Research commercialisation earns A$1.3 billion and is on the rise

Australian universities and research organisations generated a record A$1.3 billion (US$1.38 billion) from the commercialisation of their research activities in 2010.

According to a report released by Knowledge Commercialisation Australasia, or KCA, the peak industry body for the commercialisation of public-sector research, the money came from contracts, consultancies and related agreements.

Universities accounted for two-thirds of the income from commercialisation while the remainder came from work by the Commonwealth Scientific, Industrial and Research Organisation (CSIRO) and the Australian National Nuclear Research and Development Organisation, ANSTO.

Total commercialisation incomes from licensing and ‘cash exits’ for the sector were $133 million, consisting of $89 million from CSIRO and the rest from the university sector, the report says.

The university sector contributed $879 million to the total, while CSIRO and ANSTO reported $337 million and $66 million respectively, with the two organisations showing a much higher level of direct sales contracts than the universities.

Although 21 universities are KCA members, the report notes that the Group of Eight research-intensive universities generated 95% of the revenues in both the 2010 and 2009 data returns.

“Commercialisation, as a generic term, refers to the transfer of knowledge created in a university or research organisation to an external user in the form of the licensing or sale of intellectual property. That transfer may take place through a direct transaction or through the vehicle of a start-up company,” the report says.

“It should be understood that dollar returns in the form of licensing incomes and cash exits do not capture the full value created by commercialisation activity. Much of that value is captured further down-stream by the private sector. Nevertheless, licensing incomes and cash exits, in spite of year-to-year variability, do provide a useful aggregate measure over the longer term.”

The $1.3 billion figure is an indicator of the level of knowledge transfer through engagement, including expert advisory services, consultancy, research contracts with both small and large companies, and also related contracts undertaken with government agencies, the report says.

“KCA members are committed to continuous improvement and contribution to the nation’s research commercialisation and industry engagement performance and these data are essential for assessment of our progress,” said Dr Andy Sierakowski, chair of the KCA and head of the Office of Industry and Innovation at the University of Western Australia.

“Another extremely pleasing feature has been the significant increase for 2010 in the number of university staff and students undergoing commercialisation training,” Sierakowski said.

“If we are to continue to build the nation’s innovation capabilities, we will need to accelerate training and understanding in intellectual property and commercialisation for our researchers.”

The report says the record amount raised from the commercialisation of public research is “a clear recognition of the ‘value add’ it provides to the private and government sector through engagement. The results for 2010 are up on 2009, and the decade-long data show consistent and steady growth.”

It says the relatively small size of the sector and the often uneven nature of significant commercialisation returns mean there is variability from year to year – but there are positive trends developing in various measures.

“We would like to highlight and are extremely encouraged by the positive trend in the value of contracts and consultancies – an area that is likely to further develop as KCA members continue to engage with industry, state and federal government agencies and other parties who see value in working with KCA members to access their research capabilities and also further their own innovation agenda.

“The 2010 data are the strongest since the surveys began in 2000,” the report states.