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Craig is recognised world wide as a leader on recording, generation, and perception of spatial audio. In 2005 he was awarded a QEII Fellowship to pursue this research.
Craig's research investigates signal processing related to spatial audio and also models of the human auditory system related to spatial audio perception and auditory scene analysis.
Craig's most significant contribution to the field of audio engineering is the invention of a spatial hearing aid for which he was recognized nationally. The spatial hearing aid restores the ability of hearing aid users to localise sounds and the ability to follow a conversation amongst a number of competing conversations - skills that are lost with current hearing aids. His background in spatial audio served him to develop the first hardware/software version of this spatial hearing aid. This hearing aid work is being commercialised through a University of Sydney spin-off company. His current research focus is on spatial audio research, which deals with all aspects of the spatial perception of sound. This includes the study of how humans localise sounds, the effect of room acoustics on sound perception, speech perception in rooms, recording of spatial sound fields, playback using our 64 loudspeaker array (under construction), generation of augmented and virtual reality audio, 3D voice communication systems with location aware computing, and the role of spatial audio in music and cinematic presentations. He has recently invented a new type of spherical microphone array  and contributed to the development of the binaural decoder for MPEG Surround .  A. Parthy et al., "Optimization of Co-centered Rigid and Open Spherical Microphone Arrays", Proceedings of the 118th convention of the Audio Engineering Society, Paris, France, May 2006, Convention Paper 6764, P17-26.  J. Breebart et al., "Multi-channel goes mobile: MPEG Surround Binaural Rendering", AES 29th International Conference Audio for Mobile and Handheld Devices, Seoul, Korea, September 2-4, 2006.
Creating the Sydney York Morphological and Acoustic Recordings of Ears Database
as author at IEEE International Conference on Multimedia & Expo (ICME), Melbourne 2012,