Australian H&MR Facts

Funding health & medical research in Australia

Summary

- $10 billion is spent on health and medical research (HMR) in Australia each year
- More than a quarter (26%) of all Australian Research and Development (R&D) is spent on HMR (Total R&D is around $40.6 billion in 2022/23)
- 4% of all spending on health is spent on HMR (total health expenditure in 2021-22 was $241 billion)
- 0.4% of GDP was spent on HMR (Australian GDP in 2022-23 was $2,564 billion)
- Nearly half of all Australian HMR is undertaken in the higher education sector
- HMR accounts for more than one third (35%) of all R&D expenditure in higher education institutions
- 31% of all HMR expenditure is in the private sector

Expenditure by sector

The following table is an estimate of where HMR expenditure occurs in Australia

Location of expenditure $million
Aust. Govt. (including agencies)	States & Territories	Higher Education	Not For Profit	Business	Total
134	672	4,947	1,387	3,200	10,340
1%	7%	48%	13%	31%	100%

The estimates are complicated because they are:

based on Australian Bureau of Statistics (ABS) data and the ABS surveys the different sectors for different periods. Government and NFP data is for 2022/23; Higher Education is for the calendar year 2022 and Business is for 2021/22
the ABS categorises data by Socioeconomic Objective (SEO) and by Field of Research (FoR). The SEO of Health generally provides the most accurate estimate but the combined FoRs of Biomedical and Clinical Sciences; and Health Sciences (ANZSCR 2020); is used for Business because most HMR in industry is classified not under the SEO of health but under the SEO of manufacturing. The ABS data is not provided at sufficient detail to enable health R&D to be extracted from the SEO of manufacturing.[1]

[1] Prior to 2020 the FoR of medical and health sciences (ANZSCR 2008) was used. From 2020, the New ANZSCR 2020 is applicable.

Australian Government

While only a relatively small proportion of HMR is undertaken directly by the Australian Government it is responsible for providing the funding for a much larger proportion, particularly in higher education and Medical Research Institutes (MRIs). This includes funding provided through the National Health and Medical Research Council (NHMRC) and Australian Research Council (ARC). It also includes funding provided to universities through the block grants system, which is tied to the volume of each university’s research and the number of research students.

Australian Government funding of HMR through universities and MRIs

Australian Government funding of HMR through universities and MRIs

NHMRC Funding	$946 million
ARC Funding contribution to HMR (10%)	$81 million
Research Block Grants contribution to HMR (35%)	$700 million
MRFF	$650 million
Total	$2,377 million

Source: Australian Government Science Research and Innovation Budget Tables 2023-24 estimated expenditure for 2023-24

This estimate assumes all MRFF funding in 2023-24 went to universities and MRIs as it is not possible to break this figure down. This estimate does not take into account taxation measures such as the R&D Tax Incentive and programs like the Department of Industry Innovation and Science Entrepreneurs Program, which support the development and commercialisation of research generally, including new medicines, medical devices and therapies. It also doesn’t reflect other Commonwealth Government support provided to universities and MRIs which are used for new buildings and facilities that support HMR.

State and Territory Governments

State and territory governments are responsible for funding research undertaken within the State and territory hospital systems; the provision of support to MRIs for the indirect costs of research; and other programs to support R&D, a portion of which funds HMR. State and territory governments also provide capital funding for stand-alone research institutions (e.g. the South Australian Health and Medical Research Institute) and for organisations that combine research with health care delivery (e.g. the Victorian Comprehensive Cancer Centre).

It is likely that the total support provided to HMR significantly exceeds the $672 million per annum captured in the table above.

Higher Education

The bulk of Australian HMR is conducted in the Australian higher education sector, and is funded by the Australian Government, philanthropy and universities own funds from other sources, including teaching revenue for the Australian Government and students. Approximately one third (35%) of all research expenditure by the higher education sector is on health and medical research.

Source: ABS 8111.0, Research and Experimental Development, Higher Education Organisations, Australia 2022, SEO Health ($4,947 million) divided by total expenditure ($13,990 million).

Not for Profit sector

The Not for Profit sector spent approximately $1.4 billion on R&D in 2022/23, of which $1.64 billion (87%) was spent on the SEO of Health. The concentration of research in the non profit sector on HMR reflects the dominance of this sector by Medical Research Institutes (MRIs). The next highest categories were Education and Training with $58 million, Plant Production and Plant Primary Products ($18 million) and ICT ($15 million).

Source: Research and Experimental Development, Government and Private Non Profit Organisations, 2022-23 PNP expenditure by SEO, 2022-23

Business

Expenditure on HMR represents approximately 15.5% of total R&D spending by business. Much of the R&D expenditure by businesses has an emphasis on the ‘D’ (Development) in R&D rather than research. For this reason it is captured in the broad SEO of Manufacturing rather than Health; the combined FoRs of Biomedical and Clinical Sciences; and Health Sciences are used in the above table to estimate business expenditure on H&MR.

Source: Research and Experimental Development, Businesses, Australia, 2021-22 FoR for the combined FoRs of Biomedical and Clinical Sciences; and Health Sciences ($3,200,000,000) divided by total expenditure ($20,642,000,000).

For more information contact Greg Mullins, Head of Policy, greg.mullins@researchaustralia.org

Image credit: Professor Len Harrison, Walter and Eliza Hall Institute

RESEARCH AUSTRALIA WELCOMES MEDICAL RESEARCH COMMITMENT

The Albanese Government’s commitment to medical research today it a critical step towards underwriting the health and economic outcomes that Australians want and deserve.

Research Australia CEO Nadia Levin today welcomed the announcement, and in particular the National Strategy for Health and Medical Research which the organisation has long called for.

“Medical research is the path to a healthy Australian population and a healthy Australian economy, and today’s commitment is a critical step,” Ms Levin said.

“Health and medical research represents 23 per cent of Australian R&D activity and it needs and deserves a coordinated strategy to focus and target it.

“A strategic, national approach will guide discoveries faster to market and to the Australians who want the best possible health care – all imperative for a healthy, wealthy future.

“We look forward to working with Minister Butler to progress the National Health and Medical Research Strategy.”

Ms Levin said that the next step the Australian Government could take would be to fully utilise the funds available from the Medical Research Future Fund.

“As Australia’s peak health and medical research body, we’re pleased to see the Medical Research Future Fund supporting new missions in low survival cancers and a focus on reducing health inequities ,” she said.

“The next thing the Government could do is ensure all of the available MRFF funding is flowing through to researchers.”

The Future Fund Board of Guardians determined $973 million was available for grants through the Medical Research Future Fund (MRFF) for the 2024-25 financial year, however the Federal Government has so far only budgeted for $650 million to be disbursed.

It follows 2023-24 when $870 million was available but funding actual funding was still capped at $650 million.

“The health and medical research sector has abundant capacity to immediately use every available dollar of research funding, with worthy projects and medical advances ready to be made,” Ms Levin said.

“The more we invest in medical research the better the health, policy and economic outcomes for Australia in the years to come.”

As the peak national body for health and medical research and innovation, Research Australia played a key role in the establishment of the MRFF.

Media contact: Jack Douglas 0450 115 005

MEDICAL RESEARCH PEAK WELCOMES MEDICAL SCIENCE CO-INVESTMENT PLAN

The national peak body for health and medical research and innovation, Research Australia welcomes the Federal Government’s Medical Science Co-Investment Plan which will strengthen collaboration between government and industry.

Research Australia has been working with the sector to look at ways that government can better work with industry, including through new government procurement measures.

“Australia’s health and medical research sector is one of the strongest in the world – ranking 7^th in the world – with health and medical research accounting for 23% of all R&D investment”, Research Australia’s CEO & Managing Director, Nadia Levin said.

“Research Australia welcomes the Medical Science Co-Investment Plan announced yesterday by Minister Husic and Minister Butler and strongly supports some of the areas of potential investment opportunity identified, such as digital health, medical devices, innovative therapeutics and sustainability.”

“There is not only a clear health benefit to investing in health and medical research and innovation but a strong economic benefit, including through the creation of jobs and boosting our economy and local industry”, Ms. Levin said.

Research Australia looks forward to continuing to work with the Federal Government on key policy reforms needed to strengthen Australia’s health and medical research and innovation sector.

This will include convening a Pre-Election Summit on 8 October 2024 in Canberra, bringing together the health and medical research sector to discuss key policy reforms ahead of the next Federal Election.

Research Australia is the national peak body representing all stages of the health and medical research and innovation sector. We represent over 150 organisations across the entire pipeline of research and commercialisation with members including universities, medical research institutes, medical technology companies, pharmaceutical companies, and consumer organisations.

ENDS

PEAK BODY TO HOLD KEY SUMMIT FOR HEALTH AND MEDICAL RESEARCH SECTOR IN CANBERRA

The national peak body for health and medical research innovation, Research Australia, has announced it will once again hold a Pre-Election Summit ahead of the upcoming Federal Election.

The Pre-Election Summit, to be held on 8 October at Old Parliament House in Canberra, will bring the health and medical research sector and Federal parliamentarians together to discuss the important reforms needed over the term of the next Parliament to strengthen the sector.

Research Australia’s Summit will explore a number of key themes, including smarter investment in medical research and innovation; workforce needs; how to better incentivise health system research activity; and key challenges and opportunities for industry.

“Around $9.5B is invested in health and medical research (HMR) each year, with the sector accounting for around 23% of all research and development (R&D) in Australia. Considering this significant investment, Research Australia takes its role as the national peak body very seriously as investment in HMR has the potential to return real outcomes for patients and provide new export opportunities”. said Nadia Levin, CEO & Managing Director, Research Australia

“The Pre-Election Summit is always a key event on not only Research Australia’s calendar, but also for the whole health and medical research and innovation sector.

As we head into an election cycle where we are facing budgetary restraints and a health system crisis, it is important for the whole sector to come together to advocate for key reforms as we know that investment in research is the most important thing the Australian Government can do to not only improve health outcomes for Australians but to improve our health system,” Ms Levin said.

The event will take place on 8 October 2024 at Old Parliament House. More information will be provided closer to the event.

Research Australia is the national peak body for health and medical research and innovation, we are unique in being the united voice of organisations across the entire health and medical research pipeline, including universities; medical research institutes; the pharmaceutical, medical technology and biotechnology sectors; consumer groups; and health corporates. This year we will be celebrating 21 years of the Health and Medical Research Awards.

Research Australia Appoints Two New Board Members University of Wollongong Vice-Chancellor Professor Patricia M. Davidson and CSL’s Dr Michael Wilson

The nation’s peak body for health and medical research and innovation, Research Australia, has welcomed University of Wollongong Vice-Chancellor and President, Professor Patricia M. Davidson and CSL, Vice President of Research, Dr Michael Wilson, to its Board.

Chair of Research Australia Martin Bowles AO PSM said, “It is wonderful to be able to enhance our Board with two well renowned leaders in health and medical research. Professor Davidson and Dr Wilson bring extensive local and international clinical, academic, and drug development expertise.

“Professor Davidson is best known for her contributions to improving cardiovascular nursing and transitional care, with a focus on underserved populations in a global context. Patricia’s contribution to nursing and advocacy for nursing, as well as her leadership in higher education, will be invaluable as we focus on workforce innovation and change in the health and medical research sector.”

“Dr Wilson is an experienced research professional who has spent many years in the biotech industry. Michael has a track record of developing and leading drug development project teams for a range of clinical indications including rare diseases in hematology, immunology, and respiratory therapeutic areas,” Martin Bowles said.

Research Australia’s CEO and Managing Director, Nadia Levin is delighted to welcome two experienced and dedicated individuals to the Board of Research Australia.

Nadia said, “We look forward to working closely with Patricia to learn from her international experience and amplify the work that she is doing championing improved academic and health outcomes for women. As a representative of the health and medical research community on the Government’s Women’s Health Advisory Council, which was an initiative announced by Minister Kearney at the 2022 Research Australia Awards, this is an important cause for Research Australia.”

“Michael brings extensive knowledge and experience in the pharmaceutical and biotech sector, particularly in early-stage drug discovery and innovation. He is also a member of Brandon BioCatalyst Investment Review Committee and the Centre for Biologic Therapies Governance Committee. This synergy between research and commercialisation is vital for all facets of the health and medical research pipeline,” Nadia said.

Research Australia has also expressed its heartfelt thanks to outgoing Director Dr Andrew Nash, Senior Vice President Research and Chief Scientific Officer, CSL. “While we will miss the expertise and insight of Dr Andrew Nash on our Board, we are delighted that he can continue to share his deep knowledge of the health system with Research Australia as part of our prestigious alumni group,” Martin Bowles said.

Biography

Professor Patricia M. Davidson PhD, MEd, RN, FAAN

Patricia joined the University of Wollongong as Vice-Chancellor in May 2021. Prior to her current role, Professor Davidson was dean of the Johns Hopkins School of Nursing in Baltimore in the United States. In 2021 she was the recipient of the Consortium of Universities for Global Health (CUGH) Distinguished Leader Award. This honour celebrates her exceptional contributions to the advancement of global health worldwide.

As a global leader in nursing, health care, and advocacy, Professor Davidson’s work focuses on person-centred care delivery and the improvement of cardiovascular health outcomes for women and vulnerable populations. She has extensively studied chronic conditions, transitional care, palliative care, and the translation of innovative, acceptable, and sustainable health initiatives across the world.

Professor Davidson serves as counsel general of the International Council on Women’s Health Issues and was a past board member of CUGH and secretary general of the Secretariat of the World Health Organizations Collaborating Centres for Nursing and Midwifery.

Michael Wilson

Michael Wilson, BSc (Hons), PhD, MBA is Vice President, Head of CSL Research at the Bio21 Institute, CSL’s hub of early-stage research and translational science. Michael and is an Honorary Senior Fellow at the University of Melbourne.

Michael completed his PhD at the University of Melbourne in 1995 focusing on recombinant vaccines before moving to the UK in 1996, where he researched the genetics and function of immune cell receptors at Cancer Research UK and subsequently at the University of Cambridge. Michael completed his MBA whist in the UK at the University of Warwick.

In 2001, Michael joined GlaxoSmithKline (GSK) leading a team with a primary focus on autoimmune diseases including asthma, rheumatoid arthritis and inflammatory bowel disease (IBD).

In 2008, he joined CSL Limited as the Head of Molecular Biology within CSL Research before taking the position of Vice President, Head of CSL Research at the Bio21 Institute. Michael leads a team which focuses on the discovery and development of new protein, cell and gene-based medicines to treat serious human disease.

Research Australia Appoints New Chair of Board Martin Bowles AO PSM

The nation’s peak body for health and medical research and innovation, Research Australia, is delighted to announce Martin Bowles AO PSM, as the new Chair of the Board. Martin will take over from outgoing Chair Associate Professor Annette Schmiede, who will remain on the Board.

Martin has been a distinguished member of the Research Australia Board since 2020 and has been an active contributor to the success of Research Australia.

Martin is a visionary leader who has had an extensive career spanning both public and private arenas. Currently he is the National Chief Executive Officer of Calvary Health Care, responsible for more than 18,000 staff and volunteers, in Calvary’s hospitals, home and virtual care services, retirement living and residential aged care homes across five states and two territories.

Martin joined Calvary in November 2017 following an exemplary 40-year public service career spanning a diverse portfolio of industry sectors in the Commonwealth, Queensland, and New South Wales Governments.

Outgoing Research Australia Chair, Associate Professor Annette Schmiede welcomed Martin to the role saying, “Martin will lead an organisation that is going from strength to strength as we continue championing our impressive health and medical research sector, delivering on Research Australia’s strategic goals and, ultimately, working to improve Australians’ health outcomes.”

Research Australia has expressed its heartfelt thanks to outgoing Chair and Digital Health CRC CEO, Associate Professor Annette Schmiede. Annette has been on the board since 2015 and Chair since 2020.

Research Australia CEO and Managing Director, Nadia Levin, said, “The entire health and medical research sector owes Annette Schmiede a debt of gratitude. She steered us through the challenges and uncertainty of the COVID 19 pandemic, and we came through that unprecedented situation in a stronger and more secure situation due to her leadership and tenacity.

Annette was also instrumental in establishing Research Australia’s Health Economics Roundtable which continues as a key community of practice for both health economists and health services researchers. We are delighted that Annette will remain on our Board, her health policy expertise and insight continues to be invaluable.”

Advocacy Award Sponsored by AbbVie – Mrs Catherine Hughes from the Immunisation Foundation of Australia

Introducing our 2023 finalists: Mrs Catherine Hughes

Australia’s health advocates help transform medical research into tangible outcomes for patients and their communities. The Advocacy Award was created to celebrate the dedication and contributions of our most passionate health and medical research advocates.

Among this year’s finalists in this important category is Catherine Hughes, Director of the Immunisation Foundation of Australia (IFA), who has demonstrated tireless commitment to improving immunisation rates and community support for infectious diseases research.

FINDING STRENGTH IN THE STRUGGLE

Catherine’s health advocacy journey started when she lost her four-week-old son Riley to whooping cough in 2015. Determined to prevent other families from suffering because of vaccine-preventable diseases, Catherine and her husband Greg launched the ‘Light for Riley’ campaign.

The award-winning campaign took Catherine across Australia, spreading awareness about whooping cough and the importance of pertussis vaccination during pregnancy. Since the campaign, every Australian state and territory have implemented free pertussis vaccinations for pregnant women and Australia has some of the world’s highest pertussis vaccination rates among pregnant people.

CONNECTING COMMUNITIES AND SCIENTISTS

In 2017, Catherine established the Immunisation Foundation of Australia (IFA) and expanded her advocacy to other vaccine-preventable diseases including influenza, RSV, meningococcal and pneumococcal.

As IFA Director, Catherine works closely with research institutes such as the Telethon Kids Institute to create evidence-based awareness campaigns and educational resources. Catherine has also been a consumer investigator on multiple research projects, using her strengths in community engagement to help bridge the gap between scientists and the wider community.

In recognition of her efforts, Catherine was named Western Australia’s Young Australian of the Year in 2016 and appointed a Member of the Order of Australia for services to immunisation in 2022.

Professor Jonathan Rhys Carapetis AM, FAA, FAHMS from the Telethon Kids Institute, who nominated Catherine, stressed the importance of vaccine advocacy in continuing to improve Australia’s public health outcomes.

“With vaccine hesitancy on the rise, being a loud advocate for vaccines can be challenging, and sometimes even dangerous. Yet, Catherine remains steadfast in her commitment to the cause and ensuring that communities are included in immunisation research and delivery,” explains Professor Carapetis.

“Catherine’s ability to connect with communities and deliver the pro-vaccination message with compassion and clarity is exactly the sort of advocacy we need to ensure the future success of immunisation in Australia.”

Catherine said: “I’m honoured to be a finalist in these prestigious Awards, along with other outstanding advocates for health and medical research. Our hope is that Australians from all walks of life will take action to remain up to date with whooping cough vaccination. We all have a role to play to spread this vital message and prevent the loss of loved ones like Riley.”

The winners of Research Australia’s Health and Medical Research Awards will be announced at a gala award ceremony in Sydney on November 2.

Griffith University Discovery Award Finalist – Dr Caitlin Jones from The Institute for Musculoskeletal Health

Introducing our 2023 finalists: Dr Caitlin Jones

It is an honour to be celebrating Australia’s research talent at this year’s Health and Medical Research Awards. Generously sponsored by Griffith University, the Discovery Award recognises an early-career researcher who is already making an important impact with their work.

Among the Discovery Award finalists for 2023 is Dr Caitlin Jones, who was awarded her PhD earlier this year and has already demonstrated research excellency through her leading role in the OPAL trial: a 12-month long study on the use of opioids for treating back pain.

BACK PAIN AND OPIOID PRESCRIPTION: MORE HARM THAN GOOD

Lower back and neck pain are two of the most burdensome conditions among adults. Over 619 million people worldwide experience back pain at any one time[1] and between 40-70% of those who present for care are prescribed an opioid.[2]

Despite opioid prescription being common, there is little evidence to support its effectiveness for back pain. The harms from opioid use range from minor side effects like constipation, dizziness and nausea, to long-term harms such as dependence, addiction, and overdose. In Australia alone, opioid use causes 50 hospitalisations, 14 emergency department admissions, and 3 deaths every day – at a cost of over $5 billion each year.[3]

A WORLD FIRST STUDY AND A CALL FOR CHANGE

Dr Jones was the first author on the OPAL trial, published in The Lancet earlier this year. OPAL was a study of 347 people with acute non-specific back and/or neck pain in which half of the participants received an opioid (oxycodone/naloxone) and the other received a visually identical placebo. The groups were treated for up to six weeks, monitored for 12 months, and evaluated at the 2, 4, 6, 12, 26, and 52 week marks. Participants also reported daily pain scores for the first 12 weeks.

Dr Jones and the team discovered that those in the opioid group had worse outcomes compared to the placebo groups in several measures including pain, quality of life/mental health and physical function.

Current clinical guidelines recommend the prescription of opioids when other treatments have failed or are not appropriate. However, the OPAL trial clearly shows that they should not be used at all for this condition.

“OPAL is the world’s first and largest placebo-controlled trial of opioids for acute back and neck pain. The previous guidelines for opioid use were based on indirect evidence,” explains Dr Jones.

“The OPAL trial will help shift international guidelines and, as a result, reduce the many unnecessary harms caused by opioid prescriptions.”

The winners of Research Australia’s Health and Medical Research Awards will be announced at a gala award ceremony in Sydney on November 2.

[1] World Health Organisation. (2023, June 19). Low back pain. World Health Organisation. https://www.who.int/news-room/fact-sheets/detail/low-back-pain

[2] Ferreira GE, Machado GC, Abdel Shaheed C, et al. (2019). Management of low back pain in Australian emergency departments. BMJ Quality & Safety, 28(10), 826-834.

[3] National Drug Research Institute. (2020). The cost of opioid use to Australia: $15.7 billion and 2203 deaths. NDRI News.

FEDERAL BUDGET: MEDICAL RESEARCH INVESTMENT WELCOMED BUT WHERE’S THE EVIDENCE FOR PRIMARY CARE

9 May 2023

The national peak body for health and medical research, Research Australia, has welcomed long overdue investment in key research funding streams, the NHMRC and ARC.

“Like all parts of the economy, inflation has well and truly increased the cost of undertaking health and medical research and innovation. In past Budgets, Government funding for research has failed to keep pace with inflation. Tonight’s commitment to a 3.6% increase over 2022 / 2023 brings the NHMRC in line with inflation. While there is still a long way to go, this is welcome news for the research community that all Australians rely on to improve their health,” said Research Australia CEO, Nadia Levin.

Research Australia is pleased to see the attention being focused on the commercialisation of health and medical research, through programs such as the National Reconstruction Fund and Australia’s Economic Accelerator.

“For health and medical research and innovation to flourish, we must sustain the whole pipeline. Strategic and coordinated financial settings for all stages of the health and medical research pipeline will ensure Australian health and medical research can contribute to a healthy population and economy.

“The Medical Research Future Fund Board of Guardians approved up to $870 million for release from the MRFF to fund research in 2023-24. Of that available $870 million only $650 million is flowing through to the MRFF in 2023-24 and the subsequent three financial years. We will be working with Government to understand why,” said Research Australia CEO, Nadia Levin.

Research Australia has also welcomed the Budget’s $6.1 billion investment in strengthening Medicare and improvements in digital health but says that reform must be supported by evidence grounded in research.

“The health and medical research sector welcomes the necessary primary care improvements in tonight’s Budget which will benefit Australian health consumers for the next decade and beyond.

“All health system change must be informed by latest and best evidence. However, there has been no commitment to fund research to guide the design and implementation of these measures, or to support their evaluation. Measures to boost the primary care workforce similarly, do not include support for researchers to generate the evidence for improved primary care.

“It is heartening to see overdue digital health investment, particularly improvements to the My Health Record which could one day provide a wealth of secure, anonymous health data and accompanying research opportunities on a scale never before seen in Australia.

“All improvements to the My Health Record must be accompanied by a framework to guide safe, sensible secondary use of my health record for public-good health research. Research Australia stands ready to work with a reinvigorated Australian Digital Health Agency to progress this Framework,” said Nadia Levin.

ENDS

Research Australia is the national peak body for health and medical research, representing the entire health and medical research pipeline.

Research Australia member calls for action on A National Data Governance Framework

Friday 17 February 2023

Research Australia is delighted to share a terrific article from Research Australia Chair and Member, Digital Health CRC.

Associate Professor Annette Schmiede is CEO of Digital Health CRC and Chair of Research Australia. Associate Professor Schmiede said that Australia lacks a national health data and information governance framework, which was blocking digital health initiatives. To read Associate Professor Schmeide’s full article in the Australian Financial Review please click here.

The full Report from Digital Health CRC, Digital Transformation Of Healthcare In Australia Constrained – A Call To Action For A National Data Governance Framework, is available here.