Australian-born Tesla chair Robyn Denholm will lead the federal government’s first review into the nation’s Research and Development (R&D) system in nearly 20 years.

The appointment comes while the Australian government is in an ongoing feud with Tesla CEO Elon Musk over a series of social media policies, with the tech billionaire previously labelling the government “fascists”.

The R&D review was flagged in this year’s federal budget, with its terms of reference and expert guiding panel unveiled by Industry Minister Ed Husic on Monday.

Along with Denholm, the review will be guided by former Australian National University vice-chancellor and current chair of the Health and Medical Advisory Group, Emeritus Professor Ian Chubb; spray-on skin technology pioneer, Professor Fiona Wood; and LaunchVIC CEO Dr Kate Cornick.

The review has been tasked with evaluating the benefits, economic growth, and productivity potential from a more purposeful approach to R&D.

Its terms of reference include investigating opportunities to maximise the value of existing investment in R&D, strengthening linkages between research and industry, supporting the achievement of national priorities, driving greater R&D investment, and uplifting Australia’s overall R&D intensity.

The final report from the investigation is expected to be handed to the federal government by the end of 2025.

Despite having a strong education and research sector, Australia has long-struggled to boost R&D investment by the private sector and to commercialise its research into viable products.

Australia’s R&D investment as a proportion of GDP (gross domestic product) is 1.68 per cent, which lags behind the OECD average of 2.73 per cent. Countries such as Germany, Japan, and the US spend more than 3 per cent of their GDP on R&D.

The federal government’s spending on R&D in 2022-23 totalled $4.3 billion.

The review will look at how to maximise the benefit of this spending and what reforms are needed around it, Husic said.

“Our ideas and intellectual property are an indicator of future economic success,” he said.

“This review is designed to give us an evidence-based pathway to stronger growth.

“It’s been almost 20 years since we asked the hard questions about our R&D performance, despite the alarming slide over the last decade.”

The review has been welcomed by the Australian Academy of Technology, Sciences and Engineering (ATSE), whose CEO Kylie Walker said it was “sorely needed to revive a sector that has been neglected for more than a decade”.

“This review offers the nation [the chance] to set the future for Australian innovation, industry and society,” Walker said.

“It will make sure that when new innovations are happening, they are happening here, and that Australia is not relying on a future made overseas.”

Musk v Australia

The appointment of Denholm comes as Elon Musk is set to play a prominent role advising US president-elect Donald Trump.

Musk has been appointed to lead the new Department of Government Efficiency, which will provide “advice and guidance from outside of government”.

Musk has been highly critical of several Australian government policies relating to regulation of tech companies.

After previously labelling the government “fascist” over its now-ditched plan to crack down on misinformation on social media, Musk argued the government’s ban on under-16s using social media was like a “backdoor way to control access to the internet by all Australians”.

In an interview on Monday morning, Husic denied that Denholm’s appointment to lead Australia’s R&D review was related to Musk’s influence on the incoming US government.

“No… if I may emphasise, I guess, Robyn’s involvement in a company that recognises, crucially, the value of R&D and improving the way to get things done and to be able to create an edge,” Husic said on ABC RN Breakfast.

“And particularly if you look at what Tesla has done, be able to turn an idea into reality at a time where there are a lot of doubters over a long period of time.

“The type of people that we’ve got involved, we’ve been thinking about for quite some time, and what they bring to the table.”

At a press conference on Monday, Denholm batted away questions about Musk and whether she had discussed the new role with him, saying that “today is about our R&D future as a country”.