Hosted by Slattery IT, the Tech23 technology showcase will be held at Surry Hills in Sydney on 23 August.

The awards are funded by the NSW Government. Deputy Premier and Minister for Trade and Investment Andrew Stoner encouraged innovative new companies to apply.

“Tech23 will give 23 of the best new Australian companies the chance to pitch their cutting edge technologies to an audience of around 400 potential investors, mentors, entrepreneurs and customers,” he said. “By bringing together the best emerging technologies and investors, Tech 23 is a practical initiative that helps foster new commercialisation and business opportunities.”

Awards include:

Broadband Innovation Award—$25,000 for the company whose business model, product, service or solution has the best ability to drive demand through broadband services

Outstanding Collaboration for Innovation Award—$25,000 for the company which best demonstrates active engagement in a business partnership or collaboration contributing to the development of their innovation

Community Contribution Award—$25,000 for the company best demonstrating how their innovation will significantly and measurably benefit their local or national community

Greatest Potential Award—$25,000 for the company which best demonstrates how they will progress their business model to the next level providing the greatest potential for growth and progress

Innovation Excellence Award—$50,000 for the company judged the best of the Tech23 by demonstrating how their innovation is unique, underpins company performance, industry dynamics, productivity change and economic growth.

For more information or to apply, visit Tech23.

Applications close on 24 June 2011. Successful applicants will be announced in mid-July.

On this foundation of ingenuity, Australians have been behind some of the biggest inventions to shape the globe. Lawrence Hargrave’s experiments with box kites in the 19^th century were the first form of manned flight. The development of penicillin for medicinal use in the 1940s by Howard Florey has saved millions of lives. David Warren’s creation of the black box flight recorder in the 1950s has shed light on crash mysteries and improved air safety.

In modern innovation Australian researchers, innovators and garden shed tinkerers work hard to create new and novel products, systems and technologies every day, generating intellectual property (IP). IP is the intangible products of the mind or intellect that can be protected through informal methods such as trade secrets and employee contracts, or through formal registration. Registered IP includes patents, trade marks, designs and plant breeder’s rights. Like any valuable assets, they need to be protected.

First established in 1916 as the Advisory Council of Science and Industry, Australia’s first national laboratory, CSIRO was renamed the Council for Scientific and Industrial Research and has a huge range of IP including patents, trade marks and plant breeder’s rights.

In the 1930s and 1940s the Council focused on problems affecting agriculture, food preservation and fuel. By 1951 the agency was renamed CSIRO and they had began to innovate across all sectors of Australian society and industry, from radar technology used by the Australian military during the Second World War to an insect repellent used to make Queen Elizabeth II more comfortable on her 1963 visit. It was later commercialised by Mortein and went on to become the household name Aerogard.

Focusing on comfort and convenience, the 26-year-old entrepreneurs have invented a pair of thongs that triple-fold into a carry-anywhere pouch.

“I had this idea, having seen a few girls walking around in sky-high heels, that maybe something small, portable and comfortable that still looked good could be created as a take-anywhere accessory,” Lipschitz says.

Lipschitz invested his savings in the start-up with his design graduate friend Munitz at the beginning of 2009. The pair spent six months in research and product development.

Having never designed shoes before, Munitz spoke to podiatrists and shoe manufacturers, investigating different materials. “It was quite difficult having something that folded up but still had the rigidity for protecting your foot,” Munitz explains.

Each new design needed a prototype, which took four hours to make, “just so you could walk in it for 10 metres to see how it worked!”

Soon they had a prototype that worked and they hit the club scene to gauge reaction to their idea, then sought out manufacturers offshore and refined the design until they knew they had a saleable product.

From there, Lipschitz explains, “We needed a branding strategy, a good website and also an awareness campaign.” After working with experts in each of those fields Lipschitz and Munitz launched Flipsters in October 2009.

A targeted PR campaign generated enough interest to get Flipsters stocked in 120 Australian retailers in their first year. The first article was picked up by Reuters and circulated around the world and, as emails flooded in, the world of export opened up.

“We didn’t know if it was too soon. But once people start knocking on your door you have to entertain the idea that you can export,” Lipschitz says. The pair entered into cautious negotiations with distributors in several countries. “We made sure that we weren’t putting ourselves at too much risk.”

Now exporting to Ireland and Canada, the entrepreneurs hope Flipsters will be a hit in many different markets. “We’d like everyone to share in the fruits of what we’ve created,” Munitz says proudly.

Their strategy is to take it slow and not over-extend their reach. “We’re keeping it reactive because we’re still so young. We don’t want to bite off more than we can chew. America is a country that can make or break you and while it’s definitely our number one goal market we won’t enter until we’re ready, we can afford to financially back any orders. And we’d need excellent production to ensure we can churn out everything that might come from having a good relationship with America,” Lipschitz says.

Both men confess to having no idea what women want. But this forced them to research everything, and they agree this has resulted in a better product.

“It’s versatile, it’s waterproof, you can use it at the beach, for travel, after pedicures,” Lipschitz says. These features and the unique design are what they hope will differentiate Flipsters from competitor folding ballet flats.

With a price point of just $29.95 a pair, Lipschitz knew that securing high volume distribution would be vital to cashflow and is pleased with how quickly Flipsters landed in stores.

And while the last year might sound like a dream, Lipschitz is quick to credit painstaking research to their early success. “When we’re uncertain, the thing that has saved us is a lot of research. That is what has given us the confidence to move forward in a particular direction.”

For export, Lipshitz says it’s just the beginning. “It’s really cool when you get an email from overseas from someone in a completely different market who is saying, ‘Hi, I want your product here.’ It’s so exciting.”

The ship will be the first fast craft built under the high speed craft (HSC) code to be powered by gas turbines using LNG as the primary fuel. The successful execution of this contract is expected to pave the way for commercial ferries to be built with lower emissions and operating costs.

Incat chairman Robert Clifford said, “This first LNG powered ship will set the scene for the future,” predicting the use of natural gas will replace conventional oil fuel for shipping.

Diesel powered vessels need two engines and two waterjets per hull. The Incat design has one GE Energy LM2500 gas turbine in each catamaran hull, using marine distillate for standby and ancillary fuels.

The 1,000 passenger and 153 car-carrying ferry will be built at the Incat Tasmania shipyard in Hobart. The ship will be designed by Incat engineers in collaboration with Revolution Design engineers and GE Energy in Europe and the United States, the company responsible for the gas turbine engine design.

The Australian developed Arondight oar was launched at the Championships held from 31 October to 7 November at Lake Karapiro in the North Island.

The Arondight technology collects data that shows exactly how the rower is performing on each stroke and which can be used to benchmark performance and measure improvement.

The oar, named after Knight of the Round Table Sir Lancelot’s sword, is the result of a joint venture between Brookvale company Talon Technology and Croker Oars of Taree with testing support from the Australian Institute of Sport and funding from the New South Wales Government.

The Australian Institute of Sport plans to use the Arondight oars to analyse the performance of its elite rowing development squad during competition and practice.

The system, which runs on a rechargeable eight hour lithium battery, can be fitted to any Croker oar and easily moved from boat to boat. It enables comparison of several rowers across 54 measurement categories.

Talon Technology, which specialises in carbon fibre design and manufacture, developed the data gathering technology.

Croker Oars exports to markets including Japan, the United Kingdom, Switzerland and Germany, the United States, Canada, Thailand, South Africa, Hong Kong, New Zealand and Norway.

In 1974, a commercial television station in Australia held a telethon to raise funds to take an obscure Australian biotech project to prototype. Four years later, the medical device was implanted in the first human patient and 71-year-old Rod Saunders heard sound for the first time in 25 years. Now Australia’s most famous medical invention, the Cochlear story aptly demonstrates the barriers faced by Australian innovators in the medical industry.

According to Janelle Casey, Austrade’s global leader for Biotechnology, Health and ICT, “we face difficulty in commercialising innovation because we need capital injection, and that’s traditionally really hard for Australian innovation and technology in this country”.

Despite this handicap, Australian bioengineers, scientists and doctors are punching well above their weight in the global healthcare industry. Children with minor infections have benefited from Howard Florey’s discovery of the curative effects of penicillin. Many Australians with a snoring bedfellow have peaceful nights using Resmed’s treatment devices for sleep apnoea.

Victims of the Bali bombings healed quickly with the application of spray-on skin for horrific burns, developed in Western Australia, and women all over the world face less risk of developing cervical cancer following the Australian development of Gardasil, the first vaccine against human papillomavirus.

Even with these achievements, Australian exporters hold only a tiny share of a world medical market worth US$174 billion. The global medical technology industry is growing at a rate of 10 percent per annum, and with population on the rise, it is an industry set to take off. The Australian medical technology industry is worth $6.7 billion, and is expanding slightly faster than the world market at 12 percent each year. Casey believes that with less than one percent of the world market, the opportunities for Australian companies are endless.

New exporters

Australians can be ruthlessly competitive in a world market, provided they believe in their product and are prepared to put time and energy into penetrating international markets, says Alan Oppenheim, CEO of Ego Pharmaceuticals. Oppenheim sits at the helm of an Australian household name that has been exporting for 50 years.

“You can’t do too much research. Get to know your new market and how your channel will run in the new market,” he advises. Ego Pharmaceuticals provides a good example for new exporters looking to emulate Australian success. An Australian-owned small business, Ego has been competing with multinationals in the world market for decades. They have 40 staff in eight countries, but spend little on marketing. Profits are channelled back into research and development because, as Oppenheim warns, “all the marketing in the world is only going to sell the first bottle”.

New exporters should take advantage of Austrade’s export assistance programs, including Commercialisation Australia and even the recently slashed export market development grant (EMDG). Austrade organises Australian pavilions at major international trade fairs, including Medica in Germany, the Asia Medical Fair in Singapore and Arab Health in the Middle East, allowing Australian businesses to exhibit at a fraction of the usual cost.

Small Australian companies can leverage the total dollar spend of the Australian trade mission to see what opportunities are available. “You have to go overseas,” Casey says. “You have to see who you’re competing with and where you fit to help you work out your positioning, pricing, market entry models and distribution channels.”

Existing exporters

An understanding of where Australia fits in the market is essential for existing exporters looking to expand. Casey advises against businesses competing on consumables, as manufacturing in Australia is too expensive to be competitive in the export of low value medical products.

Where Australia can exploit its advantages is in high value, niche industry products. Australian companies can trade off competitive innovation, quality research and development and a powerful precision engineering sector with a long-term record in the automotive industry. “We really have quality expertise to help prototype our medical devices here in Australia,” Casey says. “Contract manufacturers can do short runs of prototypes easily.”

While traditionally Australia’s biggest export markets in the healthcare sector have been in the Asia-Pacific, the Middle East is an important emerging market for exports. “The Middle East has a big shortage of hospitals,” Casey says. “Saudi Arabia alone is building 200 new hospitals and they’re looking to fit out with a whole range of medical equipment and devices.”

Australia has a good reputation in the Middle East and, according to Casey, because Saudi Arabia, Kuwait and the United Arab Emirates have adopted Australian medical standards, making it simple for Australian companies to enter the market there, we have a particular competitive advantage.

“From communications and transport, to product development and marketing, innovation is constantly transforming the world of business. Much of that innovation is taking place in the UK through exciting collaborations with businesses from around the world,” said Richard Morris, director-general of UK Trade & Investment Australasia.

The competition runs until 30 July, after which three people with the most compelling predictions will each win two business-class tickets to London, plus a week’s accommodation, where they will meet industry leaders and discover how the UK can be their springboard for global growth.

Submit your prediction to the Your Business Tomorrow campaign (www.yourbusinesstomorrow.com) to be in the running. Shortlisted predictions will be voted on in July.

“Brand Australia is about selling Australia to the world and demonstrating the full versatility and diversity this nation has to offer. Being the ‘quiet achiever’ is not going to cut it in an increasingly competitive global market,” said Crean.

The new branding concept derived from a need to extend Australia’s reputation as a great holiday destination to covering our success as a “dynamic and creative nation, a good global citizen and a strong business partner”. M&C Saatchi won the tender from 60 submissions.

Crean cited our scientific and technological success with 11 Nobel prize winners, WiFi technology, the bionic ear and a vaccine for cervical cancer. “Australia Unlimited has the breadth to market all of Australia’s strengths—grounded in our commitment to innovation and quality,” he said.

Australia Unlimited will be launched internationally at the Shanghai World Expo on May 20.

Rise of the Phoenix

The Bronze Age was thousands of years ago, but in the form of an innovative Australian exporter it has enjoyed at least an economic renaissance of late. Phoenix Foundry, located in the small New South Wales town of Uralla, has enjoyed a steady growth thanks to a downturn-proof trade: death.

“Our bread and butter comes from bronze plaques that are put into cemeteries. People continue to die, unfortunately, so we’re in a completely different environment to luxury items,” says chief financial officer Monicka Baird.

While Phoenix have been known to do one-off plaques for prestigious sites such as the rising sun on Sydney’s Anzac Bridge, and the coat-of-arms in Parliament House and the Australian War Memorial in London, it owes the bulk of its success to the repeat business of cemeteries worldwide.

And success hasn’t just been financial, says Baird, noting that having overseas clients has improved their production efficiency and innovation. “We use bronze alloy of the highest quality, which minimises failures, so we can send the plaques out quicker. Because the quality of the product is so good and we can make an infinite number of styles of plaques, it means we’ve set ourselves apart to other companies in the marketplace,” she says. “It’s about selling really good product in good timeframe, then you’re giving the customer what they want.”

Its challenge in the past couple of years has been one of growth, including having to increase capacity and efficiency without affecting customer service. Coming from a small town, the business also places great importance on ensuring a ready supply of talent, Baird notes. “The reason we’ve been able to rise out of the GFC is our people. They’re skilled at what they do. We have a very tight group of managers who work together closely to the common goals that the company has, and that all comes down to the quality of the product and the service we give our customers.”

Phoenix’s next move will involve this winning combination of the right people and the right product. The foundry has strong footholds in Canada and the United Kingdom and is on the lookout for their next destination. “We’re constantly looking at countries around the place. It comes down to research, down to someone on the ground doing the legwork, talking to the customers and listening to what they need,” says Baird. “Get someone on the ground who understands the customers. When you have that right, it spreads via word-of-mouth.”

The business also has some new lines emerging and a development that could “revolutionise” bronze making, according to Baird, though of course she can’t elaborate. But there’s no doubt constant innovation has proved part of a good formula.
“We have a very strong research and development team and we’re constantly researching and developing new products for the marketplace,” Baird says. “We don’t go out there and compete with existing markets unless we can provide something that is new and interesting. It’s certainly the innovation that wins us business.”

Don’t think that the business’ ambition stops there, either. Like the bronze it produces, Phoenix Foundry wants to be around for a long time, she remarks. “We’re hoping to be the best producer of this product in the world, and we think we’re very close.

“Australia needs to move past the ‘digging it out of the ground and growing it mentality’ on which we have based our export industry. We have excellent innovation that goes on throughout Australia on a regular basis but without an effective framework for research and development, this innovation is either developed overseas or never sees the light of day,” he said.

Owen believes many new companies find it difficult to break into mature international IT markets due to a lack of government and industry support when promoting and exporting new technology products.

“We need to have a dramatically improved framework to actively encourage and ensure that we can not only develop new technology but that we can commercialise and market it internationally as well,” he said. “It’s unfortunate that a company that’s developed something fantastic in Australia would feel the need to list in America, where venture capitalists are more likely to back new technology, because they won’t get the support in research and development at home.”