Oh, Australia has plenty of innovation. What it lacks is a culture of support for innovation, entrepreneurialism and capability.
Australia also lacks is a thriving manufacturing sector to support that innovation - used to have it, but we've been letting it rot on the vine for the last 40-50 years. For example, remember when Australia had three local car manufacturers? Three! Now none (since 2017). An automotive industry supports all kinds of spinoff industries and SMEs that are then in a good position to adapt to new innovative needs - unfortunately that base just isn't there any more.
20 - 30 years ago, Australia led the work with solar panel tech. But because nobody cared to invest locally, now we buy them from China. Australia used to lead the world in photonics (e.g. optical fibre, broadband etc), now that expertise is overseas. Did you know that wifi, as we know it today, was originally developed in Australia? I personally remember back in the mid-1990's, marvelling at the guys from CSIRO and Uni of Western Sydney running LANs *without cables*! I could go on.
People have started re-thinking about Australia's manufacturing sector woes, especially since Scomo's "Bull in a China shop" diplomatic crisis in about 2020 and the broader dawning realisation that the world may be heading towards a new era of conflicts worldwide, and that Australia should be thinking more about self-sufficiency and capabilities rather than outsourcing all our manufacturing and expertise to countries with cheaper labour and laxer environmental laws.
OK, rant over