Australia’s R&D System

Have Your Say on the Government’s Strategic Examination

Key points

  • The Australian Government has commissioned a strategic examination of Australia’s R&D system.
  • The purpose of the examination is to determine how Australia can increase the value and impact of investments in Australian R&D.
  • A discussion paper has been published, and feedback is open until April 11, 2025.

Insights into the Review

The Australian Government, through the Department of Industry, Science and Resources (DISR), has commissioned a strategic examination of Australia’s R&D system.  The independent expert panel leading this examination consists of professionals from industry, academia, and government and will deliver its final recommendations to the Government by December 31, 2025.

The purpose of the examination is to provide the Government with evidence-based advice on how Australia can:

  • Foster and encourage more home-grown ideas, research and innovation;
  • Maximise the return on investments in research across universities, industry, and government;
  • Harness and grow business investment in R&D; and
  • Leverage Australia’s scientific strengths to address national priorities and stimulate new industries.

The Discussion Paper

The expert panel has published a discussion paper outlining the need for alignment of funding systems, institutional arrangements and incentives for R&D in Australia.

The expert panel is seeking feedback from industry, universities, peak bodies, government, First Nations peoples and the public.

The discussion paper outlines the state of Australia’s R&D system, and key issues for research institutions, industry and the national generally.  It also provides international examples of R&D reform, and sets out consultation and survey questions on which it is seeking a response.

While Australia is a high performer in research, the paper is critical of Australia’s shortcomings in translating that research into products and services for social and economic gain.  The paper states that the Australian R&D system features key deficiencies that need to be addressed, particularly:

  • A lack of engagement by the research sector with national priorities;
  • Poor collaboration between the research sector and industry to translate that research;
  • A decline in industry R&D activity and funding; and
  • A lack of coordination and long-term strategy in government funding.

The paper emphasises the need for long term planning to address complex challenges such as energy transition, changing public health needs, supply chain security, food and water security, cybersecurity and defence.

The paper also briefly canvases models used overseas to align R&D with national priorities, including US Federally Funded R&D Centres, Fraunhofer Society institutes in Germany and French programmes to support the transition of PhD students to industry.

At a more detailed level, the paper suggests that more practical support and diversified funding is needed to develop Australia’s vibrant start-up scene.  It also identifies fields where a growing workforce is needed, and opportunities to use Artificial Intelligence to Australia’s advantage in R&D translation.

How to Provide Feedback

You can provide feedback by responding to the consultation or survey questions included at the end of the discussion paper, or by providing your own submission.   The deadline for feedback is 11 April 2025.

The discussion paper and feedback portal are available through the DISR consultation hub. You are also invited register your interest to join future roundtable discussions through the hub.

Wrays would be happy to assist you with developing your feedback or preparing a submission. Please feel free to contact our Commercial Law specialists to discuss:

Wrays also intends to file a submission.

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