Response to the Productivity Commission’s Five Pillars of Productivity Inquiries: Interim Reports Submission

This submission to the Productivity Commission responds to the interim reports of its five productivity inquiries, arguing that health and medical research and innovation (HMR&I) is a cornerstone of productivity rather than simply a beneficiary of it. Research Australia cites a return of close to $4 for every dollar invested in health and medical research, chronic disease spending of $82 billion (48% of disease spending), and its own analysis of a $100 million arthritis and musculoskeletal research mission returning $4.61 per dollar. For a dynamic economy, it recommends a measurable path to research and development (R&D) investment of 3% of gross domestic product (GDP), reinvestment of Medical Research Future Fund (MRFF) underspends, funding the full cost of research, more discovery science funding and an Australian equivalent of the US Biomedical Advanced Research and Development Authority (BARDA). On net zero, it proposes new climate-health research funds and a Centre for Sustainable Healthcare Innovation, noting the health system produces 5.44% of national emissions. On data and digital technology, it supports domain-specific artificial intelligence (AI) regulation led by sector regulators such as the Therapeutic Goods Administration, a bipartisan national health data framework and restored Australian Bureau of Statistics funding. On workforce, it seeks a National HMR Workforce Plan and measures for early and mid-career researchers, clinician researchers, lived experience researchers, regional, rural and remote researchers, and women, who hold only 25% of senior roles. On care, it recommends embedding health economics in collaborative commissioning, regional health observatories, Prevention Responsive Budgeting and allocating 5% of health expenditure to prevention by 2030.