RLS: Dr. Marshall, What is CSIRO?
LRM: The Commonwealth Scientific and Industrial Research Organization started in 1916 as the Advisory Council of Science and Industry and tackled invasive cactus called “prickly pear” that was a plaguing our agriculture. The visionary Prime Minister Billy Hughes believed that science was going to be the foundation of our fledgling nation’s national security and industrial and economic success. Today, CSIRO is largely modeled after the German technical innovation system, specifically Fraunhofer, Max Planck and Helmholtz.
RLS: Heading CSIRO is a prestigious position. Tell me about it.
LRM: Heading CSIRO is indeed an honor and a deep obligation. Fortunately I’m surrounded and supported by over 5000 great people who are “Team CSIRO.” Our organization covers every scientific discipline and just about every market. Entrepreneurs and VCs stimulate innovation and provide the supporting ecosystem.
RLS: Australia has the brainpower to support a STEM (science, technology engineering and mathematics)-based economy. Why has this not developed?
LRM: Good question. Australian scientists have produced over 100 world-leading STEM products including [products used in] Wi-Fi, vaccines, diagnostic assays and more. However, from all of these there is only one domestic company (Cochlear Ltd., Macquarie University, NSW) that has grown to significance from these inventions. We need more domestic growth and value creation to pivot our economy. All too often Australia’s intellectual property is commercialized in the northern hemisphere.
RLS: How can CSIRO compete?
LRM: CSIRO already serves 49 of the U.S. Fortune 500, and we’ve done that with no footprint here. We are establishing a physical presence in Silicon Valley to grow our knowledge and impact. Things tend to happen first there, which makes it a window on the future. We need that so we can properly fund our science and help deliver that future.
RLS: Collaborations usually involve working together. Can there be a win–win?
LRM: There must be a win–win. Australia in general and CSIRO in particular have first-class STEM facilities. These are staffed and managed by world-class domain experts. Australia provides an ideal setting for technical cooperation and things like clinical trials, out-of-the-box thinking in research. In fact, a very large fraction of U.S. medical startups do their clinical trials in Australia. Likewise, many U.S. digital companies pilot their new products in Australia because of a well-supported scientific infrastructure, much of which is publicly funded. For example, the Australian Synchrotron light source is an excellent source for determining protein structure from nanocrystals.
Australian technologists and those of CSIRO in particular are eager to collaborate with firms such as virtual biotechs, resource upgrading, environmental remediation and food processing and safety. We work with companies to address needs in markets around the world. There will be 10 billion people on this planet within decades and we need to accelerate productivity and smart solutions to provide a good quality of life for this population. Remember, more than half of those people already live closer to Australia.
RLS: How can entrepreneurs work with CSIRO and academic institutions?
LRM: Historically this has been a challenge, but last year we launched ON—Australia’s first science accelerator, which is like a digital incubator for deep tech. To make this work we have entrepreneurs-in-residence, like VC firms do. We partnered with local and Silicon Valley investors and market experts to help the teams. We crowd-sourced over 200 great ideas, but it could only work with nine teams, so you can get a sense that there’s a lot of talent to mine. We worked with hundreds of entities each year and have evolved our processes to be more flexible and simple so that more resources are focused on the science rather than the contract.
We are a long way from Silicon Valley, but digital technology has flattened the world. For example, we have worked with NASA for 50 years, running the Canberra Deep Space Communication Complex. Another example: For almost three decades, CSIRO has had a permanent staff member at Boeing in Seattle, Wash., on a partnership basis.
RLS: It seems that CSIRO wants to make bigger pies and more of them. Is there more?
LRM: Yes, but there’s a catch—everything we do must have national benefit. It is true that we are looking to drive more innovation in startups and small and medium-sized enterprises (SMEs), but this is to drive economic and societal benefits to Australia. When this produces an economic benefit, we reinvest in better science to leverage more innovation. This is a virtuous cycle that we are trying to catalyze. Just look at Wi-Fi. Wi-Fi is a brilliant invention, but it doesn’t become an innovation until it enables the functionality of billions of devices globally. Australia enjoys a history of invention, but we must master the process of creating good business from our inventions. For success, it is essential that the global society and Australia both benefit from the unique attributes of Australia.
I see the potential of CSIRO is based upon the symbiotic relationship that exists with our people, partners (especially universities) and country. We know that innovation today almost always involves people with diverse backgrounds and skills applying these to advance our society.
RLS: Developing entrepreneurial scientists is a topic that appeared in each breakout session at the meeting. Stanford University’s program was cited as an example. You spent a lot of time at Stanford. What do you think about developing similar programs at major universities in Australia?
LRM: Before landing in the States 26 years ago, I had no idea that entrepreneurial professors or students existed, or that entrepreneurial efforts could be compatible with academic programs and institutions. My view has changed completely. At CSIRO we have our own entrepreneurial program focused specifically on science (modeled somewhat on Steve Blank’s i-Corps program1), and we will be providing this to universities across Australia.
RLS: This symposium presented a collage of images. What is the take-home message?
LRM: The purpose of the symposium was to get on the radar screen of Silicon Valley ecosystem—entrepreneurs; visionary, high-tech companies; investors; and California’s government. Silicon Valley is a window to the future—we need that vision to be sure that we invest in the right science to support the future. We want Australia and particularly CSIRO to be thought of as potential partners in developing products and providing innovative solutions to vexing problems, from innovation to the environment. California’s drought is something we should be collaborating on. In return, we like to develop mentoring relationships to help Australian firms catch the brass rings.
Reference
- https://steveblank.com/2014/06/26/i-corps-nih-pivoting-the-curriculum/