Collaborations between small and medium enterprises (SMEs) and universities or research institutions (URIs) are recognised as critical drivers of innovation, however little analysis has been undertaken to understand the individual commercial outcomes for SMEs and how collaboration influences their future planning and growth.
In partnership with the University of Queensland, this report and research, seeks to investigate Australian SMEs’ outcomes from collaborations with URIs, with a particular focus on those that have taken part in three types of collaboration programs:
- Facilitated dollar-matched programs
- Competitive grant programs
- Student programs.
A survey of 201 businesses across various sizes, geographies and sectors, revealed insights into the role and effectiveness of these collaborations. Performance outcomes were analysed across three domains: innovation and business capability, organisational impact, and additional collaborative outcomes.
Key findings
- Collaborations with URIs accelerate SMEs’ ability to innovate and bring ideas to market
Projects lead to tangible outcomes such as new/improved products, prototypes, and derisked early-stage R&D. - SME-URI collaboration supports businesses as they grow
Micro and small businesses focus on early-stage innovation; larger firms access external R&D funding and tackle more complex innovation challenges. - Collaboration helps SMEs address challenges and opportunities specific to their industry
Medtech/biotech firms focus on derisking early‑stage R&D; manufacturing and digital technology SMEs focus on product development; energy firms prioritise independent validation. - Facilitated dollar-matched programs lead to tangible outputs, and competitive grants support more sophisticated collaboration
Different program types achieve certain outcomes, aligned to the varying sizes and maturity levels of SMEs. - Facilitated dollar-matched programs achieve a similar overall impact to higher-value competitive grant programs
Similar impact magnitudes were found in some areas including new collaborations, access to further grants and improved competitiveness. - Regional SMEs gain greater outcomes than metro SMEs
Regional SMEs benefit more strongly from collaboration, scoring more highly than metro in almost all positive categories.
Recommendations
- Continue to foster collaboration between SMEs and URIs by reducing barriers, and increasing awareness through targeted outreach and industry initiatives.
- Align programs to support SMEs as they grow and mature by reducing program ‘gaps’; businesses can maintain relationships and maximise innovation outcomes.
- Tailor programs to industry-specific needs and opportunities aligning programs with sector priorities to effectively leverage URI partnerships for growth and impact.
- Broaden the availability of facilitated programs: lower-cost programs, particularly focusing on micro- and small firms, should be expanded.
- Invest in tailored programs for regional businesses since the outcomes of SME‑URI collaboration are magnified.
Download the report
- Commercial outcomes of SME-Research collaboration
- Commercial outcomes of SME-Research collaboration - accessible text only version
Collaborations between small and medium enterprises (SMEs) and universities or research institutions (URIs) are recognised as critical drivers of innovation, however little analysis has been undertaken to understand the individual commercial outcomes for SMEs and how collaboration influences their future planning and growth.
In partnership with the University of Queensland, this report and research, seeks to investigate Australian SMEs’ outcomes from collaborations with URIs, with a particular focus on those that have taken part in three types of collaboration programs:
- Facilitated dollar-matched programs
- Competitive grant programs
- Student programs.
A survey of 201 businesses across various sizes, geographies and sectors, revealed insights into the role and effectiveness of these collaborations. Performance outcomes were analysed across three domains: innovation and business capability, organisational impact, and additional collaborative outcomes.
Key findings
- Collaborations with URIs accelerate SMEs’ ability to innovate and bring ideas to market
Projects lead to tangible outcomes such as new/improved products, prototypes, and derisked early-stage R&D. - SME-URI collaboration supports businesses as they grow
Micro and small businesses focus on early-stage innovation; larger firms access external R&D funding and tackle more complex innovation challenges. - Collaboration helps SMEs address challenges and opportunities specific to their industry
Medtech/biotech firms focus on derisking early‑stage R&D; manufacturing and digital technology SMEs focus on product development; energy firms prioritise independent validation. - Facilitated dollar-matched programs lead to tangible outputs, and competitive grants support more sophisticated collaboration
Different program types achieve certain outcomes, aligned to the varying sizes and maturity levels of SMEs. - Facilitated dollar-matched programs achieve a similar overall impact to higher-value competitive grant programs
Similar impact magnitudes were found in some areas including new collaborations, access to further grants and improved competitiveness. - Regional SMEs gain greater outcomes than metro SMEs
Regional SMEs benefit more strongly from collaboration, scoring more highly than metro in almost all positive categories.
Recommendations
- Continue to foster collaboration between SMEs and URIs by reducing barriers, and increasing awareness through targeted outreach and industry initiatives.
- Align programs to support SMEs as they grow and mature by reducing program ‘gaps’; businesses can maintain relationships and maximise innovation outcomes.
- Tailor programs to industry-specific needs and opportunities aligning programs with sector priorities to effectively leverage URI partnerships for growth and impact.
- Broaden the availability of facilitated programs: lower-cost programs, particularly focusing on micro- and small firms, should be expanded.
- Invest in tailored programs for regional businesses since the outcomes of SME‑URI collaboration are magnified.
Download the report
- Commercial outcomes of SME-Research collaboration PDF (2 MB)
- Commercial outcomes of SME-Research collaboration - accessible text only version TXT (76 KB)