Much environmental and health research is in this category where the public return is not realised until the community understands the research message and alters their behaviour in some way. In these areas Government funding is widely seen as the only way the research will be undertaken. The failure exists because purchasers are not able to capture many of the benefits of the research which spill over to all parts of the relevant industry. The Industry Commission has recognised this failure, and it is the main plank in Mortimer's call for public support for industry research through tax concessions. The CRC Programme has attracted international interest as a model creating a culture where commercial outcomes of research are occurring, and are more likely to occur.
Innovation requires a culture that always believes there is a better way of doing things.
Researchers tend to bring this view to relationships, since the research culture is driven by the belief that there is always a better explanation or predictive tool. The contribution of industry is in their experience of the market and the commercial world. This relationship is producing results, most noticeably in the CRCs first established. They have had time to work out the relationship, establish a joint approach to research and commercialisation, and to bring the ideas to fruition. The outcomes have been spin-off companies, patents, the attracting of venture capital, and the creation of valuable intellectual property.