How does the country’s investment in R&D and advanced manufacturing compare with the rest of the world – and what steps can it take to excel?
OECD data has revealed the extent to which Australia funds research and development (R&D) projects compared to other countries.
The map below depicts relative total expenditure on R&D as a percentage of GDP for the top 10 investing countries, plus Australia, which ranks 22nd. This includes projects carried out by private companies, universities and government laboratories.
The key takeaway: Australia ranks 22nd in the OECD for investment in R&D as a proportion of GDP, far behind countries such as the US and South Korea. Canada, which boasts a comparable economy to Australia, ranks 19th.
Expert tip: “Scaling requires entrepreneurship”
Dr Raj Aseervatham FIEAust CPEng, National President and Board Chair of Engineers Australia, explains why there are always two parts to the art of innovation: creation and scaling
“Creation requires four ingredients: purpose, education, R&D activity and R&D funding. There is no shortage of purpose, reflected in many societal needs; nationally, regionally and globally. Looking to the future, our commitment to the other three – at global leadership levels – will be undeniable. Our foundational elements – schools, universities and STEM education – enviably strong. They will be digitally and technologically leading-edge.
“Scaling requires entrepreneurship, engineering brilliance, access to capital, tax incentives and strong institutions – all held within a highly-enabling policy environment. In the future, the reward/risk landscape for entrepreneurialism will be so attractive – and well governed – that even entrepreneurs from other countries scramble to get in. From the big end of town to the small and medium-sized enterprises, the landscape promises to be vibrant and exciting.
“Our strong and long-standing superannuation legacy, emboldened by strong institutions, will supercharge and buttress diverse capital flows into that reward/risk landscape.”
Read more: How viable is crowdfunding as a model for engineering innovation?
Research into advanced manufacturing
China and the US lead the way when conducting advanced manufacturing and materials research, according to the Department of Industry, Science and Resources.
The below chart shows the number of publications each country published between 2018 and 2022, alongside the proportion of each jurisdiction’s publications ranked in the top 10 per cent of publications worldwide.
According to the Department of Industry, Science and Resources, this is based on how often the jurisdiction’s publications on core advanced manufacturing and materials research subjects were cited.
The key takeaway: Although Australia ranks 11th in total number of publications, of those same 11 nations, the country performs best when considering the percentage in the top 10 per cent.
Expert tip: “Work with what’s in front of us”
Evelyn Storey FIEAust CPEng is Director, Eminence & Sustainability at Aurecon and Chair of the Structural College at Engineers Australia.
“The biggest step Australia can take towards becoming an innovation superpower is to realise that ‘something new’ is overrated. We should instead be innovating to solve for the extension of life and breathing new life into existing assets.
“Construction of new assets and infrastructure are often celebrated with groundbreaking or sod-turning ceremonies, with smiling stakeholders holding shovels to symbolise a significant milestone. Meanwhile, maintaining, adapting and extending the life of existing infrastructure is rarely celebrated.
“But extending the life of an existing asset is innovative and should be celebrated – the efficient, sustainable reuse of resources, the innovation of adaptation and strengthening, and the creation of additional resilience.
“In a world where this will become increasingly necessary, let’s relish the innovation challenge in Australia. We know there are some circumstances where there is no choice other than to just work with what’s already in front of us.”
Businesses are pitching in
The distribution of R&D investment by the Australian Government has remained more or less stable over the past four years. Business and higher education receive the most support. Meanwhile, business investment in R&D for engineering purposes is strong compared to investment in other fields.
Six fields of research represented 90 per cent of business expenditure on R&D in 2021-22 (when the most up-to-date data is available). The below chart compares this to expenditure in the 2019-20 financial year.
Expert tip: “You don’t have to rely on luck to innovate”
Jim Giannopoulos FIEAust CPEng is CEO of GHD.
“Organisations don’t innovate – people do. So, becoming an innovation superpower is about empowering people to become innovators. It’s fundamental to tackling the major challenges Australia faces.
“New ideas come about when people from different professions or industries come together. Programs like GHD’s Smart Seeds program show that innovation can be learned, with proven tools and techniques. You don’t have to rely on luck or inspiration to innovate.
“Innovation often happens across organisational boundaries. An ‘ecosystem’ may have collective skills and experience that surpass those of a single organisation, enabling solutions with broader applications. For example, international efforts to develop electric mining trucks involve multiple mining companies as well as equipment manufacturers.”
Engineering expenditure
Here, we take a closer look specifically at engineering R&D investment in 2021-22. Five subfields accounted for 59 per cent of engineering overall.
The key takeaway: Manufacturing and transport are the top engineering fields receiving the most business attention.
Expert tip: “Adopt a ‘back-a-winner’ strategy”
Professor Yiannis Ventikos is Dean of Engineering at Monash University.
“There are two main innovation paths that Australia, or any nation, could pursue – yet only one core principle they must embrace if success is truly the goal.
“One focuses on creating a well-connected, balanced system that fosters ideas and creativity from all pockets of society. This approach enables different players to drive innovation, with fair regulations in place, but without excessive control, allowing innovative ideas to develop organically.
“The second approach adopts a ‘back-a-winner’ strategy. In this model, a central agency, such as the government, is assumed to have the expertise to identify the most promising projects and allocates resources to support them.
“Finally, government and industry must align and collaboratively allocate resources to support hotspots that are poised to drive transformative innovation.”
Sources
Gross domestic spending on R&D; 2024; Organisation for Economic Co-operation and Development
List of Critical Technologies in the National Interest; May 2023; Department of Industry, Science and Resources
Science, Research and Innovation Budget Tables 2024–25; October 2024; Department of Industry, Science and Resources
Research and Experimental Development, Businesses, Australia; August 2023; Australian Bureau of Statistics
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The machine should use about 30% of the energy it produces to run itself.
With modification, the method may be able to extract energy from seawater and convert it to electrical energy as well.
The thermodynamic calculations I produced showed that it should be viable, but I did not have enough finance to complete the prototype.
Perhaps someone else would be interested in assisting me with this?
Any ideas?