The now released Australian Industry Report 2015 provides discussion on the role and importance of Research and Development (R&D) as the main vehicle for innovation growth. The report goes further to note the derived spillover benefits through undertaking R&D, specifically the voluntary exchange and involuntary leakage of useful technological information that occurs between businesses.

Analysis contained within the Report, of Australian and international studies into the impact of government-funded R&D tax incentives, claims that “…R&D is not persistent enough to be sustained over the long term without strong turnover or external stimulants such as spillovers and tax incentives”.

The forthcoming Innovation Statement by the Turnball Government has the potential to bolster the benefit delivered to industry via the existing R&D Tax Incentive.