The Group of Eight comprising Australia’s research-intensive universities is calling for a whole of nation commitment to lift investment in research and development (R&D) to at least 3 percent of GDP to improve Australia’s languishing productivity.
In its submission the Economic Reform Roundtable the Go8 says that while other economies are moving fast to lift their R&D intensity to boost their productivity, Australia is falling behind and it is time to move from aspiration to action on R&D.
Australia is starting to lag other OECD nations. Investment in R&D has fallen to 1.7 per cent of GDP and is below the OECD average of 2.7 per cent of GDP.
The Go8 has long advocated for Australia to lift national investment in research and development (R&D) to at least 3 percent of GDP. The economy-wide returns to R&D investment in Australia are significant – conservative estimates suggest $1 of R&D investment in Australia creates an average of $3.50 in GDP per capita benefits.
Following extensive consultation with industry, government, and the broader research sector the Go8 has proposed 12 recommendations to lift investment in R&D and turbocharge Australia’s productivity growth.
The Go8 submission says lifting R&D needs to be coupled with other productivity enhancing reforms – including enhancing research infrastructure, achieving international research collaboration, improving workforce training, boosting investment in artificial intelligence, and reducing red tape.
Group of Eight Chief Executive Vicki Thomson said:
“The Economic Reform Roundtable comes at a critical time. The clock is ticking on whether as a nation we can lift ourselves out of the current weak productivity environment or we fall behind our ambitions to remain a prosperous nation.”
“Greater investment in new industries and innovations through R&D is vital for protecting and growing our economy, our jobs and standard of living. We need a whole of nation effort to drive economic prosperity, and our research-intensive universities which are among the best in the world, have a key role to play.”
“A strong research and innovation sector with universities working hand-in-glove with business is essential to boosting productivity and to ensuring Australia doesn’t fall behind.”
“Lifting national investment in R&D to 3 percent of GDP across business, universities and government, in line with other OECD countries, will give Australia the best shot of securing the nation’s future prosperity and the quality of life that goes with it”.
“No one sector alone can fix Australia’s productivity problem, and it cannot be fixed overnight – we need a long-term tripartite approach involving government, industry, and research sectors working together.”
Read the full Go8 submission to the Government’s Economic Reform Roundtable (ERR) here: https://go8.edu.au/go8-submission-to-the-economic-reform-roundtable-err