MYEFO research funding cut could hamper innovation

The Australian Government has reallocated funding for research translation and commercialisation in today’s Mid-Year Economic and Fiscal Outlook (MYEFO) report. 

Funding has been ‘reprioritised’ by taking $46.2 million over four years from Australia’s Economic Accelerator (AEA) program. 

The AEA is the Department of Education’s flagship research and development program. It is intended to build a research pipeline and enable Australia to realise the returns on this investment. 

Australian Academy of Technological Sciences and Engineering (ATSE) CEO Kylie Walker said “Australia’s Economic Accelerator program is a critical initiative commercialising great Australian research into home-grown innovations. With research funding in Australia falling, and our international peers eclipsing us – now is not the time to put the brakes on programs aimed at giving Australia a competitive edge. 

“In its first year of operation, the AEA program received research applications for ten times the amount available. Reallocating the AEA fund provides a short-term balance to the budget, at the cost of long-term returns and innovation,” said Kylie Walker. 

ATSE urges the Government to increase research and innovation spending to 3 percent of GDP into line with international peers as an engine for productivity growth.