From labs to industry: R&D review maps how research can translate into productivity gains
A year-long national review into Australia’s research and development system has outlined a six-part reform framework aimed at improving how research translates into business activity, workforce capability and industry outcomes.
The Strategic Examination of Research and Development (SERD) has delivered its final report, Ambitious Australia, following a process designed to assess how the country’s R&D system can better support long-term prosperity.
Announced in the 2024–25 Budget, the examination was tasked with assessing how research and development contributes to economic growth and productivity, and how those outcomes could be strengthened.
An independent panel, led by Robyn Denholm, provided its advice to government in December 2025 after a year of consultation and analysis. The report is now publicly available, with the government considering its findings.
Six areas shaping the reform agenda
The report sets out recommendations across six key areas of the R&D system, aimed at improving how research, development and innovation activity translates into practical outcomes.
These include improving the focus and effectiveness of R&D efforts, strengthening support for basic research, and creating better incentives for business-led innovation.
It also addresses access to investment and capital, workforce capability, and the role of government in leading and enabling the system.
Together, these areas form the basis of 20 recommendations designed to lift the performance of Australia’s research and innovation system and increase its contribution to the economy.
Building capability across the system
The panel’s recommendations place equal weight on foundational research and applied outcomes. This includes supporting research that builds new knowledge, while also strengthening pathways for that knowledge to be used by industry.
Workforce capability is identified as a core enabler, with a focus on ensuring the skills needed to support research, development and innovation activity are available across sectors.
The report also considers how improved access to capital can support the full innovation cycle, from early-stage research through to commercialisation and industry adoption.
A coordinated national effort
The review highlights the need for coordinated action across government, industry, universities and the research sector. Consultation for the report included engagement with a wide range of stakeholders, including businesses, research organisations and community representatives.
Minister for Industry and Science Tim Ayres said, “I am so grateful for the work, expertise and experience that went into preparing Ambitious Australia. I want to thank Robyn Denholm for her intellectual rigour, hard work and commitment to the national value of Australia’s research and development system.”
He also noted the scale of the task ahead, stating, “Meeting Australia’s big collective challenges – food and agriculture, energy security, new industrial and tech processes, water security and dealing with the human, animal and plant diseases of the future, to name just a few – requires a modern and fit for purpose research and development system.”
Next steps under consideration
The report provides a long-term framework for reforming Australia’s R&D system, with a focus on improving productivity, strengthening industry capability and supporting new areas of economic activity.
The Australian Government is now reviewing the recommendations as it considers how the system can evolve to better support future industry needs and national priorities.
