Translating research into economic returns: Can Australia do better?
The Australian Government is seeking feedback to inform a review of the country’s research and development (R&D) system which aims to address declining investment and improve collaboration between universities, industry, and government.
The Federal Government has launched an examination of the country’s research and development (R&D) system, aiming to improve investment and collaboration across universities, industry, and government. A discussion paper, released by an independent expert panel, outlines key challenges in Australia’s R&D performance and invites feedback from stakeholders.
Chair of the panel, Robyn Denholm, explained: “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.”
Why the Review Matters
Australia’s R&D investment has fallen to 1.66% of GDP, well below the OECD average of 2.7%. Business investment in R&D has dropped by over a third since 2009, and Australia ranks the lowest among OECD nations for collaboration between universities and industry.
Minister for Industry and Science Ed Husic noted, “We’re virtually giving our world-class science away for free to other countries to exploit, and this needs to stop.” The review seeks to identify ways to get more value from existing investments and encourage businesses to invest in Australian innovation.
Key Areas of Focus
The expert panel will explore how to:
- Maximise the impact of R&D funding across universities, industry, and government.
- Increase business investment in research.
- Strengthen links between research and industry to support national priorities.
- Improve the translation of scientific discoveries into commercial applications.
The panel includes Denholm, Emeritus Professor Ian Chubb AC, Winthrop Professor Fiona Wood AO, and Dr Kate Cornick. Their findings will shape policy recommendations to government.
Industry and University Perspectives
The Group of Eight (Go8), representing Australia’s research-intensive universities, has long called for a national strategy to lift R&D investment to 3% of GDP.
Go8 Chief Executive Vicki Thomson welcomed the review but warned against delay: “While this review is important and we welcome it, we don’t need yet another lengthy process to tell us that both business and government investment in R&D has continued to decline whilst higher education investment has increased.”
Thomson argues that Australia needs a long-term national research and industry strategy, including bipartisan support for basic research and reforms to funding structures.
Public Consultation
The consultation process is open to businesses, universities, government bodies, peak organisations, First Nations groups, and the public. The panel will consider feedback in four stages:
- Analyse – Gather data and conduct consultations.
- Build – Develop policy recommendations.
- Test – Refine recommendations through further consultation.
- Decide – Deliver an action plan to government.
Australians can participate by submitting responses online or providing written submissions by April 11, 2025. The government hopes this input will help reshape the R&D system to better support economic growth and national priorities.
As Denholm put it, “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.”
