Based on interviews, this article provides a case study of the experiences of academic staff at one Australian regional university in undertaking contract research projects sponsored by government departments and agencies. Academics from a surprisingly diverse range of disciplines are attracted to government‐sponsored research for a variety of reasons but particularly important is the financial support provided for research projects and postgraduate research students. Projects vary in scale, amounts of funding involved and purposes, with research activities covering a wide range of different activities including collection and analysis of data, provision of documentation on good practice, design of implementation strategies, evaluations, organisational reviews and policy recommendations. Overall, respondents are highly positive about their experiences, despite problems such as delays in payment of funds, inappropriately restricted timelines, frequent changes in senior agency personnel, unrealistic expectations, and restrictions in the use of data and publication of results. While many academics from different disciplines provide policy recommendations and carry out evaluative studies, few are well informed about the extent to which their work is actually utilised.