Govt R&D investment continues to slip

The Federation of Australian Scientific and Technological Societies (FASTS) has warned that Commonwealth investment in research and development will drop below 0.6 per cent of gross domestic product as a result this month's federal budget.

FASTS president Prof Snow Barlow said despite modest increases under the government's Backing Australia's Ability strategy, Commwealth R&D investment would fall to 0.597 per cent of GDP, down from 0.62 per cent in 2004/05.

Figures released by the Department of Education, Science and Training shows that Australia's investment in R&D peaked at just over 0.75 per cent in 1995/06 -- the year the Howard government came to power -- and has been flat, or in decline, all but two years since then.

Barlow described the trend as "alarming". Investment in R&D was an important predictor of future economic growth, he said: "It tells us a lot about how much of today's economic activity is we are prepared to invest for our future, and our children's future.

"It would be very courageous to assert that there is no correlation between investment in R&D and economic growth.

"Governments cannot simply rely on consumer spending and strong commodity prices to continue to prop up record GDP growth. Reversing this decline in R&D's shjare of national economic activity must be a top priority for the next budget."

Australia's ageing population and future climate change were two very good reasons for Australia to ramp up its investment, Barlow said.

"Failure to address this urgent issue will threaten our future prosperity and result in Australia going backwards in a highly competitive global knowledge economy," Barlow said.