Unis urge Labor to retain goal for R&D spend of 3 per cent of GDP

Universities say its critical for Australia’s future prosperity to aim for an annual R&D spend equal to 3 per cent of DGP

It’s critical to boost R&D spending to 3 per cent of GDP, say universities.

Universities have urged the Labor Party to retain an R&D spending target of 3 per cent of GDP in its platform after it was dropped from a new draft.

Group of Eight chief executive Vicki Thomson, who represents Australia’s biggest research universities, said Australia could not afford to “walk back” from the goal of raising R&D expenditure to 3 per cent of GDP.

“The Albanese government has repeatedly committed to lifting R&D expenditure from 1.8 per cent of GDP to 3 per cent, and this is a worthy and essential ambition,” Ms Thomson said.

Universities Australia, which represents all 39 major universities, said R&D spending was already at its lowest share of GDP.

“This is not good enough for a nation of Australia’s standing,” Universities Australia chief executive Catriona Jackson said.

Labor has long had a policy of lifting R&D expenditure to nearly 3 per cent of GDP. “Labor will work with business, industry, universities and research institutes to boost Australia’s investment in research and development as a percentage of GDP, getting it closer to 3 per cent of GDP achieved in other countries,” its 2021 national platform said.

However, a just published draft of the 2023 platform for the Labor national conference being held in Brisbane in August has removed the R&D target even though it has been repeatedly endorsed by Industry and Science Minister Ed Husic.

“Labor will work with business, industry, universities and research institutes to boost Australia’s investment in research and development,” the draft platform says.

The ATN university group, which represents technology universities, joined the call for Labor to restore the 3 per cent R&D goal to its platform.

“Labor’s longstanding policy to target investment of 3 per cent of GDP in research and development is a critical building block in ensuring Australia’s future prosperity,” ATN executive director Luke Sheehy said.

“Any attempt by Labor to water this down or remove it from their official platform would send the opposite signal, both nationally and internationally, about Australia’s commitment to becoming a more sophisticated economy and a sought-after global partner for industry.”

Executive director of Innovative Research Universities group Paul Harris also called for an R&D quantitative target as well as a “coherent national strategy” that he said was required to maximise the impact of R&D spending.

Australia’s R&D expenditure (1.8 per cent of GDP) is well below the OECD average of 2.8 per cent of GDP. According to a Go8 analysis it will take a major investment for Australia to reach 3 per cent. It would require a doubling of the R&D investment of industry and a consequent doubling of the R&D workforce employed by industry.

At the moment Australia relies far more on universities for its R&D output compared with other OECD economies.

The Go8 says Australia has two higher education researchers for each one employed by industry compared with an OECD average of 0.4 higher education researchers for each one employed by industry.

Ms Thomson said boosting investment in R&D was key to delivering national priorities such as the AUKUS submarine and new technology projects, the National Reconstruction Fund and a transition to clean energy.

“There is a direct link between the national drop in R&D expenditure as a percentage of GDP and productivity, and we must back our talent and potential to drive that productivity, boost living standards and social wellbeing,” she said.