Challengers for Australia's Research and Development. (November 16, 2007)

In the fourth of its background statements in an attempt to influence Australia's parliamentarians and would-be parliamentarians the Group of Eight has presented its take on what the nation is confronting to catch up with its cohort with regard to supporting research and development.

Below we reproduce their opening statement followed by the data they present in support of the contention that Australia has a way to go in catching up, or "what comes after the resources boom flattens out".

Despite solid growth in Australian R&D over the last five years there is no room for complacency about the future because:

• competitor countries are increasing their investment in R&D out of recognition of its importance to the future of their economies and societies;

•  much of the growth in public support for Australian R&D is a result of the Federal Government’s Backing Australia’s Ability Science Innovation package announced in 2001 and renewed in 2004. There is no growth in funding under BAA from 2005 for important schemes such as the Australian Research Council, its Centres of Excellence program, National Collaborative Research Infrastructure Strategy (NCRIS) and Research Infrastructure Block Grants (RIBG);

• while there has been a near doubling of funding for national competitive grants schemes since 2001, success rates for many programs remain low and grants typically cover only 70% of a project’s cost;

• institutions continue to receive direct infrastructure funding support of around 21 cents for every dollar of national competitive grant income won. This compares to international benchmarks of 50 cents in the dollar;

• organisations successful in winning national competitive grants are effectively penalised by having to supplement research project costs with funds for teaching and other purposes, and

• with the pool of national competitive grants now approaching $1 billion annually, current arrangements are unsustainable in the long term. Serious consideration needs to be given to funding the full cost of sponsored research – as is the policy in the UK.