Cross-sector collaborations to perform R&D are on the increase, but they do involve various risks for each of the partners. Project risks in such ventures are explored through a case study, a successful collaboration involving an Australian Cooperative Research Centre and Ciba Vision, a division of the Swiss multi-national Novartis. The analysis examines the project's success factors and its risks. The reputation of researchers, the development of mutual trust among the partners, and the importance of credible commitments made at project initiation are three key factors contributing to the success of commercially focused R&D collaborations.