The dual dependence on imported technology and local Research and Development (R&D) led to special strategies appropriate to the country and to the industry's national and international structure. These strategies clearly had to differ from those of the overseas majors. Some of the companies which entered the industry early and which pioneered industrial research in Australia carefully avoided the truncated structure of a branch plant operation, which concentrates on production and marketing only and relies on R&D from overseas licensors. These companies developed their own research, development, engineering and technical services departments as well as production and marketing and thus grew into fully integrated organisations. This mode was not always the most economic operation because of the high cost of local research and the smallness of the market. Other companies, particularly the subsidiaries of some American corporations which entered the Australian market relatively late, preferred to operate on the basis of most cost-effective acquisition of knowhow, usually from the parent company, as the principal consideration. Even though research intensity differs between companies, the industry as a whole (ASIC class 27) is more research intensive than any other of the major ASIC groups.

Australian Academy of Technological Sciences and Engineering