Small and medium-sized enterprises now spend more on research and development than large businesses, with the growth of local venture capital and government support helping to alleviate some financing constraints.
In a speech on Thursday, Reserve Bank assistant governor for the financial system, Dr Brad Jones, said that SMEs “appear to be taking over the ‘innovation baton’ from large firms, including in early-stage investment in R&D and intellectual property rights”.
As of the 2021-22 financial year, SMEs accounted for 55 per cent of total expenditure on R&D in Australia, the first time the share of expenditure has exceeded that of large firms, according to data from the Reserve Bank and the Australian Bureau of Statistics.
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