What the Latest CSIRO Data Tells Us About Making Research Work for Business
Australia has long grappled with the so-called "commercialisation gap”, a persistent disconnect between the quality of our research and the extent to which it’s translated into economic impact. A new report from CSIRO, Commercial Outcomes of SME–Research Collaboration, provides an up to date picture of what outcomes can (and can’t) be expected from government programs designed to support it.
The headline findings will be familiar to anyone working in the sector: collaboration accelerates product development, derisks early-stage R&D, and opens the door to follow-on grants, new networks, and improved market credibility. But perhaps more valuable than these affirmations are the report’s finer-grained insights into how different program types perform, how outcomes vary by business size and sector, and what regional businesses may need to unlock their full potential.
This article unpacks those nuances and connects them to the broader questions of program design, commercial readiness, and what it takes to make research collaboration genuinely work for SMEs.
A Snapshot of the Report
The CSIRO-led study surveyed over 200 Australian SMEs that had engaged with universities or research institutions (URIs) across three types of collaboration:
Facilitated, dollar-matched programs such as CSIRO Kick-Start and Innovation Connections
Competitive grant programs such as the Cooperative Research Centres Projects (CRC-P), ARC Linkage, and Industry Growth Centre grants
Student placement programs such as the Industry PhD and APR Intern
Among all respondents, the most commonly reported outcomes included:
66% developed new or improved products
40% developed prototypes
31% derisked early-stage R&D
29% secured independent validation
51% reported improved credibility in the market
32% accessed further grant funding
Importantly, the data also showed higher relative impact for regional SMEs, who reported stronger performance than their metro counterparts across most categories.
Not All Collaborations Are Equal
One of the report’s more interesting takeaways is that lower-cost, facilitated programs often deliver outcomes comparable in magnitude to much larger, competitive grants.
For example, CSIRO Kick-Start and Innovation Connections participants reported rates of new product development and prototype creation on par with or exceeding those of businesses supported under ARC or CRC-P grants. This indicates that what distinguishes the outcomes is not always the scale of funding.
Facilitated programs are typically entry-level and hands-on. They help SMEs define problems, find the right research partner, and co-develop a project plan. This is particularly useful for companies undertaking research for the first time or testing the viability of a new product or process. By contrast, competitive grants are often more suitable for firms with pre-existing research capability or more mature innovation pipelines.
This insight lends weight to calls for a “portfolio” approach to collaboration support, where programs are not simply ranked by dollar value or prestige, but assessed for how well they fit the maturity, risk appetite, and resource base of the business. We explored this concept in Rethinking Government Grants, where we argued for program structures that reflect that innovation unfolds incrementally, iteratively, and with shifting horizons.
Outcomes Beyond R&D
Most discussions of research collaboration focus on the immediate R&D outputs like prototypes, IP, product improvements. But what the CSIRO report makes clear is that organisational outcomes may be just as significant.
Over half of participating SMEs reported enhanced credibility as a result of working with a university or research institution. Nearly a third accessed follow-on grants, and one in five reported access to new markets.
A credible URI partnership can provide technical validation, signal quality to customers and investors, and help open doors to procurement or export opportunities. It also appears to serve as a form of risk mitigation for funders and partners, making it easier for companies to access more funding over time.
In our article Research Collaboration: The Billion Dollar Opportunity, we explored how structured partnerships with research institutions can become a strategic asset, not just for funding access, but for building long-term value in the business.
Regional Impact
One of the report’s more compelling findings is the higher overall impact of research collaboration for regional SMEs.
Compared to metro-based businesses, regional firms were more likely to develop new products, access new markets, and achieve independent validation. However, they were also more likely to abandon projects due to resource constraints.
This dual reality reinforces the need for tailored delivery mechanisms. Facilitated programs like Innovation Connections and Kick-Start appear particularly well-suited to regional contexts, where business owners may lack in-house R&D staff or proximity to research precincts. But it also underscores the importance of simplifying contracting and compliance processes, which can otherwise become a drag on momentum.
In Pain and Gain in the Collaboration Journey, we unpacked some of the structural and cultural mismatches that often stall research partnerships, many of which are more acute in resource-constrained or time-poor environments.
So, What Should Change?
The CSIRO report closes with a series of policy recommendations that feel both pragmatic and timely:
Broaden the availability of low-cost, facilitated programs
Reduce administrative barriers to entry
Tailor support to the maturity and capability of the business
Strengthen pathways from smaller to larger programs
Invest more in regional delivery models
For those working in innovation policy or program delivery, these recommendations are hardly radical. But what’s valuable is that they are now underpinned by a bit more data.
The challenge now is to align funding settings, institutional incentives, and commercial timelines in a way that reflects the diversity of Australian SMEs.
For research institutions and governments, the message is clear: if we want more collaboration, we need to make it more usable. That means not just funding research but building the infrastructure, incentives, and tools to make it easy for resource-constrained SMEs.
Looking to build a high-impact collaboration?
Explore more on our Insights page, or get in touch to learn how we can help you access CSIRO Kick-Start, CRC-P, and other powerful opportunities to fuel your innovation.