Davies is distinguished for his contribution to the introduction of semiconductor technology to Australia. In his early career he made significant advances in the theories of zone melting and non-equilibrium carrier transport in semiconductors and led a group which fabricated the first junction transistors in Australia. In 1960 he founded a physics-oriented research laboratory in industry where he has been responsible for advances, leading to many patents, in solid-state and device physics (novel integrated circuits; discovery of a new type of electret). He initiated continuing industrial development of new technology and also generated a new research group in the University of New South Wales.