During the 2000s a common view in government circles in Australia was that governments were over-investing in primary industry research and innovation. In agreement with this view, the Western Australian government lessened its support for primary industry research and innovation over the last decade. However, so great has been the erosion of funding and capability in research that the pressing problem is now perceived to be government’s underinvestment in primary industry research and innovation. Nonetheless, the government’s adverse current fiscal environment still constrains departmental budgets, so the case for government expenditure on primary industry research and innovation needs to be made and soundly argued. This report outlines the case for government expenditure on primary industry research and innovation.