Australia’s medical research institutes are delivering billions in economic benefit while strengthening the nation’s capacity to translate research into improved health outcomes, according to new independent analysis released today by the Association of Australian Medical Research Institutes (AAMRI).
The report, prepared by Nous Group, finds that medical research institutes generate an estimated $4.07 billion in annual economic benefit and deliver a return of $3.90 for every $1 invested. Clinical trials deliver even greater value, returning $5.80 for every dollar invested while providing Australian patients with early access to new and potentially life-saving treatments.
The findings come at a pivotal moment for Australia’s health system and research pipeline. National policy frameworks, including Ambitious Australia and the National Health and Medical Research Strategy, highlight the critical role of research and development in driving productivity, economic growth, and improved health outcomes. Together, they underscore the need for sustained and strategic investment in health and medical research to secure Australia’s future prosperity.
Beyond these economic returns, the analysis highlights the central role of medical research institutes within Australia’s health and innovation system. Institutes work in close partnership with hospitals, universities and industry, supporting clinical trials, translation of research into practice, and the development of new therapies and technologies.
AAMRI President Professor Jason Kovacic said Australia’s medical research institutes are a critical national asset that combine scientific excellence with real-world impact.
“Australia’s medical research institutes deliver far more than discovery alone. They bring together clinicians, scientists and patients in a way that supports research moving into clinical care, clinical trials and ultimately better outcomes for patients,” Professor Kovacic said.
“This model supports a strong clinical trials system, enables collaboration with industry, and contributes to long-term economic growth.”
The report also finds that institutes play a central role in supporting highly skilled jobs, advancing biotechnology and medical technology industries, and strengthening Australia’s global research competitiveness.
AAMRI CEO Dr Saraid Billiards said the findings reinforce the importance of maintaining a strong and sustainable medical research institute sector.
“Medical research institutes are a critical part of Australia’s research and health system. Their independence, strong links to hospitals and focus on translation enable them to deliver research that moves efficiently into clinical practice and patient care,” Dr Billiards said.
HMRI Institute Director and CEO Professor Frances Kay said the report highlights the importance of sustained investment in medical research for the Hunter New England region.
“This report reflects what we see here in the Hunter New England, that investment in medical research leads to better health outcomes for our community.
We strongly support AAMRI’s call for a sustainable funding model. At HMRI, that investment enables us to focus on the health problems that matter most locally and direct research where it can have the greatest impact.
We know that what works here can be scaled to benefit people everywhere, but we need a funding mix that matches our ambition,” said Professor Kay.
While the report confirms the sector’s strong performance, it also identifies growing pressure on the funding model underpinning Australia’s medical research institutes.
Government funding primarily supports the direct costs of research projects, while the substantial indirect costs required to support research, including infrastructure, specialised equipment, data systems and technical staff, are only partially funded. As a result, institutes are increasingly subsidising government-funded research through philanthropy, commercial activity and internal reserves.
Without changes to the funding model, the analysis finds that a number of institutes are projected to face significant financial sustainability challenges over the coming decade, placing Australia’s research capacity and future health and economic benefits at risk.
Dr Billiards said ensuring that funding reflects the full cost of research is essential to maintaining the strength of Australia’s medical research institutes.
“A sustainable funding model will allow institutes to continue delivering the outcomes that government, patients and the broader community rely on, including clinical trials, translation and workforce development,” she said.
The report identifies several targeted reforms to strengthen the sector, including increasing funding for research that reflects the actual costs of delivering that research.
Professor Kovacic said that with the right policy settings, Australia’s medical research institutes will continue to deliver significant returns for the nation.
“This is one of Australia’s highest-return investments. With the right support, our institutes will continue to deliver breakthroughs that improve lives and strengthen the health system,” he said.
AAMRI has published a summary of the findings and the full report.
