The commercialization of university research is a key theme in the Government’s Knowledge and Innovation reforms. Achieving best practice in research commercialization will require stronger partnerships and improved information exchange between the research, industry and investment communities. This in turn depends on the institutional mechanisms to improve intellectual property (IP) management and the development of a culture of entrepreneurship.

The performance of Murdoch University in commercialization-the process of converting research into successfully marketed products and industrial processes-is very competitive when compared with: (1) other institutions that share common R&D characteristics; (2) state norms; and (3) national norms. The trend for firms to allocate a growing proportion of their R&D investment to university-based projects is a good indication of the commercial value of university R&D and the growing linkages between the university and business sectors. Based on the most recent data available, the proportion of all university performed R&D funded by business was 5.2% nationally, 3.0% for WA and 8.4% for Murdoch. Overall Murdoch ranked 5th from 11 comparable research universities (See Figure 1).

Commercialisation of university R&D is not simply the imperative of governments. Knowledge and innovation is the lifeline of the modern firm (private or public), which has to survive and move ahead in a world of global competition and rapid technological change. The notion that competitive advantage is based not on doing what others already do well, but on doing what others cannot do as well is now widely accepted (Kay, 1998). It follows that corporate success is based on distinctive capabilities, not on simply imitating the successful. Globally, the top 500 international companies raised R&D spending by 10% between 1999 and 2000 to US$290bn (R&D Scoreboard, British Department of Trade and Industry, 2001). According to the scoreboard, which is based on the companies’ audited annual reports, these leading companies increased R&D spending by 54 per cent over the past four years.

Increased engagement with industry is not, however, without cost or risk. Frictional costs are often impediments to engagement and include transactional costs, such as, the cost of locating funding suppliers, negotiating agreements and writing agreements. Engagement is also subject to transactional risks, which include exposure to liability, weak intellectual property protection, opportunism and an incomplete understanding of the nature of commercial transactions. These costs and risks need not prohibit the University from engaging with its communities. Instead, the costs and risks should be understood and managed to provide better and mutually rewarding outcomes. The Division of Research and Development is active in fostering partnerships and developing mechanisms to support the research community at Murdoch in this area.

In order to better assist in the identification, commercial assessment and management of IP, the Division has developed a draft online form to register any and all of your research outcomes that may be worth protecting (http://wwwadmin.murdoch.edu.au/research/ilo/database/). We encourage you to review this site and provide feedback to us at resoffic@central.murdoch.edu.au.

Figure 1. Proportion of Expenditure on Research and Experimental Development by Business Enterprise for Selected States and Institutions, 1998.