In building capacity in research commercialisation and science-based entrepreneurship, Australia has adopted neither the Swedish top-down approach depending on government initiative, nor the American bottom-up approach depending on incentive systems related to university ownership of intellectual property and a highly competitive and entrepreneurial university environment. Instead, Australia has used a combination of government and university initiatives and support mechanisms. While significant progress has been made, there is some measure of disagreement about how Australia's performance compares with that of other industrialised countries, and certainly in many cases income generation for commercialisation to date is less than anticipated. While both Commonwealth and state governments have well-funded programmes to support innovation and commercialisation, there is reason for concern about the multiplicity of programmes and departments involved, about overall policy coherence, and whether business firms rather than universities are the main beneficiaries. University efforts generally have been assisted by their ownership of intellectual property and pressures towards increased entrepreneurial activities. But, with declining Commonwealth operating grants, many universities find difficulty in funding strong research commercialisation capacity without substantial cash flow from licensing or spinout companies.