The Business Council of Australia (BCA) makes its case for a state-driven R&D system in its submission to the “strategic examination” of research and development commissioned by former Industry Minister Ed Husic.
BCA calls for a national strategy, with a set of research priorities, supported by the “majority of Commonwealth funding, “for areas where Australia can lead” – clean energy, health and advanced manufacturing are examples.
And it signs-on to the research establishment’s two core objectives;
- R&D being 3% of GDP
- a 20% premium on R&D tax offsets, “for projects involving startups, public research organisations or universities.”
BCA also backs what looks like a version of former Chief Scientist Cathy Foley’s unsuccessful proposal for national research open-access scheme, calling for a “government-backed” policy, “to ensure publicly funded academic research is freely available to Australian businesses and innovators.”
BCA also explains why government action is essential to energise SME’s.
“Much of the research produced in universities struggles to find industry partners … Without government action to strengthen small businesses, encourage industry partnerships between small and large businesses and de-risk R&D investment, Australia will struggle.”
The same for large ones, due to “a combination of high operating costs, regulatory complexity and limited market size.”
To help both, BCA proposals include:
- Consolidating public research precincts, Trailblazers and CRCs into a version of the UK Catapult Network
- Fewer grant programs, “to maximise impact and “drive cross-sector collaboration”
- Establishing an “investment promotion authority” to “fast-track” priority projects and point business at incentives
- A Business R&D Loan Scheme “to de-risk early stage innovation”
- A commercialisation incentive to “retain and scale innovation onshore”
- An incentive to attract global investment
- A national researcher directory
- Embedding research-industry collaboration by tying some performance funding to R&D indicators.
BCA builds its case for change with a scorecard for ten top R&D nations on 15 business incentives. The UK, Canada and Ireland lead, with seven each ahead of Singapore and Israel, both with six. Australia is last with just one; “tax offsets” which are also in-place everywhere except Finland and Israel.
Then again, the United States, the largest R&D market in the world, also keeps clear of government intervention, only offering tax concessions and accelerated depreciation on R&D assets.