Australian government announces release of review for the country’s research and development system.
The Australian Government has announced the release of “Ambitious Australia: Strategic Examination of Research and Development”, an independent review of the country’s research and development (R&D) system. Commissioned as part of the 2024–25 Federal Budget, the report outlines a comprehensive set of recommendations aimed at strengthening Australia’s innovation ecosystem and enhancing long-term economic competitiveness.
The review reflects a growing focus on how Australia can strengthen its R&D system to better support innovation and economic outcomes.
Key priorities identified in the report
The Ambitious Australia report puts forward 20 recommendations structured around six core elements that collectively seek to reshape Australia’s R&D environment:
- Greater focus and scale, prioritising high-impact R&D activities and improving coordination across the system
- Foundational research, maintaining a strong research base to support knowledge creation and capability
- Future industries and businesses, supporting the growth and commercialisation of R&D-driven sectors
- Investment and capital, improving access to funding across the R&D lifecycle Workforce capability, developing skills and talent to support R&D activity
- Government leadership, strengthening the government’s role in setting direction and aligning the system
Implications for businesses and investors
For businesses operating in Australia, particularly those engaged in innovation, technology and advanced industries, the report signals a more targeted and outcome-driven R&D environment.
Companies may see changes to existing incentive structures, including possible refinements to R&D tax incentives or the introduction of new support mechanisms aimed at high-impact sectors. Increased focus on commercialisation and industry collaboration may also create opportunities for partnerships between businesses, research institutions and government.
For investors, particularly in venture capital and growth equity, improvements in capital access and ecosystem coordination could support deal flow and reduce risks associated with early-stage innovation. A more cohesive national approach may also strengthen Australia’s position as a destination for innovation-led investment.
Organisations may also need to adapt to evolving policy expectations, including greater emphasis on measurable outcomes, alignment with national priorities and workforce capability development.
Final thoughts
The Ambitious Australia report marks a shift in how Australia approaches research, development and innovation, with a clear focus on improving outcomes and system coordination.
The government is currently reviewing the recommendations, which are expected to inform future R&D policy and funding settings. Businesses, investors and research organisations should monitor developments and assess how potential changes may affect their operations and planning.
