The Australian Government's Strategic Examination of Australia's Research and Development (SERD) system is set help grow core science and innovation capability.
A strong R&D ecosystem boosts national productivity, security, and wellbeing by increasing the value of research across sectors – including the life sciences.
As the peak body for Australia's life sciences sector, AusBiotech is calling for bold, coordinated reform to convert world-class research into real-world impact — while recognising the sector is already delivering for the nation's future and economy.
This week, AusBiotech hosted a roundtable to support the Australian Government's Strategic Examination of Research and Development (SERD) consultation process. The online event brought together members from across the life sciences ecosystem to engage directly with SERD Chair Robyn Denholm, panel members Winthrop Professor Fiona Wood AO and Emeritus Professor Ian Chubb AC, and AusBiotech CEO Rebekah Cassidy.
The session reaffirmed our commitment to meaningful policy advocacy directly with decision makers and leaders, ensuring our members' voices remain central to shaping a national R&D framework that drives innovation, commercialisation, and real impact.
Strategic focus on sovereignty capability
Globally, life sciences are increasingly recognised as a pillar of national sovereignty and economic diversification. The roundtable was a critical opportunity to bring strategic focus to life sciences as Australia looks at its economy, productivity and investment in critical industries for the future.
"Our global environment is evolving rapidly," said Rebekah. "There has never been a more important time to act on Australia's R&D in life sciences.
"Now is the time for bold steps toward unlocking Australia's innovation potential within our R&D ecosystem. We must supercharge our incredible world-class medical research, ensuring it translates into life-changing commercialised innovations," said Rebekah.
Addressing Australia's persistent 'valley of death'
A strong consensus emerged during the virtual roundtable: while Australia's research is world-class, fragmentation hinders its development and commercialisation of innovation. The conversation addressed inconsistent policy settings, siloed departmental initiatives, and unclear national priorities as barriers.
The call was clear — move beyond incremental reform. A system-wide reset is needed to reduce duplication, align policies across the R&D lifecycle, and improve decision-making.
The well-known and persistent 'valley of death' was addressed — the gap between research and viable commercial products. Despite producing world-class science, many life science companies stall due to funding gaps, regulatory delays, and unclear procurement pathways on home soil. The 'development' in R&D is not keeping pace with our peer OECD countries.
There was a shared view by several members that success in life sciences should be measured not only by research output, but by the ability to deliver technologies and therapies to patients. Many participants emphasised the importance of a national approach that supports the entire innovation pipeline.
Structural barriers for startups and Small and Medium-sized Enterprises (SMEs) were also highlighted. Delays in regulatory approvals, limited procurement access, and gaps in strategic capital — inhibit growth.
Australia's life sciences sector is rich with innovation. However, challenges such as limited late-stage capital, constrained valuations, complex commercialisation pathways, and global competition for talent continue to make it difficult for companies to scale and commercialise locally — often pushing them to seek offshore opportunities.
While Australia is a global leader in scientific research, ranking top ten on the Global Innovation Index, we have fallen to 30th for research outputs.
The data released reveals a stark decline in R&D over the past 15 years: local investment in R&D is now only 1.66% of GDP, well below the OECD average of 2.7%.
Whole-of-government strategy needed
Current R&D policy is spread across departments and jurisdictions, making it difficult for businesses to scale. We are calling for a consolidated, whole-of-government strategy, supported by a national Life Sciences Council, to coordinate and guide long-term growth and productivity.
Such a strategy would provide the certainty needed for companies and investors to commit to Australian-based development.
Driving momentum
AusBiotech is committed to advancing these priorities with government and stakeholders.
The roundtable confirmed that the sector is contributing significantly to the economy and is ready to help shape Australia's innovation future. A coordinated, whole-of-government approach — with industry at the table — is essential to unlocking the sector's full potential.
