Australian universities have used the revenue from overseas student fees to enhance their international research standing. COVID-19 has undermined this business model. A new strategy is required, based on the universities' contribution to making Australian industry more self-reliant. This outcome will require a national industry policy, such as has been successfully pursued in Israel. Australia's universities will need to adjust their research activities in order to contribute to this end. The Australian government will have to provide the funds and direction. The universities too, need to embrace this vision.