Cooperative Research Australia (CRA) has urged the Australian Government to place research, development, innovation (R&D&I), and commercialisation at the centre of its economic strategy, warning that long-term prosperity depends on lifting productivity and building resilience through innovation.
In its submission to the Treasury’s Economic Reform Roundtable, CRA said collaborative research and innovation must be recognised as essential to tackling national economic challenges, including slowing productivity growth and structural budget pressures.
“Productivity growth has slowed, economic resilience is increasingly challenged by global shocks, and long-term budget sustainability remains under pressure due to demographic and structural expenditure pressures,” said CRA CEO Jane O’Dwyer.
“In this context, collaborative research and development and innovation are not optional but essential tools for national renewal,” she said.
The submission draws on consultation with CRA’s industry-led research members, including input gathered through National Innovation Policy Forums. It makes several key recommendations aimed at boosting Australia’s innovation performance and economic competitiveness.
These include developing a national innovation strategy to coordinate investments and incentives, reforming tax measures such as the R&D Tax Incentive to reward collaborative and translational efforts, and investing in mission-oriented innovation ecosystems.
CRA also called for strengthening the research translation workforce, mobilising private capital for strategic industries, and creating the right environment to grow R&D-intensive firms that remain anchored in Australia.
O’Dwyer pointed to the Cooperative Research Centres (CRC) Program as an example of a successful model for collaborative R&D. “This alone has returned $5.61 to the nation for every government dollar invested,” she said.
“It attracts significant private sector and international co-investment, delivers broad spillover benefits including new products, new firms and new jobs, faster adoption of new technology, and supports the more efficient delivery of essential services such as healthcare and aged care through data and technology.”
While Australia has strong research capabilities, O’Dwyer noted that commercialisation remains a weak point. “Few firms have R&D as a core to business strategy. We need to motivate firms to invest in R&D and support R&D-intensive firms to scale to large firms that remain headquartered in Australia,” she said.
“Collaborative R&D&I is critical for Australia’s economic reform agenda, in its role as the engine for a new Australian business model,” O’Dwyer added.
“Our recommendations will set us on track for building an innovation strategy that ensures a productive and prosperous nation for all Australians.”
