Dr Tim Williams, an advisor to Chief Minister Andrew Barr on his "capital ambitions" strategy and chief executive of the Committee for Sydney, said one of the keys to diversifying the territory's economy would be building on its existing strengths, creating new jobs in firms servicing Defence, the federal government's need for cyber security or in more construction and design firms possibly linked to a local university.

"Canberra already has a high talent workforce, so if we can create the environment in which clever people can rub up against each other, they call them innovation precincts overseas, then really that should start to create new jobs," he said.

He said one of the strengths of Canberra was its "unique city-state government", which he said was the envy of Sydney, with its state government and more than 40 local councils across the city.

"But I think maybe there's some further innovation in Canberra's governance to be done, the federal government is talking about new 'city deals', and I think the ACT should engineer a deal with the Commonwealth the could support projects like light rail," Dr Williams said.

"It could also involve moving more planning control under the ACT government and over time looking at what to do with the National Capital Authority."

Dr Williams said while there had been controversy about increasing numbers of higher density apartments and the development of "infill areas", it was not an "either or question", but rather being able to offer residents both an inner city option as well as suburban housing.

"But the reality is there is an international phenomenon that people are moving towards smaller places with greater amenity, that are walkable to jobs and services, and it's unlikely to be stopped in Canberra or anywhere else," he said.