Australia’s medical research industry is one of the country’s most internationally competitive sectors, underpinned by large public funding streams, world‑class universities and hospitals, and growing translation and commercialisation capacity.
Two main national funds—the National Health and Medical Research Council (NHMRC) and the Medical Research Future Fund (MRFF)—sit at the core of this ecosystem, alongside a new 10‑year national strategy designed to better coordinate investments and impact.
1. How medical research industry is funded in Australia
Health and medical research in Australia is primarily funded by the Commonwealth Government, with additional support from states, philanthropy, industry and competitive schemes.
The Department of Health’s overview “About health and medical research in Australia” explains that federal funding flows through:
- The Medical Research Future Fund (MRFF)
- The National Health and Medical Research Council (NHMRC)
- The Biomedical Translation Fund (BTF)
- Grants to universities and other research organisations.
The OECD’s Health at a Glance 2025: Australia notes that Australia spends above the OECD average on health R&D as a share of total health spending and ranks among the top countries for research output and clinical trial activity. The NHMRC confirms that “Australia is among the world leaders in medical research”, and publishes data on grant outputs and citation impact to demonstrate this.
2. NHMRC: backbone of investigator‑driven research
The National Health and Medical Research Council (NHMRC) is Australia’s main agency for funding investigator‑initiated health and medical research.
A profile on Ecreee, “Australian National Health and Medical Research Council – 2025”, highlights NHMRC’s role in supporting everything from basic discovery science to clinical, public health and health services research, and notes that NHMRC‑backed studies in 2025 directly informed responses to emerging health threats and vaccination policy.
The NHMRC explains that its funding “supports research across the full spectrum of health and medical research, from basic science through to clinical, public health and health services research.” It provides downloadable data linking grants to outputs via Research Data Australia.
Scale of NHMRC funding
NHMRC’s Outcomes of funding rounds page reports that the 2025 grant round committed more than AUD 1,078.6 million to fund 715 grants across schemes such as Investigator Grants, Ideas Grants and Synergy Grants.
NHMRC’s research funding statistics and data show how this funding is distributed across disease areas and populations. For example, 2015–2024 data indicate substantial cumulative investment in:
- Child health (over AUD 100 million per year)
- Women’s health and maternal health
- Aboriginal and Torres Strait Islander health, through targeted calls and population‑specific initiatives.
NHMRC also co‑funds international collaborations and targeted calls for priority topics, such as antimicrobial resistance and mental health.
3. MRFF: a long‑term, priority‑driven research fund
The Medical Research Future Fund (MRFF) complements NHMRC by funding priority‑driven, translation‑focused research and innovation.
According to the Department of Health, the MRFF was established in 2015 as a sovereign investment fund whose net earnings are used to finance health and medical research. The MRFF’s capital grew to AUD 24.83 billion in September 2025, and the interest generated funds national research priorities.
The University of Adelaide describes the MRFF as “a AUD 20B long‑term investment supporting priority‑driven Australian health and medical research” that aims to transform health and innovation, improve lives, build the economy and support health system sustainability.
Research Australia’s briefing “Medical Research Future Fund – A Research Australia Perspective” explains that the MRFF, created by the Medical Research Future Fund Act 2015, is designed to bridge the gap between discovery and commercialisation. The Act defines “medical innovation” to include:
- Commercialisation of medical research; and
- Translation of medical research into new or better ways of improving health and wellbeing.
The MRFF grant program overview notes that the MRFF is priority‑driven: an independent Australian Medical Research Advisory Board (AMRAB) sets strategy and priorities every two years, following national consultation, and these guide grant opportunities.
4. A new 10‑year National Health and Medical Research Strategy
To better coordinate this fragmented funding landscape, Australia is developing a National Health and Medical Research Strategy for 2026–2036.
The NHMRC’s Draft National Health and Medical Research Strategy, released in August 2025, sets out a 10‑year vision to:
- Build a vibrant research system that delivers for the nation.
- Drive national prosperity and security by boosting sovereign research capability.
- Lead the world in health outcomes by embedding research into policy and practice.
- Deliver equity so that all Australians benefit, regardless of background or postcode.
A supporting slide deck, National Health and Medical Research Strategy 2026–2036, highlights focus areas such as:
- Coordinated priority‑setting and investment across the Commonwealth, states, industry and philanthropy.
- An Australian Health and Medical Research Infrastructure Roadmap to guide shared, sustainable research facilities.
- Aligning funding, workforce, infrastructure and data to encourage whole‑of‑ecosystem collaboration.
Research Australia’s submission on the draft strategy calls for increased investment in discovery science via NHMRC and the ARC, alongside greater support for translation and commercialisation and better access to data and emerging technologies.
5. Industry scale, institutions and clinical trials
Australia’s medical research industry spans universities, medical research institutes (MRIs), hospitals and private research organisations.
IBISWorld’s Scientific Research Services in Australia industry analysis estimates there are 5,856 businesses in the sector, growing at a CAGR of 4.3% between 2020 and 2025. The industry includes both public and private organisations conducting biomedical, clinical and health services research.
Australia is also a leading destination for clinical trials. Sofpromed’s Guide to Clinical Trials in Australia 2025 notes advantages such as:
- A robust regulatory framework and ethics review system.
- Access to diverse patient populations.
- Competitive costs and efficient timelines.
- Strong infrastructure across major hospitals and research networks.
These strengths support both domestic medical research and global pharma/biotech trials seeking high‑quality data.
6. Funding by disease area and population
NHMRC’s research funding statistics and data provide insight into how public funding is allocated across diseases and populations.
Most NHMRC funding is investigator‑initiated, meaning topics are chosen by researchers rather than directed by the agency. However, the Council also runs targeted calls and priority schemes. Its 2015–2024 data show:
- Significant and sustained support for child health, with annual investment typically above AUD 100 million.
- Ongoing investment in women’s and maternal health, as well as aged health.
- Funding allocated to specific populations, including Aboriginal and Torres Strait Islander health, where research often focuses on chronic disease, maternal and child health, and community‑controlled models of care.
These patterns reflect Australia’s dual focus on burden of disease and equity, which is also a core theme in the draft National Strategy.
7. Translation, innovation and commercialisation
Beyond grants and basic research, the medical research industry increasingly emphasises translation and commercial outcomes.
The Department of Health notes that MRFF funding explicitly targets areas like antimicrobial resistance and other priority health challenges, with an emphasis on generating practical impact. The MRFF grant program overview emphasises that projects must align with defined initiative goals and intended outcomes, and that the government considers factors such as burden of disease, practical benefit and value for money when making funding decisions.
Research Australia’s MRFF brief argues that the fund is an opportunity to “bridge the gap between discovery and commercialisation”, by supporting:
- Application and commercialisation of research.
- Translation into new products, services and models of care.
These goals connect directly to programs such as the Biomedical Translation Fund (BTF) and MTPConnect‑delivered initiatives (for example, the Clinical Translation and Commercialisation Medtech program), which channel capital and expertise to promising companies spun out of Australian research.
8. Challenges and future directions
Despite its strengths, Australia’s medical research industry faces several challenges that the National Strategy aims to address.
Key issues identified in the draft Strategy and submissions include:
- Fragmented funding and governance – multiple funders (NHMRC, MRFF, ARC, states, industry, philanthropy) with limited coordination.
- Infrastructure gaps – need for a coordinated research infrastructure roadmap to ensure sustainable, shared facilities across the country.
- Workforce and career pathways – concerns about precarious employment, limited long‑term positions and the risk of losing talent overseas.
- Data access and emerging technologies – barriers to shared and open data, and the need to support cross‑disciplinary projects in AI, advanced analytics and other enabling technologies.
Research Australia’s feedback stresses the importance of strengthening discovery science while also investing in translation and commercialisation, and calls for reforms to improve data sharing and cross‑disciplinary funding schemes.