The Business Council of Australia has welcomed the release of the Ambitious Australia: Strategic Examination of Research & Development (SERD) Final Report, saying the recommendations provide a clear pathway to boost business investment in research and development and lift productivity, particularly in the upcoming Budget.
BCA Chief Executive Bran Black said improving Australia’s R&D settings would help attract investment, drive new economic opportunities and support higher living standards.
“Especially at a time of global economic uncertainty, we must prioritise attracting more investment to Australia, and so addressing our R&D settings is critical,” Mr Black said.
“With productivity front and centre in the upcoming Budget, many of this Report’s recommendations are a no-brainer. Taking them up would help lift investment, drive productivity and improve living standards.”
Mr Black said the BCA had long called for many of the proposals in the Report, including reforms to the Research and Development Tax Incentive (RDTI) and stronger collaboration between universities and industry.
Research by Mandala, commissioned by the Business Council of Australia, Atlassian and Cochlear to assist the SERD Review, found that a targeted R&D reform package could generate around $5 in economic value for every $1 of government expenditure over the next decade, making a strong case for getting these settings right.
“This Report provides a clear roadmap to get R&D moving and help Australia compete on the global stage.”
“Australia has the ideas, the researchers and the talent, and this Report sets out a path to turn that into new opportunities and more jobs.”
Australia has a strong history of innovation, but business investment in research and development has declined over the past decade, while many international competitors have increased their support for local innovation.
“It’s good to see the Report recognise the critical role large businesses play in R&D. They can invest at scale, drive innovation, and create benefits right across the economy,” Mr Black said.
Reforms to the RDTI would play a key role in attracting and retaining business investment in Australia.
“We strongly support proposed reforms to the Research and Development Tax Incentive to make it simpler and more effective. Removing the $150 million cap, streamlining administration and removing the R&D intensity measures would ensure Australia’s R&D system attracts investment,” Mr Black said.
The Business Council also welcomed reform proposals to strengthen collaboration between universities, researchers and industry, and to help ensure more Australian ideas are developed, commercialised and manufactured locally.
Mr Black said better alignment of Australia’s research funding and capabilities with national and industrial priorities would also help ensure our world-class research translates into stronger economic outcomes, particularly in areas such as health and medical research, technology, agriculture, defence, resources and energy.
The Business Council will continue working with government and industry to ensure Australia’s policy settings encourage innovation, strengthen productivity and support economic growth.