In its pre-budget submission, the peak body proposed the creation of a new fund to deliver on the Albanese government's election promise to boost Australia's research and development (R&D) investment to 3 per cent of GDP by 2030.

Industry and Science Minister Ed Husic previously said "an effective R&D tax incentive will be key to that goal. However, with our total R&D spend currently sitting at 1.79 per cent of GDP, we will need to do a lot more".

Science and Technology Australia President Professor Mark Hutchinson said the creation of a Science Future Fund would be a "game-changer for Australian economic growth".

"Supercharging Australian discovery science would unleash a new golden era of breakthrough discoveries to power our nation's economic development in the decade ahead," he said.

"By creating an ambitious new Science Future Fund, the government can forge an enduring legacy to put science investments beyond short-term funding cycles."

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Modelled on the Medical Research Future Fund, the submission says the fund could inject $650 million every year from investment income into science breakthroughs.

It also claims the fund could generate economic returns of up to $2.3 billion a year, at no future cost to the budget after its initial capitalisation, based on CSIRO economic models.

Science and Technology Australia CEO Misha Schubert said Australia is falling behind internationally in investing in innovation, with the US and UK ramping up investment.

"Right now the world is locked in a fierce science and technology race, as other countries strategically invest to secure their own economic futures through science breakthroughs and innovation," Ms Schubert said.

"Australia faces an array of serious economic challenges - sluggish growth, a productivity crisis, real wages going backwards, and a growing budget deficit.

"A Science Future Fund would powerfully tackle each of these challenges. It will deliver breakthroughs that will turbocharge productivity, generate new higher wage jobs, and return income to the economy to fix the budget deficit," she said.