Australia Falling Behind on R&D, Spending 43 Percent Below OECD Average

A new report found Australia ranked near the bottom among advanced economies for R&D spending, ahead of only Ireland.

A scientist examines a biological sample in a laboratory in Sydney. in Sydney, Australia, on May 29, 2025. Saeed Khan/AFP via Getty Images

Australia will need to lift its research and development (R&D) investment by 43 percent just to reach the OECD average, according to a major independent review that warns the nation risks falling further behind global peers.

The Strategic Examination of Research and Development (SERD) report, Ambitious Australia, released on March 17, found Australia ranks near the bottom among advanced economies, ahead of only Ireland, while countries such as Japan, South Korea, Germany and Switzerland lead by a wide margin.