We can’t afford to kick the can down the road

Luke Sheehy, Chief Executive Officer of Universities Australia.

When Universities Australia launched the Shaping Australia Awards last year, we wanted to shine a light on the unsung heroes working in our universities who, often without recognition, shape the future of our nation.

Having worked in and close to this sector for virtually my entire professional life, the significant contribution our university workforce makes to the lives of all Australians is not lost on me.

Researchers are chief among these shining stars, and our universities are chock full of them – academics dedicating their careers to solving the world’s biggest problems. They are working to cure disease, calm conflict, and develop new technologies – all to make our lives and the world we live in better and safer.

The Shaping Australia Awards celebrate these individuals, and so many others. Last year’s winners included researchers who have developed ways to help people with diabetes better manage their condition and fire-proof paint to protect homes from bushfires. This year, entries include innovative initiatives that are producing the world’s cheapest green hydrogen and harnessing spider venom to treat heart attack and stroke.

This is the power of research on full display, and we can’t progress as a nation without it. The Australian Universities Accord final report made this point very clearly. It warned: “Rapid technological, social, political and environmental change means the pressure is always on to produce more knowledge, skills, opportunities and research. Fall behind in this race and Australia will see its productivity, innovation and standard of living decline.”

We already have ground to make up in this global competition. Australia does not spend nearly as much as our global peers on research and development.

In fact, the government’s contribution to this critical endeavour has never been lower at 0.51 per cent of gross domestic product, while our total spend is at 1.68 per cent of GDP. This is far below the OECD average of 2.73 per cent. Germany, the United States and Japan all spend more than 3 per cent of GDP on R&D. These countries, arguably, lead the world in manufacturing and technological development – two areas Australia has identified as key to diversifying its economic mix.

We are clearly trailing the pack by some way, which is why it is an area that needs serious attention and, better yet, proper funding. There is acknowledgment in the government of this. Industry and Science Minister Ed Husic is on the record saying, “We still have a lot of work to do”. After all, what good is the government’s $22.7 billion investment to build a Future Made in Australia without the R&D work required to spur the growth of new industries?

The government’s commitment to undertaking a strategic examination of the R&D system is a good first step, but what is well understood and urgently needed is increased and sustainable funding for university research and development. In the face of declining business and government investment in research over decades, universities have turned to international student revenue to fund more of what they do for Australia, historically research and more recently the domestic student experience.

Our sovereign research capability is now under threat as the government seeks to reduce international student numbers to deal with migration pressures. This short-term solution to one political problem will have long term ramifications, not just for universities but for the entire economy and our country’s future prosperity which hinges on the solutions and advancements R&D helps deliver.

We can’t afford to kick the can down the road, not when our productivity, economic growth and a major component of the government’s own agenda depend on this work. Australia doesn’t aspire to be average in any other global competition, yet our politicians seem to be acceptant of performing far below average in this most crucial of domains.

We can’t have a strong economy without the ideas, products and solutions our brilliant researchers generate. Their work matters to Australians, which is why it should matter to our elected officials. Australia needs to take R&D seriously, and it needs to do it now.

Luke Sheehy is the Chief Executive Officer of Universities Australia.