All-or-nothing R&D reforms ‘will prevent Australia’s stagnation’

Australia would relax universities’ research requirements, boost funding through competitive research grants, secure the future of major research infrastructure and develop a methodology for reliably estimating the full costs of research, under recommendations from a landmark review.

The federal government would also increase PhD students’ stipends by almost 50 per cent to A$50,000 (£26,422) a year – initially for 1,000 doctoral students whose research aligns with recommended focus areas – and eliminate tax on part-time research scholarships.

The R&D Tax Incentive (RDTI), which provides some A$4.6 billion a year in tax offsets, would also be reorganised to encourage more industry investment in research.

The proposals are among 35 recommendations from the final report of the Strategic Examination of Research and Development (Serd), now released publicly after the government received it in December.

Review chair Robyn Denholm warned that Australia faced economic decline without “bold, nation-changing reforms”, and cautioned the government against cherry-picking recommendations from her panel’s “integrated” proposals.

“This package of reforms, implemented as a whole, is mutually reinforcing,” the report says. “Adopting only parts will be another example of incremental changes and band-aid solutions that will turn…a decline in projected living standards into a reality.”

The government promised to “carefully consider” the recommendations. Representative groups urged it to “respond with ambition”.

“The challenge is systemic and needs urgent attention,” said Australian Academy of Science president Chennupati Jagadish. “Rebuilding Australia’s research system will take multiple budgets, but it must start with this one.”

“It’s now up to the government to make the most of this opportunity,” said Universities Australia CEO Luke Sheehy. “The fiscal environment is tight, but R&D is an investment that pays for itself many times over.”

“The report leaves no doubt that decisive action is now required,” said Group of Eight chief executive Vicki Thomson. “Reform without proper, predictable investment in the foundations of the system will fail. Australia cannot tinker its way back to competitiveness.”

The Academy of Technological Sciences and Engineering (ATSE) said the Serd report had set out a “blueprint” for the research, development and innovation system’s evolution. “Now the real work begins in implementing it,” said ATSE president Cathy Foley. “We need to make sure that the proposed reforms strengthen coordination and focus, rather than adding new layers of complexity to an already complicated system.”

Co-operative Research Australia supported the report’s “principles” but urged the government to proceed carefully. “The challenge in any transition to a new system will be to harness and grow what has been built, rather than discard it,” said CEO Jane O’Dwyer. “If existing programmes delivering real outcomes are not built upon, Australia will lose capability that has taken decades to build.”

The report’s central proposal is for federal funding and policy to be oriented around six “National Innovation Pillars” of agriculture and food, defence, environment and energy, health and medical, resources and technology. Each would have a dedicated National Strategy Advisory Council reporting to relevant ministers and collaborating with a new National Innovation Council.

Each pillar would also have an overarching goal of at least a decade’s duration, supported by three “subgoals”. Public funding would be directed towards a “national strategic initiative” developed for each of the 18 subgoals, ensuring that resources went towards the “high-risk, high-impact challenges” where “Australia can ‘play to win’”.

But government research grants should not be quarantined to the pillar areas, the report stresses, outlining recommendations to increase and sustain funding and infrastructure for foundational research across a full range of disciplines. “Without knowledge there is no innovation,” the report warns.

It recommends the development of a research, development and innovation strategy to “develop, retain and attract the talent Australia needs to make the innovation cycle work”, along with a national network of “first nations pre-accelerators” to support the early-stage innovations of indigenous researchers.

Science & Technology Australia supported the report’s workforce recommendations, including the proposal to increase PhD stipends. “Our sector is hurting,” said STA president Jas Chambers. “Nearly half of STEM professionals are thinking about leaving their role. Action is needed to improve job security and pay, which are the main reasons behind low morale.”

The report also recommends simplification and standardisation of grant application processes, in a proposal that could see the Australian Research Council’s two-step approach spread across some 150 funding schemes managed by government departments.

Other proposals include reforming superannuation fund rules to “unlock more investment”, and harnessing Australia’s National Reconstruction Fund as a “fund-of-funds” that helps bankroll the conversion of research ideas into commercial products – a brainchild of the late University of Melbourne vice-chancellor, Emma Johnston.

john.ross@timeshighereducation.com