Towards research commercialisation: the corporate perspective
In this article, NSSN Business Development Manager, Ivan Chua, gives his perspectives on why companies engage in collaborative research projects, and explores pathways towards research commercialisation.
Research commercialisation refers to the translation of new knowledge to new products, services and processes. Companies that benefit from research commercialisation typically operate in knowledge-intensive industries such as healthcare, environment and defence; where there are often no readily-available or apparent solutions to difficult problems. Through collaborative research projects, companies can collaborate with researchers to undertake a range of activities, including but not limited to state-of-the-art research literature review, prototype development and integration, and test and measurement.
Research commercialisation aligns with companies’ agendas and priorities
Financial sustainability is core to companies’ survival and success, and is often ranked as one of the top priorities for both company directors who serve on the board of directors (Board), and the management team (Management) that oversee the day-to-day management of the company. When companies are publicly-listed, or are private but with external shareholders, increased scrutiny may be placed on the financial performance of companies. Such scrutiny may result in the board and management team placing greater emphasis on the current quarter or financial year at the expense of long-term profitability and growth.
The conundrum is better understood in the following example. Two strategic projects are proposed to the Board - both projects require the same investment, but differ in the free cashflow which they generate and its payback period. Project A generates less free cashflow but has a shorter payback period. Project B generates significantly higher free cashflow over the lifetime of the project, but has a longer payback period.
In the case of a collaboration between the NSW Smart Sensing Network and a consortium of water utility companies, a collaborative research project was established to develop, test and commercialise new sensing and machine learning methods to detect and predict leakage and breaks of underground water pipes. While the project took 18 months, the solution is expected to generate savings of 700 million litres per year, or $3 million per year, with an investment of $4 million.
For companies that place emphasis on short-term financial performance, Project A would be selected as it aligns with the expectations placed on the Board and Management. However, it is Project B which delivers greater shareholder value over the longer term.
Research commercialisation are strategic projects that have longer payback periods compared to non-R&D projects. However, they generate outsized free cashflows over the long term and enable management to build sustainable competitive advantage in the market.
Pathways to collaboration and research commercialisation
Companies can harness applied research and development within its strategic plans, such as go-to-market strategy, new product development, competitive positioning, revenue and market expansion, and exploration of emerging markets and technologies.
Through collaborative research projects, companies can access a wide range of capabilities offered by universities and its researchers. These collaborative research projects refer to bespoke projects that are designed and set up specifically for companies to work with teams of select researchers for a set of clearly defined objectives. There are different types of projects and the most common ones are detailed below.
Research Literature Review: New knowledge of technologies advances at incredible speed. It is challenging to keep up with state-of-the-art and important topics at the forefront of research. Research literature review is a systematic method of collecting, synthesising and evaluating previous research. By integrating findings and perspectives, researchers can help companies to learn about how the technology has evolved, the gaps and opportunities within the field, and the current state of thinking on topics related to the technology.
Design, Development and Integration: Design and development comprise use case selection, solution design, business and technical analysis, and development. Projects in smart sensing can be for the whole device, or focussed on different aspects of smart sensing. It can be divided into two broad areas, hardware and software, as well as its components such as the sensor module, communication system, microprocessor, and power management. Learn more about the anatomy of a smart sensor.
Feasibility Studies: Includes various methods include analytical studies, modelling and simulation, laboratory testing and demonstration tests. The purpose of feasibility studies is to assess and verify the performance and functionality that are required for specific use cases.
Collaborative research projects are typically centered on research, development and commercialisation of technologies, and the general framework used to assess the progress and maturity of the technology is the Technology Readiness Level (TRL) framework (originated from NASA in 1995). In the pursuit of commercialisation, projects can be set up to help companies progress along the TRL framework; with explicit project outcomes and activities that are designed to progress the technology from one level to another.
Technology Readiness Level Framework: Towards Commercialisation of Research
The benefits for companies to engage in collaborative research projects stem from the deep and unique set of capabilities that are offered by universities and its researchers - access to expertise and know-how (labour and publications); facilities and equipment; background and registered intellectual property (patents, copyrights and trade secrets); and capacity building for personnel (project-based training).
Taking the first step with the NSW Smart Sensing Network
The NSW Smart Sensing Network (NSSN) is a consortium of eight leading universities across NSW and the ACT. Funded by the NSW Government through the Office of the Chief Scientist and Engineer, the NSSN exists to bring universities, industry and government together to translate world-class research in sensing.
The NSSN is uniquely placed to provide a platform and a single access point for companies to research, develop, manufacture and commercialise research in smart sensing technologies. We help companies learn about how they can harness research capabilities, establish collaborative research projects with researchers and other stakeholders in the government and industry, and apply to funding schemes which contribute towards the costs of the projects.
If you are interested to learn more, the NSSN offers free consultations with our team of scientists and business professionals who can help you to explore how you can collaborate with and harness the research capabilities of our eight universities. Contact me at ivan.chua@nssn.org.au
Ivan Chua is the Business Development Manager of the NSW Smart Sensing Network. Prior to NSSN, Ivan worked in the private sector where he worked with the Board of Directors and investors in leading a multidisciplinary team of engineers and researchers in the development and commmercialisation of robotics and artificial intelligence technologies in healthcare.
Ivan holds a Bachelor of Commerce in Finance from the University of Melbourne, and undertook the Executive Education Program in Applied Machine Learning at Columbia University in the City of New York.
Learn more about Ivan here.