A new discussion paper has been released by the panel leading a landmark examination of Australia’s research and development (R&D) system, highlighting concerns over the nation’s diminishing R&D investment and its economic implications.
The panel, chaired by Robyn Denholm, is inviting public input on how to strengthen Australia’s R&D performance to enhance productivity and economic growth.
The paper outlines a significant decline in R&D investment over the past 15 years, with Australia now spending only 1.66 per cent of its GDP on R&D, well below the OECD average of 2.7 per cent.
It also points to structural challenges, including a decline in business investment, weak cross-sector collaboration, and the country’s struggle to translate research into commercial outcomes.
Minister for Industry and Science Ed Husic underscored the urgency of the issue, stating, “We’re virtually giving our world-class science away for free to other countries to exploit, and this needs to stop.”
He emphasised the broader benefits of a stronger R&D system, adding, “R&D boosts productivity, creates more jobs, strengthens our economic and national security resilience, and leverages our strengths in science.”
The discussion paper notes that while SMEs have increased their investment in R&D, overall business spending has dropped by more than a third since 2009.
Additionally, Australia ranks last in the OECD for university-business collaboration, an area considered critical for translating research into economic benefits.
The panel is exploring ways to maximize existing R&D investment and improve industry-research linkages.
Denholm highlighted the need for a more innovation-driven approach, stating, “It’s crucial that we put innovation at the centre of our national goals. A robust and forward-looking R&D ecosystem is vital to the future of the country.”
She also stressed the importance of leveraging Australia’s research strengths, adding, “Developing, translating, and commercialising that research is critical for economic growth.”
The panel is seeking feedback from industry, researchers, and the wider public to shape recommendations for a more effective R&D strategy.
“The discussion paper is a crucial step in this comprehensive examination,” Denholm said.
“We welcome views from across the country to help us look at what Australia already does well in the R&D environment, and what we can do better.”
The discussion paper can be found here.
