Experimentation is a critical part of most industries. Developing, researching and trialling new drugs in the pharmaceutical industry has helped save millions of lives. Innovation and experimentation in Silicon Valley is precisely how we got from the Motorola brick phone of the 1980s to the iPhone 6.

So why is it that we do not apply the same rigorous analysis, practised in the science lab, to policy reform?

On Monday, The New Zealand Initiative held a panel discussion to release our latest report, In the Zone: Creating a toolbox for regional prosperity. The premise is simple enough: why not allow tailored policy reforms to be trialled first within regional special economic zones, where they are most needed and most likely to be successful? This could lead to more effective policy that actually recognises regional diversity, whilst at the same time, minimises risk.

The panel, consisting of investment banker Rob Cameron, National MP Chris Bishop, New Zealand First MP Ron Mark and Labour MP Clare Curran, all endorsed the report’s suggestions in one form or another.

The idea stems from the frustration resulting from a government focused on applying one-size-fits-all policy. Nationwide policy change is difficult; reforming and improving problematic pieces of legislation are, too often, trapped in a political impasse. This is often to the detriment of our regions.

Cameron welcomed the report for its creative solutions in that “it is a low risk approach that respects local differences.” It presents an opportunity for providing region-specific solutions for region-specific needs.

Other panellists questioned the competency of local councils, and were wary of the hazards involved in delegating more responsibility to local government. But improving the incentives and modifying the finance structure to give local councils a cut of increased growth encourages smart local decision making.

What about the perils of exempting regions from particular parts of key national legislation, like the Overseas Investment Act? The beauty of testing OIA reform in individual regions, is finding out quickly what does and does not work, without having to change policy for an entire country.

It is time we applied the same entrepreneurial trial-and-error to policy and governance systems, as we do with physical technologies.

Based on feedback from the night, many people in local government concur. 

Ron Mark took it one step further. “Now, it is just about having the balls to go ahead and do it.”