New Australian Bureau of Statistics data shows a modest lift in business spending on R&D. Mr Sheehy said the increase was encouraging but not enough to shift the dial on productivity or competitiveness.

“Australia invests less than 1.7 per cent of GDP in R&D, compared with an OECD average of 2.7 per cent. Countries like South Korea and Germany are well above three per cent and are reaping the productivity gains that come with it,” he said.

“The Australian Government has set a target of lifting R&D investment to three per cent of GDP. The current Strategic Examination of R&D is the right opportunity to align policy and funding with that ambition, but we need urgent action to close the gap.”

Mr Sheehy said universities were ready to partner with business to scale up innovation and deliver stronger outcomes for the economy.

“Research is central to lifting productivity. Universities train the researchers industry needs, provide the world-class facilities that many businesses can’t afford on their own and help turn ideas into commercial outcomes,” he said.

“The Productivity Commission’s recent report confirmed what we’ve been saying – that collaboration between the tertiary system and business is key to getting the skills and innovation Australia needs.

“The small improvement in business R&D is welcome, but without a big lift and stronger university–industry partnerships, Australia will be left behind.”

The ABS release follows Universities Australia’s recent analysis warning that Australia faces a shortfall of 12,000 PhD-qualified researchers by 2031, alongside the challenges of navigating more than 150 separate federal research funding programs.

“Universities stand ready to help turn this around. We’re working with business every day to translate research into real-world outcomes, to train the next generation of researchers and innovators, and to provide the infrastructure that enables cutting-edge discovery.

“With the right settings, we can do even more to lift Australia’s research effort and strengthen our economy.

“We know what needs to be done. The challenge now is to build a coherent, better-funded research system that brings universities and business together to drive national prosperity.”

ENDS

FOR RADIO NEWSROOMS

Radio grabs from UA CEO Luke Sheehy.

FOR ACCESS TO REPORTS

From fragmented to future ready: reforming research in Australia

From fragmented to future ready: the next generation of researchers