The Strategic Examination of Research and Development provides a major opportunity for Australia to strengthen its innovation system as the nation works to lift productivity and ease cost-of-living pressures.
Backing research and innovation is how Australia creates new jobs, strengthens the industries we already have and builds the new ones that will power a bigger and more prosperous country.
With productivity stalling and a changing global economic and geopolitical environment creating both challenges and opportunities, the final report comes at a critical time - and the government now has an opportunity to embrace its recommendations and act.
Universities Australia Chief Executive Officer Luke Sheehy said with the right policy settings in place, a stronger R&D system could help put Australia back on a path to future prosperity.
"Research and development are the engine room of productivity, economic growth and living standards," Mr Sheehy said.
"If we want to be an ambitious, thriving, prosperous and modern country, we have to get serious about innovation.
"The final report contains serious ideas to strengthen and future-proof Australia's R&D system and we thank the panel for its work.
"Chair Robyn Denholm and supporting members Emeritus Professor Ian Chubb AC, Winthrop Professor Fiona Wood AO and Dr Kate Cornick have given us a roadmap to build Australia's innovation future.
"For too long Australia has been falling behind in the global race for research and innovation, while our economy remains heavily reliant on digging things out of the ground instead of building new industries.
"This review is an opportunity to get more out of the world-class research ecosystem we already have - to maximise the talent on our shores and create the new industries that will diversify our economy.
"Stronger R&D will help Australia build sovereign capability, transition to a cleaner energy future and develop new sectors that create secure, well-paid jobs.
"At a time when productivity has stalled and the economy is under pressure, investing in R&D is one of the most effective ways to build new industries, grow the economy and lift living standards.
"We're pleased that parts of the final report reflect our long-standing advocacy and ideas to strengthen Australia's R&D system, including the adoption of several Universities Australia policy recommendations.
"But reports alone don't lift productivity or build new industries - action does.
"It's now up to the government to make the most of this opportunity and respond with ambition.
"We recognise the fiscal environment is tight, but R&D is an investment that pays for itself many times over through stronger productivity, new industries and better jobs.
"If Australia wants to build the industries of the future, make more of what we need here at home and lift living standards, R&D and innovation have to be front and centre.
"The countries that back innovation shape their future. Australia must decide to be one of them."
