Academy Chief Executive on the 'Ambitious Australia' report

This is the transcript of an interview between ABC Radio National Breakfast host Sally Sara and Anna-Maria Arabia, Chief Executive of the Australian Academy of Science.

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Sally Sara: An independent panel of experts has concluded that Australia's R&D sector is in desperate need of bold reform. The Ambitious Australia report was commissioned by the Government, [and] has found that right now, R&D investment has fallen to just 1.69% of GDP, almost half of the OECD average. Anna-Maria Arabia is chief executive at the Australian Academy of Science, and joins me now. Anna-Maria, welcome back to Radio National breakfast.

Anna-Maria Arabia: Good morning. Sally. Lovely to be with you.

Sally Sara: How significant is this report and its recommendations on R&D in Australia?

Anna-Maria Arabia: This is a much anticipated report. An independent panel was tasked with assessing the current system and looking at ways to reverse the decline you've just described in your opening statements, where funding for R&D has been declining now for the better part of a decade. And it is such a significant report because it provides us with a really clear-eyed assessment of the strengths and weaknesses of the system. But really importantly, it provides a coherent roadmap forward. It gives us what we need to create the R&D system, an R&D system that is humming and that can support growth in our economy, and, of course, improve the living standards of Australians.

Sally Sara: When we're comparing Australia to the OECD, why are we so far behind when it comes [to] the amount that's invested into R&D as a percentage of GDP?

Anna-Maria Arabia: The decline has been ongoing for more than a decade, and I think it has been a result of incrementalism in the country. So we have had an R&D system which now has had many bandaids applied to it – a small fix here, a small fix there – but overall, that has not seen the sort of efficiencies and investment that we have needed to create a really robust system. So that's eroded over time. The other reason is that most other countries around the world have increased their R&D spend because they recognise that to respond to the sort of disruption we're going through now – that's technological disruption, environmental disruption and the need to make the energy transition and geopolitical disruption – key to all that is investment in R&D, new industries, new technology, etc.

Sally Sara: What's the potential cost to Australia's future living standards if we don't get this right?

Anna-Maria Arabia: The cost to future living standards is enormous. So we know that when we grow our economy, we improve productivity and living standards improve as a result. Australians see what science and technology deliver for them. They see it through the solar panels on their roof and lower energy costs. They see it through the food on their table. They see it through health outcomes that they experience through medicines. We know that when we improve productivity, living standards improve as well. But it's not just us saying it. The Treasurer says it. Robyn Denholm, who chaired this report, states as much in the report. Now's the time for delivery. Now's the time to reset this. In fact, the time to create this R&D system was 35 years ago. That was the best time. The next-best time is right now.

Sally Sara: Is the investment – does it need to come from the public sector or the private sector, or all of the above?

Anna-Maria Arabia: Sally, we need to work in partnership. So underinvestment in R&D is multifaceted. We've seen underinvestment by government over the years, but we've also seen significant underinvestment by the business sector. They themselves are aware of this and recognise this issue, and there are many settings that need to be reformed to enable and incentivise greater investment by the business sector. These are well laid out in the report. The higher education sector is also a contributor. They're doing quite well in comparison to the OECD. Really importantly, we've got to move really quickly to start the hard work of implementation, and that requires all of us to work together – government, business, the research sector, the higher education sector – to create the best possible R&D system that we can possibly muster, because our economy and our living standards rely on it.

Sally Sara: Anna Maria Arabia, good to have you back on the program. Thank you very much for joining me this morning.

Anna-Maria Arabia: Lovely to be with you, Sally, thank you.

Ends.