The Australian Industry Group (Ai Group) welcomes today's announcement of a landmark review into Australia's research and development system and hopes it is the first step to a transformative reform rather than incremental changes.
The Strategic Examination of R&D, to be chaired by Tesla Chair Robyn Denholm, represents an opportunity to address Australia's declining R&D investment, currently at 1.68 per cent of GDP – well below the OECD average of 2.73 per cent.
"While there have been multiple reviews of our innovation ecosystem in the past two decades, this time we need to see genuine, innovative solutions rather than minor adjustments to existing frameworks," said Innes Willox, Chief Executive of the national employer association.
"Business R&D is where the rubber hits the road in terms of developing novel products and services that can drive economic growth.
"The review must identify practical ways to boost private sector investment in R&D and remove barriers to innovation.
"Critically, we need to transform the current public sector research model to become more commercially focused and sustainable. While government funding will always play a role, our research institutions need to develop more diverse revenue streams and stronger connections to industry.
"Improving Australia's productivity growth must be central to the review.
"R&D investment is fundamental to driving productivity growth and national prosperity.
"The appointment of Robyn Denholm to chair this review, along with the distinguished panel members, suggests the Government is serious about delivering meaningful change. The challenge now is to ensure the review's recommendations lead to genuine transformation of Australia's R&D landscape, rather than becoming another report that gathers dust on a shelf.
"Ai Group looks forward to contributing to the review and engaging with our broad membership base to ensure various approaches are considered," Mr Willox said.
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