Australia’s falling research and development investment rate will come under scrutiny in a year-long probe that has been welcomed by academic, technology, science and business groups.
The strategic review, announced on Monday, will investigate ways to boost Australia’s research performance and strengthen ties with industry, and will be led by Tesla chair Robyn Denholm.
But while groups welcomed the move, some said the government did not need to wait for its results to boost research and development investments.
The review comes after Australian research spending fell well below the world’s average, and one study ranked Australia as 93rd in the world for productive knowledge.
Federal Industry and Science Minister Ed Husic announced the strategic review in Canberra, saying research would be vital to Australia’s future growth but investments had fallen.
“Over the last 20 years, and especially the last decade, our performance has been slipping,” he said.
“There has not been a thorough, comprehensive examination of what has happened and how we can improve things.”
The review panel, which will include Emeritus Professor Ian Chubb and Professor Fiona Wood, will investigate ways to maximise existing research investments, attract greater industry funding, and identify barriers to collaboration.
While the probe would consider research tax incentives, Mr Husic said it would have a wide scope.
“This is fundamentally looking at everything that has to do with R&D in the country,” he said.
“It’s not an exercise in saying you have to do better or finger-pointing.”
Ms Denholm, who appeared alongside Mr Husic at the announcement, said the review panel would identify ways to improve returns on Australian projects.
“While we excel at producing world-class research, it is now imperative to focus on development and commercialisation to realise the full impact of our efforts,” she said.
Ms Denholm declined to comment on whether her appointment might smooth government relations with Tesla chief executive Elon Musk.
The Business Council of Australia welcomed the review, with chief executive Bran Black saying a lack of investments had started to impact the economy.
“Business investment in R&D in Australia is low and from a narrow set of sectors,” he said.
“We can’t afford to let brilliant ideas wither on the vine simply because they could not make the leap from research to real-world application.”
Science and Technology Australia, representing STEM workers, and the Tech Council of Australia also supported the review, but Universities Australia chief executive Luke Sheehy said the government and industries should not wait to see its findings before making investments.
“We can’t afford to kick the can down the road,” he said.
“We don’t need a review to tell us what we already know – Australia needs greater, more sustainable funding for R&D now.”
Australia’s investment in research and development fell to $38 billion, or 1.68 per cent of gross domestic product in 2022, significantly below the OECD average of 2.73 per cent.
Harvard University’s Economic Complexity Index, which compares countries by their productive knowledge, ranked Australia in 93rd place, below Thailand, New Zealand, Vietnam and Indonesia.
