A template for commercialising science and facilitating innovation

Purpose - Scientists are known for their good ideas, but packaging those ideas into a commercial format requires skills, funding, and processes for which many scientists and their research institutions are all too often not equipped. The Victorian Government of Australia has developed a successful initiative designed to facilitate and commercialise scientific innovations. The purpose of this paper is to document the processes and the lessons drawn from the establishment of the Science, Technology, and Innovation (STI) Initiative. Design/methodology/approach - This case study describes the Australian state of Victoria's STI Initiative over a four year period from its inception. The program was designed to enhance the ability to compete globally through commercialisation of Victoria's science capability and to facilitate greater industry innovation through collaboration with the science community. Findings - The STI case demonstrates how the program has exceeded expectations with proven return on investment in less than four years. The case describes the STI's history, structure, strategies, processes, and methods of monitoring and evaluation. It also describes problems and difficulties that have occurred and how these were overcome. One of the major findings of the STI Initiative concerns the development of governance structures for each project. Rather than introducing rigidity and decision speed‐bumps, the introduction of well‐designed governance structures provides rapid and useful feedback and favourable control measures. Practical implications - A large part of managing STI projects involves the establishment of funded grants and the development and management of commercial objectives and cooperation between the science and commercial sectors. It is argued that this successful format for commercialising science and facilitating innovation can be templated and therefore duplicated by governments almost anywhere in the world. Originality/value - The lessons from this case study support the argument that there is a need for structure to formalise a successful relationship between industry, science, government, and investors. The paper provides a format for such a structure based on the experiences of the STI Initiative based in Victoria, Australia.