross Duncan

Australian scientists and entrepreneurs around the world continue to excel and make meaningful contributions. Every year in San Francisco, the Australian American Chamber of Commerce holds an impressive dinner celebrating the innovation of Australians.

We have it in us. The challenge is to make this widespread and normal, rather than an exception to the rule.

Cognitive science and real-world evidence alike tell us that a person’s ability to innovate and be creative is not a fixed trait. It is a set of mental processes and practices accessible to every Australian. Anybody can engage in creative problem-solving.

To ignite the everyday innovation essential to our national progress, the Productivity Commission should consider championing cultural reform, education initiatives, awareness campaigns and celebrations of risk-taking.

It is my experience that, only through repeated exposure, seeing people like ourselves trying and succeeding, and self-exploration do people really start to believe that they are creative and can innovate. By overcoming innovation hesitation, Australia can turn cautious talent into incremental and groundbreaking innovations. If we are serious about productivity, this cultural and educational shift must sit alongside structural and economic reform.

Dr Tessa Forshaw is an Australian cognitive scientist and co-founder of the Next Level Lab at Harvard University.