All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.
Australia does relatively little R&D. One possible explanation is that as a small country, Australia cannot take advantage of scale economies. A schema is provided for the role of economies of scale in R&D. Case studies from the automotive, mining, and pharmaceuticals industries show examples of successful R&D in Australia. These case studies illustrate that if Australian firms are internationally competitive, then economies of scale in production need not hamper R&D. Even when at a comparative disadvantage in producing a product, Australia may still be competitive in basic research or the initial development of ideas.
