A generational review of Australia’s ailing research and development system will be led by Tesla chair Robyn Denholm, who will develop options to close a multi-billion dollar gap with other innovative nations.
The review will run for the next year and deliver Industry and Science minister Ed Husic a “vision for the future” and new intervention options, after a decade of plummeting R&D measures.
Australia’s R&D investment is now 1.68 per cent of GDP, below the OECD average of 2.73 per cent and far behind leading nations.
The relatively low level is a reflection of Australia’s lack of economic complexity and an innovation system that is underdelivering, according to experts, who have warned more funding, incentives and policy coordination is needed.
The Albanese government has resisted calls to pump more money into research programs or make significant changes to incentivising business innovation, despite committing to lifting spending before the last election.
“We’re at the start of the process, not the end,” Mr Husic said on Monday in Canberra. “I have not wanted to throw money at this problem. I want an evidence base that’s developed through this type of process to say how we can all contribute.”
Research groups have pushed for a strategic examination of the current system for years and in February the University Accord recommended the root and branch review.
The Albanese government committed to the review in May and announced terms of reference and the appointment of the panel on Monday.
Ms Denholm is being appointed just weeks after her technology industry group called for the inclusion of technology adoption in how Australia measures its R&D, along with tax reforms and increased grants for businesses to drive an uptick. She is also the chair of the tech sector’s lobby group and a partner at VC giant Blackbird.
Falling business investment has been a persistent problem in Australia for more than a decade and the panel has been asked to examine opportunities for more industry investment and innovation adoption.
But every part of the national R&D system is up for examination.
“It’s about leveraging both [research and development],” Ms Denholm said.
“But clearly our research capability are well regarded globally. So it is translating that research into development and to commercialization, which is my background. But more importantly, the there are no constraints on the committee’s purview.”
Ms Denholm is joined on the R&D review panel by the head of Victoria’s startup agency Kate Cornick, MedTech pioneer Fiona Wood and former chief scientist Ian Chubb.
The panel has also been asked to consider ways to get more out of existing R&D investments, strengthen research and industry links, support national priorities like net zero and advanced manufacturing, and uplift Australia’s overall R&D intensity.
Mr Husic called for cooperation from all parts of the sector and said there is plenty of room for improvement.
“It’s not an exercise in saying ‘you have to do better’ or finger point and blame shift,” Mr Husic said.
“I think there’s a recognition that we all need to perform much better, and I think it’ll be important for us to work together on that front.”
After committing $23 billion to its Future Made in Australia plan, the Albanese government wants to better leverage research and development in it.
“R&D investment is one of those things that drives future economic strength,” Mr Husic said. “Intellectual property, ideas will drive, sustain [and]strengthen economies. Ideas, innovation, know how matters.
“And R&D is something that we should be pressing for in our country and to improve the way we invest in it. Over the last 20 years, and especially the last decade, our performance has been slipping.”
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