As in the previous year, Australia’s performance in the technology sector is below average. Its current 18th position is mainly due to relatively low government support for research and development and inadequate provision of incentives for business R&D. In 2016, the Australian government provided only 0.41% of its GDP to research and development (weighted) and had relatively low incentives for business R&D. Still, Australia provides high governmental support to R&D through general university funds (GUFs) and supports R&D in health, agriculture, and energy with a substantial amount. Australia also plays a leading role in the diffusion of technology to developing countries. It is rewarded with the third best score on the intellectual property rights (IPR) indicator, mainly for its facilitation of knowledge sharing through weak database protection rights and rights loss provisions. Australia could do even more for developing countries by easing its stringent patent rights.