The release today of the Ambitious Australia: Strategic Examination of R&D (SERD) Final Report is a pivotal moment for Australia’s innovation system – and a real opportunity for evidence-based digital and connected health.

The report rightly calls for a more focused, better resourced and better coordinated RD&I system, built around six National Innovation Pillars, and it’s great to see the recognition of “health and medical” and “technology” as two of those pillars, acknowledging our thriving sector’s critical role in driving local innovation, improving health outcomes and strengthening Australia’s economic competitiveness.

There are three areas ANDHealth is particularly supportive of:

  1. ‘Health & Medical’ National Strategy Advisory Council: ANDHealth agrees with the SERD Report's recommendation to establish a National Innovation Council – supported by a 'health and medical' National Strategy Advisory Council that represents all the areas of health and medical technology, including biopharmaceuticals, medical devices, digital health technologies and diagnostics.
  2. Unlocking growth potential through strengthening venture capital settings and superannuation participation: Access to scale-up capital remains one of the biggest barriers facing Australian digital and connected health companies, so ANDHealth is highly supportive of the recommendations to strengthen venture capital settings, establish fund-of-funds (FOF) to grow long-term investment across different stages, and make it easier for superannuation funds to invest in high-growth firms. This will help more Australian companies grow here rather than being forced to look overseas for funding.
  3. Modernising the R&D Tax Incentive: So it better reflects how digital health and software technologies are built and commercialised, and the role they play in RD&C, including a new stream designed to better support fast-growing startups and scaleups, with simpler eligibility and extended support for early commercialisation activity.
  4. Prioritising procurement of Australian RD&I: And implementing an 'if not, why not' principle as a core tenet of the procurement policies of Australian governments.

As the Australian domain sector experts in digital and connected health, ANDHealth was quoted on Pg 83 in the report: “Improving access to capital is vital to prevent early-stage companies from moving offshore due to insufficient funding opportunities. Programs like Early-Stage Venture Capital Limited Partnerships (ESVCLP) provide tax benefits for investors and fund managers while supporting startups through pre-seed to early expansion stages. Expanding such initiatives can bolster Australia's startup ecosystem.”

The next challenge is execution. Implementation will determine whether these reforms truly close the development gap, grow globally competitive Australian digital and connected health companies, and ultimately improve patient outcomes and the performance of the health and care system.

ANDHealth looks forward to working closely with the Government as it responds to the report and its recommendations and the imminent release of the National Health and Medical Research Strategy, a sector-specific framework to strengthen health and medical research specifically, that will align with and complement the SERD Report.

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Read the full report