2002 to 2006

Pharmaxis researches, develops and commercialises new therapies to bring relief to respiratory disease sufferers in Australia and internationally.

Founded in 1999, Pharmaxis listed on the Australian Securities Exchange in 2003 and has headquarters and manufacturing facilities in Sydney's northern suburbs. The company also has offices in the UK, North America and Asia.

"We wanted to build an Australian research-based pharmaceutical company that would control the development, marketing and distribution of its products," says Dr Alan Robertson, Chief Executive Officer. "The Australian Government's Innovation Investment Fund (IIF) and R&D Start Grant have helped us to build the business."

In 1999, the company was focusing on the development of new treatments for multiple sclerosis. "It was a disease I was very keen to assist with," says Robertson.

Pharmaxis' work attracted seed venture capital from the IIF through GBS Venture Partners in 1999. This capital gave Pharmaxis the impetus to identify other pharmaceutical products that might fill out its portfolio.

"We licensed some technology that was being developed at the Royal Prince Alfred Hospital in Sydney, which led to the creation of our products Aridol and Bronchitol," says Robertson.

A dry powder administered to the lungs via a portable inhaler, Bronchitol is designed to reduce the build-up of mucus in the lungs of patients suffering from chronic respiratory conditions, while Aridol helps diagnose asthma.

Bronchitol is also the first new treatment for cystic fibrosis in more than 15 years. In 2002–03, the Australian Government awarded Pharmaxis a $3 million R&D Start Grant to further develop Bronchitol.

"This grant helped us develop a pilot plant to make sufficient quantities of Bronchitol for clinical trials," says Robertson.

The conceptual, development and pilot work funded through the IIF and R&D Start Grant helped Pharmaxis go on to raise $250 million in capital over 10 years, including the Initial Public Offering in 2003. The company was also awarded a $6.1 million grant through the Pharmaceuticals Partnerships Program (P3) to further develop Bronchitol and Aridol, and progress treatments for multiple sclerosis and rheumatoid arthritis.

"The support we received through these programs really helped us get on our feet," says Robertson.

In October 2010, a European regulatory committee cleared the way for Bronchitol to be exported and sold in 27 countries in Europe for the treatment of cystic fibrosis in patients aged 18 and over.

The company is now working to secure reimbursement for the product in Australia.

Imagine you're driving along a suburban road towards an intersection. Thanks to some large houses and trees, a driver waiting at the intersection cannot easily see you coming. Running late to an appointment, they accelerate out towards you…

In most cases, this scenario could end in disaster. However, intelligent transport systems (ITS) equipment vendor Cohda Wireless is developing technologies that allow cars to communicate details to each other such as position, speed and direction.

Using this technology, your car would alert you to the other car's presence in plenty of time, allowing you to avoid an accident.

In 2003–04, Cohda Wireless was awarded around $730,000 through an R&D Start Grant, around the same time it formed as a 'spin-out' from the University of South Australia.

Cohda Wireless is currently manufacturing ITS equipment for field trials in Australia, Germany, France, the US and other countries. The company has six contracts with the US Department of Transportation to develop equipment for a 3000-vehicle trial in Michigan.

"Our technology is standards-based and uses a version of Wi-Fi designed to support automotive safety applications," says Paul Gray, Chief Executive Officer. "This gives a car 360-degree awareness of all the vehicles surrounding it – even when they are obscured from view."

The technology can also be used to reduce fuel consumption and trip times by feeding traffic status information to management centres, allowing planners to minimise traffic congestion. Cohda Wireless expects the first production vehicles fitted with its technologies to be on the road by 2015.

To help develop its first-generation product, Cohda Wireless was awarded a Commercial Ready Grant of around $630,000 in 2006 by the Australian Government. The company was also awarded a Climate Ready Grant of around $453,000 in 2009 to help deliver the second-generation traffic condition monitoring product. Cohda Wireless believes that by increasing the efficiency of traffic management, its second-generation product can cut road transport-generated greenhouse gas emissions by 10 per cent.

In addition, the company has obtained $70,000 through Austrade's Export Market Development Grants Scheme to help market itself internationally. "This is essential given the global nature of the automotive industry," says Gray. "We've also benefited from tax concessions most years. The R&D Tax Concession program has been particularly valuable as nearly everything we do is based around research and development."

Gray considers the grants invaluable in helping Cohda Wireless reach its potential. "We're in a very good position to capitalise on this emerging market. Having access to these funds has helped us keep the door open until the market takes off," he says.

Gekko Systems has come a long way since 1995, when the Australian Government assisted Elizabeth Lewis Gray and her husband with a $70,000 grant for 50 per cent of the funds required to research, develop and partly commercialise a gravity separation device that improves gold mining yields.

"Had we not received that grant, we would not have started the business," says Lewis-Gray, Chief Executive Officer and Managing Director.

In 1995, Gekko Systems employed one part-time staff member and had an estimated annual turnover of $55,000. Today the company employs 100 staff and has an annual turnover of nearly $40 million. Given that new mining technology takes an average of 15–20 years to be accepted by the market place, continued strong growth is expected.

Gekko Systems began as a single technology business but now specialises in designing and manufacturing minerals processing solutions that boost productivity, and reduce the environmental footprint and costs for mining companies worldwide, particularly those in the gold sector. More recently, systems have also been installed for the recovery of polymetallics – silver, tin and zinc – and coal.

The company is based in the historic gold mining town of Ballarat in Victoria but has always had a global focus. It operates offices in Johannesburg, Perth, Santiago and Vancouver, and has 400 units installed in 40 countries.

"We have been the beneficiary of government support at many significant steps in our 15-year history, and in nearly every case the support enabled and encouraged us to take a bigger, more ambitious step than we would have on our own," Lewis-Gray says.

The company's first assistance was a dollar-for-dollar R&D Start Grant for the development of the InLine Pressure Jig.

"During our early ventures into the export market we accessed Austrade's Export Market Development Grants Scheme – this grant encouraged us to attend overseas trade shows and importantly helped us to set up our first international office in South Africa in 2000," she says.

"In 1999, when we realised that mining companies wanted a 'real' company to buy from, we raised capital through the Innovation Investment Fund (IIF) program to help us invest in professional staff, smart offices and manufacturing premises.

"Having external investors and a proper board structure proved to be critical to improving our corporate professionalism and provided much-needed support and advice. A successful trade sale by IIF Fund Manager Amwin to a high profile business angel from the mining technology and services sector added new expertise that has helped the business develop its systems and flourish."

In 2004, Gekko was awarded a $1.2 million R&D Start Grant to miniaturise and modularise its gold processing system for operation underground. This project has a 10-year time frame but has already returned many multiples of the investment in export sales.

"Our long-term goal is to be regarded as the premium supplier of technologically advanced solutions for mineral processing in the gold mining industry," Lewis-Gray says.

Gekko's close technical relationships with senior companies in the mining sector including Australia's largest gold producer Newcrest Mining, indicate that Gekko is on track to achieve its aim.

Gekko Systems has also benefited from the R&D Tax Concession and received assistance offsetting duties for goods being exported into overseas markets through the Austrade TradeStart program.

In recognition of her experience and success in business development, Elizabeth Lewis-Gray was appointed to the Industry Research and Development Board on 15 December 2005.

On 17 September 2011, Perth-based shipbuilder Austal celebrated a major milestone – the christening of USNS Spearhead, the first Joint High Speed Vessel built for the US Navy under a $1 billion-plus contract.

Austal was the prime contractor for the ship's construction, and used innovative modular manufacturing techniques developed with the help of the Australian Government's R&D Start program.

The project is a feather in the cap of a company that designs and builds aluminium vessels for commercial and defence customers. Listed on the Australian Securities Exchange, Austal is also the prime contractor for the US Navy Littoral Combat Ship program and for a project to build and support eight new patrol boats for the Australian Customs and Border Protection Service.

In addition, Austal develops, installs and integrates shipboard systems, and supports its ships in service. The company operates shipyards in Perth, Western Australia; Mobile, Alabama and Balamban, Philippines. Austal also has other operations in the Middle East, Europe, Asia and the Caribbean.

In 2005, Austal was awarded a $2.37 million R&D Start Grant to develop its Advanced Shipbuilding Program. "We were working very hard to drive innovation and continuous improvement as a philosophy right into the core of the business," says Andrew Bellamy, Chief Executive Officer. "We established the Advanced Shipbuilding Program to research and develop new shipbuilding processes."

Bellamy believes the company is the only prime contractor building aluminium warships using modular manufacturing techniques. These techniques enable Austal to manufacture ships in individual 'blocks' rather than as complete entities.

"I genuinely believe that without the modular manufacturing capabilities, we would not have won the Littoral Combat Ship and Joint High Speed Vessel programs," Bellamy says. "In addition, our safety performance has improved, reducing our costs and helping us retain our workers."

Austal is now in a position to develop a technology transfer model. According to Bellamy, "We are considering whether we should license some or all of our know-how to other companies within this industry as a secondary income stream. This would allow us to work with partners in some untapped markets."