CSIRO’s role in Australian innovation has evolved over the years in response to changes in the external environment and within Australia’s national innovation system. The process of organisational change has been characterised by a series of restructurings—in 1978, 1988, 1996 and 2001—and accompanying shifts in the organisation’s strategic directions. In this paper we look at the process of organisational change in an historical context, looking at the evolving external environment, the legislative and management background, and the shifts in the organisation’s strategic directions. The change process is interpreted from a punctuated equilibrium perspective. We propose that discontinuous, rather than continuous change, is the way that a complex and diversified organisation like CSIRO adjusts to a changing external environment and, moreover, that independent public reviews have an important role in this process. In the light of major changes in the Australian and scientific landscapes over the past two decades we suggest it is time to look again at CSIRO’s role and the sustainability of its internal management arrangements.