Call for better business-research links

Australia is punching above its weight when it comes to research.

But it's performing poorly when it comes to turning research into new businesses and jobs.

The federal government, which spends around $9 billion a year on research and innovation, is seeking comment on a new strategy to improve the links between research and the commercial sector.

Industry Minister Ian Macfarlane says changes being proposed include reallocating funding to reward projects involving collaboration between research and industry, improving intellectual property arrangements and training researchers in bringing ideas to market.

The government is also taking a fresh look at a national commission of audit proposal to overhaul the sector.

The audit report, released in May, called for the abolition of Cooperative Research Centres with funding rolled into other programs.

It also called for sector-specific grants to be abolished and a streamlining of the estimated 150 minor research funding programs.

"To maximise our economic opportunities, Australian industry must capitalise on our areas of competitive strength and we must lift our game when it comes to collaboration between business and research," Mr Macfarlane said.

In 2013, Australian contributed to 3.9 per cent of the world's research output, from 0.3 per cent of the world's population.

But an index of innovation output ranked Australia 81st out of 143 countries.

Comment on the discussion paper, Boosting the commercial returns from research, are invited until November 28.