The Australian Industry Group (Ai Group) has today submitted its response to the Strategic Examination of Research and Development (SERD), calling for a fundamental overhaul of Australia's approach to research and commercialisation.
"Australia stands at a critical crossroads in its R&D journey. Despite decades of rhetoric about becoming a 'clever country', our members have not seen material changes to match these aspirations," said Ai Group Chief Executive Innes Willox.
"Simply pouring more funding into a dysfunctional system won't enhance its effectiveness. Calls to increase research funding to 3% of GDP are divorced from economic reality if the commercialisation imperative is not addressed."
The submission emphasises that Australian businesses are facing unprecedented challenges, including slowing investment, restrictive workplace relations, an uncompetitive tax system, and ongoing skilled labour shortages – all of which hamper productivity growth at a time when it is most needed.
"What Australia desperately needs isn't more of the same, but rather a fundamentally new approach for how R&D translates into commercial outcomes and productivity gains. The time for incremental change has passed," Mr Willox said.
"Our nation's productivity performance has stagnated for too long, limiting wage growth and economic prosperity. Effective R&D commercialisation is one of the most powerful levers we have to reverse this trend."
Ai Group's recommendations include establishing a Ministerial Council for Innovation Science and Technology, creating a National Prototyping Network, reforming the R&D Tax Incentive, and developing a national IP Bank as a central repository for publicly funded intellectual property.
"With the converging challenges of decarbonisation, diversification, and digitalisation, rebuilding businesses' capacity to not only generate but also commercialise R&D is essential to our national prosperity, productivity and security," Mr Willox said.
"We urge the panel to place commercialisation and productivity outcomes at the centre of any reform agenda for Australia's R&D system."
Ai Group's full submission can be found here.
Ai Group will continue engaging with its members throughout the SERD process to ensure comprehensive input from all sectors of the economy.
