Discussion paper highlights stark decline in Aust R&D

A new discussion paper has been released by the panel leading a landmark examination of Australia’s research and development (R&D) system, and it makes the worrying claim that Australia is virtually giving away its world-leading research with little economic return for the nation.

The Strategic Examination of R&D discussion paper highlights a stark decline in Australian R&D over the past 15 years: local investment in R&D is now only 1.66% of GDP, well below the OECD average of 2.7%. The paper also highlights other structural issues, including:

• Despite growing SME investment, overall business investment in R&D has fallen by more than a third since 2009.
• Australia is good at research, but lags behind other OECD countries in development and translation.
• Research collaboration across sectors is weak. Australia ranks the lowest in the OECD for university–business collaboration.
• Stronger manufacturing is critical to improved R&D performance and to lift Australia’s economic complexity.
   

The Strategic Examination of R&D Panel, which authored the discussion paper, is currently considering a range of paths to maximise the value of existing investment in R&D and strengthen linkages between research and industry. It invites interested parties to have their say on how we can strengthen our R&D performance to drive productivity and foster economic growth.

“It’s been almost 20 years since we asked the hard questions about why our R&D performance is lagging,” said Minister for Industry and Science Ed Husic. “We’re virtually giving our world-class science away for free to other countries to exploit, and this needs to stop.

“R&D boosts productivity, creates more jobs, strengthens our economic and national security resilience, and leverages our strengths in science. The review is about how we can reshape the way we all work together so we can bring those benefits into our economy.”

“It’s crucial that we put innovation at the centre of our national goals,” added Panel Chair Robyn Denholm. “A robust and forward-looking R&D ecosystem is vital to the future of the country.

“Australia’s greatest assets include our people and our extraordinary know-how. We excel in research. Developing, translating and commercialising that research is critical for economic growth. My objective through this examination is to unlock the immense potential of Australian research by turning it into tangible outcomes that deliver economic and societal benefits and enhance our global competitiveness.

“The discussion paper is a crucial step in this comprehensive examination. The panel welcome views from all people across the country, to help us look at what Australia already does well in the R&D environment and what we can do better.”

Just days after the paper was released, the Australian Academy of Technological Sciences & Engineering (ATSE) launched its Boosting Australia’s Innovation report, which recommends critical actions to unlock Australia’s potential to grow a thriving, resilient economy. The report states that R&D are not optional add-ons for governments and business, but are fundamental to national growth, prosperity, resilience and sustainability.

Crafted following deep consultation with business, government, research and entrepreneurial leaders, Boosting Australia’s Innovation is intended to lay out a pathway for healthy R&D investment to secure Australia as one of the world’s leading technology and innovation economies. ATSE Fellows and hundreds of other consulted experts have made clear the need for a unified national approach to unlock Australia’s true potential.

The report’s recommendations are aimed at improving collaboration, increasing investment and creating better impact measurement, including:

• Implementing programs for intellectual property (IP) development and structured industry engagement targeted at innovators in research institutions
• Growing better mechanisms to facilitate collaboration between SMEs and other innovation actors, including access to research infrastructure
• Boosting total Australian R&D investment to 3% of GDP by focusing on strategies to boost industry investment in particular
• Leveraging the financial system to improve support for investors backing science, technology and engineering-based startups, through tax incentives and other policy interventions
• Implementing a robust innovation performance measurement framework to guide targeted future investment and drive an innovation culture.
   

According to ATSE, Boosting Australia’s Innovation articulates the interconnected key players in Australian R&D, identifies the barriers, and presents solutions and support systems that can be deployed to cultivate their work. It outlines the policy and regulatory reform opportunities to get the greatest benefit from our R&D spending and support more people to enter and thrive in new industries and jobs of the future.

“Australia has all the building blocks for a thriving innovation ecosystem, and so much potential to grow our impact, our wellbeing and our economy,” said ATSE CEO Kylie Walker. “Better systems and structure to connect and empower researchers, investors, startups, policymakers and innovators can provide fertile ground for lucrative new national industries to flourish.

“We can and should implement the extraordinary solutions and exciting opportunities our researchers and developers create. Every step we take to empower Australian knowledge and invention to thrive and build bridges across the economy will be repaid many times over in the new industries, jobs, products and opportunities we create.”

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