Australia’s national research and development (R&D) performance is in crisis, and how we confront the problem will define the types of jobs and standard of living for the nation’s future, according to a landmark report commissioned by TechnologyOne.

“The report, commissioned by TechnologyOne for the Strategic Examination of R&D, is a call to arms to treat this as an intergenerational obligation that needs to be seized by governments, academics and researchers but also, importantly, by the business community,” TechnologyOne CEO Ed Chung said.

“It makes clear that only a genuine Team Australia response can pull Australia R&D out of the dive it is in, and that a commitment to growing the Australian ICT sector must be part of that story.”

The independent report, by Insight Economics, found the Australian ICT sector punched above its weight in R&D investment, but was undersized as a share of the economy compared to Australia’s overseas peers.

The contribution of Australian business to the national R&D effort has fallen to 0.88 percent of GDP compared to the OECD average of 1.99 percent since 2010. Overseas companies are investing twice as much in their future competitiveness.

“It is no coincidence that this fall coincides with the ‘hollowing out’ of the Australian economy, with 11.3 percent fewer medium sized businesses and 5.1 percent fewer large businesses compared to 20 years ago,” Mr Chung said.

“Add the data together and a compelling story emerges – Australia needs to take care of its own better, especially in tech industries.

“We need to use all the tools available to support researchers and build stronger, bigger businesses in ICT industries where the intensive R&D investment is coming from.”

Mr Chung said the announcement by Prime Minister Albanese that Australian companies would be “at the front of the queue” for government contracts in response to global tariff wars was a dramatic step toward redressing the historical bias against Australian companies trying to sell to state and Federal governments.

“TechnologyOne is an example of what good looks like – reinvesting 20 percent of revenue into constant innovation and product improvement, driving the business from a start-up to an ASX100 business competing and winning around the world.”

TechnologyOne hosts one of the nation’s largest research and development centres from Brisbane, where close to 500 people work to solve problems and improve systems for businesses.