Alarm sounded over Australia’s dwindling R&D investment

Australia's future as a frontrunner in global innovation hangs in the balance as R&D investments plummet, sounding alarms at the highest levels of government and industry.

Industry and Science Minister Ed Husic (pictured), spurred by a concerning report led by Tesla Chair Robyn Denholm, is calling on the nation's corporate giants to bolster their research commitments.

Addressing an imminent gathering at the National Press Club, Minister Husic is set to deliver a stark message: “Our science leads the world, yet we’re handing it over for free,” highlighting a critical gap between Australia's research prowess and its commercial application.

The country’s investment in R&D has nosedived to nearly half the OECD average over the past 15 years, positioning Australia precariously behind its international peers.

The findings, drafted by a panel including luminaries like former chief scientist Ian Chubb, underscore a worrying trend: while small to medium enterprises heroically contribute 55 per cent of business R&D, larger firms are not pulling their weight.

The panel's discussion paper notes, “The contribution of large businesses to Australia’s R&D system needs to lift.”

Compounding the issue, recent government policies have slashed the number of international students, traditionally a significant revenue source for university-led research. This has prompted calls from Universities Australia for increased government funding to fill the void, emphasising the precariousness of relying on international fees to support critical research activities.

Picture: credit NSW Labor

Further reading

Why reviews of R&D fail

We need to perform better in R&D – Ed Husic

Robyn Denholm to lead national R&D review

Government says Australian R&D is strong – it is not