What the Strategic Examination of Research and Development Means for Industry, Innovation and Productivity

In this episode of DBrief, Louise McGrath and David Martin from the Australian Industry Group discuss the final report of the Strategic Examination of Research and Development in Australia and what it means for industry, innovation and productivity.They explain why the review was commissioned, how Australia compares with its OECD peers, and what is at stake if current settings remain unchanged. The conversation explores what makes this review different from past efforts, including its whole‑of‑system approach, focus on execution, and recommendations to consolidate funding programs and sharpen national priorities.Louise and David unpack the implications for CEOs, startups and SMEs, including proposed changes to the R&D tax incentive, efforts to reduce administrative burden, and the risks of shifting funding away from business‑led innovation. They also examine calls for stronger national coordination through a National Innovation Council, and the persistent challenge of translating world‑class research into commercial outcomes.The episode highlights why long‑term policy certainty, better collaboration between industry and universities, and genuine reform - rather than more reviews - will matter for Australia’s future competitiveness.Key takeawaysAustralia continues to lag comparable economies on business R&D and research translation.This review takes a holistic, system‑wide view and places heavy emphasis on execution.Consolidating programs aims to reduce complexity, but funding trade‑offs remain contentious.Changes to the R&D tax incentive could improve access, but raise concerns for some SMEs.Stronger national coordination is intended to provide clearer priorities and long‑term certainty.Productivity gains depend on translating research into products, services and jobs - not research alone. Further information and resources:Download the Australian Government’s Strategic Examination of Research and Development report hereAustralian Industry Group’s submissions:Strategic Evaluation of R&DStrategic Examination of R&D: Response to Issues Papers 1-4Strategic Examination of R&D: Response to Issues Papers 5-6Contact the Industry Development & Policy team here.