Let me start the year by wading into the hottest topic in hipsterville, the potential location of Sydney's super-sized, start-up hub.

The context to the conversation is the NSW government's announcement that it will concentrate Sydney's entrepreneurial community into a single site, thereby creating a grand innovation hot spot to rival our global competitors.

Few doubt the theory. Put simply, co-location works. Ask any member of an existing tech hub and they will attest to the benefits a strong ecosystem brings to their business.

In fact, collaborative and flexible workspaces are the new black in the business community.

Wework, the global leader in innovative workspaces, openly courts established businesses looking to house their teams in an environment more conducive to change.

Likewise, residents in places such as Tank Stream Labs (home to Commtract) and York Butter Factory in Melbourne include global companies who see it as an alternative to the traditional office option.

Out-of-touch thinking

Where the policy consensus begins to fray is in the implementation, namely where to physically locate the new community of interest.

White Bay seems to be the firming and favourite option.

No doubt this is music to the ears of the good burghers of Balmain who were once threatened with the site being redeveloped as a Disneyland.

However, its status as a public transport Alcatraz means it will be vehemently opposed to those who don't ride their trusted treadlies to work.

Others argue that if Australia wants to attract the best and the brightest then it should offer a CBD location with harbour views.

This shows a remarkable tin ear to the attitudes of average Australians. Technology is not the only sector with a skills shortage. To wit, try booking a GP in a country town.

It is the type of out-of-touch thinking that saw innovation become persona non-grata in 2016.

All about me

Libertarians argue that government should steer well clear of the entire debate. Start-ups are no more than 21st-century small businesses.

Moreover, flexible workspaces are growing like topsy, so Smith's invisible hand seems to be functioning well.

New Innovation Minister, political wunderkind and passionate Local Member, Matt Keane, will probably even plug Hornsby or the Hills district ... although he would be alone.

So where do I stand on the issue? As a proud resident of Sydney's Insular Peninsula I will settle with anything that has quick access to the ferry network.

Which pretty much sums up the government's dilemma. Good luck in cobbling together consensus when few people are prioritising the policy interests ahead of their own commute.

Or as another NSW politician, Jack Lang, once famously said: In the race of life always back the horse called self-interest.

Peter McConnell had a long career with the NSW National and Liberal parties, culminating as chief of staff to then-premier Barry O'Farrell, followed by three years running corporate communications for Woolworths. Last year he quit to launch his own start-up, and serialise his adventures in The AFR.