It's great that innovative companies such as Cochlear and CSL ("Lift R&D incentive cap: Cochlear", AFR,   October 21) are voicing their thoughts on research and development incentives. At Cook Medical, another of the few strong advanced manufacturers left in Australia, we echo their concerns about innovation policy in Australia. 
We were very apprehensive to see the previous cabinet considering passing a policy that reduces the research and development tax incentive. Far from cutting, we believe policy should actually go further than it currently does. But it can't stop there. A good policy framework must address the whole life cycle of innovation, from inception to commercialisation. Australia needs a solid incentive to help companies with new ideas and potential to offer their products to consumers, something 10 other countries in the world have already moved to do with "innovation" or "patent box" policies.
That's why we - together with other industry leaders, including AusBiotech, the MTAA and the Export Council - have proposed the Australian Innovation and Manufacturing (AIM) Incentive. This tax incentive would encourage innovative companies to commercialise their patented innovations in Australia. It's a hand up, not a hand out. Ultimately this will create jobs in Australia and encourage newer start-ups to transform from ideas to commercially viable products.
At the moment we're falling behind. We led the way when the research and development tax incentive was introduced, we can lead the way again to support a truly innovative economy.
Barry Thomas
Cook Medical Australia,
Eight Mile Plains, Qld