Fears Australia faces ‘missed opportunity'

Perth Now

2 days ago

Australia could miss out on its next great invention plus significant economic benefits, with one prominent business leader calling for an increase in research and development spending so we no longer lag behind other developed countries.
Business Council of Australia chief executive Bran Black says the Albanese government should help boost public and private spending into research and development from 1.7 per cent of GDP to 3 per cent.
As it stands, Australia is dragging behind the other OECD countries which on average invest 2.7 per cent of GDP into funding and developing innovating ideas.
Australia was also significantly behind the United States and South Korea which invest 3.59 per cent and 5.21 per cent respectively.
As a result, the country was missing out on the economic returns, with Mr Black pointing to analysis from the CSIRO which found that every dollar invested in R&D offered a $3 return to GDP.
'They're doing that because they see that the economic return, the dividend to their economy associated with these types of investment makes it worthwhile,' he said.
More and better innovation also had the power to make 'life better' too, said Mr Black, pointing to world-leading Australian inventions such as the cochlear implant, Google Maps, pacemakers and even Wi-Fi. Business Council of Australia chief executive Bran Black is calling for more investment in R&D. NewsWire / Martin Ollman Credit: News Corp Australia
'If we talk about these types of inventions – being able to hear, being able to see your child, being able to navigate your way through cities and towns with confidence – that is genuinely a reflection of how our society has changed as a consequence of good old Australian R&D,' he said.
'R&D when done right changes the way we live, every single day.'
While sectors such as agriculture, health, renewables and the resources sector were areas where Australia had 'existing advantages,' he said there was also 'scope for opportunity' in more left field areas like quantum computing.
Figures released by the Department of Industry, Science and Resources tip Australia's technology sector is set to contribute $244bn a year to the economy by 2031, a rapid increase from the current $167bn.
Increasing Australia's quantum capabilities is set to amplify the growth of the sector.
'Who would have thought that Australia would be at the absolute forefront of global research with respect to this cutting edge technology, and yet we are,' he said. Speaking to the importance of R&D, Mr Black said analysis from the CSIRO found Australia stood to receive a $3 boost to GDP for every dollar invested in R&D. NewsWire/ Nicholas Eagar Credit: NewsWire
The push for a higher spend on R&D comes as Labor seeks to unite union and business leaders for a productivity roundtable which will be held at Parliament House in August.
Mr Black said boosting Australian innovation was a key way to expose Australia to new market, create new jobs and develop emerging industries.
In addition for a 5 per cent target on increased funding from the public and private sector, the BCA is also calling for a better tax incentives to encourage domestic and international to invest in Australian projects, plus a publicly accessible National Researcher Directory to help connect industry with research expertise.
'Ultimately what that means is that R&D is an excellent way of driving productivity (and) productivity is the main determinant for how we can deliver real wages growth across our economy,' he said.
Labor is undertaking a strategic review into its R&D processes, with the government set to receive the recommendations by the end of the year.
Former industry and science minister Ed Husic also acknowledged in October last year that R&D funding in Australia was at a 'sorry state,' and said the government was 'very focused on fixing up our languishing national R&D spend'.