Industry minister, Ed Husic, has announced Tesla chair and former Telstra CFO, Robyn Denholm, will lead the government's Strategic Examination of Research & Development (R&D) that it announced in the May budget. The terms of reference were also released.
The budget announcement described the project as a strategic review of the R&D Tax Incentive, which hadn't been updated in eight years since the Finkel-Ferris-Fraser review. But Husic said it would be more comprehensive than that, with its goal being to reshape Australia’s R&D performance to help power economic growth.
Key priorities from the review include achieving more value from investment in research across universities, industry and government, harnessing and growing business investment in R&D, and leveraging scientific strengths to help address national priorities and foster new industries.
These goals will better support the message of the National Science Statement released in August, which received some criticism for brushing over the decreasing spend of Gross Domestic Product (GDP) on research compared to other developed nations.
As Husic pointed out in an interview yesterday, OECD countries are investing around 3 per cent of their GDP into R&D, while Australia is hovering under 1.7 per cent. Strong performance in science is not translating into a stronger R&D performance – so the panel is determined to find what is holding Australia back.
“It’s been almost 20 years since we asked the hard questions about our R&D performance, despite the alarming slide over the last decade,” said Husic.
“Our $23 billion Future Made in Australia plan is a critical investment in building up our industrial muscle. 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.”
Led by Denholm, the panel will include:
- Emeritus Professor Ian Chubb, former Vice Chancellor of Australia National University, former Chief Scientist, current Chair of the Health and Medical Advisory Group and Fellow of the Australian Academy of Science.
- Professor Fiona Wood, former Australian of the Year, pioneer of “Recell” spray-on skin, Director of Royal Perth Hospital Burns Unit and Winthrop Professor in the School of Surgery at the University of Western Australia.
- Dr Kate Cornick, CEO of LaunchVic (Victoria’s startup agency), Non-Executive Director at the Victorian Government Innovation Panel and the Australian Information Industry Association, former CEO of ASX-listed Rision Ltd.
The panel will assess the benefits to economic growth and productivity from a more purposeful approach to R&D, specifically focused on opportunities to:
- Maximise the value of existing investment in R&D
- Strengthen linkages between research and industry
- Support the achievement of national priorities
- Drive greater R&D investment
- Uplift Australia’s overall R&D intensity
“While we excel at producing world class research, it is now imperative to focus on development and commercialisation to realise the full impact of our efforts,” said Denholm.
“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.
“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,” she said.
Consulting with industry, universities, peak bodies, First Nations people, and the public, the examination will report its findings and an action plan to the government by the end of 2025. Further details and progress updates can be found here.
