Australia's journey to Silicon Valley is a long haul U nicorns, angel investors and venture capitalists: Silicon Valley's world- beating ecosystem is literally the stuff of legends.
The Valley fairytale goes something like this: Two bright young things drop out of Stanford University to become "Founders".
They give their brilliant new tech idea a snazzy name consisting of two words - inappropriately capitalised - combining fruit and a utilitarian object, like GrapeBox. 
An angel investor swoops providing much-needed funding and mentorship. The boys (yes, usually boys) hold a "Series A" funding round, attracting enthusiastic bidding from a handful of legendary venture capital firms. A few years and funding rounds later, their private tech firm is valued at more than $US1 billion - earning it "unicorn" status. A few more years later, they take the company public, listing on the NASDAQ, and retiring as billionaires to a mansion in Palo Alto.
Of course, for every fairytale, a hundred failures. But in the Valley, failure is a badge of honour. Success is glamorised, but failure is too. Nothing ventured, nothing gained.
It's a spirit of entrepreneurialism Prime Minister Malcolm Turnbull is desperate to unleash here.
The government is finalising an "innovation statement", due early next month, designed to fuel the fires of entrepreneurialism in Australia.With the mining boom over and real wages growth stalled, Australia urgently needs new drivers of prosperity.
But Australia is not Silicon Valley.
In fact in recently years, we're slipping even further behind.
Participation in "science" subjects in Australian schools is at its lowest in 20 years, chief scientist Ian Chubb wrote in his submission to the government's innovation inquiry."Just 1.5 per cent of Australian companies developed new-to-the- world innovations in 2011, compared to between 10 to 40 per cent in other OECD countries," Chubb says. The deeply risk-averse character of the Australian business community - dominated by rent- seeking oligopolists - increasingly troubles our policy makers.
Reserve Bank deputy governor Phillip Lowe warned in a recent speech that an ageing population will only compound the trend. Old people, you see, take fewer risks.
Sandy Plunkett is an Australian- born former venture capitalist who consults on entrepreneurship and global innovation systems. She moved back to Australia three years ago after 15 years in San Francisco and warns Australians have become distinctly more "conformist".
"  Maybe wealth has made us that way. I think we are creative ... But compared to other innovation cultures, we are risk averse ... Innovators, by nature, don't ask for permission."So how can we turn a nation of line-toeing, risk-averse, tall-poppy choppers in to a nation of "have a go" entrepreneurs?
Unfortunately, governments who try to unleash innovation often resemble a dog trying to catch bubbles: enthusiastic, yes, but largely unsuccessful.
But there are several important things government could do.
There are the obvious things, like policies to foster greater collaboration among academia, business and venture capital, secure better access to capital for start- ups, encourage kids to do science, unlock more and better-targeted funding of universities, and stronger competition policy.
But most of all, we need to create an entrepreneurial culture. As Roy Green, dean of the UTS Business School, wrote in a paper for the innovation inquiry: "This could include celebrating the success of entrepreneurs in business and community achievement rather than admiring those who secure riches through capital gains and luck."
Forget James Packer. Think Mike Cannon-Brookes and Scott Farquhar, the little-known founders of Aussie software firm Atlassian, which is about to list on the NASDAQ.
Plunkett agrees, saying the key test for the forthcoming statement is how it addresses the need to encourage risk and acknowledge failure as part of innovation.
Directors face jail and heavy fines for allowing their company to trade if they know it is insolvent.
But young tech firms can take years to turn a profit. Easing personal liability laws for tech start- ups could help. Australia's academics are also unnecessary shackled by the tenure system. Other countries do a much better job of freeing up academics to take a few years off to do a start-up to commercialise their research.
The government has already announced a policy to make crowdfunding of start-ups easier.
Speculation is it will also announce tax breaks for start-ups.
Seeking tax breaks is an easy way to seek wealth. But tax breaks alone don't foster innovation.
People don't take risks when they're afraid. The best thing we could do to foster innovation is to create the culture of meritocracy, tolerance and enthusiasm for change that Silicon Valley is famous for.
That means having a government that welcomes immigrants (who make up over half of all founders in the Valley), that values the arts and creativity, that accepts and acts on the advice of scientists, and recognises the equal rights of those who stand out from the crowd, including through their sexuality.
Turnbull has quite a lot of work left to do to transform Australia into a truly innovative nation.
Twitter: Jess-Irvine