Mr Crean spoke at a forum as part of the inaugural Ballarat Innovation Festival at Oscar's yesterday.

He spoke about the importance of innovation as a driver of economic growth.

"Ballarat is a great example of an area which has kept renewing itself," he said.

"It's a message they don't have to be convinced about but they have to build on."

Mr Crean said the current skills shortage was evidence the Federal Government was failing to adopt a long-term approach to social growth.

He said innovation and skills should be dealt with together.

"If we fail to encourage research and development, then we are undermining our potential," he said.

"Innovation and skills are part and parcel of the same economic growth.

"It's really the role of government to get the framework right when you bring the complementary policy frameworks together."

The forum discussed risk and its relevance to innovation, and was designed to set the tone for the festival.

Council manager of executive projects, Anthony Schinck, said the six panelists were chosen because of their diverse views.

The forum included Mr Crean, Internet Society of Australia director George Fong, digital media artist Sally Pryor, Greenhill Enterprise Centre director Stan Jeffrey, ABC Ballarat presenter Dominic Brine and young entrepreneur

Ben Stickland.

The next part of the Ballarat Innovation Festival will be a HR Networking Breakfast at Pipers on the Parade on Thursday, May 5.

The event will start at 7.15am and finish at 8.30am at a cost of $15.

Contact Rebecca Barnes on 5332 9955 for further information.