Australian Professor Graeme Clark AC awarded the 2026 Queen Elizabeth Prize

Cochlear welcomes SERD recommendations and urges swift implementation

Sydney, Australia – 17 March: Cochlear today welcomed the release of the Ambitious Australia: Strategic Examination of Research & Development (SERD) Final Report, calling it a once in a generation blueprint to build a new framework for Australia’s competitiveness in research, development and innovation (RD&I). Cochlear is urging the Australian Government to adopt key phase 1 recommendations in the upcoming Federal Budget.

Dig Howitt, Cochlear CEO and President, said the report rightly recognises that Australia’s future living standards depend on backing and retaining research‑driven businesses that create high‑skill jobs, local value, and world‑leading technologies.

“This report is unambiguous: Australia cannot compete globally without a modern, coordinated and properly funded RD&I system. The reforms outlined will help build the foundations for Australia’s future jobs, productivity and long-term prosperity, particularly reforms to deliver an enhanced R&D Tax Incentive that encompasses commercialisation,” Mr Howitt said.

“By taking bold action and implementing swiftly we will improve living standards and increase real incomes for the benefit of all Australians.” 

Strengthening the R&D Tax Incentive and commercialisation pathways

Implementing the SERD recommendations will directly support more Australian made innovation, boost productivity, strengthen manufacturing capability and create significantly more STEM based jobs.

A clearer, more predictable and uncapped RDTI, free of administrative complexity, will encourage both established companies and new innovators to grow their RD&I footprint in Australia.

A production-based tax incentive would accelerate domestic advanced manufacturing and mean more Australian ideas are commercialised, and scaled, in Australia rather than offshore.

“The report recognises that by incentivising local production, critical value chain stages will be anchored in Australia, ensuring innovation translates into local jobs, productivity, and economic value,” said Mr Howitt.

A call for action in the May 2026 Federal Budget

Cochlear is also urging the Government to seize the moment by beginning implementation of core Phase 1 SERD reforms in the 2026–27 Federal Budget.

“The time for incremental change has passed. If Australia wants to be a global leader in medtech and emerging health technologies, these reforms must begin now,” said Mr Howitt.

“The economic case is clear. The next Budget, given the focus on productivity, is the chance to set Australia on a new trajectory.”

Paving the way for the future

While the RDTI and production credit represent urgent levers for immediate economic impact, Cochlear also supports broader system reforms highlighted in the SERD Report.

Continued investment in foundational research and national research infrastructure
Cochlear recognises the critical long-term role of a strong university and research system. Sustained investment in competitive grants, indirect research costs and national research infrastructure will strengthen Australia’s innovation base over time. These systemwide enhancements remain important, though the near-term priority for driving competitiveness lies in RDTI reform and production incentives.

Support for National Innovation Pillars and National Strategic Initiatives
Cochlear welcomes the proposed coordinated, mission driven national framework, which will help Australia build scale in areas such as health and medical innovation. 

 

 

About Cochlear Limited (ASX: COH)

People have always been Cochlear’s inspiration, ever since Professor Graeme Clark set out to create the first multi-channel cochlear implant after seeing his father struggle with hearing loss. Since 1981, Cochlear has helped more than 750,000 people of all ages in more than 180 countries to hear. As the global leader in implantable hearing solutions, Cochlear connects people with life’s opportunities, and welcomes them to the world’s largest hearing implant community.

Cochlear has a global workforce of more than 5,500 people, with a passion for progress, who strive to meet the needs of people living with hearing loss. The company continually innovates to anticipate future needs, investing more than AUD$3 billion to date in research and development to push the boundaries of technology and help more people hear.

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For further information, please contact:

Aaron Dowling
Director, Corporate Communications
Email: adowling@cochlear.com
Phone: +61448 457 583