The Australian Academy of Technological Sciences and Engineering (ATSE) has welcomed the federal government’s decision to undertake a strategic examination of Australia’s underfunded research and development (R&D) sector, which has been a growing concern for the country’s global competitiveness.
While nations like Germany, Japan, and the United States allocate over 3 per cent of their GDP to R&D annually, Australia’s expenditure sits at just 1.68 per cent, the organisation said in a news release.
This figure has been on a decline over the past decade, dropping from 2.2 per cent of GDP in 2010.
Meanwhile, China has significantly increased its R&D spending, reaching 2.65 per cent of GDP in 2023, up from 1.71 per cent in 2010—close to Australia’s current level.
ATSE stresses that the creation and application of knowledge are crucial drivers of national progress, and Australia must not allow its innovation sector to stagnate.
The review aims to maximize R&D’s value across all sectors, foster greater collaboration between academia, government, and industry, and stimulate increased investment by the private sector.
Kylie Walker, CEO of ATSE, emphasised the urgent need for a comprehensive review of Australia’s R&D funding landscape.
“This review of research and development is sorely needed to revive a sector that has been neglected for more than a decade,” she said.
Walker pointed out that while the economic benefits of R&D are well-known—every dollar spent returns $3.50 to the economy—what is concerning is the research that is left undone due to insufficient investment, and the innovations that remain untapped as industry investment in R&D continues to decline.
“This review offers the nation to set the future for Australian innovation, industry and society. It will make sure that when new innovations are happening, they are happening here, and that Australia is not relying on a future made overseas,” Walker added.
She added, “By properly investing in and supporting a research and development ecosystem in Australia, we are strengthening our economy, creating jobs and uplifting Australians’ quality of life.”
