Reserve Bank of Australia governor Glenn Stevens made headlines when he discussed the impact of recent bank interest rate raises on monetary policy and the uncertainty about the global bank capital debate.

But the speech, to an economic summit in Melbourne, was also noteworthy for laying out why Australia needs to grasp this opportunity to create policy that enables the economy to prosper in the digital future.

As the federal government prepares to release its highly-anticipated innovation statement in the coming weeks and as the local start-up scene fires up (more on both of those later), Stevens suggested Australia’s future prosperity will require more flexible work arrangements and for government and business to create an environment where entrepreneurial juices flow.