DMTC, the first DFCTC established, is a joint-venture that brings together expertise and resources from industry, universities and publicly-funded research agencies to develop and deliver materials science technologies for specific future Defence capability.

The DFCTC program was announced in the 2007 Defence and Industry Policy Statement. The program links researchers with industry to generate research results and outcomes that can be readily transitioned into service in the Australian Defence Force (ADF) through commercialisation or building and enhancing defence industry capabilities.

DMTC provides funds for industry-led collaborative research to develop and deliver materials and manufacturing technologies specifically targeted for use in the Defence industry. In the future, an essential part of the DMTC model – Intellectual Property (IP) developed by DMTC – will also be available to industry under licence.

DMTC research develops materials for defence components – for example, new materials that are stronger, lighter or more functional than those currently in use. Some research will focus on manufacturing processes: finding better and faster ways of doing things as well as reducing costs and streamlining the supply chain. Improving the efficiency of processes, improving the performance of products, facilitating maintenance for existing assets in new ways, customising existing assets to Australian requirements and reducing production costs are also means to enhanced capability.

DMTC was established as an $82 million centre – with seed funding of $30 million from the Commonwealth Government, $7 million from the Victorian Government and $45 million from industry and research sector participants. Every dollar of the funding will be spent to maximise the effort going into industry research to enhance Defence capability.

There are a number of pathways for Defence to gain the benefit of DMTC research and development. Defence may gain the benefit through DSTO or through industry by either direct or indirect means.

DMTC comprises core corporate staff at the Melbourne headquarters and approximately 60 people (mainly engineers and scientists) working in industry, research agencies and universities on projects.

DMTC members are a wide-ranging cross-section of the industrial and technological supply chain supporting Australia’s Defence capability. The 13 founding core partners are from Defence related industry, universities and other publically-funded research organisations. The 16 founding supporting partners represent industry throughout the supply chain and provide enabling and contracting services to support the work of the core partners.

Parties wishing to participate in DMTC activities submit proposals for consideration by the DMTC Board. It is normally expected that participants would make an initial cash contribution and demonstrate their ability to bring value to DMTC through specific proposed project and providing specific expertise and capability.

Industry organisations are able to use DMTC as a strategic investment to improve their product. They recognise they have to innovate to survive, and the R&D funding available under the DMTC program is a means to achieve this. DMTC matches research funding at a rate of $1.50 for every $1.00 invested by the industry partner.

For the start-up project selection process, DMTC’s participants identified current and future technical demands and projects to address them that offer benefits to Defence.

DMTC is a Defence-funded CRC. DMTC was established and is governed under the highly successful Department of Innovation, Industry, Science and Research Cooperative Research Centre (CRC) Program model and is funded under the DMO Defence Future Capability Technology Centre (DFCTC) initiative.

DMTC research is industry-led, and the needs of a specific end-user are targeted for the research outcomes. This characteristic differentiates DMTC from the established CRC system

DMTC’s research will be conducted under four research programs; air platforms, maritime platforms, armour applications and propulsion systems. The goal in all platforms will be to enhance Defence capability in the particular area of application.

DMTC is a not-for-profit company limited by guarantee. It has an independent Board of Directors with a range of relevant skills. Members of the Board represent industry, research agencies and universities and are elected. The Board is responsible for ensuring that DMTC satisfies the requirements of the Australian Taxation Office (ATO) and that Australian Securities and Investment Commission (ASIC). It meets monthly to ensure current projects are progressing according to plan and to consider new project proposals.

DSTO and DMO are Australian Defence organisations: DSTO, as the primary technology adviser to Defence, will provide an established conduit for informing the ADF about DMTC outcomes. DMO has a global focus on equipment and supply chain for Defence procurement. DSTO is a DMTC participant and directly involved on some of DMTC’s research projects.

DMTC is based on a whole-of-supply-chain concept. This provides a unique opportunity for SMEs to become part of a global supply chain for the new technologies through the provision of their machining and manufacturing technologies and their contract expertise.

It will be the responsibility of the DMTC head office to ensure projects stay on track with regard to agreed time-lines and budgets. Robust and comprehensive reporting requirements will track the progress of individual projects and keep the focus on the outcomes sought from the research program.

From the outset DMTC programs will maintain a strong post-graduate and undergraduate research programs, enhance the skills of graduates and facilitate skills development and technology transfer among participants. There is also a plan to develop and facilitate modular courses for universities and industry groups.

DMTC technologies are developed for Defence but it is anticipated they will be commercialised for non-defence applications including civilian aviation, marine, medical, automotive and power generation applications. A very small number of the technologies will not be available to be commercialised in this way for strategic and national security reasons.

Recognising the level of synergy in technological advancements across many sectors of industry, DMTC encourages and expects the commercialisation of its research outputs. The leveraging potential of the program is expected to be key to its success.

DMTC will own any IP developed under the DMTC program. A project participant has conditional but non-exclusive royalty-free right to use any project IP under licence, and may apply to the Board for permission to sub-licence the IP to a wholly-owned subsidiary of the participant.

A project outcome that is commercialised under licence by a project participant may be further developed with industry funds. Defence can then, through leveraging its ownership of the R&D IP, draw back on the improved capability and apply it to enhance applications within Defence.