Ahead of today's productivity roundtable on technology and innovation, Universities Australia is warning that Australia's fragmented research system and shrinking research workforce is undermining national productivity.
"Researchers are navigating more than 150 separate federal research programs – while we head toward a shortfall of 12,000 PhD-qualified scientists by 2031," Universities Australia Chief Executive Officer Luke Sheehy said.
"These two pressures weaken Australia's ability to drive innovation, build sovereign capability and compete globally in critical areas like defence, health, advanced manufacturing and energy transition."
In two new reports, Universities Australia warns that without urgent reform, Australia's research system will continue to deliver diminishing returns – just as the government prioritises productivity.
"We have brilliant researchers stuck in a maze of duplicative programs, and an emerging workforce priced out of PhD training.
"Right now, five federal portfolios each invest at least $500 million annually into research yet operate largely in silos. That fragmentation creates duplication, inefficiency and wasted effort.
"A more coordinated approach could significantly reduce costs and deliver better outcomes for taxpayers, researchers and the nation.
"This is a productivity issue, a workforce issue and a national capability issue all rolled into one," Mr Sheehy said.
The call aligns with the Business Council of Australia, which recently found that R&D investment has fallen by 24 per cent over the past decade. Australia now invests just 1.7 per cent of GDP – well below the OECD average of 2.7 per cent - despite every $1 invested in research and development returning between $3 to $5 to the economy.
"Universities already carry the bulk of Australia's research load - investing nearly $14 billion in 2022, with more than half of that funded from their own revenues," Mr Sheehy said.
"But we can't build the industries of the future on a crumbling foundation. We need a joined-up system that supports research from idea to impact - and a workforce ready to lead it."
Universities Australia is calling on the government to:
- consolidate overlapping programs and align strategy through a new Ministerial Research Council
- raise public investment in R&D to at least the OECD average of 0.74 per cent of GDP
- increase PhD stipends to $36,000 to ensure domestic talent can afford to pursue research careers, and
- protect investment in basic research that underpins long-term innovation and economic growth.
The government's productivity roundtables and Strategic Examination of R&D offer a rare opportunity to drive systemic reform," Mr Sheehy said.
"We're urging policymakers to seize the moment and build a research system that is future ready."
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Radio grabs from UA CEO Luke Sheehy.
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