Joshua Gans and Richard Hayes have recently completed the 2008 update in their series “Assessing Australia’s Innovative Capacity”. The latest update paints a picture of Australia moving into uncertain times despite some gains mid-decade, particularly due to the weakening of the global economic environment. In a partial reversal of recent gains, Australia’s innovative capacity actually fell backwards in 2008. We maintained our 13th placed ranking only because a number of other countries also backtracked in their innovation efforts. The report highlights how drivers of national innovative performance – such as public education funding, support for universities as centres of research performance and the complex relationship between the intellectual property system and innovation outcomes – continue to be critical to the national debate and to innovative capacity. The report is available at http://www.ipria.org/publications/reports.html.