Taking the SMAC-style one step further!
Governments provide the framework for what (and how much) you are allowed to influence. Different sliders will produce the differing results, with more options than simply science/luxury/commerce.
Government philosophies, as they are discovered, could be chosen from in several groups, giving advantages and disadvantages (very much SMAC-like).
On top of it all, you should be able to enact empire-wide policies, as well, which is where encouraging the private sector would pay off. Possibly doing so would lose some productivity (for the empire) but reap huge economic rewards. Or something like that.
I know this sounds complicated, but it really isn't.
This idea can be more fully exploited if another suggestion (from another thread) is also implemented. Instead of having just straight technological discoveries, there should be two separate science paths - one for tech discoveries (bronze working, atomic theory) and another for social/cultural discoveries (philosophy, economics, capitalism, advanced globalization theory, etc).
Thus, while allocating for research, you would have to make decisions as to whether to research iron working, or going for the new social concept that will increase your production.
The entire system will be even better if they get rid of "eras" and go back to a large tech tree; that way you can pick and choose the techs/concepts you want and have more paths through the tree.
Sorry.. this got a little off-track from the original subject. Still, it would allow the incorporation of your idea.
