Translating research into results is every founder’s dream. Yet, turning your research and development (R&D) graft into gains is not always straightforward, especially in Australia. The Strategic Examination of R&D (SERD) panel’s recent discussion paper has made that clear. [1] People often describe innovation and business growth as a journey. Arguably, for many founders, it’s more of an odyssey. When you’re dealing with scientific breakthroughs, unheard-of ideas and brand-new innovations, ‘getting results’ from these endeavours can seem a little nebulous. Without a crystal ball, innovators can’t know the precise outcome of their ideas and inventions. After all, Dr Spencer Silver’s quest to create an ultra-strong adhesive for aircraft construction resulted in the Post-it note. [2]
Although turning your ideas into impact is chock-full of challenges and uncertainty, it’s not an impossible feat. So, we’ve pulled together five of the key strategies we’ve seen our clients use to translate their research into results. But before we explore those strategies, we’ll consider the groundwork you’ll need to complete and the challenges you may face so you can select the best one for your business.
Articulate your vision
Founders can take a simple first step towards commercial success. Start by setting some general goals or endpoints for your R&D. Of course these could change, but they will give you direction. Your next action is to identify your starting point. By having a baseline to move forward from and an endpoint in your sights, you will be able to pinpoint some of the likely challenges you’ll face along the way and increase your odds of success.
Defining your research type
Identifying your research category is a crucial first step to setting your baseline. The Organisation for Economic Cooperation and Development (OECD) recognises three types of research: basic and applied research, and experimental development.
- Basic research or blue-sky research focuses on acquiring new knowledge, discovering phenomena and foundational knowledge. And it’s completed without any specific applications or end-use in mind.
- Applied research acquires new knowledge. But, unlike basic research, applied research has a specific, practical aim or objective.
- Experimental development is systematic work that leverages knowledge from other research and practical experience. This serves as a foundation for additional knowledge intended to create new products or processes or to improve existing ones. [3]
Pinpointing the type of R&D you’re conducting will inform your next steps and guide you on the best strategies for translating research into results.
How Australian R&D compares
Australian investment in R&D is more than 1 percent lower than the OECD country benchmark of 2.7% of gross domestic product. Australia’s low rate of R&D investment isn’t the only way our nation falls below the OECD average. We also aren’t doing enough experimental R&D. This matters because experimental research tends to convert more easily into commercial and socioeconomic benefits for countries because it creates or improves products or processes.
What about basic and applied research?
While we’re in the same ballpark as our OECD peers for basic and applied, Australian universities do most of the heavy lifting here. And that matters because university research isn’t commercially focused, which lowers the odds of them delivering direct socioeconomic gains. One of the main reasons Australia falls short on experimental research is the lack of economic diversity. We’re overly dependent on mining, higher education and tourism. [4] [5]
And this could impact your venture in three main ways.
- You may need to look overseas for equipment, services or expertise.
- You may need to move your R&D and your business overseas to continue your commercialisation journey, like Radium alum Surf Lakes did in January 2024.
- Your venture risks becoming a follower rather than a leader in your field because lower rates of direct competition and knowledge sharing in Australia’s innovation ecosystem disadvantages homegrown innovation business. [6]
Strategies to leverage your R&D’s commercial potential
With your research vision and type down pat, and an understanding of Australia’s current R&D landscape, let’s look at some key strategies we’ve seen our clients deploy for translating research into results.
1. Collaborate with Australia’s key R&D players
Australian universities undertake the majority of the nation’s R&D. So, why not explore the options for your business to collaborate with academia? Your local university could be working on blue sky research that could be a springboard for your current or future applied research or experimental R&D. Australia kicks goals in basic research then hands the baton overseas, and foreign nations reap the rewards. By standing on the shoulders of our homegrown giants and teaming up with an Australian university, you could ensure your business and country prosper. For example, ElectraLith is a spinout of Monash University. After creating a one-step process for extracting and refining battery-grade lithium, this cleantech raised $27.5 million in an oversubscribed Series A round. Other Radium Capital clients, such as DAS (Digital Agricultural Services) and CHARM, have connected with CSIRO and had their innovations backed by Australia’s world-renowned government agency for scientific research.
2. Engage Research Service Providers
If your R&D is languishing because you don’t have the in-house expertise to take it forward, it might be time to consider a Research Service Provider (RSP). RSPs are specialist organisations. They’re registered with the Department of Industry, Science and Resources to complete R&D for other businesses. If you have applied research or experimental development and specific projects in mind, such as a clinical trial, you will likely be able to find a suitable RSP.
Flexible, cost-efficient research
The benefits of RSPs are many, especially for small resource-limited start-ups or ventures requiring additional flexibility. For a start, if an RSP conducts your R&D, you don’t need to invest a minimum of $20,000 to be eligible for the R&D Tax Incentive (R&DTI). So, depending on your circumstances any work your RSP conducts below $20,000 could qualify for an R&DTI refund or offset. Another upside of RSPs is that they offer additional resourcing and flexibility beyond the capacity of their start-up and scale-up clients. For the list of RSPs, visit the AusIndustry website. And, if you’d like to learn more about RSP and how they can benefit your business, read our article, How a Research Service Provider can support your R&D.
3. Build diverse teams
Diversity seems to be the secret sauce of successful innovation. It can help you avoid the pitfalls of blinkered or silo thinking to find creative ways to commercialise your ideas. Whether you’re doing basic, applied or experimental research, building a team with different innovation styles and core skills can help your business overcome roadblocks. Avicena Systems is the poster child for this diversity strategy. The Perth-based MedTech built and scaled a fast, high-volume and highly accurate pathogen testing system in response to the COVID-19 crisis. The venture’s co-founders credit their diverse skill sets for their company’s rapid success, as they scaled up the venture using insights from the telecommunications sector.
4. Leverage local support to find the missing puzzle pieces
Despite the bleak analysis that Australia’s R&D systems are underperforming and in crisis, green shoots of hope are growing. Australia has a vibrant start-up scene that’s still maturing. We already have an ecosystem that’s enabling start-ups and scale-ups to complete basic, applied and experimental research. At Radium Capital, we’re major advocates for the power of innovation ecosystems and communities. Time and time again, we’ve seen how these lift businesses and help them succeed. So, we’d encourage all innovation businesses to seek out and join the ecosystems that best meet their needs. For more information about innovation ecosystems and why they’re so important, read our articles, Collaborate or die: superpower innovation with community and How to find a start-up ecosystem and why it’s important.
Grants and incentives
Don’t overlook grants and incentives. This type of funding is on the table for basic, applied and experimental research.The Federal Government’s Industry Growth Program offers advice for start-ups and small and medium enterprises with innovative commercialisation or that have growth projects in the Australian Government’s National Reconstruction Fund’s priority areas. Equally, if your company can’t find the homegrown talent and expertise it needs, don’t despair. We recommend exploring your options for Overseas and Advance Findings before upping sticks and leaving Australia behind. That way, you may be able to conduct some of your R&D overseas and still be eligible for the R&DTI refund. To find out more, see our article, Overseas Findings: What you need to know for your R&D. And read how BioFactura received an Advance and Overseas Finding for clinical trials it unexpectedly had to complete in New Zealand due to COVID-19 border closures.
5. Hone your R&D vision and plan
As the saying goes, failing to plan is planning to fail. So even if you have your ducks in a row, a team with the right skill sets and enough funding, you still need on-point R&D strategy and planning. So, we encourage you to read our guides on these topics. Our article Build a solid R&D strategy for your business in FY 2025 is our evergreen guide for strategic matters. It steps you through everything from identifying your innovation type to resourcing your strategy for success. Strategies are crucial, but it’s the planning that brings them to life. That’s why we created another guide called Five steps to ace your company’s R&D delivery in FY 2025. It helps you establish where your business is on your commercialisation journey and will assist you in staying on track as you navigate towards your goals.
Start translating research into results
Australian R&D certainly seems to have reached an inflection point. Positive changes to the nation’s R&D systems are on the way, with the SERD panel due to hand down recommendations on potential solutions by the end of the year. But this transformation is months, perhaps years away. Think what you could achieve if you gave your business a head start. By tackling some of the obstacles facing Australian innovators now, how might your business fare once the innovation ecosystem is calibrated to get results? Is it time for your business to be part of the untapped opportunity to keep Australian innovation Australian?
[1] Industry.gov.au. (2022). Converlens – Engagement data insight platform for surveys, consultations and text. [online] Available at: https://consult.industry.gov.au/strategic-examination-rd-discussion-paper
[2] https://www.post-it.com/3M/en_US/post-it/. 2022. History Timeline: Post-it® Notes. [ONLINE] Available at: https://www.post-it.com/3M/en_US/post-it/contact-us/about-us/
[3] OECD (2015), Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development, The Measurement of Scientific, Technological and Innovation Activities, OECD Publishing, Paris. DOI: https://dx.doi.org/10.1787/9789264239012-en
[4] Admer Balingan (2024). Economic Diversity in Australia: Why the Lucky Country Is Headed for Trouble – Dark Horse Financial. [online] Dark Horse Financial. Available at: https://darkhorsefinancial.com.au/economic-diversity-in-australia-why-the-lucky-country-is-headed-for-trouble/.
[5] Worlddata.info. (n.d.). Economics in Australia compared to the EU. [online] Available at: https://www.worlddata.info/oceania/australia/economy.php.
[6] Howard, J.H. (2025). Addressing Problems, Not Symptoms: The Decline of R&D in Australia – Causes, Consequences, and Solutions. [online] actoninstitute.au. Available at: https://www.actoninstitute.au/post/addressing-problems-not-symptoms-the-decline-of-r-d-in-australia-causes-consequences-and-solut