Here’s what the 2023 budget promises for Australian science and innovation

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Australian innovation has the power to protect us – our environment, our digital world, our borders and our health. All these are the focus areas of this year’s federal budget.

But the science, technology, engineering and mathematics (STEM) sector has been echoing for years that our research system is in crisis. Ongoing reviews – of the Universities Agreement, National Science and Research Priorities and the Australian Research Council – are an opportunity to examine and respond to systemic problems.

However, they do not take a holistic view of designing a research and innovation system that is not only functional but coherent, and makes good use of Australian talent.

While we wait for these reviews to be completed, here is my review as CEO of the Australian Institute of Technology Science and Engineering (ATSE) of the 2023-24 Budget in relation to Australia’s science, technology and innovation sectors.

More STEM degrees

The Advanced Strategic Capabilities Accelerator will see $3.4 billion over ten years to translate new technologies — such as hypersonic research and quantum decryption — into defense capabilities.

The nuclear submarine workforce will be funded with $128.5 million for 4,000 new positions in advanced STEM education. This is necessary to fulfill our commitments under AUKUS. We never say no to more STEM degrees in this engineer-poor, fast-innovating world.

This budget also includes $7.9 million to fight misinformation and disinformation through the Australian Communications and Media Authority and $101.6 million to cyber security aimed at creating safer online spaces.

But even here, it will be missed in education and career paths to train, support and sustain Australia’s digital workforce. We’re behind our OECD peers – Australia trains an inadequate number of engineers, with only 8.5% of Australian university graduates obtaining an engineering degree, compared to over 12% in Canada and over 23% in Germany. Our engineering and technology corps is trained in fields such as civil engineering, telecommunications and mining to name a few.

The National Quantum Strategy, the Australian Quantum Development Centre, and the National Artificial Intelligence (AI) Center are an essential trio to keep pace with this rapidly changing field.

Small businesses will be supported to commercialize research through the $392 million Industry Growth Program, which will add to the existing Acceleration of the Australian Economy program. This will continue to build a positive business environment and drive more Australian international research into world-class innovations.

On the way to net zero superpowers

In a decarbonising global economy, Australia has the potential to become a clean energy superpower. We are the home of the leading minds in many of the key technologies driving the clean energy revolution – next-generation batteries, computing power, machine learning and pure hydrogen to name a few. We have plenty of vital minerals, sun and wind.

The new Net Zero Authority is an important step towards decarbonising and transforming our domestic and export energy markets. But to bring about this bold change, government investment in research and development must match that of countries like Japan, Germany and the US that are leading innovation.

We need a coherent plan for clean energy research, development and deployment, along with support to make the vision a reality. We need to invest around 3% of our gross domestic product (GDP) in research and development (R&D) to keep the top tech and creative minds here.

Direct government spending on R&D currently stands at 0.49% of GDP – the lowest level since 2014, researchers contend. In contrast, visionary investment prioritizes the creation and application of new knowledge over the long term, and invests in building Australia’s new economy.

We need a structural review of R&D funding to future-proof the system.

What is missing from the STEM budget?

Research grants disappear: inflation means their real value is falling. Pending the results of the Universities Agreement, the Government has refrained from subsidizing the full cost of teaching STEM degrees. Nothing has been said to address urgent STEM professional shortages and support STEM workforce diversity.

Similarly, there is silence on the most sought-after industry bodies – the National Engineering Council and the National Indigenous STEM Professionals Network.

International STEM collaboration is more important than ever, but the $25 million grant to the Global Science and Technology Diplomacy Fund has made a positive impact. The funding was intended to support international collaborations in advanced manufacturing, AI and quantum computing, hydrogen production, and new RNA vaccines and therapies to improve health outcomes.

Collaborative and diplomatic relationships are important in STEM in our region and around the world.

We are yet to harness Australia’s true potential to develop a thriving R&D economy that supports our health, wealth, safety and sustainability, and enhances our position as an innovative and forward-looking, inclusive global leader.

Every budget has winners and losers. Next year our STEM sector reviews will be completed, the government will be in power for two years, and the window for game-changing investment will be narrowing.

My hope is that Australia’s long-term future as a secure and strong nation will be a winner. We need a comprehensive and well-funded plan to drive national growth and prosperity through research and development.The conversation

  • Kylie Walker, Visiting Fellow, Australian National University

This article is reprinted from the discussion under a Creative Commons license. Read the original article.

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