The federal government has launched a review into Australia’s research and development performance but may not live to see the result.
The year-long review strategic review will be led by Robyn Denholm, chair of Telsa and the Tech Council of Australia, founder of Wollemi Capital, and operating partner at VC fund Blackbird.
The review was announced during the federal budget in May, but with the first-term government heading to the polls early next year and Labor trailing the Coalition in the polls, if could be reading the findings from the opposition benches when the review is released at the end of December 2025.
Also on the review panel are LaunchVic CEO Dr Kate Cornick; scientist, former Australian of the Year and inventor of “Recell” spray-on skin Professor Fiona Wood and former chief scientist Emeritus Professor Ian Chubb.
Denholm said that while Australia excels at producing world class research, it’s “imperative to focus on development and commercialisation” to realise the full impact.
“My objective for this review is to unlock the immense potential of Australian research by turning it into tangible outcomes that deliver both economic and societal benefits,” she said.
“Drawing on my experience across the global and Australian business sectors, I aim to help shape R&D settings that enhance our global competitiveness and secure our nation’s future prosperity.”
The government released the Terms of Reference for the review on Monday, six months after flagging during the budget that it would be announced “within weeks”.
It will look at how to:
- maximise the value of existing investment in R&D, across government, universities, philanthropy and industry
- strengthen linkages between research and industry, enabling greater mobility of researchers and innovators between sectors and addressing barriers to meaningful collaboration
- support the achievement of national priorities, including mechanisms to improve coordination and impact of R&D funding and programs across Government and through our science agencies
- drive greater R&D investment by industry, and boost industry adoption of innovation
- uplift Australia’s overall R&D intensity.
The panel will examine:
- the current state of Australia’s R&D system, and comparable state of OECD investment in R&D, including levels of investment in R&D, R&D infrastructure and R&D workforce, across sectors
- barriers and risks impacting on Australia’s capacity to maintain R&D competitiveness
- ways to better measure the value and impact of R&D investments, and maximise efficiencies
- ways to ensure R&D benefits are equitably distributed across regions and communities.
Industry and science minister Ed Husic, who has spent much of his past 2.5 years in the role in review mode, including the Pathway to Diversity in STEM Review, led by Sally-Ann Williams from Cicada Innovations
Some 11 months after that review was handed to the government in February, it has yet to formally respond to its final recommendations, although Husic did shut down the Womem in STEM ambassador program. and killed off the Boosting Female Founders program, which was not part of the review.
Hard questions
Husic said it’s nearly 20 years “since we asked the hard questions about our R&D performance” amid an “alarming slide over the last decade”.
The R&D tax incentive, an important focus for the startup sector, was reviewed in 2016 and again in 2020.
Husic said the review is designed to give an evidence-based pathway to stronger growth.
“We said after the pandemic we would boost our manufacturing self-sufficiency,” he said.
“That is a big challenge, but Australian know-how can help us do things smarter, sharpening our edge against international competition.
“We’ve got to back up that investment with a world-class R&D system that will deliver more firepower from our boardrooms and labs so we can compete with the best in the world.”
Richard White’s ASX-listed WiseTech scored $36.9m, Sun Cable, the renewable power project backed by Atlassian’s Mike Cannon-Brookes, $26m.
The review was welcomed by the lobby group Denholm chairs, the Tech Council of Australia.
CEO Damian Kassabgi said a strategic approach to R&D will increase competition, attract investment and contribute to a more productive and resilient economy.
“The decline in productivity is one of Australia’s biggest economic challenges. To continue enjoying our standard of living, which is among the highest in the world, Australia needs to focus on improving productivity growth,” he said.
“Lifting investment in R&D can help us turn this around. To maximise the economic and productivity gains, we need a strong R&D system that encourages innovation and supports companies to transform world-class research into commercial success.
Kassabgi said Australia is not keeping up with other countries in its investment in technology.
The Tech Council released research last month that claimed lifting investment in R&D and tech adoption could contribute up to $167 billion to GDP by 2035.
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