A 1 per cent increase in research and development investment would deliver a $24 billion return to the country’s economy over a decade, the university sector says, as it pushes the case for more funding in an election campaign that has delivered few sweeteners for universities.

Universities have been pleading for a more sustainable research funding model after the coronavirus pandemic further highlighted the flaws in the sector’s heavy reliance on international student fees to cross-subsidise research output.

Universities Australia, citing economic modelling it commissioned from Deloitte Access Economics before the pandemic, says that for every dollar government invests in research, $5 is returned to the economy.

“For every 1 per cent increase in university R&D, Australia’s multi-factor productivity rises by 0.13 percentage points. This is equivalent to an annual increase of GDP by $2.4 billion over the long term,” the peak body said in a submission to the Productivity Commission’s productivity inquiry.

Universities Australia chief executive Catriona Jackson said one way to boost productivity was through greater collaboration between universities and industry.

Loading

“A shift in public support for business research and innovation – towards direct support and away from tax concessions – can better provide the incentives for business to do research and foster industry-university partnerships.”

Neither major party is offering substantial policy or funding commitments to the broader university sector ahead of the May 21 election.

The Coalition, which wants universities to find ways to better commercialise their research output, has used the election campaign to announce the first two grants under its “trailblazer” program established last year, awarding $50 million each to Western Australia’s Curtin University and the University of Adelaide.