Australia’s investment in research and development (R&D) has dropped to less than 1.7 percent of GDP, with a new review underway to reverse the trend.
Federal Minister for Industry and Science Ed Husic said there had been a decline in Australian R&D over the past 15 years, with local investment now only 1.66 percent of GDP, well below the OECD average of 2.7 percent.
Minister Husic said a new discussion paper, released today, marked the start of a review to strengthen R&D performance, 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,” he said.
“We’re virtually giving our world-class science away for free to other countries to exploit, and this needs to stop.”
Minister Husic said an expert panel, led by Chair Robyn Denholm, would look into a number of issues raised in the discussion paper, 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.
He said the panel was considering a range of paths to maximise the value of existing investment in R&D and strengthen linkages between research and industry.
Mr Denholm said a robust and forward-looking R&D ecosystem was 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,” he said.
“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.”
Read the discussion paper: Strategic Examination of Research and Development.
