3 innovative ASX shares to buy

Here's a closer look at 3 innovative ASX shares to buy to capitalise on Australian innovation, including Electro Optic Systems Hldg Ltd (ASX: EOS)

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Australia is an amazingly innovative country – from the medical application of penicillin, the invention of WiFi, right through to the cochlear implant or bionic ear. Heck, Australia was even the birthing ground for what would become Google Maps. It should come as no surprise then that there are a multitude of innovative ASX shares to buy.

If you're looking for ASX shares to buy that capitalise on our Aussie innovation, here are 3 very inventive smaller companies that are all working on groundbreaking technologies.

Avita Therapeutics Inc (ASX: AVH)

Professor Fiona Wood is the director of the Royal Perth Hospital burns unit, the inventor of spray-on skin, and the founder of Avita Therapeutics. This company develops spray-on skin technologies. The company's flagship product is RECELL. The primary use of the product is for burns, paediatric scalds and large surface area wounds, but the opportunities in genetic skin diseases, vitiligo and even aged skin rejuvenation are even more exciting.

The Food and Drug Administration (FDA) finally approved RECELL in September 2018. It recently redomiciled in the US where its major growth market lies. Its Q3 sales more than doubled compared the prior corresponding period. 

Although all technology companies are risky, I think this is a good ASX share to buy and likely to perform well from here. 

Electro Optic Systems Hldg Ltd (ASX: EOS)

Founded in 1983 from the privatisation of Commonwealth of Australia space activity, Electro Optic Systems develops advanced optical sensors. These have been applied to many high technology solutions, including the space situational awareness network in conjunction with the US. This monitors and tracks orbiting space-based objects such as satellites and debris using ground-based radar and optical stations. 

In the defence sector, it develops a range of remote weapons systems for use on tactical vehicles – products that are battle-proven technology, as well as world-leading counter-drone technology. On Friday, the company announced it was in negotiations with the Commonwealth Government over the purchase of 251 remote weapon stations and related material. This is part of the federal government's $270 billion capability upgrade for the Australian Defence Force.

Electro Optic saw its share price rise by 11.53% last week and has shot up by a whopping 21.99% today.

Brainchip Holdings Ltd (ASX: BRN)

Former West Australian Peter Van der Made has been at the forefront of computer innovation for 40 years. IBM and First International Computer in Taiwan own his past technology companies. 

He is also the founder of Brainchip Holdings, a company working in artificial intelligence (AI) headquartered in the US. Brainchip is the only pure play AI company on any share market globally. The company is working on semiconductor technologies to advance the capability of artificial intelligence. Its existing products reduce the carbon footprint of data centres, as their ultra low power use requires less cooling.

The company has developed a software package called BrainChip Studio to commercialise its technology. Uses of the technology include facial recognition in anti-terrorism and airport security, as well as pattern recognition in casinos. The company's share price finished the week up by 26.5% after announcing an important milestone in the progress of a first of a kind AI technology. 

The company continues to commercialise its technology. I think this company has the potential to be to AI what intel was to personal computing.

Foolish takeaway

From mundane products like the garage roller door and the humble notepad, through to the first in-vitro fertilisation birth and the world's first vaccine to prevent cervical cancer, Australians are an inventive people. In my view, we are also getting a lot better at commercialising our discoveries.

BrainChip, Electro Optic and Avita are just some of the great innovative ASX shares to buy, but there are many others. These include exciting companies like Osteopore Ltd (ASX: OSX), Nanosonics Ltd. (ASX: NAN) and Polynovo Ltd (ASX: PNV).

Daryl Mather owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited, Electro Optic Systems Holdings Limited, Nanosonics Limited, and POLYNOVO FPO. The Motley Fool Australia has recommended Avita Medical Limited, Electro Optic Systems Holdings Limited, and Nanosonics Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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