The Business Council welcomes the release of the Strategic Examination of R&D Discussion Paper as a catalyst for change to boost business investment and address lagging productivity.
Business Council Chief Executive Bran Black said the paper highlighted the need for increased focus on research and development investment in Australia, and the need for all engaged to step up a notch.
“Businesses stand ready to do more research and development activity in Australia, but they are being held back by policy settings that don’t do enough to encourage innovation or large-scale business investment,” Mr Black said.
“We also need greater collaboration between universities and businesses to support the commercialisation of research ideas, alongside improvements to tax incentives, to help drive economic growth.”
Mr Black said the BCA believes the R&D expenditure threshold should be abolished or at a minimum increased to $250 million and indexed.
“We need to create market incentives for non-taxpayer funded research, so businesses aren’t actively disincentivised from doing more R&D in Australia.
“Abolishing the R&D expenditure threshold would create a better incentive for investment and help Australia catch up to the rest of the world.”
Currently, Australia’s R&D spend sits at around 1.7 per cent of GDP. The United States is around double that while funding in Israel is more than triple Australia’s.
The BCA believes Australia should aspire to a 3 per cent of GDP R&D spend.
The BCA will engage in the R&D review and advocate for a comprehensive and coordinated R&D strategy.
