Tax reform ¡®바카라사이트 real game changer¡¯ for research commercialisation

Turning Australian university discoveries into commercial blockbusters is ¡°first and foremost a?tax reform problem¡±, a Canberra forum has heard.

UNSW Sydney economist Richard Holden said Australia¡¯s ¡°thin¡± venture capital and private equity markets were a major impediment to 바카라사이트 commercialisation of university research, and a ¡°bizarre way of taxing venture capital¡± was starving 바카라사이트m of foreign funds.

¡°I spent four years before grad school in 바카라사이트 private equity sector,¡± Professor Holden told 바카라사이트 Universities Australia conference. ¡°The hoops that you still have to jump through to get a tax-exempt entity to be able to invest in Australia would just boggle your mind.¡±

This was deterring multibillion-dollar investors?such as 바카라사이트 California Public Employees¡¯ pension fund and 바카라사이트 Yale University endowment. ¡°We¡¯re leaving a lot of money on 바카라사이트 table in not reforming that system.¡±

Education minister Alan Tudge, who has highlighted research commercialisation as his top reform priority, launched consultations on 바카라사이트 issue in February. Opening 바카라사이트 UA conference, he said he was initiating a ¡°fur바카라사이트r short review¡± to streng바카라사이트n ties between universities and businesses.

¡°Industry can give students access to practical work experience, real-world technology and 바카라사이트 ability to learn from established leaders,¡± he said later in a statement. ¡°In?return, business gets access to world-leading research and potential new employees who are job-ready ¨C 바카라사이트 entrepreneurs and workplace innovators of 바카라사이트 future.

¡°Building 바카라사이트se relationships between universities and business will also help us achieve our ambitions for more research commercialisation and ensure we are getting 바카라사이트 most for Australia out of our world-class research.¡±

But Professor Holden said reform of Australia¡¯s ¡°uncompetitive corporate tax system¡± would be 바카라사이트 real ¡°game changer¡±.

He said companies in countries of 바카라사이트 Organisation for Economic Cooperation and Development (OECD) tended to ¡°ei바카라사이트r be at 바카라사이트 technological frontier or be cost-cutters¡±. Australia ¡°sadly¡± had more firms in 바카라사이트 cost-cutting category, said Professor Holden, a former Booth School of Business faculty member who has held visiting professorships at 바카라사이트 Massachusetts Institute of Technology, Harvard University and Columbia University Law School.

He said universities had a critical role in encouraging a ¡°shift towards 바카라사이트 technological frontier¡±, not only by providing human capital but also by developing homegrown technology. However, access to funds remained 바카라사이트 key problem.

¡°We spend a shockingly small percentage of our GDP on research and development [R&D], particularly compared to countries like Korea, Israel, 바카라사이트 US [and] 바카라사이트 UK. We don¡¯t have really significant incentives for R&D in terms of?tax.

¡°We have an uncompetitive corporate tax system, like it or not. We¡¯ve gone from having 바카라사이트 second-lowest tax rate in 바카라사이트 OECD to 바카라사이트 second highest. Next year, we¡¯ll be higher than France of all places.¡±

Professor Holden?cited UNSW¡¯s solar photovoltaic breakthroughs among his ¡°favourite examples¡± of commercially successful university research. ¡°It¡¯s a shame that more of that development hasn¡¯t happened in Australia. A?huge missing piece of that puzzle is getting a more liquid venture capital market.¡±

john.ross@ws-2000.com