Report recommends research funding boost

A new government review has reported that investment in health and medical research delivered excellent returns and benefits to the community, and has recommended that overall Commonwealth government investment be increased to AUD$1.8 billion by 2008/9.

Australian governments should also join forces to attract $1 billion per annum of health and medical research investment from overseas, the report said.

The Investment Review of Health and Medical Research, chaired by John Grant, found that investment had contributed to the creation of over 350 companies and up to 4000 new knowledge based jobs since 1992. Improved quality of life, length of life, and avoidance of health costs were also significant outcomes.

"The investment review clearly demonstrates that significant returns have been achieved by the staged increases in government funding over the last five years," said Peter Wills, who chaired the governments 1998 Health and Medical Research Strategic Review.

The recommended boost in funding would raise the percentage of Australia GDP invested in health and medical research -- both government and industry -- from 0.12 per cent in 2002 to 0.2 per cent, the OECD average.

"The Grant review found that while private sector investment in health and medical research has lifted over time, Australia still has a lower share of private investment than some other comparable countries," said minister for health and ageing Tony Abbott in a statement. "The government will establish a taskforce to provide advice on how to achieve greater private sector support for health and medical research."

"I think the important thing is that this is a progress report of the increase in funding," said Christine Bennett, CEO of Research Australia. "In 2004/05 there will be over $400 million spent by the National Health and Medical Research Council, which is an increase from less than $200 million in 1998."

Bennett said Research Australia's Beyond Discovery report, released in November, found that of the 100 health and biotech companies surveyed, 66 university-based research contributed in whole or in part to the company.

She said the report also found that the NHMRC and governance of health and medical research investment should be more independent.