Australia was once a world leader in innovation. A new report shows the system is now ‘broken’
Australia was once a world leader in innovation. A new report shows the system is now ‘broken’
Publish Date: 2026-03-17 19:00:00
Source Domain: theconversation.com
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Broken Research System: Australia’s research and innovation system is described as “broken” and calls for bold reform according to a major report titled “Ambitious Australia” by Tesla chairwoman Robyn Denholm.
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Fall Behind: Australia has fallen behind developed economies in various metrics, including manufacturing as a share of GDP, R&D spending, and productivity growth.
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Dependence on Resources: The country has heavily relied on resources exports like iron ore and coal, which have contributed to crowding out high-value manufacturing and innovation.
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Recommendations for Reform: The report calls for better support for foundational research, consolidation of fragmented programs, changes in the incentive structure for business R&D, improved funding for startups, and embedding R&D in public procurement.
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National Innovation Council: It recommends establishing a new national innovation council to set priorities and coordinate efforts across six key innovation pillars: health and medical, agriculture and food, defense, environment and energy, resources, and technology.
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Concerns Over Bureaucratic Complexity: While the report’s motivation is sound, there is a concern that the proposed new structure may be too bureaucratic, potentially hindering industry involvement.
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Need for Regional Focus: The report does not fully address the crucial role of regional areas in innovation, which are vital for addressing energy transition and economic diversification challenges.
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Call for Action: “Ambitious Australia” outlines important reforms needed to align with the federal government’s vision for future innovation, urging transformative actions as part of strategic planning leading up to the 2027 federal budget and beyond.
