The Australian Government has an opportunity to better leverage its universities, a key national strategic asset, as it tackles the ambitious challenges set out by AUKUS Advanced Capabilities, according to a new report from the United States Studies Centre (USSC) at the University of Sydney.
In Australia’s innovation, science and technology environment: Providing a rationale for universities’ contributions to AUKUS Advanced Capabilities, Senior Adviser for Defence Strategy Prof. Peter Dean, Senior Research Associate Esther Soulard and Non-Resident Fellow Adeline Williams note that Australia's universities anchor the country’s sovereign research capability, accounting for a third of the country’s R&D and home to world-leading research facilities. However, their contribution to the Defence R&D system needed to deliver AUKUS Advanced Capabilities has to date been limited.
“Over the past fifteen years, gross expenditure on research and development in Australia has declined dramatically to reach 1.68% of GDP, well behind the OECD average of 2.7%. This has inevitably had knock-on effects, affecting Australian universities’ ability to contribute effectively to the research and innovation pipeline required for AUKUS Advanced Capabilities today,” Director of Foreign Policy and Defence Dr Lavina Lee noted.
The brief makes the case for greater university involvement in the Innovation, Science and Technology (IS&T) ecosystem needed to realise AUKUS Pillar II objectives and notes that Australian universities’ contributions have been constrained by a siloed and fragmented R&D environment and by Australia’s underwhelming gross expenditure on R&D.
The authors note there is clear opportunity for the government to better harness Australia’s university capability, if there is greater coordination across the R&D landscape and if existing programs, such as the Australian Science and Universities Network (ADSUN 2.0), are uplifted and adequately funded.
“There is no way Australia can realise the AUKUS Pillar II advanced capabilities without significant uplift in R&D and a coordinated and concerted effort by government to make universities essential partners,” Prof. Dean concluded.
- Australia’s innovation, science and technology environment: Providing a rationale for universities’ contributions to AUKUS Advanced Capabilities is now available to view or download.
Key recommendations
- The Australian Government should adopt a whole-of-government approach to Defence-related R&D.
- Defence should clearly signal the research opportunities and priorities at which universities should lead.
- Defence should accelerate the establishment of Defence Research Centres (DRCs).
- Defence should sustain and increase its classified briefings to universities.
- The Australian Government should lift government expenditure in R&D and incentivise higher business expenditure in R&D for gross expenditure on research and development (GERD) to at least match the OECD average in R&D spending.
- Defence should conduct systemic engagement with universities to support institutional readiness for universities to contribute to AUKUS Pillar II.
- Universities, collectively and individually, should establish clear academic recognition and reward pathways for researchers conducting classified Defence research.




