Traditional approaches to funding and market entry may no longer be enough. For Australian biotech businesses, decisions about where research takes place, how development is funded, and which international partnerships and collaborations to pursue are becoming increasingly important.
These questions were central to the recent AusBiotech 2026 conference session sponsored by Grant Thornton, where the discussion moved beyond Australia’s scientific strengths to focus on what companies, investors and policymakers need to put in place to turn that capability into globally competitive businesses.
Building on strong science
Australia has strong scientific and clinical research capabilities, but science alone does not create an investable biotechnology business. Investors need confidence that you can reach your next milestone, produce credible clinical evidence, and explain how that evidence supports the regulatory and commercial pathway ahead.
Capital increasingly follows clinical data – generating robust evidence takes time, resources and careful planning. Your research program needs to do more than reach the next developmental milestone, it should also strengthen the investment, regulatory and commercial opportunities that follow.
This means treating funding as an ongoing strategic priority, not a problem to address when capital is running low. R&D tax incentives, government grants and private investment can all support your funding runway, but they work best when considered together from the outset.
Looking beyond Australia
Changing international conditions are influencing where companies conduct research and trials, and how they approach new markets. Uncertainty around US policy and regulatory settings may prompt businesses to reassess their development strategies. The US remains an important market, but the changing environment reinforces the value of considering where else research, trials and commercialisation could take place.
Australia has an opportunity to build deeper relationships with complementary biotechnology and clinical research ecosystems. Rather than viewing these markets simply as destinations for expansion, Australian businesses can consider what their capabilities offer at different stages of research, clinical development and commercialisation. Such partnerships may help companies access expertise and infrastructure while strengthening their pathway to international markets.
International expansion also introduces practical complexity. Tariffs may increase the cost of imported equipment or research materials, while tax treatment and other cross-border arrangements can affect the overall cost of operating across jurisdictions. These factors should inform decisions around where research, trials and commercial activities take place.
Although these considerations may seem secondary to the science, they can materially shape how and where a business grows. Assessing them early, alongside clinical and commercial decisions, gives businesses more flexibility as their international strategy develops.
Supporting long-term investment
Access to capital remains critical for biotechnology businesses, which can incur significant costs long before generating commercial returns. With development cycles often spanning many years, companies and investors also need confidence that the policy settings supporting research and development will remain sufficiently stable to inform long-term funding and investment decisions.
Australia’s R&D tax incentive can play an important role in supporting eligible businesses through long development cycles. Its value extends beyond the incentive itself, but the greater certainty it can provide when planning future research and funding requirements.
There’s also an opportunity to improve awareness of Australia’s R&D tax framework among international businesses and investors considering Australian operations. Greater certainty and understanding around these settings can help strengthen Australia’s proposition as a location for research and development.
Government grants may provide an additional source of support for eligible businesses. For companies exploring overseas markets, the Export Market Development Grants (EMDG) program may also be relevant. These options are best considered alongside private investment and other sources of capital as part of an overall funding strategy.
Accelerating development responsibly with AI
AI can accelerate parts of the research and clinical development process, from research and analysis to reducing the administrative burden associated with clinical trials. Its value, however, depends on using it where efficiency gains can be achieved without weakening confidence in the evidence. Data integrity, privacy and human oversight remain essential, particularly when an error could affect research quality or clinical decision-making.
For decision-makers, the challenge is to identify where AI can add value without overlooking its limitations. Clear accountability and appropriate governance will be important as the technology becomes more integrated into research and clinical development.
The way forward
Australia already produces great science; the opportunity now is to turn more of it into globally competitive biotechnology businesses. Achieving this will require credible clinical evidence, long-term capital and coordinated decisions about development, international markets, incentives and emerging technologies. Companies that treat these factors as one connected growth strategy will be better placed to translate scientific capability into commercial success.
For biotech businesses planning their next stage of development or international expansion, speak with our team about aligning clinical development, funding, incentives, cross-border considerations and commercial strategy with your growth plans.
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