Australia wants to improve the link between science based research and the decisions businesses make. To do this, they have created a program which will allow scientists to interact with business people and other economic organizations.
The Science Meets the Economy program was conducted in Sydney from November 10-12, 2017. Leaders of science, business and government attended this event to explore the ways that science can contribute to the growth of industries, and to the strength of economies.
Science and Technology Australia organized the project to address a common problem faced by most countries with high levels of investment in research – translating the results of scientific research into viable business opportunities.
The transition from conducting academic research at universities and research centers to developing commercially viable goods and services from those research outcomes is often challenging.
The researchers will likely have a lot of experience on the technical side of things, however they may not have had much experience in areas such as corporate strategies, intellectual properties, investments, and boards of directors’ governing practices.
The program attempted to close this gap by teaching participants about the processes used by companies when evaluating innovation and making investments.
Connecting scientific knowledge with commercial priorities
Scientific research can contribute to many areas of economic activity.
Advances in Biotechnology can help provide advances in Medicine and Agriculture. Advances in Materials Science can enhance Manufacturing Processes. Advances in Artificial Intelligence and Computing can affect Financial Services, Logistics, and Industrial Operations.
Businesses must assess if a scientific discovery addresses an actual problem, and also if that discovery can lead to a commercialized product.
Investors also need to understand the risks associated with new technologies.
A research study could potentially show positive outcomes within the confines of a laboratory environment; however, there will likely be many obstacles that must be overcome prior to demonstrating viability for large scale commercial production.
This may include higher production costs, regulation requirements, limited consumer interest and additional product testing.
The program will help enhance the exchange of information between research organizations and the business community by helping scientists learn about the commercial factors that influence their work.
Why scientific leaders need business knowledge
The Sydney program had a discussion about the economy of Australia, research and development, strategy planning, and making decisions for businesses.
Participants investigated how businesses find new ways to make money, evaluate potential problems and decide which areas to spend on.
Intellectual property was another important subject.
Organisations need to know how to safeguard their scientific discoveries, as well as how to control the rights of ownership over those discoveries, if they are to successfully turn these discoveries into useful products.
The way a university handles intellectual property can affect if it licenses technology to businesses, forms commercial relationships, or starts up new spin-off businesses.
The researcher that understands these processes can effectively collaborate with an industry partner.
The programme also examined government policy and corporate governance.
The decisions made by government agencies can have an effect on how much money is available for research, what types of tax incentives exist to encourage businesses to invest, the rules that govern specific industries, and even the creation of new technologies.
It can be helpful for scientific leaders to understand how these factors affect their ability to contribute to the discussion on economic issues.
Bringing scientists into boardroom discussions
A major emphasis of the program was how science-based professionals may be able to provide leadership for companies, as well as serve on their boards of directors.
Businesses today are making more and more choices about things like artificial intelligence, cyber-security, environmental regulations, bio-tech, and advanced manufacturing.
In some instances these topics could include technical issues which are difficult to evaluate using solely standard methods of financial and/or legal analysis.
Scientific professionals may help by evaluating evidence, assessing technological risk, and understanding uncertainty.
A business that intends to develop its AI capabilities can assess the hardware needed for computing, how much electricity is consumed, how secure the data will be, and how well the systems perform.
The director may find it helpful to consult with a scientist or engineer who has experience in this area prior to making large investment decisions.
The organizers believed that researchers can contribute significantly to a business’s decision making process if they have knowledge about the financial forces and strategic goals that affect the business.
Building stronger partnerships between universities and companies
The most significant barrier to the development of research-based innovation is the separation of academic discovery and commercialization.
Universities often operate with different priorities from private companies.
Academic institutions have three main functions: to publish research, educate students, and advance our understanding of basic science.
Business on the other hand typically evaluates projects based upon their ability to be commercially successful, what customers want and what they can expect to earn financially from the project.
The above stated priorities can coexist, however, there needs to be an effective line of communication established.
Researchers can gain a better understanding of how industries operate by having stronger ties with those who run businesses, while at the same time, companies will have access to expert advice and new technologies.
Research organizations can use partnerships with commercial entities for a number of reasons. Commercial partners may invest money into a research organization, give it opportunities to test products in real-world environments, and provide research organizations with access to their own facilities.
In some instances, this type of collaboration may be particularly beneficial for early-stage technologies which will need to undergo extensive development prior to being ready for commercialization.
Australia’s broader economic ambitions
Australia is a world leader in science and research, however it struggles to turn its strong scientific and research capability into robust domestic industry.
This program is connected to conversations surrounding Australia’s research, development and innovation systems.
The primary goal is to enhance the nation’s capacity for creating resilient enterprises and increasing the efficiency of its economy through the application of innovative technologies.
This will require the employment of staff who possess both technical knowledge as well as leadership abilities, along with a business-minded approach and the ability to think strategically.
Scientific abilities can be expected to increase in value as businesses deal with technological advancements and environmentally-based issues.
Manufacturing businesses, agricultural companies, healthcare organizations, and energy providers each need to obtain technical knowledge.
The potential for the application of research results to solve actual business issues may provide an opportunity for organizations to increase productivity and create innovative products.
The role of investment and government support
Converting research results into products/services requires funding at different levels.
Early-stage research can be funded by universities and publicly-funded organizations, but once that research progresses to a point where it is being developed, private money and alliances with well-established companies will be required.
Investors require assurance that the results from research studies will ultimately be able to lead to real-world applications.
This means that research organizations need to clearly communicate what they believe the uses, prices, risks, and expected outcomes will be for their work.
Government policies have an impact on this process through government grants, investments into infrastructure, incentives for research, and innovative program development.
The goal is to develop a structure in which both publicly funded research and privately financed investment will complement each other while maintaining the independence of scientific investigation.
Why the initiative matters beyond Australia
The problem being solved by the program is applicable to several nations working to build up their innovative economic systems.
The world is currently making investments in several areas of technology such as Artificial Intelligence (AI), Advanced Manufacturing, Clean Energy, and Biotechnology.
However, although you build labs and fund research, that is just part of the process.
Countries require well-functioning systems that allow scientists to share their expertise with businesses who are able to apply the latest discoveries.
The same issues will be faced by other countries as well; India has a growing research infrastructure and technology industry that are also facing these challenges.
The creation of better relationships among universities, technology firms, and industry groups may allow for scientific discoveries to be converted into usable goods and services.
A longer-term challenge
The Sydney program has demonstrated that scientists should be involved in the conversation about economics and business more often.
However, the program alone will not change the interaction between research and industry.
Sustained cooperation, funding, and organizational support will be necessary for long-term enhancements.
Universities should be able to collaborate with companies and still maintain their academic freedom.
Companies should have an open mind when investing in research and realize that innovations will likely come with some level of uncertainty.
Governments need to create environments which facilitate collaboration while avoiding artificial limitations on participation.
The overall aim is to make sure that scientific knowledge will help to improve not just what scientists write about in journals, but also the business world, how we make decisions for the public, and create new ways to earn money.
As technology continues to transform how business is conducted within each industry, there may be a growing relationship between the scientific community and the leadership that drives our nation’s economy. This relationship could be a key component to determining our nation’s ability to compete with other countries in the global marketplace.